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Electronic Business Systems

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1 Electronic Business Systems
Module III – Business Applications Electronic Business Systems Notes go here! Enterprise Business Systems

2 Learning Objectives Identify the following cross-functional enterprise systems and give examples of how they can provide significant business value to a company. Enterprise resource planning Customer relationship management Supply chain management Enterprise application integration Transaction processing systems Enterprise collaboration systems Give examples of how Internet and other information technologies support business processes within the business functions of accounting, finance, human resource management, marketing, and production and operations management.

3 Enterprise Business Systems
Section 1 e-Business Applications e-Commerce Cross-functional Enterprise Systems Customer Relationship Management Enterprise Resource Planning Supply Chain Management Real World Case 1- Salesforce.Com Introduce Business Enterprise Systems. Compare author's use of e-Business with e-Commerce. Explain cross-functional enterprise systems and show how software can better control customer relationships and ERP supply chain management. Click the arrow to go to real world Case 1 – Salesforce.com. Click to go to Case 1

4 Enterprise Business Systems
New Product Development Process Customer Feedback Market Research Market Test Component Design Product Test Product Release Process Design Equipment Design Production Start PATIENTLY ALLOW TIME FOR ANIMATIONS TO WORK Use the animated graphic to explain the stages in the new product development process. Note how multiple steps are managed between major functions of the organization. A good place to discuss cross-functional applications. Marketing R&D/Engineering Manufacturing

5 Enterprise Business Systems
Enterprise Application Architecture Suppliers Employees Partner Relationship Management Selling – Distribution Partners Collaboration – Decision Support Knowledge Management Supply Chain Management Sourcing - Procurement Enterprise Resource Planning Internal Business Processes PATIENTLY ALLOW TIME FOR ANIMATIONS TO WORK Use the animated graphic to explain the component parts of an enterprise's architecture-ranging from suppliers to customers and employees to partners. Customer Relationship Management Marketing – Sales - Service Customers

6 Enterprise Business Systems
IBM Corporation: Global Cross-Functional Enterprise Systems Created Real-time Configure-to-Order System Enterprise e-Business Systems Need End-to-End Connectivity: Across Different Processes From Legacy Systems to its Suppliers, Customers and Partners Orders by Customers Travel Great Global Distances Systems Update Order Status Communicate with Other Systems-Real Time Orders Zip Across Atlantic Average 4 Times This IBM mini-case shows an application of a global cross-functional enterprise system. This real time configure-to-order system facilitates global customer needs. The systems update the order status and communicate with other systems in real time.

7 Enterprise Resource Planning
The Technological Backbone of e-Business Production Planning Integrated Logistics Sales, Distribution, Order Management Customer/ Employee PATIENTLY ALLOW TIME FOR ANIMATIONS TO WORK Use this animated graphic to explain the technological backbone of e-Business. The model puts the customer or employee at the center of the various activities that occur technologically within a business. Take the time to describe each of the functions represented by the wedges of the pie chart as they individually enter. Accounting and Finance Human Resources

8 Enterprise Resource Planning
Colgate-Palmolive: The Business Value of ERP Use of Software across the Entire Spectrum of the Business Activities That Once Took Days now Take Hours On-Time and Correctness of Deliveries Improved Significantly Inventories Reduced by 1/3 and Realized Meaningful Cost Savings Graphically… This mini-case on Colgate-Palmolive shows the business value of ERP. It was extremely successful program that improved corporate performance and made possible significant cost savings. The case is further examined with an animated graphic on the next slide.

9 Enterprise Resource Planning
Colgate-Palmolive: The Business Value of ERP Demand Planning Manufacturing Planning Logistics Planning Distribution Planning Order Entry Enterprise Resource Planning PATIENTLY ALLOW TIME FOR ANIMATIONS TO WORK Use the animated graphic to further explain the components and interrelationships in the Colgate-Palmolive ERP. MRP Inbound Inventory Plant Mgmt. Purchasing & Accounts Payable Manufacturing & Production Scheduling Inventory Control & Warehousing Distribution & Accounts Receivable Suppliers Customers Finance and Accounting Human Resources

10 Enterprise Resource Planning
Benefits of ERP Quality and Efficiency Decreased Costs Decision Support Enterprise Agility Failures in ERP Do Exist Continue the discussion of ERP citing the benefits that can be realized in quality, efficiency, and decreased costs. Explain how ERP can enhance enterprise agility. Make the point that failures do exist in ERP implementations.

11 Enterprise Resource Planning
Sobeys Inc.: Failure in ERP Implementation SAP AG’s Software Installation Problems of ERP Integrated Suite into a Retail Environment Sobey’s Grocer Had Problems with Number of Transactions Jo-Ann Stores and Petsmart Blamed Software for Poor Financial Performance Sobey’s is Replacing System Mini-case on Sobeys, Inc. demonstrates a failure in an ERP implementation. Their applications in their retail outlets had problems with the number of transactions being performed. Jo-Ann Stores and Petsmart blamed poor financial performance on the software itself. Sobeys is replacing the system.

12 Enterprise Resource Planning
Causes of ERP Failures Underestimating the Complexity of Planning, Development, and Training Needed Failure to Involve Affected Employees Trying to do Too Much Too Fast Over Reliance by Company on Claims of Software Companies Continue the discussion of ERP citing the reasons for failures. Underestimating the complexity of the project is a dominant theme. Of particular interest should be noted the lack of human participation and training so that they would buy into the changed process.

13 CRM: The Business Focus
Supports an Integrated and Collaborative Relationship Between a Business and it’s Customers Acquire Enhance Retain Customer Life Cycle Direct Marketing Cross-sell and Up-sell Proactive Service CRM Functional Solutions Sales Force Automation Customer Support PATIENTLY ALLOW TIME FOR ANIMATIONS TO WORK This animated graphic demonstrates how CRM functional solutions and a CRM integrated solution address the stages in a customer's life cycle. Take the time to explain each of the components and their actions. The Internet Shared Customer Data Collaborative Service CRM Integrated Solution Partner Company Customer

14 CRM: The Business Focus
CRM Uses IT to Create a Cross-Functional Enterprise System Marketing and Fulfillment Customer Service and Support Fax Sales Cross-Sell Up-Sell Prospect or Employee PATIENTLY ALLOW TIME FOR ANIMATIONS TO WORK This animated graphic demonstrates how CRM uses IT to create a cross-functional enterprise system. Explain each of the component parts and the roles they play. Telephone Web Retention and Loyalty Programs Contact and Account Management

15 CRM: The Business Focus
Telstra Corporation: The Business Value of CRM Provides Fixed, Wireless, and e-Commerce Services to Customer Base in 19 Countries Offers Voice, Data, Internet, Multimedia and Communications Services Sought CRM Solution to Integrate More than 20 Core Legacy Databases Across the System Benefits Quickly Followed Reduced Training Time This mini-case on the Telstra Corporation shows how significant efficiencies and savings can be realized with CRM. Activities were integrated so that substantial benefits were realized.

16 CRM: The Business Focus
Benefits and Challenges of CRM Identify and Target the Best Customers Customization and Personalization of Products and Services Track Customer Contacts CRM Failures 50% of Applications Fail to Meet Expectations 20% of the Time CRM Damaged Customer Relationships Lack of Understanding and Preparation is Blamed This slide features the benefits and challenges of CRM along with problems of CRM failures. It was useful in targeting prime customers and personalizing products and services to them. CRM failures are significant in number and often are cited for damaging customer relationships. The case blames a lack of understanding for the failures.

17 CRM: The Business Focus
Gevity HR and Monster.Com: Failures in CRM Implementation Employees Undercut the System Believing Their Jobs Threatened by CRM On-Line Customer Problem Solutions. Complex Installation Since it Touches So Many Legacy Systems Failures Lead to Loss of Customer Goodwill and Business and Negatively Affects Employees Also Mini-case on Gevity HR and Monster.com further examines failures in CRM implementation. Employees who felt threatened by CRM vigorously worked to sabotage its implementation. The failures very often led to a loss of customer good will and negatively affected the employees also.

18 SCM: The Business Network
Supply Chain Management SCM – A Top Strategic Objective for Many Firms The Right Products The Right Place The Right Time In the Proper Quantity At an Acceptable Cost Introduce and define supply chain management. Demonstrate how SCM is designed to get the right product to the right place at the right time in the proper quantity at an acceptable cost. Point out the savings in inventory carrying costs including storage, handling, as well as money invested.

19 SCM: The Business Network
Objective of SCM Efficiently Manages this Process by: Forecasting Demand Controlling Inventory Enhancing Business Relationships Receiving Feedback and Status of Every Link of the Chain Continue discussion of SCM explaining how its objectives are managed by the system. For example, forecasting demand, controlling inventory, etc., while receiving feedback at every step of the chain.

20 SCM: The Business Network
Moen Inc., and TaylorMade Golf: Web-Enabling the Supply Chain Simultaneous Sharing of Designs Worldwide with Suppliers Design Problems Discovered Instantly Extranet Site Allows Suppliers to Check Orders Online Company has Saved $3 Million or 6% off of Raw Material and Work-in-Progress Inventory Costs This mini-case of Moen, Inc., and TaylorMade Golf show examples of SCM at work making possible substantial cost savings. The simultaneous sharing of designs also uncovered problems instantly where change is far less expensive than would be the case at a later stage.

21 SCM: The Business Network
SCM Software Helps Firms Reengineer and Integrate The Functional SCM Processes Commit Schedule Make Deliver Supply Chain Life Cycle Forecast and Demand Planning SCM Functional Processes Strategic Sourcing and Procurement Customer Order Fulfillment Service Distribution Network and Warehouse Operations Production Logistics Transportation and Shipment Management PATIENTLY ALLOW TIME FOR ANIMATIONS TO WORK This animated graphic shows how SCM functional processes and an SCM integrated solution address the supply chain life cycle. Take the time to define and explain each of the component parts and their interrelationships. The Internet Shared Market Data Collaborative Fulfillment SCM Integrated Solution Supplier Manufacturer Retailer Customer

22 SCM: The Business Network
Benefits and Challenges of SCM More Accurate Order Processing Reductions in Inventory Levels Quicker Time to Market Lower Costs Strategic Relationships with Suppliers Continue the discussion of SCM citing the benefits and challenges of its implementation. Benefits on this slide include improved accuracy, lower inventories, quicker market response, lower costs, and improved relationships with suppliers… Continued on next slide for challenges.

23 SCM: The Business Network
Benefits and Challenges of SCM Lack of Proper Planning Knowledge, Tools, and Guidelines Inaccurate Demand Forecasts Lack of Adequate Collaboration Software Itself Immature Challenges of SCM include lack of proper planning knowledge, inaccurate demand forecast, lack of adequate collaboration, as well as the fact that the SCM software itself is immature.

24 SCM: The Business Network
Objectives of Supply Chain Management Business Value Goals Rapid Demand Fulfillment Collaborative Supply Chain Planning and Execution Customer Value Goals Give customers what they want, when and how they want it, at the lowest cost PATIENTLY ALLOW TIME FOR ANIMATIONS TO WORK Use this animated graphic to demonstrate the objectives of supply chain management moving from Business Value Goals to Customer Value Goals. The component parts are self explanatory. Interenterprise Coordination of Manufacturing and Business Process Effective Distribution and Channel Partnerships Responsiveness and Accountability to Customers

25 SCM: The Business Network
Solectron Corp: Failures in SCM Software Can’t Compensate for Business Judgment Forecasts Driving Entire Flow of Work is Concocted by People, Not Real-time Bits of Data Solectron – World’s Biggest Electronics Contract Maker Supply Glut Was Brewing Unrealized Overly Optimistic Ordering Resulted in Suppliers Sending Excessive Materials Left Solectron Holding the Bag This mini-case of Solectron Corp demonstrates failures in SCM. Software itself cannot be a substitute for good business judgment. The forecast that the system is using is created by people whose knowledge and experience may distort the software results. The Solectron experience was an unrealized overly optimistic forecast for products that linked automatically to suppliers. The product demand was never realized and the company was left holding excessive materials with significant cost increased.

26 Enterprise Application Integration
EAI Software Connects Major e-Business Applications Like CRM and ERP Enterprise Application Integration Front-Office CRM Applications Customer Service Field Service Product Configuration Sales Order Entry Back-Office ERP Applications Distribution Manufacturing Scheduling Finance PATIENTLY ALLOW TIME FOR ANIMATIONS TO WORK This animated graphic is designed to show enterprise application integration. The integration occurs in the example between front-office CRM applications and back-office ERP applications. EAI

27 Enterprise Application Integration
Dell Computer: Enterprise Application Integration Survey of 75 Related Companies Revealed 18 Different Software Packages Lack of Integration Reduces Cost and Speed Savings that Might Be Realized Use of WebMethods EAI to Coordinate Processes New System Generated Cost Savings Orders for Product Automatically Orders Parts This mini-case on Dell Computer shows the results of their use of enterprise application integration. They found over 75 related companies 18 different software packages where the lack of integration increases costs and decreases the efficiency. Their move to EAI generated dramatic cost savings and significantly enhanced the speed for parts ordering. It was a highly successful application demonstrated by the animated graphic on the next slide…

28 Enterprise Application Integration
Order Entry Method Billing Call Center Finance e - Mail Fax EAI Web Orders & Fulfillment Mail PATIENTLY ALLOW TIME FOR ANIMATIONS TO WORK This animated graphic shows how Dell Computer uses EAI to manage their organization regardless of order entry method. Phone Manufacturing Routing Shipping

29 Transaction Processing System
Capture and Process Transactions Immediately Cable Company A Cable Company B Video Server San Francisco New York Video Server Host System Host System Phone System The Internet Syntellect Interactive Systems Interactive Voice Response System Fax Servers Web Servers PATIENTLY ALLOW TIME FOR ANIMATIONS TO WORK This animated graphic demonstrates how transaction processing systems work following an example taken from the book. Take the time to explain the role played by each of the components in the transactions examples. Middleware Communication Servers Database Servers Application Servers Communication Servers

30 Transaction Processing System
Syntellect’s Online Transaction Processing Used for Cable Pay-Per-View Events Access by Phone or the WWW Database Captures, Processes and Updates Teams with over 700 Cable Companies Mini-case-Syntellect's on-line transaction processing continues from the graphic on the previous slide. The points made in the slide indicates how transactions are actually handled.

31 Transaction Processing Cycle
Capture and Processing Data, Updating Databases, and Produce Information Products Document and Report Generation Transaction Processing Batch Online/ Real-Time Data Entry PATIENTLY ALLOW TIME FOR ANIMATIONS TO WORK The animated graphic demonstrates how the transaction processing cycle works. The process moves from data entry through to data base maintenance and report generation. Explain how the components relate to one another. Database Maintenance Inquiry Processing

32 Enterprise Collaboration Systems
ECS Enables Working Together by Helping Us to: Communicate Coordinate Collaborate Tools for Enterprise Collaboration… Define enterprise collaboration systems (ECS). Explain how ECS enables the working together by diverse units through communication, coordination and the use of collaborative tools.

33 Enterprise Collaboration Systems
Tools for Enterprise Collaboration Enterprise Collaboration Systems Electronic Communications Tools Electronic Conferencing Tools Collaborative Work Management Tools PATIENTLY ALLOW TIME FOR ANIMATIONS TO WORK This animated graphic breaks down the tools for enterprise collaboration into their component parts, communications, conferencing, and work management. Instant Messaging Voice Mail Faxing Web Publishing Paging Data Conferencing Voice Conferencing Videoconferencing Discussion Forums Chat Systems Electronic Meeting Systems Calendaring and Scheduling Task and Project Management Workflow Systems Document Sharing Knowledge Management

34 Enterprise Collaboration Systems
QuickPlace by Lotus Development Collaborative Software Screenshot This is a screen shot of collaborative software called QuickPlace by Lotus Development.

35 Enterprise Collaboration Systems
General Electric Co: Committed to Enterprise Collaboration Committed to Lotus Tools – QuickPlace QuickPlace-Web-based Work Spaces Sametime (Real-time Online Meetings) Tools Streamline Communication 18,000 QuickPlaces for 250,000 Users This General Electric Company mini-case shows their commitment to enterprise collaboration. GE selected Lotus Tools-QuickPlace to streamline their organizational communication into 18,000 QuickPlaces for 250,000 users. It was a highly successful implementation.

36 Functional Business Systems
Section II Functional Business Systems Variety of Types of Information Systems that Support Business Functions Identification of Business Value Created Analysis of Challenges to Implementation Real World Case 2- GE Power and Corporate Express Section II begins with the functional business systems. Describe the concept and the wide variety of types of information systems that support business functions. Identify how business value is created and make comment on the challenges to implementation. Click the arrow to go to real world case 2-GE Power and Corporate Express… Click to go to Case 2

37 Functional Business Systems
Examples of Functional Business Information Systems Marketing Customer relationship management Interactive marketing Sales force automation Production Operations Human Resource Management Manufacturing resource planning Manufacturing execution systems Process control Compensation analysis Employee skills inventory Personnel requirements forecasting Functional Business Systems PATIENTLY ALLOW TIME FOR ANIMATIONS TO WORK Use the animated graphic to define and get examples of the functional business information systems. Use the on screen data to explain the nature of the information being managed. Order processing Inventory control Accounts receivable Accounts payable Payroll General ledger Cash management Credit management Investment management Capital budgeting Financial forecasting Accounting Finance

38 Marketing Systems Marketing Information Systems Market Information
Interactive Marketing Sales Force Automation Customer Relationship Management Sales Management PATIENTLY ALLOW TIME FOR ANIMATIONS TO WORK Use the animated graphic to explain the components of a marketing information system. Explain the roles played for each of the parts. Market Research and Forecasting Advertising and Promotion Product Management

39 Marketing Systems Five Major Components of Target Marketing Community
Online Behavior Demographic/ Psychographic Community PATIENTLY ALLOW TIME FOR ANIMATIONS TO WORK Define and describe the five major components of target marketing using the animated graphic as each pie wedge enters individually. Give examples of each of the types as you introduce the components. Context Content

40 Marketing Systems Sales Force Automation
Use of Computers and the Internet Improves the Delivery of Information Support for Sales People Provides a Strategic Advantage in Sales and Marketing Responsiveness Define the concept of sales force automation. Explain the processes that can be automated, who is involved, and what the expected outcome will be.

41 Marketing Systems Baker Tanks: Web-Based Sales Force Automation
Leader in Rentals of Industrial Containment Foremost in Transfer Equipment Serves Customers in Construction to Aerospace Ineffective Access to Huge Data Used Salesforce.com Web-based System - PDAs Connected for Data Much Better Communication Salespeople More Productive This mini-case on Baker Tanks gives an example of a Web-based sales force automation effort. Baker Tanks serves customers from construction to aerospace as a leader in rentals of industrial containment. They had ineffective access to a huge amount of data and switched to Salesforce.com to link their team with PDAs . The result was much better communication and significant enhanced productivity of the sales people.

42 Marketing Systems Web-Based Salesforce.com Automation Package
This slide is a screen shot of the Salesforce.com Web-based automation package.

43 Manufacturing Systems
Computer-Integrated Manufacturing (CIM) Simplify Automate Integrate Flexible Manufacturing Systems Agile Manufacturing Total Quality Management Computer-Aided Engineering (CAE) Computer-Aided Manufacturing (CAM) Define and explain the role of computer-integrated manufacturing (CIM) in today's agile environment. Explain how total quality management (TQM) is integrated along with computer-aided engineering (CAE) and computer-aided manufacturing (CAM).

44 Manufacturing Systems
Resources Planning Systems Manufacturing Execution Systems Engineering Systems Enterprise Resource Planning Production Forecasting Scheduling Material Requirements Planning Capacity Cost Control Quality Control Shop Floor Scheduling Control Machine Control Robotics Control Process Control Computer-Aided Engineering Product Simulation and Prototyping Design Process Planning PATIENTLY ALLOW TIME FOR ANIMATIONS TO WORK Use this animated graphic to show how ERP and CIM are used to address manufacturing systems. Take the time to explain the matrix nature of the systems. Computer-Integrated Manufacturing

45 Manufacturing Systems
The Timken Co. Web-Based Manufacturing Systems Established "Electronic Visibility" Used Global Supply Chain Immediate Parts Location Speed of Internet Combined With Global Logistics Management The mini-case on the The Timkem Co. shows how the firm utilized systems to establish and electronic visibility with regard to its supply chain and global logistics management.

46 Human Resources Systems
Human Resource Information Systems Recruitment, Selection, and Hiring Job Placement Performance Appraisals Employee Benefits Analysis Training and Development Health, Safety, and Security HRM and the Internet HRM and Intranets Explain how the human resource role can be facilitated through the use of information systems. Take the time to go through each of the components of HR to identify potential problems that might arise without effective management. Cite and give examples of how HRM can make use of intranets and the Internet. Continued on next slide.

47 Human Resources Systems
Supports… Staffing Training and Development Compensation Administration Human resource planning Labor force tracking Succession planning Performance appraisal planning Contract costing Salary forecasting Strategic Systems Tactical Operational Labor cost analysis and budgeting Turnover analysis Training effectiveness Career matching Compensation effectiveness and equity analysis Benefit preference analysis PATIENTLY ALLOW TIME FOR ANIMATIONS TO WORK Use the animated graphic to show how the components of HRS supports the roles played in human resources. Recruiting Workforce planning/ scheduling Skill assessment Performance evaluations Payroll control Benefits administration

48 Human Resources Systems
An Example of an Employee Hiring Review System The screen shot shows an example of an employee hiring review system application.

49 Human Resources Systems
Charles Schwab & Co.: Web-Based Human Resource Systems 23,000 Employees Access Detailed HR Data Intranet Benefits Employees Searches Savings of Hundreds of Thousands Yearly Employees Use Online eForms This mini-case on Charles Schwab and Company describes their Web-based human resource system. Their intranet based system manages data for all their employees, facilitates searches, enables employees to use on-line eForms saving hundreds of thousands of dollars annually.

50 Accounting Systems Record and Report Business Transactions
Trace Flows of Funds Through a Business Produce Financial Statements Forecasts of Future Conditions Projected Financial Statements Financial Budgets Define and give examples of accounting information systems. Describe the nature and use of the documents and activities generated by such a system. Emphasize the importance of this data in financial planning. Continued on graphic on next slide…

51 Accounting Systems Accounting Information Systems for Transaction Processing and Financial Reporting Sales Order Processing Billing Accounts Receivable Cash Receipts General Ledger Financial Reporting Cash Receipts and Disbursements Transaction Processing System General Ledger Processing and Reporting System Sales Analysis Accounts Payable Cash Disburse- ments PATIENTLY ALLOW TIME FOR ANIMATIONS TO WORK Use this animated graphic to explain the different roles and flow of information through an accounting information system. Sales Transaction Processing System Purchases Payroll Purchases Transaction Processing System Payroll Transaction Processing System Inventory Processing Time- keeping

52 Order Processing Inventory Control Accounts Receivable
Accounting Systems Examples of Widely Used Accounting Information Systems Order Processing Inventory Control Accounts Receivable Accounts Payable Payroll General Ledger Give examples of widely used accounting information systems in the roles called for by the steps in the slide; order processing, inventory control, etc.

53 Accounting Systems An On-line Accounting Report
This screen shot is an example of an on-line accounting report.

54 Financial Management Systems
Support Business Decision Makers in: Financing a Business The Allocation and Control of Financial Resources Capital Budgeting Financial Planning Software Define and give examples of financial management systems. Explain how such systems can aid business decision-makers in carrying out their normal functions. Describe the capital budgeting process and how financial planning software can help. Discussion continues on next slide.

55 Financial Management Systems
Important Financial Management Systems Information Systems in Finance Cash Management Investment Management Capital Budgeting Financial Planning PATIENTLY ALLOW TIME FOR ANIMATIONS TO WORK Use this animated graphic to define and show the relationships in these important financial management systems. Forecast and Manage cash position Manage short-term and other securities Evaluate risk/return of capital expenditures Forecast financial performance and financing needs

56 Financial Management Systems
Strategic Financial Planning This is a screen shot of software application showing the result of strategic financial planning.

57 Summary Cross-Functional Enterprise Systems
Enterprise Resource Planning (ERP): The Business Backbone Customer Relationship Management: The Business Focus Supply Chain Management: The Business Network Transaction Processing Systems Functional Business Systems Marketing Manufacturing Human Resource Management Accounting and Finance

58 KEY TERMS Accounting Systems Accounts Payable Accounts Receivable
Batch Processing Computer-Aided Manufacturing Computer-Integrated Manufacturing Cross-Functional Enterprise Systems Customer Relationship Management Application Components Business Benefits e-Business Enterprise Application Architecture Enterprise Application Integration Enterprise Collaboration Systems Enterprise Resource Planning Financial Management Systems Functional Business Systems General Ledger Human Resource Systems Interactive Marketing Inventory Control Machine Control Manufacturing Execution Systems Manufacturing Systems Marketing Systems Online Accounting Systems Online HRM Systems Online Transaction Processing Systems Order Processing Payroll Process Control Real-time Processing Robotics Sales Force Automation Supply Chain Supply Chain Management Application Components Business Benefits Targeted Marketing Transaction Processing Cycle

59 Optional Case Studies Real World Case 1 Real World Case 2
Salesforce.Com and Others: Challenges of Customer Relation-ship Management Systems Click to go to Case 1 Real World Case 2 GE Power Systems and Corporate Express: The Business Case for Enterprise Application Integration Click to go to Case 2 Real World Case 3 Welch’s, Straightline, Skyworks, and Pella: The Business Value of Supply Chain Management Click to go to Case 3 Real World Case 4 Lowe Worldwide and HP: The Business Case for Swarming Collaboration Click to go to Case 4

60 Next... Electronic Commerce Chapter 8

61 Case 1 Salesforce.Com and Others: Challenges of Customer Relationship Management Systems 1- Why have traditional CRM software implementations been so problematic for many businesses? Return to Chapter 7 Return to Cases Page

62 CRM Software Too Expensive CRM Too Complicated
Case 1 Salesforce.Com and Others: Challenges of Customer Relationship Management Systems Discussion Points Would Include: CRM Software Too Expensive CRM Too Complicated CRM Implementation Too Long 1.Why have traditional CRM software implementations been so problematic for many businesses? Discussion points would include: Businesses have found CRM software too expensive. Businesses have found CRM too complicated. Implementation of CRM takes too long.

63 Case 1 Salesforce.Com and Others: Challenges of Customer Relationship Management Systems 2- What are the benefits and drawbacks of the Salesforce Web-based CRM services approach?

64 Deal with Few Consultants No Hardware or IT Labor Costs
Case 1 Salesforce.Com and Others: Challenges of Customer Relationship Management Systems Benefits Would Include: Deal with Few Consultants No Hardware or IT Labor Costs Access Software Over Web Payment Based On User Numbers New Version Upgraded for All 2. What are the benefits and drawbacks of the Salesforce Web-based CRM services approach? Benefits would include: Few consultants to deal with. No associated hardware or IT labor costs. Businesses access the software over the Web. Payment is based upon the number of users. When a new version comes out, every one gets upgraded at the same time, for the same price as before.

65 Businesses Resist “Rent-an-App” Idea Security Concerns
Case 1 Salesforce.Com and Others: Challenges of Customer Relationship Management Systems Disadvantages Would Include: Businesses Resist “Rent-an-App” Idea Security Concerns Lack of Control Concerns Problems with Customizing Difficulty of Software Integration Disadvantages would include: Businesses are resistant to the “rent-an-app” idea. Security concerns. Lack of control concerns. Problems with customizing. The difficulty of integrating the software with other corporate applications.

66 Case 1 Salesforce.Com and Others: Challenges of Customer Relationship Management Systems 3- Which approach do you prefer? Why? Visit the websites of Salesforce.com and Siebel Systems for more information and customer examples of their CRM systems.

67 Security and Control Concerns Customizing Web-based CRM Integration
Case 1 Salesforce.Com and Others: Challenges of Customer Relationship Management Systems Discussion Points Would Include: Buy vs. Rent Options Security and Control Concerns Customizing Web-based CRM Integration 3. Which approach do you prefer? Why? Visit the websites of Salesforce.com and Siebel Systems for more information and customer examples of their CRM systems. Discussion points would include: Buy vs. rent options. Security and control concerns. Customizing Integrating the Web-based CRM into existing applications. CONTINUED… Full-fledged vs. “stripped-down” CRM system. Return to Chapter 7 Return to Cases Page

68 Security and Control Concerns Customizing Web-based CRM Integration
Case 1 Salesforce.Com and Others: Challenges of Customer Relationship Management Systems Discussion Points Would Include: Buy vs. Rent Options Security and Control Concerns Customizing Web-based CRM Integration Full-fledged vs. “stripped-down” CRM system 3. Which approach do you prefer? Why? Visit the websites of Salesforce.com and Siebel Systems for more information and customer examples of their CRM systems. Discussion points would include: Buy vs. rent options. Security and control concerns. Customizing Integrating the Web-based CRM into existing applications. CONTINUATION… Full-fledged vs. “stripped-down” CRM system. Return to Chapter 7 Return to Cases Page

69 Case 2 GE Power Systems and Corporate Express: The Business Case for Enterprise Application Integration 1- Why has EAI recently “become a critical part of the IT strategy at many organizations,” and a high-ranking project of top IT executives? Use GE Power and Corporate Express as examples. Return to Chapter 7 Return to Cases Page

70 To Meld Disparate Systems To Integrate Front/Back Office
Case 2 GE Power Systems and Corporate Express: The Business Case for Enterprise Application Integration Discussion Points Include the Need to: To Meld Disparate Systems To Integrate Front/Back Office To Deliver Data to All For GE to Connect the Independent Operations To Reduce Costs Internally/Externally 1. Why has EAI recently “become a critical part of the IT strategy at many organizations,” and a high-ranking project of top IT executives? Use GE Power and Corporate Express as examples. Discussion points would include: The need to meld disparate systems together such as the integration of front- and back-office applications. The need to quickly deliver data to employees, customers and partners. Corporate Express needed to dramatically improve customer service. The need for complex corporations such as General Electric Co. to connect the independent operations of various business units. To reduce costs internally as well as for its customers.

71 Case 2 GE Power Systems and Corporate Express: The Business Case for Enterprise Application Integration 2- What is the major difference in the business value of the EAI projects at GE Power and Corporate Express?

72 Case 2 GE Power Systems and Corporate Express: The Business Case for Enterprise Application Integration Major Differences Include: Business Value at GE To: Connect Business Units Send Data in Real Time Improve Data Quality/Accuracy Corporate Express’ Business Value Not directed To Connecting Business Units Focused on Better Customer Service Reducing Costs/Stay Very Competitive 2. What is the major difference in the business value of the EAI projects at GE Power and Corporate Express? Major differences would include: The business value at GE was to connect a collection of business units running as independent operations to have the ability to send data in real time from one system to another, and to improve the quality and accuracy of data. Corporate Express’ business value was not directed toward connecting business units but focused on dramatically improving customer service while reducing costs to remain highly competitive.

73 Case 2 GE Power Systems and Corporate Express: The Business Case for Enterprise Application Integration 3- What are some of the challenges in developing and implementing EAI systems? How can companies meet these challenges? Return to Chapter 7 Return to Cases Page

74 Need Specific IT Skills Need Coordination in All Departments
Case 2 GE Power Systems and Corporate Express: The Business Case for Enterprise Application Integration Challenges Would Include: Need Specific IT Skills Need Coordination in All Departments EAI Costs ($200,000 to $400,000) 3. What are some of the challenges in developing and implementing EAI systems? How can companies meet these challenges? Challenges would include: Need for specific IT skills Need for extensive coordination among multiple departments. Cost of EAI ($200,000 to $400,000). Return to Chapter 7 Return to Cases Page

75 Planning/Monitoring EAI project
Case 2 GE Power Systems and Corporate Express: The Business Case for Enterprise Application Integration Challenges Could Be Met By: In-house IT Training Planning/Monitoring EAI project Challenges could be met by: Consultants and training of in-house IT personnel. Planning and continual monitoring of the EAI project. CONTINUATION… Shifting of costs to various functional users (if they want the benefit then they have to absorb some of the costs). Return to Chapter 7 Return to Cases Page

76 Planning/Monitoring EAI project Shift Costs to Functional Users
Case 2 GE Power Systems and Corporate Express: The Business Case for Enterprise Application Integration Challenges Could Be Met By: In-house IT Training Planning/Monitoring EAI project Shift Costs to Functional Users Challenges could be met by: Consultants and training of in-house IT personnel. Planning and continual monitoring of the EAI project. CONTINUED… Shifting of costs to various functional users (if they want the benefit then they have to absorb some of the costs). Return to Chapter 7 Return to Cases Page

77 Case 3 Welch’s - Straightline Skyworks - and Pella: The Business Value of Supply Chain Management 1- What is the business value of supply chain management systems for Welch’s and other companies in the consumer packaged goods industry? Return to Cases Page

78 Case 3 Welch’s - Straightline Skyworks - and Pella: The Business Value of Supply Chain Management Discussion Points Would Include: Welch's Company: Collaborates Closely With Customers Ensure Products Available at Retailers Creates Orders Manages Inventories-1/3 Retail Customers Allows Few Retailers to Double Product Turns 1. What is the business value of supply chain management systems for Welch’s and other companies in the consumer packaged goods industry? Discussion points would include: Companies such as Welch’s are able to collaborate more closely with its customers to ensure its products were always stocked on retailer shelves. The collaboration allows Welch’s to create orders and manage the inventories of one-third of its retail customers, allowing some retailers to double the number of times they turn Welch’s products.

79 Case 3 Welch’s - Straightline Skyworks - and Pella: The Business Value of Supply Chain Management 2- What is the business value of supply chain management systems for Straightline, Skyworks, and other manufacturing companies?

80 Straightline Company:
Case 3 Welch’s - Straightline Skyworks - and Pella: The Business Value of Supply Chain Management Discussion Points Would Include: Straightline Company: Leveraging Supply-Chain Optimization Solution Help Processors Manage Inventories Compete More Effectively Overseas Selects Inventory Process 2. What is the business value of supply chain management systems for Straightline, Skyworks, and other manufacturing companies? Discussion points would include: Companies such as Straightline are leveraging a supply-chain optimization solution to help processors manage their inventories and thereby more effectively compete with overseas rivals. Straightline is able to help select the inventory to process that specific customer order given the actual grade of the material. CONTINUED…

81 Skyworks Access Real-time Data
Case 3 Welch’s - Straightline Skyworks - and Pella: The Business Value of Supply Chain Management Discussion Points Would Include: Skyworks Access Real-time Data Give Customers Accurate Product Availability Coordinates Capacity Requirements Coordinates Demand Requirements Delivery can Occur on Time Modify Customer Delivery Date Change Factory Production Give Customers Fast Answers 2. What is the business value of supply chain management systems for Straightline, Skyworks, and other manufacturing companies? Discussion points would include: Companies such as Straightline are leveraging a supply-chain optimization solution to help processors manage their inventories and thereby more effectively compete with overseas rivals. Straightline is able to help select the inventory to process that specific customer order given the actual grade of the material. CONTINUATION… Skyworks is able to access real-time data to give customers accurate product availability information in order to coordinate the capacity requirements and to coordinate the demand requirements to be able to deliver to our customers on time. Skyworks can modify a customer delivery date and have that change what the factory is building the next day. Skyworks can give answers to customers in hours instead of days.

82 Case 3 Welch’s - Straightline Skyworks - and Pella: The Business Value of Supply Chain Management 3- How does Pella’s approach to supply chain management systems differ from the other companies in this case? Which is approach is better? Why? Return to Cases Page

83 ERP vendors Oracle, PeopleSoft and SAP
Case 3 Welch’s - Straightline Skyworks - and Pella: The Business Value of Supply Chain Management Discussion Points Would Include: ERP vendors Oracle, PeopleSoft and SAP Actively Market Supply-Chain Easy Integration Back-end ERP Systems Close to Complete with Supply-Chain Automation 3. How does Pella’s approach to supply chain management systems differ from the other companies in this case? Which is approach is better? Why? Discussion points would include: ERP vendors like Oracle, PeopleSoft and SAP are now actively marketing their supply-chain applications as an “add-on” capability to their e-business suites, touting easy integration to back-end ERP systems. Being close to being truly complete with supply-chain automation supporting all the data in one model. CONTINUED… Return to Cases Page

84 Pella Didn’t Buy Separate Software
Case 3 Welch’s - Straightline Skyworks - and Pella: The Business Value of Supply Chain Management Discussion Points Would Include: Pella Didn’t Buy Separate Software Turned on Different Parts of Suite Leveraged Multiple Oracle E-Business Suite Modules Streamlined Supply Chain Operations 3. How does Pella’s approach to supply chain management systems differ from the other companies in this case? Which is approach is better? Why? Discussion points would include: ERP vendors like Oracle, PeopleSoft and SAP are now actively marketing their supply-chain applications as an “add-on” capability to their e-business suites, touting easy integration to back-end ERP systems. Being close to being truly complete with supply-chain automation supporting all the data in one model. CONTINUATION… Pella didn’t have to buy a separate software product and figure out how to integrate that product; instead, you can literally turn on different parts of the suite. It leveraged multiple Oracle E-Business Suite modules to help streamline its supply chain operations. Return to Cases Page

85 Leverage-Integrated Supply Chain Feature
Case 3 Welch’s - Straightline Skyworks - and Pella: The Business Value of Supply Chain Management Which Approach Is Better? Develop Alternatives Leverage-Integrated Supply Chain Feature Feature-Module of Software Suite Suite can be Turned On Which approach is better? The students should develop alternatives between leveraging an integrated supply chain feature that is a module of a software suite that can be turned on vs. the use of a separate software package that must be integrated with the existing system. Return to Cases Page

86 Leverage-Integrated Supply Chain Feature
Case 3 Welch’s - Straightline Skyworks - and Pella: The Business Value of Supply Chain Management Which Approach Is Better? Develop Alternatives Leverage-Integrated Supply Chain Feature Feature-Module of Software Suite Suite can be Turned On Don’t Need Separate Software Which approach is better? The students should develop alternatives between leveraging an integrated supply chain feature that is a module of a software suite that can be turned on vs. the use of a separate software package that must be integrated with the existing system. Return to Cases Page

87 Lowe Worldwide and HP: The Business Case for Swarming Collaboration
1- What are the business benefits of swarming collaboration? Use Lowe Worldwide and HP as examples. Return to Cases Page

88 Lowe Worldwide and HP: The Business Case for Swarming Collaboration
Business Benefits Would Include: Lowe Worldwide Discover Resources-Didn’t Know Existed Resulted-Faster Project Completion HP Swarming Collaboration Brings Right People into Team Quickly Plan/Execute Needs Swarming Collaboration Enables Lowe Worldwide To Match Smaller Competitor Agility Creative Hot Shops Save-International Fax/Travel/Courier Costs 1. What are the business benefits of swarming collaboration? Use Lowe Worldwide and HP as examples. Business benefits would include: Companies such as Lowe Worldwide are discovering resources they didn’t know existed resulting in faster completion of projects. HP through swarming collaboration can bring the right people into the team space quickly to plan and then execute what needs to be done. Swarming collaboration enables companies such as Lowe Worldwide to match the agility of smaller competitors (creative hot shops). Savings in international couriers, faxing and travel costs.

89 Lowe Worldwide and HP: The Business Case for Swarming Collaboration
2- What are some possible limitations of swarming? Limitations of Swarming Would Include: Connectivity Problems Keeping Employees on Track Higher Priority Internal Tasks Time Management of Collaborative Efforts 2. What are some possible limitations of swarming? Limitations of swarming would include: Connectivity problems. Keeping employees on track with the higher priority internal tasks and not devoting too much time and talent to collaborative efforts that hurt their own company.

90 Lowe Worldwide and HP: The Business Case for Swarming Collaboration
3- Visit the website of Groove Networks and experience their demo of a working in a shared workspace. Would this support workgroup collaboration? Swarming collaboration? Why or why not? Return to Cases Page

91 Lowe Worldwide and HP: The Business Case for Swarming Collaboration
Discussion Points Would Include: Students Developing Their Understanding Of: Support Workgroup Collaboration Swarming Collaboration Students Discussing Group Collaboration: Advantages Disadvantages Using Class Experiences 3. Visit the website of Groove Networks and experience their demo of a working in a shared workspace. Would this support workgroup collaboration? Swarming collaboration? Why or why not? Discussion points would include: Students developing their understanding of support workgroup collaboration. Students developing their understanding of swarming collaboration. Students discussing the advantages and disadvantages of group collaboration using their experiences from classes in which they have been a member of a group working on a project. Return to Cases Page

92 Lowe Worldwide and HP: The Business Case for Swarming Collaboration
Discussion Points Would Include: Students Developing Their Understanding Of: Support Workgroup Collaboration Swarming Collaboration Students Discussing Group Collaboration: Advantages Disadvantages Using Class Experiences Using Group Project Experiences 3. Visit the website of Groove Networks and experience their demo of a working in a shared workspace. Would this support workgroup collaboration? Swarming collaboration? Why or why not? Discussion points would include: Students developing their understanding of support workgroup collaboration. Students developing their understanding of swarming collaboration. Students discussing the advantages and disadvantages of group collaboration using their experiences from classes in which they have been a member of a group working on a project. Return to Cases Page


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