Post on 15-Nov-2014
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Intro to Information Technology
Wednesday, Nov 13th
Final Exam: Dec 11th 7pm – 9pm
Chapter Four – Electronic Business Systems
Chapter Five – Electronic Commerce Systems
E-business Application Architecture
E-business Application Architecture This diagram illustrates the
application components, interrelationships, and interfaces with customers employees business partners other stakeholders in the E-business
enterprise
E-business Application Architecture It gives a good overview of
interrelatedness Interdependence Integration
Of the E-Business applications that are vital components of the successful operations and management of an E-business enterprise
Cross Functional Systems Cross Functional Business System
These systems support business processes such as product development, production, distribution, order management, customer support, etc
Cross Functional Enterprise System Cross the boundaries of traditional business
functions Reengineer and improve vital business
processes all across the enterprise
Cross Functional Systems Organizations view cross functional
enterprise systems as strategic way to use IT to Share information resources Improve efficiency and effectiveness
of business processes Help business attain strategic
objectives
Enterprise Resource Planning ERP is a cross functional enterprise
system that serves as a framework to integrate and automate many of the business processes within Manufacturing Logistics Distribution Finance Accounting Human Resources
Enterprise Resource Planning ERP software is a family of software
that supports the business activities involved in back office processes
Example: ERP software for a manufacturing company will typically Track status of sales, inventory,
shipping, and invoices Forecast raw material and human
resource materials
Enterprise Resource Planning Companies began to implement ERP as
a vital conceptual foundation for re-engineering their business processes, and as the software engine required to accomplish these new cross functional processes
Now ERP is a necessary part of an E-business enterprise that requires efficiency, agility, and responsiveness
Enterprise Resource Planning Companies are finding business value in
two major ways ERP creates a framework for integrating and
improving their back office systems that results in major improvements 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
Customer Relationship Management
It costs six times more to sell to a new customer than to an existing one
A typical dissatisfied customer will tell eight to ten people about their experience
A company can boost its profits by 85% by increasing its annual customer retention by only 5%
The odds of selling a product to a new customer are 15%; an existing customer 50%
Customer Relationship Management
Businesses are turning to customer relationship management as a major customer-centric business strategy
CRM uses info technology to create a cross functional enterprise system that integrates and automates many of the customer serving processes in sales, marketing and product services that interact with a company’s customers
Customer Relationship Management
Create an IT framework that integrates all of these processes with the rest of a company’s business processes
Consist of a family of software modules that perform the business activities
Provides tools that enable a business and its employees to provide fast, convenient, dependable, and consistent service to its customers
Customer Relationship Management
CRM systems typically include Sales
Track customer contacts and other business and life cycle events of customers
Direct Marketing and Fulfillment Automate tasks such as qualifying leads,
managing responses, scheduling sales contacts, and providing information to prospects and customers
Customer Relationship Management
CRM systems typically include continued… Customer Service and Support
Helps customer service managers quickly create, assign, and manage service requests
Help desk software assists customer service reps in helping customers who are having problems by providing relevant service data and suggestions for resolving problems
Customer Relationship Management
Business benefits of CRM Systems Ability to identify and target best
customers Allows real-time customization and
personalization of products and services based on customer wants, needs, buying habits, and life cycles
Keeps track of when a customer contacts the company regardless of contact point
Customer Relationship Management
SalesCross-SellUp-SellTeleSales
Store Frontand FieldService
Marketing andFulfillment
CustomerService andSupport
Retentionand LoyaltyPrograms
Customer
Contact Management
Customer Relationship Management
Business benefits of CRM Systems continued… Enables the company to provide
consistent customer experience and superior service and support across all contact points
These benefits provide strategic business value to a company and major customer value to its customers
Enterprise Application Integration Interconnects several E-business
application clusters Enables users to model the business
processes involved in the interactions that should occur between business applications
EAI software can integrate a variety of enterprise application clusters by letting them exchange data according to business process rules
Enterprise Application Integration EAI software can integrate the front and back
office applications of an e-business so they work together in a seamless integrated way
This is a vital capability that provides real business value to an e-business enterprise that must respond quickly and effectively to business events and customer requests
Integrates access to all customer and product data customer reps need to access quickly
Front OfficeApplications
CRM Application•Customer Service•Field Service•Sales Order•Product Config
Back OfficeApplications
ERP Application•Distribution•Manufacturing•Scheduling•Finance
EnterpriseApplicationIntegration
Enterprise ApplicationCluster
Enterprise ApplicationCluster
Cu
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Suppliers
Bu
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Par
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Supply Chain Management E-Commerce customer value
imperative What the customer wants, when and
where its wanted, at the lowest possible cost
Supply chain The interrelationships with other
businesses needed to build and sell a product, the network of business relationships
Supply Chain Management SCM Software
Significantly reduce costs, increase efficiency, and improve supply chain cycle time
Help improve inter-enterprise coordination among supply chain process players for more effective distribution and and channel networks among business partners
Schedule Make Deliver
Transportation
Planning
DemandPlanningDemandPlanning
OrderCommitment
OrderCommitment
AdvanceScheduling
AdvanceScheduling
ManufacturingPlanning
ManufacturingPlanning
DistributionPlanning
DistributionPlanning
Internetworked Supply Chain ManagementInternetworked Supply Chain Management
SupplyChainLife Cycle
SCMFunctionalProcesses
SCMIntegratedSolution
Online Transaction Processing Transaction processing systems
Cross functional info systems that process data resulting from the occurrence of business transactions
Transactions Events that occur as a part of doing
business, such as sales, purchases, deposits, withdrawals, refunds, and payments
Online Transaction Processing Transaction processing activities are
needed to capture and process data involved in transactions
Online transaction processing systems Real-time systems that capture and
process transactions immediately Can help provide superior service to
customers and other trading partners
Online Transaction Processing Transaction Processing Cycle
Data Entry Capture of business data
Transaction processing Batch processing is where data is collected
and processed periodically over time Real-time processing is where data is
processed immediately after a transaction occurs
All OTP systems use real-time processing
Online Transaction Processing Transaction Processing Cycle
continued.. Database maintenance
Databases must always be correct and up-to-date
Transaction processing systems update corporate databases to reflect changes made in day-to-day processing
Online Transaction Processing Transaction Processing Cycle
continued.. Document and Report Generation
Purchase orders Pay cheques Sales receipts Invoices Customer statements
Online Transaction Processing Transaction Processing Cycle
continued.. Inquiry processing
Make inquiries and receive responses concerning the results of transaction processing activities
Check on status of an order Get account balances Amount of stock in inventory
DatabaseMaintenance
TransactionProcessing• Batch
•Online/Realtime
TransactionProcessing• Batch
•Online/Realtime
DataEntry
Documentand ReportGeneration
InquiryProcessing
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Functional E-Business Systems Systems that support the business
functions of Accounting Finance Marketing Operations management Human resource management
Functional E-Business Systems Marketing Info Systems
Interactive Marketing Customer focused marketing process Two way transaction between business
and customer Encourages customers to become
involved in product development, delivery and service issues
Enabled by various Internet technologies such as chat rooms, discussion forums, email, etc
Functional E-Business Systems Marketing Info Systems continued…
Targeted marketing Appeal to people in specific communities Banners or billboards can be placed on
websites other than the companies home page
Ads are only placed on related sites Aimed at specific demographics of people Track person’s online behavior to target each
visitor personally
Functional E-Business Systems Marketing Info Systems
continued… Sales Force Automation
Outfitting the sales force with notebook computers, web sites, and software
Increases personal productivity of sales people
Speeds up capture and analysis of sales data from the field to headquarters
MarketingInformation
Systems
MarketingInformation
Systems
InteractiveMarketing
Sales ForceAutomation
Sales ForceAutomation
CustomerRelationshipManagement
CustomerRelationshipManagement
SalesManagement
SalesManagement
MarketResearch andForecasting
MarketResearch andForecasting
Advertisingand
Promotions
Advertisingand
Promotions
ProductManagement
ProductManagement
Functional E-Business Systems Manufacturing Systems
Computer Integrated Manufacturing Simplify production processes, product
designs, and factory organization Automate production processes and the
business functions that support them with computers, machines, and robots
Integrate all production and support processes using computers, telecommunications netowrks and other info technologies
Functional E-Business Systems Manufacturing Systems
Process Control Use of computers to control an ongoing
physical process Machine Control
Use of a computer to control the actions of a machine
Robotics These devices control their own activities Used to increase productivity and cut
costs
Engineering Systems
•CAD•CAE•Computer-AidedProcess Planning
ManufacturingExecutionSystems
•Shop Floor•Scheduling•Machine Control•Process Control•Robotic Control
Computer Integrated ManufacturingManufacturing
ResourcePlanning
•ProductionForecasting•ProductionScheduling•Quality Control
RemoteWorker
Supplier
Extranet
Intranet
Functional E-Business Systems Human Resource Systems
Planning to meet the future needs of the organization
Development of employees to their full potential
Control of all personnel policies and programs
•Manpower Planning•Labor Force Tracking
•Labor Cost Analysis•Turnover Analysis
•Recruitment•Workforce Planning
•Skill assessment•Performanceevaluation
•Payroll control•Benefits Administration
•Compensation effectiveness•Benefits Analysis
•Contract costing•Salary forecast
•Succession planning•Performance appraisal plans
•Training effectiveness•Career matching
Staffing Training &
Development CompensationAdministration
StrategicSystems
TacticalSystems
OperationalSystems
Functional E-Business Systems Accounting Systems
Online Accounting Systems Order Processing Inventory Control Systems Accounts Receivable Accounts Payable Payroll General Ledger
Functional E-Business Systems Financial Management Systems
Cash management Online investment Management Capital Budgeting Financial forecasting and planning
Financial Information
Systems
Financial Information
Systems
FinancialPlanning
FinancialPlanning
CashManagement
InvestmentManagement
InvestmentManagement
CapitalBudgeting