1. 1
Chapter
5
Introduction
to
e-Business Systems
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2. 2
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.
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3. 3
Learning Objectives (continued)
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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4. 4
Section I
Functional Business Systems
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5. 5
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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6. 6
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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7. 7
Marketing Systems (continued)
Targeted marketing
Five targeting components
Community
Content
Context
Demographic/psychographic
Online behavior
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8. 8
Marketing Systems (continued)
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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9. 9
Manufacturing Systems
Support the production/operations function
Assists firms in planning, monitoring, &
controlling inventories, purchases, & the flow
of goods and services
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10. 10
Manufacturing Systems (continued)
 Computer-Integrated Manufacturing (CIM)
 Simplify
 Automate
 Integrate
 Supports 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. 11
Manufacturing Systems (continued)
Computer-Aided Manufacturing (CAM)
Automate the production process
Manufacturing Execution Systems (MES)
Performance monitoring systems for factory
floor operations
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12. 12
Manufacturing Systems (continued)
Process Control
The use of computers to control an ongoing
physical process
Machine Control
The use of a computer to control the actions
of a machine.
Also called numerical control
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13. 13
Human Resource Systems
Human 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. 14
Human Resource Systems (continued)
Human Resource Information Systems
(continued)
Performance appraisals
Employee benefits analysis
Training and development
Health, safety, & security
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15. 15
Human Resource Systems (continued)
HRM and the Internet
Allows companies to process most common
HRM applications over their intranets.
Allows companies to provide around-the-
clock services to their employees.
Allows companies to disseminate valuable
information faster.
Allows employees to perform HRM tasks
online.
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16. 16
Human Resource Systems (continued)
Staffing
Supported
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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17. 17
Accounting Systems
Record and report business transactions and
other economic events
Online Accounting Systems
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18. 18
Accounting Systems (continued)
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. 19
Accounting Systems (continued)
Accounts Receivable
Keeps records of amounts owed by
customers from data generated by
customer purchases and payments
Accounts Payable
Keeps track of data concerning purchases
from, and payments to, suppliers
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20. 20
Accounting Systems (continued)
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. 21
Financial Management Systems
Supports financial managers in decisions
concerning
The financing of the business
The allocation & control of financial
resources within the business.
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22. 22
Financial Management Systems (continued)
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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23. 23
Financial Management Systems (continued)
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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24. 24
Financial Management Systems (continued)
Capital Budgeting
Involves evaluating the profitability and
financial impact of proposed capital
expenditures
Allows financial managers to analyze long-
term expenditure proposals for plant and
equipment
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25. 25
Financial Management System (continued)
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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26. 26
Section II
Cross-Functional Enterprise Systems
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27. 27
Cross-Functional Enterprise Applications
Integrated 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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28. 28
Cross-Functional Enterprise Applications (continued)
 Enterprise Application Architecture
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29. 29
Cross-Functional Enterprise Applications (continued)
Focused on accomplishing fundamental
business processes in concert with the
company’s customer, supplier, partner, &
employee stakeholders
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30. 30
Enterprise Application Integration (EAI)
Software 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. 31
Enterprise Application Integration (continued)
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. 32
Transaction Processing Systems
 Cross-functional 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. 33
Transaction Processing Systems (continued)
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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34. 34
Transaction Processing Systems (continued)
Transaction Processing Cycle
 Data 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. 35
Transaction Processing Systems (continued)
Database maintenance
Corporate databases are updated to
reflect the day-to-day business
transactions
Document and report generation
A variety of documents and reports are
produced
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36. 36
Transaction Processing Systems (continued)
Inquiry processing
Inquiries and responses concerning the
results of transaction processing activity
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37. 37
Transaction Processing Systems (continued)
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38. 38
Enterprise Collaboration Systems
Cross-functional 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. 39
Enterprise Collaboration Systems (continued)
Tools for Enterprise Collaboration
Electronic communication
E-mail
Voice mail
Fax
Web publishing
Bulletin boards
Paging
Internet phone systems
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40. 40
Enterprise Collaboration Systems (continued)
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. 41
Enterprise Collaboration Systems (continued)
Collaborative work management
Calendaring & scheduling
Task & project management
Workflow systems
Knowledge management
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42. 42
Discussion Questions
Why is there a trend toward cross-functional
integrated enterprise systems in business?
Referring to the example on Dell Computer,
what other solutions could there be for the
problem of information system incompatibility
in business besides EAI systems?
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43. 43
Discussion Questions (continued)
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?
How do you think sales force automation
affects salesperson productivity, marketing
management, and competitive advantage?
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44. 44
Discussion Questions (continued)
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. 45
Discussion Questions (continued)
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?
Referring to the General Electric example,
how do enterprise collaboration systems
contribute to bottom-line profits for a
business?
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46. 46
Real World Case 1 – Cypress Semiconductor & FleetBoston
How does the use of Internet technologies to
support the marketing function at Cypress
Semiconductor improve business and
customer value?
What are the benefits and potential challenges
of FleetBoston’s use of IT to support their
targeted marketing programs?
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47. 47
Real World Case 1 (continued)
Why do IT-based targeted marketing
programs sometimes produce negative
business results?
How can negative business results be avoided?
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48. 48
Real World Case 1 (continued)
How can customer segmentation and targeted
marketing programs that focus on customer
profitability avoid “ignoring customers with
low current returns but high potential”?
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49. 49
Real World Case 2 – Johnson Controls
Why is the exchange of “tribal knowledge”
important in product design?
How do Web-based systems support such
collaborations?
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50. 50
Real World Case 2 (continued)
Why is it important to provide visibility
throughout a supply chain?
How is JCI attempting to provide this
visibility?
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51. 51
Real World Case 2 (continued)
What is the business value of JCI’s B2B
portal?
Can collaboration systems improve the quality
of the products that are designed, as well as
reducing the cost and time of the design
process?
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52. 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 company’s business interactions
with its suppliers?
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53. 53
Real World Case 3 (continued)
What major challenges are faced by
businesses that implement EAI initiatives?
How can companies meet those challenges?
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54. 54
Real World Case 4 – Baxter International
What key HR applications are provided by
Baxter’s Web-based HR system?
What are some other Web-based HR
applications they might implement?
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55. 55
Real World Case 4 (continued)
What business value does Baxter derive from
their Web-based HR approach?
What value do their employees receive from
such HR systems?
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56. 56
Real World Case 4 (continued)
How could viewing employees as customers or
clients change how HR services are provided
to employees by Web-based HR systems?
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57. 57
Real World Case 5 – IBM Corporation
Why have many companies been reluctant to
support instant messaging in the workplace?
What are the advantages of instant messaging
over e-mail and voice mail for enterprise
collaboration?
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58. 58
Real World Case 5 (continued)
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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