1. Chapter 3 Electronic Business Systems (E-Business)
Main Ref: Chapter 7 – Introduction to Information Systems, by O’Brien & Marakas, 16th ed

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
Transaction processing systems
Enterprise collaboration systems
Give examples of how Internet and other information technologies support business processes within the business functions of Accounting, Finance, Human resource management, Marketing, Production, and Operations management
Chapter 7 Electronic Business Systems

3. What is E-Business?
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

4. Cross-Functional Enterprise Systems
Cross the boundaries of traditional business functions
Used to reengineer and improve vital business processes all across the enterprise
It is a group of people with different functional expertise working towards a common goal.
It may include the people from finance, marketing, operations, human resources. Typically, it includes employees from all levels of an organization.
Cross-functional enterprise system often function as self-directed enterprise systems responding to broad, but not specific directives.

5. Enterprise Application Architecture

6. 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

7. 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

8. Enterprise Application Integration
EAI software connects cross-functional systems
Serves as middleware to provide:
Data conversion
Communication between systems
Access to system interfaces
Enterprise application integration is an integration framework composed of a collection of technologies and services which form a middleware to enable integration of systems and applications across the enterprise.
Example of Middleware: Oracle Fusion Middleware

9. EAI Example

10. Transaction Processing Systems (TPS)
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
Online Transaction Processing has two key benefits: simplicity and efficiency. Reduced paper trails and the faster, more accurate forecasts for revenues and expenses are both examples of how OLTP makes things simpler for businesses.

11. Transaction Processing Systems (TPS)

12. Transaction Processing Cycle
1. Data Entry: The first step of the transaction processing cycle is the capture of business data. For example, transaction data may be collected by point-of-sale terminals using optical scanning of bar codes and credit card readers at a retail store or other business.
2. Transaction Processing:
Batch – transaction data are accumulated over a period of time and processed periodically
Real-Time (OLP) data are processed immediately after a transaction occurs.

13. Transaction Processing Cycle
3. Database Maintenance: updating corporate databases of an organization to reflect changes resulting from day-to-day business transactions
4. Document and Report Generation: including transaction documents, transaction listings and error reports.
5. Inquiry Processing: making inquiries and receiving responses concerning the results of transaction processing activities.

14. Transaction Processing Cycle

15. 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

16. ECS Goals Communicate – share information
Coordinate – coordinate individual work efforts and share resources
Collaborate – work together cooperatively on joint projects and assignments

17. ECS Tools

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

19. Functional Business IS

20. 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

21. Marketing Information Systems

22. 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
How?
In interactive marketing, customers are not just passive participants who receive
media advertising prior to purchase. Interactive marketing encourages customers to become involved in product development, delivery, and service issues. This is enabled by various Internet technologies, including chat and discussion groups, Web forms and questionnaires, instant messaging, and correspondence.
Goal
Profitably use networks to attract and keep customers
Get customers to help create, purchase, and improve products and services.
the expected outcomes of interactive marketing are a rich mixture of vital marketing data, new product ideas, volume sales, and strong customer relationships.

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

24. Targeted Marketing Components
Community – customize advertising to appeal to people of specific virtual communities
Content – advertising placed on a variety of selected websites
Context – advertising placed on web pages that are relevant to the content of a product or service
Demographic/Psychographic – web marketing efforts aimed at specific types or classes or people
Online Behavior – promotion efforts tailored to each visit to a site by an individual. Example: cookie

25. 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

26. For example, salespeople use their PCs to record sales data as they make their calls on customers and prospects during the day. Then each night, sales reps. in the field can connect their computers to the Internet and extranets, which can access intranet or other network servers at their company. Then, they can upload information on sales orders, sales calls, and other sales statistics, as well as send messages and access Web site sales support information. In return, the network servers may download product availability data, prospect lists of information on good sales prospects, and messages.

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

28. Computer-Integrated Manufacturing

29. 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

30. CIM Systems
Computer-aided manufacturing (CAM) - Information systems that automate the production process
Manufacturing execution systems (MES) – performance monitoring information systems for factory floor operations
Process Control – control ongoing physical processes
Machine Control – controls the actions of machines
Note Refer to e-book for examples

31. 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

32. Human Resource Systems
succession

33. HRM and the Internet
Recruiting employees through recruiting services and databases on the World Wide Web
Posting messages in selected Internet newsgroups
Communicating with job applicants via

34. HRM and Corporate Intranets
Process common HRM transactions
Allow around-the-clock HRM services
Disseminate information faster than through previous company channels
Collect information from employees online
Allow HRM tasks to be performed with little HRM department intervention
Training

35. 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

36. 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

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

38. Accounting Information Systems
disbursements

39. Accounting Information Systems
Order Processing – Captures and processes customer orders and produces data for inventory control and accounts receivable
Inventory Control – Processes data reflecting changes in inventory and provides shipping and reorder information
Accounts Receivable – Records amounts owed by customers and produces customer invoices, monthly customer statements, and credit management reports

40. Accounting Information Systems
Accounts Payable – Records purchases from, amounts owed to, and payments to suppliers, and produces cash management reports
Payroll – Records employee work and compensation data and produces paychecks and other payroll documents and reports
General Ledger – Consolidates data from other accounting systems and produces the periodic financial statements and reports of the business

41. 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

42. Financial Management Systems
Capital Budgeting – evaluating the profitability and financial impact of proposed capital expenditures
Financial Planning – evaluating the present and projected financial performance of a business

43. Financial Management Systems

44. Resources
E-Text book Chapter 7 – Introduction to Information Systems, by O’Brien & Marakas, 16th ed