1. e-Business Systems Chapter 7
McGraw-Hill/Irwin
Copyright © 2010 by the McGraw-Hill Companies, Inc. All rights reserved.

2. Enterprise Business Systems
Using the Internet, other networks, and IT to support…
Electronic commerce
Enterprise communications and collaboration
Web-enabled business processes
E-commerce
Buying, selling, and marketing of products, services, and information over the Internet and other networks

3. Cross-Functional Systems
Cross-functional systems are used to reengineer and improve vital business processes all across the enterprise
Cross-functional systems cross the boundaries of traditional business functions

4. Enterprise Application Architecture
This slide presents an overview of enterprise application architecture. It shows the major cross-functional enterprise applications and their interrelationships.
Focuses on accomplishing fundamental business processes in concert with
Customers
Suppliers
Partners
Employees

5. Managing at the Enterprise Level
Getting the whole business to fly in the same direction, as efficiently as possible
Customer relationships
Back-office operations
Movement of raw materials & finished goods

6. Customer Relationship Management
A customer-centric focus
Customer relationships are a company’s most valued asset
Every company should find and retain the most profitable customers possible

7. What is CRM?
Managing the full range of the customer relationship involves two related objectives
(1) Providing customer-facing employees with a single, complete view of every customer, at every touch point, across all channels
(2) Providing the customer with a single, complete view of the company and its extended channels
CRM uses IT to create a cross functional enterprise system that integrates and automates customer-serving processes

8. Application Clusters in CRM

9. Contact and Account Management
CRM helps sales, marketing, and service professionals capture and track relevant data about
Every past and planned contact with prospects and customers
Other customer business & life-cycle events
Data are captured through touchpoints
Telephone, fax, , Websites
Retail stores, kiosks, personal contact

10. Sales
A CRM system provides sales reps with the tools and data resources they need to
Support and manage sales activities
Optimize cross- and up-selling
CRM also provides the means to check on a customer’s account status and history before scheduling sales calls

11. Marketing and Fulfillment
CRM systems help with direct marketing campaigns by automating tasks
Qualifying leads for targeted marketing
Scheduling and tracking mailings
Capturing and managing responses
Analyzing the business value of a campaign
Fulfilling responses & requests

12. Customer Service and Support
CRM helps customer service managers create, assign and manage customers’ requests for service
Call center software
Help desk software
Web-based self-service

13. Retention and Loyalty Programs
The odds of selling to an existing customer are 50%; a new one 15%
70% of complaining customers will do business with the company again if it quickly fixes a problem
It costs 6 times more to sell to a new customer
An unhappy customer will tell 8-10 others
Boosting customer retention 5% can boost profits 85%

14. Retention and Loyalty Programs
Enhancing and optimizing customer retention and loyalty is a primary objective of CRM
Identify, reward, and market to the most loyal and profitable customers
Evaluate targeted marketing and relationship programs

15. Three Phases of CRM

16. Benefits and Challenges of CRM
Benefits of CRM
Identify and target the best customers
Real-time customization and personalization of products and services
Track when and how a customer contacts the company
Provide a consistent customer experience
Provide superior service and support across all customer contact points

17. CRM Failures Business benefits of CRM are not guaranteed
50% of CRM projects did not produce promised results
20% damaged customer relationships
Reasons for failure
Lack of understanding and preparation
Not solving business process problems first
No participation on part of involved business stakeholders

18. What is ERP? A cross-functional enterprise system
Facilitates business, supplier, and customer information flows
The backbone of business processes
A cross-functional enterprise system
Supports basic internal business processes
An integrated suite of software modules

19. ERP Application Components

20. Benefits and Challenges of ERP
ERP Business Benefits
1. Quality & efficiency
2. Decreased costs
3. Decision support
4. Enterprise agility
ERP Costs
1. High risk & cost
2. Hardware and software are a small part of overall project
3. Failure can cripple or kill a business

21. Costs of Implementing a New ERP

22. Common Causes of ERP Failure
Causes of ERP Failures
Common Causes of ERP Failure
Under-estimating the complexity of planning, development, training
Failure to involve affected employees in planning and development
Over-reliance on ERP vendor or consultants
Insufficient training
Insufficient data conversion and testing
Trying to do too much, too fast

23. Supply Chain Management (SCM)
Supply chain management helps a company
Get the right products
To the right place
At the right time
In the proper quantity
At an acceptable cost

24. Receive feedback on the status of every link in the supply
Goals of SCM
Forecast demand
Control inventory
Enhance relationships with customers, suppliers, distributors, and others
Receive feedback on the status of every link in the supply

25. What is a Supply Chain? The interrelationships
With suppliers, customers, distributors, and other businesses
Needed to design, build, and sell a product
Each supply chain process should add value to the products or services a company produces
Frequently called a value chain

26. Supply Chain Life Cycle

27. Electronic Data Interchange
The electronic exchange of business transaction documents between supply chain trading partners
One of the earliest uses of information technology for supply chain management
The almost complete automation of an e-commerce supply chain process
Many transactions occur over the Internet, using secure virtual private networks

28. Typical EDI Activities

29. Roles and Activities of SCM in Business

30. Planning & Execution Functions of SCM
Supply chain design
Collaborative demand & supply planning
Execution
Materials management
Collaborative manufacturing
Collaborative fulfillment
Supply chain event management
Supply chain performance management

31. Benefits and Challenges of SCM
Faster, more accurate order processing
Reductions in inventory levels
Key Benefits
Strategic relationships with supplier
Quicker times to market
Lower transaction and materials cost

32. Goals and Objectives of SCM

33. Benefits and Challenges of SCM
Key Challenges
Lack of demand planning knowledge, tools, and guidelines
Inaccurate data provided by other information systems
Lack of collaboration among marketing, production, and inventory management
SCM tools are immature, incomplete, and hard to implement

34. Enterprise Application Integration
EAI software connects cross-functional systems
Serves as middleware to provide
Data conversion
Communication between systems
Access to system interfaces

35. How EAI Works

36. Transaction Processing Systems
Cross-functional information systems that process data resulting from the occurrence of business transactions
Transactions include sales, purchases, deposits, withdrawals, refunds, and payments
Online transaction processing (OLTP) is a real-time system that captures transactions immediately

37. Transaction Processing Systems

38. The Transaction Processing Cycle

39. Enterprise Collaboration Systems (ECS)
EC systems are cross-functional information systems that enhance team and workgroup
Communication
Coordination
Collaboration
Systems may include
Networked PC workstations
Servers
Databases
Groupware and application packages

40. ECS Tools

41. Functional Business Systems
Various types of information systems that support the business functions of…
Accounting
Finance
Marketing
Operations management
Human resource management

42. IT in Business

43. Marketing Systems Marketing systems are concerned with…
Planning, promotion, and sale of existing products in existing markets
Development of new products and new markets
Better attracting and serving present and potential customers

44. Marketing Information Systems

45. Interactive Marketing
A customer-focused marketing process
Uses the Internet, intranets, and extranets
Establishes two-way transactions between a business and its customers or potential customers
Goal
Profitably use networks to attract and keep customers
Get customers to help create, purchase, and improve products and services

46. Targeted Marketing
Community: customized ads to appeal to specific virtual communities
Content: ads placed on a variety of selected websites, aimed at a specific audience
Context: ads placed on web pages that are relevant to a product or service
Demographic/Psychographic: web marketing aimed at specific types or classes of people
Online behavior: promotions tailored to each visit to a site by an individual
Advertising and promotion management concept with five targeting components

47. Sales Force Automation
Outfit sales force with notebook computers, web browsers, and sales contact software
Connect them to marketing websites and the company intranet
Goals
Increase personal productivity
Speed up capture and analysis of sales data
Gain strategic advantage

48. Manufacturing Information Systems
Supports production/operations functions
All activities concerned with planning and control of the processes tied to producing goods or services

49. Computer-Integrated Manufacturing

50. CIM Objectives
Simplify… production processes, product designs, and factory organization
Automate… production processes and the business functions that support them
Integrate… all production and support processes using
Networks
Cross-functional business software
Other information technologies

51. CIM supports the concepts of…
CIM Objectives
CIM supports the concepts of…
Flexible manufacturing systems
Agile manufacturing
Total quality management (TQM)

52. Manufacturing Information Systems
Computers help engineers design products
Computer-aided engineering (CAE)
Computer-aided design (CAD)
Computer-aided manufacturing (CAM)
Manufacturing also uses software
Computer-aided process planning
Material requirements planning (MRP)
Manufacturing resource planning
Manufacturing execution systems (MES)
Process and machine control

53. Human Resource Management (HRM)
Information systems support
Planning to meet personnel needs
Development of employees to their full potential
Control of all personnel policies and programs

54. HRM Systems

55. HRM and the Internet
Recruitment via the company website & commercial recruiting services
Posting messages in selected Internet newsgroups
Communicating with job applicants via

56. HRM and Corporate Intranets
Corporate intranet uses
Process common HRM transactions
Around-the-clock HRM services
Disseminate information faster than previous company channels
Collect information from employees online
Allow HRM tasks to be performed with little HRM dept. intervention
Training

57. Employee Self-Service
Intranet applications can allow employees to
View benefits
Enter travel and expense reports
Verify employment and salary information
Access and update personal information
Enter time-sensitive data
Receive training
Produce automated pay sheets

58. Accounting Information Systems
Oldest and most widely used information system in business
Records and reports business transactions and economic events
Produces financial statements
Forecasts future conditions

59. Accounting Information Systems

60. Financial Management Systems
Supports business managers and professionals making decisions concerning
Financing of a business
Allocation and control of financial resources within a business

61. Financial Management Systems