1. Management Information Systems
Managing Information Technology in the Business Enterprise

2. Introduction to e-Business Systems
Chapter 5
Introduction to e-Business Systems

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.

4. Learning Objectives (continued)
Identify the following cross-functional system concepts, and how they can provide significant business value to a company:
Enterprise application integration
Transaction processing systems
Enterprise collaboration systems

5. Functional Business Systems
Section I
Functional Business Systems

6. 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.”

7. 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

8. Marketing Systems (continued)
Targeted marketing
Five targeting components
Community
Content
Context
Demographic/psychographic
Online behavior

9. 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.

10. Manufacturing Systems
Support the production/operations function
Assists firms in planning, monitoring, & controlling inventories, purchases, & the flow of goods and services

11. 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)

12. Manufacturing Systems (continued)
Computer-Aided Manufacturing (CAM)
Automate the production process
Manufacturing Execution Systems (MES)
Performance monitoring systems for factory floor operations

13. 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

14. 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

15. Human Resource Systems (continued)
Human Resource Information Systems (continued)
Performance appraisals
Employee benefits analysis
Training and development
Health, safety, & security

16. 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.

17. 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

18. Accounting Systems
Record and report business transactions and other economic events
Online Accounting Systems

19. 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

20. 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

21. 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

22. Financial Management Systems
Supports financial managers in decisions concerning
The financing of the business
The allocation & control of financial resources within the business.

23. 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

24. 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

25. 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

26. 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

27. Cross-Functional Enterprise Systems
Section II
Cross-Functional Enterprise Systems

28. 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

29. Cross-Functional Enterprise Applications (continued)
Enterprise Application Architecture

30. Cross-Functional Enterprise Applications (continued)
Focused on accomplishing fundamental business processes in concert with the company’s customer, supplier, partner, & employee stakeholders

31. 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

32. 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.

33. 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

34. 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

35. 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

36. 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

37. Transaction Processing Systems (continued)
Inquiry processing
Inquiries and responses concerning the results of transaction processing activity

38. Transaction Processing Systems (continued)

39. 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

40. Enterprise Collaboration Systems (continued)
Tools for Enterprise Collaboration
Electronic communication
Voice mail
Fax
Web publishing
Bulletin boards
Paging
Internet phone systems

41. 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

42. Enterprise Collaboration Systems (continued)
Collaborative work management
Calendaring & scheduling
Task & project management
Workflow systems
Knowledge management

43. Summary
Marketing information systems support traditional and e-commerce processes
Manufacturing information systems support Computer Integrated Manufacturing (CIM)
Human resources information systems support staffing, training, development, and compensation
Accounting information systems record, report, and analyze transactions and events

44. Summary (continued)
Financial information systems include forecasting and planning of cash, investments, and capital
Cross-functional enterprise systems include Enterprise Resource Planning (ERP), Customer Relationship Management (CRM), Supply Chain Management (SCM), and Enterprise Collaboration Systems (ECS)
Transaction processing systems record data about business transactions

45. Discussion Questions
Why is there a trend toward cross-functional integrated enterprise systems in business?
How do you think sales force automation affects salesperson productivity, marketing management, and competitive advantage?

46. 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?

47. 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?

48. Real World Case 1 – Canadian Depository for Securities
What are the advantages and disadvantages of CDSX versus the legacy system it replaced?
Identify the online services that you find to be useful.
Who are the potential users of the CDSX system?

49. Real World Case 2 – Trimac Transportation
What are the advantages of integrated systems?
How would Trimac customers benefit from the BI system?
What would you recommend as the next customer-based e-business initiative for Trimac?

50. 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?

51. Real World Case 3 (continued)
What major challenges are faced by businesses that implement EAI initiatives?
How can companies meet those challenges?