1. Chapter 7 e-Business Systems McGraw-Hill/Irwin
Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.

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

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
Production
Operations management

4. Enterprise Business Systems
Use Internet, 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

5. RWC 1: Enterprise Architects
4 crucial Cs
Connection
Collaboration
Communication
Customers
All projects fit in the overall strategy
Best for company, not individual departments

6. Cross-Functional Systems
Cross the boundaries of traditional business functions
Reengineer and improve vital business processes
R&D overlaps Marketing and Manufacturing
Cross the boundaries of traditional business functions
Used to reengineer and improve vital business processes all across the enterprise
R&D overlaps Marketing and Manufacturing

7. Enterprise Application Architecture
Provides a conceptual framework
Components
Processes
Interfaces
Focuses on accomplishing fundamental business processes in concert with
Customers
Suppliers
Partners
Employees
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
Supply Chain Management (SCM)
Focuses on developing the most efficient and effective sourcing and procurement processes
the complete sequence of suppliers that contribute to creating a good or service and delivering it to business users and final customers
1. Supply chain begins when the raw materials used in production are delivered to the producer
2. Continues with the actual production activities that create finished goods.
3. Finally the finished goods move through the producer's distribution channels to end customers.
Knowledge Management (KM)
Focuses on facilitating internal group collaboration and decision support

8. Implementing Global Applications
Globalization vs true-blue American formula
What is Globalization?
What is the true-blue American business formula?
Working virtually is critical
Why?
What is the difference between decision making approach in UK and US?
Globalization - take on a whole world view
True-blue American formula - force fitting their visions in offices
Must allow for global collaboration
different languages, cultures, time zones
workers in UK - rely heavily on qualitative research -- take time making decisions
Americans - action oriented
Holding tight control is destructive

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

10. How EAI Works Enterprise Application Integration -
EAI software connects cross-functional systems
Serves as middleware to provide
Data conversion
Communication between systems
Access to system interfaces
Costly - components are expensive
Painful - learning curve
Worth it - GM 80% savings
Smaller companies tougher call
EAI is infrastructure and cost justification is always tough for infrastructure
Only thing more expensive is not using these tools

11. Transaction Processing Systems
Cross-functional information systems that process data resulting from the occurrence of business transactions
Transactions
Sales, purchases, deposits, withdrawals, refunds, and payments
Online transaction processing (OLTP)
Real-time system
Captures transactions immediately
7-11

12. The Transaction Processing Cycle

13. ECS Tools
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
Also FIGURE page 282
QuickPlace by Lotus Development helps virtual workgroups set up Web based work spaces for
collaborative work assignments.

14. Exploring Virtual Worlds
Virtual world - training
Rollovers
Multicar pileups
Life threatening injuries
Police training
Military use

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

16. Marketing systems are concerned with
Existing products in existing markets
New products and new markets
Serving present and potential customers
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

17. RWC 2: Unified Financial Reporting
Originally non-uniform reporting
14 general ledgers
12 reporting tools
17 financial data repositories
300,000 spreadsheets
Finance Tranformation Program - Focus
Common definitions, rules and procedures
Trade-offs to target core functionalities
All subscribe to central book of record
Unify all financial people

18. IT in Business
Examples of functional business information systems. Note how they support the
major functional areas of business.

19. Marketing Information Systems
Interactive Marketing
A customer-focused marketing process
Uses the Internet, intranets, and extranets
Establishes two-way transactions
Customers
Potential customers
Goal
Profitably use networks to attract and keep customers
Get customers to help create, purchase, and improve products and services

20. Advertising and promotion management concept
Targeted Marketing
Advertising and promotion management concept
Five targeting components
An advertising and promotion management concept with five targeting 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
Cookie files
Digital billboards to deliver
Advertising
Headlines
Weather updates
Programming information
Traffic advisories

21. Sales Force Automation
Outfit sales force
Notebook computers,
Web browsers
Sales contact software
Marketing websites
Company intranet
Goals
Increase personal productivity
Speed up capture and analysis of sales data
Gain strategic advantage
Outfit sales force with notebook computers, web browsers, and sales contact software
Marketing websites
Company intranet
Goals
Increase personal productivity
Speed up capture and analysis of sales data
Gain strategic advantage
Also FIGURE page 289
This Web-based sales force automation package supports sales lead management of qualified prospects, and management of current customer accounts.

22. Computer-Integrated Manufacturing
Manufacturing Information Systems
Supports production & operations
Includes all activities concerned with planning and control of the processes producing goods or services
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
Types of CIM Systems
Computer-aided engineering (CAE)
Computer-aided design systems (CAD)
Material requirements planning (MRP)
Plan the types of material needed in the production process
Integrate MRP with production scheduling and shop floor operations
Computer-aided manufacturing (CAM)
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

23. Information systems designed to support
HRM Systems
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

24. Posting in Internet newsgroups Communicating with job applicants via
HRM and the Internet
Recruiting employees
Corporate website
Commercial recruiting services
Posting in Internet newsgroups
Communicating with job applicants via
Monster.com
HotJobs.com
CareerBuilder.com

25. HRM and Corporate Intranets
Corporate intranet uses
Process common HRM transactions
Allow 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 department intervention
Provide training
Corporate intranet uses
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
Provide training

26. Employee Self-Service (ESS)
Intranet applications allow employees to
View benefits
Enter travel and expense reports
Verify employment and salary information
Access and update personal information
Enter time-sensitive data
Provide hiring systems
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
Also FIGURE page 293
An example of an employee hiring review system.

27. 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
Legal and historical record keeping
GAAP
Typically consist of
Order processing
Inventory control
Accounts receivable
Accounts payable
Payroll
General ledger systems

28. Business Accounting Systems
Also FIGURE page 296
An example of an online accounting report.

29. Financial Management System
Supports business managers and professionals making decisions concerning
The financing of a business
The allocation and control of financial resources within a business
Also FIGURE page 297
An example of strategic financial planning using a multiple scenario approach.
Note the effect on earnings per share.

30. RWC 3: Cisco Systems TelePresence Strong competition Biggest challenge
Life-like, in-person experiences
Promises to revolutionize collaboration
Strong competition
HP - Halo telepresence system
Polycom - high-end telepresence system
Biggest challenge
Innovation and growth
Cisco TelePresence creates life-like, in-person experiences, and promises to revolutionize the way teams collaborate in the future.
The system weighs in at just over a ton and requires a room at least 15 by 19 feet. It uses the Cisco MCS 7800 series server and the 7970G IP phone, running SIP over a 6-Mbps or better connection. It uses three 65-inch HD plasma displays and an internal Gigabit Ethernet switch.
Cisco faces strong competition from HP, which introduced its Halo telepresence system, and videoconferencing leader Polycom, which offers a high-end telepresence system.
Where do they work?
Business is in California
Work where they live - some in Illinois
Rebecca Jacoby
non-techie - came up through manufacturing ranks
Biggest challenge
innovation and growth
Jacoby mantra - "to lead the next phase of the internet, Cisco must reinvent its own processes
The first few years were pretty painful... technology isn't the limiting factor.... people resist change .... go from command and control to collaboration
Where do WE see that?
In this class room - comfortable with the prof or a few dominant students carrying the conversation, reluctant to join in

31. RWC 4: Strategic Information Systems
Electronic hiring system
Significant payoff is significant
Filling job openings two weeks faster
Saving at least $1,500 per job.
HR called to be a strategic business partner,
IT provides innovative solutions.
Workforce is the biggest expense
HR is becoming a strategic partner
Workforce optimization - HCM - Human Capital Management
bring them in and track them over time
Last paragraph - As we move from an industrial to a knowledge economy it's not what you manufacture but what your people know that give you competitive advantage