1. McGraw-Hill/Irwin
Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved.

2. Electronic Business Systems
Chapter 7-8
Electronic Business Systems

3. 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
Transaction processing systems
Enterprise collaboration systems

4. 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
Production
Operations management

5. Enterprise Business Systems
E-business means using the Internet, other networks, and IT to support
Electronic commerce
Enterprise communications and collaboration
Web-enabled business processes
E-commerce is the buying, selling, and marketing of products, services, and information over the Internet and other networks

6. Enterprise Application Architecture

7. Enterprise Application Architecture
Provides a conceptual framework
Helps visualize the basic components, processes, and interfaces of major e-business applications
Focuses on accomplishing fundamental business processes in concert with
Customers
Suppliers
Partners
Employees

8. Enterprise Application Architecture
Enterprise Resource Planning (ERP)
Concentrates on the efficiency of internal production, distribution, and financial processes
Customer Relationship Management (CRM)
Focuses on acquiring and retaining profitable customers via marketing, sales, and services
Partner Relationship Management (PRM)
Aims at acquiring and retaining partners who can enhance the selling and distribution of products and services

9. Enterprise Application Architecture
Supply Chain Management (SCM)
Focuses on developing the most efficient and effective sourcing and procurement processes
Knowledge Management (KM)
Focuses on facilitating internal group collaboration and decision support

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

11. How EAI Works

12. 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

13. The Transaction Processing Cycle

14. 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

15. ECS Tools

16. Functional Business Systems
A variety of types of information systems that support the business functions of
Accounting
Finance
Marketing
Operations management
Human resource management

17. IT in Business

18. 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

19. Marketing Information Systems

20. 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

21. Targeted Marketing
An advertising and promotion management concept with five targeting components

22. Targeted Marketing Components
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

23. 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

24. Manufacturing Information Systems
Supports the production/operations functions
Includes all activities concerned with planning and control of the processes producing goods or services

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

26. HRM Systems

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

28. Accounting Information Systems
Typically consists of
Order processing
Inventory control
Accounts receivable
Accounts payable
Payroll
General ledger systems

29. Accounting Information Systems

30. Financial Management Systems
Supports business managers and professionals making decisions concerning
The financing of a business
The allocation and control of financial resources within a business

31. Financial Management System Example

32. Customer Relationship Management
A customer-centric focus
Customer relationships have become a company’s most valued asset
Every company’s strategy should be to find and retain the most profitable customers possible

33. What is CRM?
Managing the full range of the customer relationship involves
Providing customer-facing employees with a single, complete view of every customer at every touch point and across all channels
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 many of the customer-serving processes

34. Application Clusters in CRM

35. 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 business and life cycle events of customers
Data are captured through customer touchpoints
Telephone, fax,
Websites, retail stores, kiosks
Personal contact

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

37. Marketing and Fulfillment
CRM systems help with direct marketing campaigns by automatic such tasks as
Qualifying leads for targeted marketing
Scheduling and tracking mailings
Capturing and managing responses
Analyzing the business value of the campaign
Fulfilling responses and requests

38. Customer Service and Support
A CRM system gives service reps real-time access to the same database used by sales and marketing
Requests for service are created, assigned, and managed
Call center software routes calls to agents
Help desk software provides service data and suggestions for solving problems
Web-based self-service enables customers to access personalized support information

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

40. 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

41. Supply Chain Management (SCM)
Fundamentally, 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

42. Goals of SCM The goal of SCM is to efficiently Forecast demand
Control inventory
Enhance relationships with customers, suppliers, distributors, and others
Receive feedback on the status of every link in the supply chain

43. 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

44. Supply Chain Life Cycle

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

46. Typical EDI Activities

47. Roles and Activities of SCM in Business