1. Electronic Business Systems
Dr Mohammad Nabil Almunawar

2. Learning Objectives
Identify cross-functional E-Business systems and give examples of how they can provide significant business value to a company and its customers and business partners.
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.

3. E-Business
E-business is the use of computer networks and IT to support business (transactions, communication and collaboration, business process).

4. The E-Business Application Architecture

5. Enterprise Resource Planning (ERP)
ERP is a cross-functional enterprise system that serve as a framework to integrate and automate of many business process.
ERP is a backbone of E-Business.
ERP software is a family of office process. For example, ERP for a manufacturing company will typically track the status of sales, inventory, shipping, invoicing forecast raw material, etc.
ERP is recognized as a necessary ingredient for the efficiency, agility, and responsiveness to customers and suppliers in the competitive environment.

6. Business Value of ERP
ERP creates a framework for integrating and improving back-office systems that results in major improvement in customer service, production and distribution efficiency.
ERP provides vital cross-functional information quickly on business performance to managers to significantly improve their ability to make better business decisions across the enterprise.

7. Customer Relationship Management (CRM)
It costs 6 times more to sell to a new customer than to sell to the existing one.
A typical dissatisfied customer will tell to 10 people about his/her experience.
A company can boost its profits 85% by increasing its annual customer retention by only 5%.
The odds of selling a product to a new customer are 15%, whereas the odds of selling a product to an existing customer are 15%.
70% of complaining customers will do business with the company again if it quickly takes case of a service snafu.
More than 90% of existing companies don’t have the necessary sales service integration to support E-commerce.

8. CRM
CRM uses IT to create a cross-functional enterprise system that integrate and automate many customer serving process in sale, marketing, and product services.
CRM software provides tools that enable a business and its employees to provide fast, convenient, dependable, and consistent service to customers.
A typical CRM software includes sales, direct marketing and fulfillment and customer service & support.

9. Major application clusters in CRM

10. Business Value of CRM
Allows business to identify and target their best customer
Enables real-time customisation and personalisation of products and services.
Keeps track when customers contact the company regardless of the contact point.
Enable company to provide consistent customer experience and superior service and support all contact points a customer chooses.

11. Cross-Functional Integrated Systems
Front Office
Applications
CRM Application
Customer Service
Field Service
Sales Order
Product Config
Back Office
ERP Application
Distribution
Manufacturing
Scheduling
Finance
Enterprise
Application
Integration
Enterprise Application
Cluster
Customers
Suppliers
Business Partners

12. Supply Chain Management
Commit

13. Online Transaction Processing
Transactions are events that occur as part of doing business such as sales, purchases, deposits, withdrawals, refunds, and payments.
Transaction processing are cross functional information systems that process data resulting from the occurrence of business transactions.
Online transaction processing systems play strategic role in e-commerce.

14. Example of an online transaction system

15. Transaction Processing Cycle
Database
Maintenance
Transaction
Processing
Batch
Online/Realtime
Data
Entry
Document
and Report
Generation
Inquiry 1 2 3 4 5

16. Functional Business Information Systems

17. Marketing Information Systems
Interactive
Sales Force
Automation
Customer
Relationship
Management
Sales
Market
Research and
Forecasting
Advertising
and
Promotions
Product

18. Major Components of Targeted Marketing
Online Behavior
Community
Context
Demographic/
Psychographic
Content

19. Manufacturing Information Systems

20. Human Resource Management
Manpower
Planning
Labor Force
Tracking
Labor Cost
Analysis
Turnover
Recruitment
Workforce
Skill assessment
Performance
evaluation
Payroll
control
Benefits
Administration
Compensation
effectiveness
Contract
costing
Salary forecast
Succession
planning
appraisal plans
Training
Career
matching
Staffing
Training &
Development
Strategic
Systems
Tactical
Operational

21. Accounting Information Systems

22. Financial Information Systems
Planning
Cash
Management
Investment
Capital
Budgeting

23. Summary
The E-Business Application Architecture reflects the key E-Business applications and their interrelationships.
Cross-functional enterprise applications cross the boundaries of traditional business functions. These systems focus on supporting integrated clusters of business processes.
Supply Chain Management relies on information technology and management practices to optimize information and product flows among the processes and business partners within the supply chain.
A transaction processing system is an information system that processes data resulting from the occurrence of business transactions.

24. Summary (cont)
Traditional functional business systems support specific business functions including marketing, accounting, finance, production/operations, and human resource management.
Marketing information systems support traditional and E-commerce processes and management of the marketing function.
Computer-based manufacturing systems help a company simplify, automate, and integrate many of the activities needed to quickly produce high-quality products to meet changing customer demands.
Human resource information systems support human resource management in organizations.
Several different types of electronic payment systems are used to support E-Commerce transactions.