McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 7 e-Business Systems 授課老師：台大工管系 楊立偉

7-2 Learning Objectives  Identify the following cross-functional enterprise systems, and give examples of how they can provide significant business value to a company:  Enterprise application integration (EAI) 企業應用整合  Transaction processing system (TPS) 交易處理系統  Enterprise collaboration system (ECS) 企業協作系統

7-3 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.

7-4 Section 1 E-Business Systems

7-5 I. Introduction  e-business is much broader than e- commerce, using the Internet for any type of business activity  電子化企業, 電子商務是其中一部份

7-6 II. Cross-Functional Enterprise Applications  Reengineer/improve business activities by crossing boundaries of traditional business functions  Enterprise Application Architecture – overview of major cross-functional enterprise applications and their interrelationships 跨 ( 組織 ) 功能的應用

7-7 II. Cross-Functional Enterprise Applications The New Product Development Process

7-8 II. Cross-Functional Enterprise Applications Interrelationships of Cross-Functional Enterprise Applications

7-9 Marriott Hotels: Toward a Single View of the Customer  What is Marriott’s philosophy? What does this mean in real-world terms?  Why is this a challenge?  What was (one of) the biggest challenge(s)? How did Marriott solve this?

7-10 III. Enterprise Application Integration (EAI)  Connects e-business applications; integrates front-office and back-office applications  instead of point-to-point integration 各套系 統間若個別橋接整合，成本及複雜度均太 高 ( 呈指數成長 ) ，故改以 EAI 方式取代 ( 呈 線性成長 )

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7-12 Philips Medical Systems: Reaping the Benefits of Enterprise Integration  What industry is Philips involved in? What does this mean?  How widespread is the Philips organization? Why is this a challenge?  What benefits will the new system provide?  What challenges must the new system overcome to get the benefits?

7-13 IV. Transaction Processing Systems (TPS)  Handles/records daily business activities (transactions) i.e. 處理日常營運活動  Transaction – anything that occurs during daily business of which a record must be kept  Online transaction Processing Systems – capture and process transactions immediately, in real time

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7-15 IV. Transaction Processing Systems  Transaction Processing Cycle – 5 activities:  Data Entry – capture business data  Transaction Processing  Batch Processing – record data, the process it periodically in “batches” 批次作業  Real-time (Online) Processing – capture and process the data immediately after it occurs 即 時 ( 或近乎即時 )

7-16 IV. Transaction Processing Systems  Database Maintenance – Databases must be updated so they are always correct and up-to-date  Document and Report Generation – T-P systems produce a variety of reports  Inquiry Processing – users may query and receive reports about transactions

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7-18 V. Enterprise Collaboration Systems (ECS)  Cross-functional IS help users to:  Communicate – share information 溝通  Coordinate – organize work efforts and resources 協調  Collaborate – work together on projects 協作

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7-20 V. Enterprise Collaboration Systems (ECS)  Tools for Enterprise Collaboration 1.Electronic Communication Tools   Instant Messaging  Voice Mail  Faxing  Web Publishing  Paging

7-21 V. Enterprise Collaboration Systems (ECS)  Tools for Enterprise Collaboration 2.Electronic Conferencing Tools 可分為同步或非同步  Data Conferencing  Voice Conferencing  Video Conferencing  Discussion Forums  Chat Systems  Electronic Meeting Systems

7-22 V. Enterprise Collaboration Systems (ECS)  Tools for Enterprise Collaboration 3.Collaborative Work Management Tools 群 組協作  Calendaring and Scheduling  Task and Project Management  Workflow Systems  Document Sharing  Knowledge Management

7-23 Exploring Virtual Worlds as Collaboration Tools  According to the case, what service industry is interested in virtual worlds?  What interest do they have in these virtual worlds (what can be supplied here)?  What challenges must be overcome in using virtual worlds? What relation does this have to Business?  What benefits do the virtual worlds provide?

7-24 Section 2 Functional Business Systems

7-25 I. Introduction  IT in Business – some IS support specific business functions  e.g. 產, 銷, 人, 發, 財

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7-27 II. Marketing Systems

7-28 Example

7-29 II. Marketing Systems  IS that aid in planning, promotions and sale of existing products in existing markets  Interactive Marketing – customer-focused two-way transactions between a firm and its (potential) customers  Sales Force Automation – connect the sales force to the Internet, intranets, and extranets

7-30 II. Marketing Systems

7-31 II. Marketing Systems  Targeted Marketing 目標行銷 – advertising/promotion concept that includes:  Community – the group of people interested in the product  Content – the message aimed at the community  Context – relevant/related to the target audience  Demographic/Psychographic – aimed only at specific types/classes of people  Online Behavior – track a person’s online behavior so the advertising can be targeted to the individual

7-32 Wireless Sales Force Automation Drives Sales for adidas America  What slowed the sales process for adidas?  Why is real-time access to inventories important?  What was the solution to this problem?  How expensive was the solution?

7-33 III. Manufacturing Systems  Support the production/operations function  Computer-Integrated Manufacturing (CIM) Goal: to create flexible, agile, manufacturing processes that efficiently produce highest quality products 3 Objectives:  Simplify (reengineer) production processes  Automate – with computers, machines, robots  Integrate – tie together all production and support processes with networks, cross-functional software, and other IT

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7-35 III. Manufacturing Systems  Computer-Aided Manufacturing – automate the production process  Manufacturing Execution Systems –monitor performance  Process Control – control ongoing physical processes  Machine Control – use of computers to control machines

7-36 IV. Human Resource Systems  Human Resource Information Systems (HRIS) support: e.g. 選, 育, 用, 留  Planning to meet personnel needs  Development employee to their full potential  Control personnel policies and programs  HRM and the Internet – Internet is a major force for change in HRM  HRM and Corporate Intranets – Intranets allow firms to provide services to customers and employees

7-37 Example

7-38 IV. Human Resource Systems

7-39 Chiquita Brands: Finding Out How Many Employees They Have  Why was this question difficult for Chiquita?  Why was this question difficult for their Information Systems to answer?  What benefits does the new systems provide?

7-40 V. Accounting Systems  The oldest and most widely used IS in business; emphasize legal/historical record keeping accurate financial statements  6 operational accounting systems:  Order Processing – capture/process orders, create data for inventory control and accounts receivable  Inventory Control – process data reflecting changes in inventory, provides shipping/reorder information  Accounts Receivable – record amounts owed by customers, produce customer invoices/statements and credit management reports

7-41 V. Accounting Systems  6 operational systems:  Accounts Payable – record purchases from, amounts owed to, and payments to suppliers, and produce cash management reports  Payroll – record employee work and compensation data, produce paychecks and payroll documents  General Ledger – consolidate data from other accounting systems, produce periodic financial statements and reports  Online Accounting Systems – interactive, directly involved in processing business transactions

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7-43Example

7-44 VI. Financial Management Systems Support decisions concerning: Financing a business – determine financing needs Allocation and control of financial resources Capital Budgeting – evaluate profitability and financial impact of proposed capital expenditures Financial Planning – evaluate present and projected financial performance

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7-46 Chapter 8 Business Across the Enterprise 授課老師：台大工管系 楊立偉

7-47 Learning Objectives  Identify and give examples to illustrate the following aspects of customer relationship management, enterprise resource management, and supply chain management systems:  Business processes supported  Customer and business value provided  Potential challenges and trends  Understand the importance of managing at the enterprise level to achieve maximum efficiencies and benefits.

7-48 Getting All the Geese Lined Up: Managing at the Enterprise Business Level  Customer Relationship Management, Enterprise Resource Planning, and Supply Chain Management all share the same Goal: to get the organization to line up and head in the same direction (like geese). 讓企業如雁行向同一方向前進

7-49 Section 1 Customer Relationship Management: The Business Focus

7-50 I. Introduction  Businesses today must be Customer-centric/Customer-focused – Customer, Customer, Customer!

7-51 II. What Is CRM?  Providing the organization with a single complete view of every customer, and providing the customer with a single complete view of the organization and its extended channels

7-52 II. What Is CRM? (5 major applications) 1.Contact and Account Management – capture and track relevant data about past and planned contacts 2.Sales – providing software tools and data sources to manage sales activities, and optimize cross-selling and up-selling  Cross-selling – selling related products to current customers  Up-selling – selling better products than the one currently purchased

7-53 II. What Is CRM? (5 major applications) 3.Marketing and Fulfillment – automate direct marketing, scheduling, and tracking, and assist in scheduling responses and requests, while capturing relevant information for the marketing database

7-54 II. What Is CRM? (5 major applications) 4.Customer Service and Support – provide customer service software tools, and real- time access to the customer database  Call Center Software – routes calls to customer support agents  Help Desk Software – provides assistance for customer service agents having problems with a product/service

7-55 II. What Is CRM? (5 major applications) 6.Retention and Loyalty Programs – enhancing and optimizing customer retention and loyalty is a major business strategy because:  It costs 6 times more to sell a new customer than an existing one  Dissatisfied customers will tell 8–10 people about bad experiences  A firm can boost sales 85% by increasing customer retention 5%  Odds of selling a new customer – 15%; Odds of selling a current customer – 50%  If a firm resolves a service problem quickly, 70% of complaining customers will do business with the firm again

7-56 Zip Realty: and CRM Integration with Open-Source Zimbra  What was the problem with the systems used by Zip?  What benefit did Zimbra offer that other systems being considered did not?  What benefits does the system offer to users?  How do the costs of the various systems compare?

7-57 III. The Three Phases of CRM (ADR)  Acquire – CRM helps a new customer perceive value of a superior product/service  Enhance (a.k.a Develop) – CRM supports superior customer service, and cross- selling/up-selling  Retain – CRM helps proactively identify and reward the most loyal and profitable customers

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7-59 Hard Rock Hotel and Casino: Drinks – and CRM – Go Mobile  What is the usual problem at a Las Vegas bar?  What idea has Hard Rock come up with?  What technologies are involved?  What other customer services can it provide?  What other benefits does it accrue for Hard Rock?

7-60 IV. Benefits and Challenges of CRM  CRM helps identify and reward the best customers

7-61 V. CRM Failures  Although over 70% of firms plan to implement CRM, over 50% of CRM projects fail to produce promised results due to:  Lack of senior management sponsorship  Improper change management  Projects take on too much too fast  Poor integration between CRM and core business systems  Lack of end-user incentives leading to low user adoption rates

7-62 Unum Group: The Long Road to CRM  What was Unum’s problem?  How many systems were originally involved? How many did they get rid of?  What is the difference between CRM and CDI?  What is the intention of Unum for the future?

7-63 VI. Trends in CRM 發展趨勢  Firms must create tighter linkages with customers while enhancing the customer experience 以下以強調之重點來將 CRM 系統做分類, 參考即可  Operational CRM – supports/synchronizes customer interactions  Analytical CRM – extracts customer information and predicts customer behavior  Collaborative CRM – enables collaboration with customers, suppliers, and business partners  Portal-Based CRM – enables access to customer information and CRM tools

7-64 Integrated CRM: Hilton’s Welcome Mat Starts on the Web  In what ways is Hilton customer-oriented?  What is Hilton’s goal?  How does Hilton view technology?  What is SuiteSelection and how is it customer- oriented?

7-65 Section 2 Enterprise Resource Planning: The Business Backbone

7-66 I. Introduction  ERP is a multifunctional enterprisewide backbone that integrates/automates business processes and information systems II. What is ERP?   A cross-functional software suite supporting basic internal business processes of a firm

7-67 組織功能觀點 : 類似產, 銷, 人, 發, 財

7-68 價值鍊觀點 : 從供應商 ( 原料 ) 變 ( 成品 ) 到客戶手上 即為 ERP 之範圍

7-69 實際運作可能有不同的發動點而且是來來回回的過程

7-70 Colgate-Palmolive: The Business Value of ERP  What were Colgate’s needs?  What solutions did SAP provide?  What results have occurred with this installation? What impact does this have on business?

7-71 III. Benefits and Challenges of ERP  Major Business Value from ERP  Quality and Efficiency – significant improvements in quality and efficiency of customer service, production, and distribution  Decreased Costs – significant reductions in transaction costs, hardware and software, and IT support staff  Decision Support – provides cross-functional information that enables better decision making across the enterprise  Enterprise Agility 敏捷性 – breaks down departmental/functional walls and enables more flexible, adaptive organizational structures

7-72 III. Benefits and Challenges of ERP  Costs of ERP – if you do not do ERP properly, you can kill the firm~  Causes of ERP Failures  #1 cause – underestimating the complexity of planning, development, and training necessary for success  Failure to involve affected employees  Trying to do too much too fast  Overreliance on claims of software vendors/consulting firms

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7-74 ERP Implementations: When They Fail, They Fail Big  How is an “ERP Failure” define?  What was the original budget? What was the last cost?  If the project was a failure, why did they go ahead with it?  What part did the users have in the failure?

7-75 Capital One Financial: Success with ERP Systems  In the old system, how many people had to sign off on an address change?  Which ERP system did they choose? (NOTE: also see the Imperial Sugar case)  What cultural change was effected? Why is that important?  How are software applications accessed?

7-76 IV. Trends in ERP 發展趨勢  Improvements in Integration and Flexibility – ERP modules have become more flexible and easier to install  Extensions to Business Applications – access to intranets/extranets  Broader Reach to New Users – use of the Internet, intranets and extranets provides new links to customers, suppliers, and partners  Adoption of Internet Technologies –enables all the above

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7-78 VISA International: Implementing the e- Business Suite  What were the problems with VISA’s internal systems?  What did the solution do?

7-79 Section 3 Supply Chain Management: The Business Network

7-80 I. Introduction  Successful SCM is based on accurate order processing, JIT (Just-in-time) inventory management, and timely order fulfillment;  this was theoretical 10 years ago, but is now a competitive weapon 越多供應商的企業越需要 ( 如生產製造商, 還有呢 ?) 發展起步較 ERP/CRM 晚

7-81 II. What is SCM?  A cross-functional interenterprise system using IT to support/manage links between key business processes and suppliers, customers, and business partners  Electronic Data Interchange (EDI) 電子資料交換 – an early SCM methodology for exchanging information between partners using standard document message formats, still very popular but being replaced by.xml-based Web services

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7-84 PC Connection: Learning to Stop, Drop, and Ship  What was the problem with PC Connection’s ERP system?  What was their solution?  How well has it worked?  What does the system have to do with customer satisfaction?

7-85 Telefonica TSAI: Internet EDI  How much of Spain’s EDI traffic does TSAI handle?  What service does TSAI offer smaller customers?  How does this help these smaller customers?

7-86 III. The Role of SCM To optimize the effective/efficient movement of materials between suppliers, customers, and other partners

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7-88 Imperial Sugar: Supply Chain Management to the Rescue  What was Imperial’s problem following the refinery explosion?  What software did they use to help?  What did this software offer them to help with the problem?  Which ERP system failed them? Why did it not work?

7-89 IV. Benefits and Challenges of SCM  SCM solutions are becoming more complex.  e.g. 試想 iPhone 7 從研發到生產到上市, 牽涉到多 少的供應商及零組件  Benefits:  Faster, More Accurate Order Processing  Reductions in Inventory Levels  Quicker Times to Market  Lower Transaction and Materials Costs  Strategic Relationships with Suppliers

7-90 BOM (bill of material)

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7-92 IV. Benefits and Challenges of SCM  Challenges – SCM Failures Caused By:  Lack of Knowledge about Demand Planning  Inaccurate/Overly Optimistic Demand Forecasts  Inaccurate Production, Inventory, and Other Business Data  Lack of Adequate Collaboration Among Marketing, Production, and Inventory Management Departments

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7-94 Emerson Transaction Hub: A Bright Idea That’s Paying Off  What problem did Emerson identify?  What was the solution to this problem?  How was the solution implemented?  What percentage of costs was saved by shipping in the same container?  How much did Emerson invest in the communications hub? Have they recovered their costs?

7-95 Nike Inc.: Failure (and Bouncing Back) with Supply Chain Management  How much did Nike’s “speed bump” cost, and in what areas?  How does Nike use historical models?  What have the benefits of the ERP system been?

7-96 V. Trends in SCM 發展趨勢  3 Stages to SCM Implementation  Improve Internal Supply Chain Processes and Improve Relationships with Suppliers and Customers  Use Supply Chain Software, Intranets, and Extranets with Trading Partners  Develop and Implement Collaborative SCM Applications

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7-98 CVS, McKesson, and MPT: Web-Based SCM Integration  Why does CVS prefer push to pull promotions?  What do both CVS and McKesson achieve through this relationship?  What was MPT’s problem?  What solutions does i-Supply offer?

7-99 回顧 資訊管理的一部份內化至各種管理功能中 – 僅為觀點及思考角度的異同 資訊系統觀點 – 企業經營管理就是系統 – 系統內含了許多商業邏輯 (business logic)