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5
Introduction to e-Business Systems
McGraw-Hill/Irwin
Learning Objectives
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.
Copyright 2004, The McGraw-Hill Companies, Inc. All rights reserved.
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Identify
the following cross-functional system concepts, and how they can provide significant business value to a company: Cross-functional enterprise systems Enterprise application integration Transaction processing systems Enterprise collaboration systems
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Section I
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IT in Business
Business
managers are moving from a tradition where they could avoid, delegate, or ignore decisions about IT to one where they cannot create a marketing, product, international, organization, or financial plan that does not involve such decisions.
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Marketing Systems
Marketing
Information Systems provide information technologies that support major components of the marketing function. Interactive Marketing Customer focused marketing process Based on using Internet, intranets, & extranets to establish two-way communications between customers or potential customers and the business Customers become involved in product development, delivery, & service issues
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Targeted
marketing Five targeting components Community Content Context Demographic/psychographic Online behavior
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Sales
Force Automation The sales force is connected to marketing websites on the Internet, extranets, & the company intranet Increases productivity of sales force Speeds up the capture & analysis of sales data Allows management to provide improved delivery information & better support of the sales force.
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Manufacturing Systems
Support
Assists
firms in planning, monitoring, & controlling inventories, purchases, & the flow of goods and services
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Manufacturing (CIM)
the concepts of flexible manufacturing systems, agile manufacturing, & total quality management Computer-Aided Engineering (CAE) Computer-Aided Design (CAD) Material Requirements Planning (MRP)
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11
Computer-Aided
Manufacturing (CAM) Automate the production process Execution Systems (MES) Performance monitoring systems for factory floor operations
Manufacturing
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12
Process
Machine
Control The use of a computer to control the actions of a machine. Also called numerical control
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13
Resource Information Systems Support Planning to meet the personnel needs of the business Development of employees to their full potential Recruitment, selection, & hiring Job placement
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14
Human
Resource Information Systems (continued) Performance appraisals Employee benefits analysis Training and development Health, safety, & security
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HRM
and the Internet Allows companies to process most common HRM applications over their intranets. Allows companies to provide around-theclock services to their employees. Allows companies to disseminate valuable information faster. Allows employees to perform HRM tasks online.
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16
Staffing
by information systems that record and track human resources to maximize their use Training and Development Help human resource managers plan and monitor employee recruitment, training, and development programs
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Copyright 2004, The McGraw-Hill Companies, Inc. All rights reserved.
Supported
17
Accounting Systems
Record
and report business transactions and other economic events Accounting Systems
Online
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18
Six
widely used accounting systems Order processing Captures & processes customer orders and produces data needed for sales analysis and inventory control Inventory Control Processes data reflecting changes in items in inventory. Helps provide high-quality service while minimizing investment in inventory & inventory carrying costs
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19
Accounts
Receivable Keeps records of amounts owed by customers from data generated by customer purchases and payments Payable Keeps track of data concerning purchases from, and payments to, suppliers
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Accounts
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20
Payroll Receives
and maintains data from employee time cards and other work records
General
Ledger Consolidates data received from accounts receivable, accounts payable, payroll, & other accounting information systems
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21
financial managers in decisions concerning The financing of the business The allocation & control of financial resources within the business.
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Major
financial management system categories Cash Management Collects information on all cash receipts and disbursements on a real-time or periodic basis
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Investment
Management Helps the financial manager make buy, sell, or hold decisions for each type of security Helps the financial manager develop the optimum mix of securities in order to minimize risk and maximize return
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Capital
Budgeting Involves evaluating the profitability and financial impact of proposed capital expenditures Allows financial managers to analyze longterm expenditure proposals for plant and equipment
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Financial
Forecasting & Planning Evaluate the present and projected financial performance of the company Help determine financing needs and analyze alternative methods of financing Explore what-if and goal-seeking questions
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Section II
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combinations of information subsystems that share information resources and support business processes across the functional units A strategic way to use IT to share information resources & improve efficiency & effectiveness
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Enterprise
Application Architecture
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Focused
on accomplishing fundamental business processes in concert with the companys customer, supplier, partner, & employee stakeholders
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enables users to model the business processes involved in the interactions that should occur between business applications.
Also
provides middleware that Performs data conversion & coordination Provides application communication & messaging services Provides access to the application interfaces
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31
Business
value Integrates front-office and back-office applications to allow for quicker, more effective response to business events and customer demands Improves customer and suppler experience with the business because of its responsiveness.
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32
information systems that process data resulting from the occurrence of business transactions Transactions events that occur as part of doing business Sales Purchases Deposits Withdrawals Refunds Payments
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33
Online
transaction processing systems Real-time systems that capture and process transactions immediately Adds value to product or service through superior customer service
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Transaction
Data
Processing Cycle
entry The capture of business data Transaction processing Two basic ways Batch processing where transaction data are accumulated & processed periodically Real-time processing where data are processed immediately after a transaction occurs
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35
Database
maintenance Corporate databases are updated to reflect the day-to-day business transactions
Document
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Inquiry
processing Inquiries and responses concerning the results of transaction processing activity
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e-business systems that enhance communication, coordination, & collaboration Communicate share information with each other Coordinate coordinate individual work efforts & use of resources with each other. Collaborate work together cooperatively on joint projects and assignments
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39
Tools
for Enterprise Collaboration Electronic communication E-mail Voice mail Fax Web publishing Bulletin boards Paging Internet phone systems
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40
Electronic
conferencing Data & voice conferencing Videoconferencing Chat systems Discussion forums Electronic meeting systems Synchronous. Team members can meet at the same time and place in a decision room setting
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41
Collaborative
work management Calendaring & scheduling Task & project management Workflow systems Knowledge management
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Discussion Questions
Why
is there a trend toward cross-functional integrated enterprise systems in business? to the example on Dell Computer, what other solutions could there be for the problem of information system incompatibility in business besides EAI systems?
Referring
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43
Referring
to the Charles Schwab & Co. example, what are the most important HR applications a company could offer to its employees via a Web-based system? do you think sales force automation affects salesperson productivity, marketing management, and competitive advantage?
Copyright 2004, The McGraw-Hill Companies, Inc. All rights reserved.
How
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How
can Internet technologies be involved in improving a process in one of the functions of business?
What
are several e-business applications that you might recommend to a small company to help it survive and succeed in challenging economic times?
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45
Which
of the 14 tools for enterprise collaboration do you feel are essential for any business to have today? Which do you feel are optional? to the General Electric example, how do enterprise collaboration systems contribute to bottom-line profits for a business?
Copyright 2004, The McGraw-Hill Companies, Inc. All rights reserved.
Referring
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46
How
does the use of Internet technologies to support the marketing function at Cypress Semiconductor improve business and customer value? are the benefits and potential challenges of FleetBostons use of IT to support their targeted marketing programs?
Copyright 2004, The McGraw-Hill Companies, Inc. All rights reserved.
What
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47
Why
How
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48
How
can customer segmentation and targeted marketing programs that focus on customer profitability avoid ignoring customers with low current returns but high potential?
McGraw-Hill/Irwin
49
is the exchange of tribal knowledge important in product design? do Web-based systems support such collaborations?
How
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50
Why
is it important to provide visibility throughout a supply chain? is JCI attempting to provide this visibility?
How
McGraw-Hill/Irwin
51
What
is the business value of JCIs B2B portal? collaboration systems improve the quality of the products that are designed, as well as reducing the cost and time of the design process?
Can
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52
Real World Case 3 Union Pacific, Corporate Express, & Best Buy
How
could an enterprise application integration system help a firm to better serve its customers?
How
could enterprise application systems improve a companys business interactions with its suppliers?
McGraw-Hill/Irwin
53
What
major challenges are faced by businesses that implement EAI initiatives? can companies meet those challenges?
How
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54
key HR applications are provided by Baxters Web-based HR system? are some other Web-based HR applications they might implement?
What
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55
What
business value does Baxter derive from their Web-based HR approach? value do their employees receive from such HR systems?
What
McGraw-Hill/Irwin
56
How
could viewing employees as customers or clients change how HR services are provided to employees by Web-based HR systems?
McGraw-Hill/Irwin
57
have many companies been reluctant to support instant messaging in the workplace? are the advantages of instant messaging over e-mail and voice mail for enterprise collaboration?
What
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58
What
do you see as the major disadvantages of using instant messenger instead of e-mail or voice mail?
Do
you recommend that companies encourage and support the use of IM tools for enterprise collaboration?
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