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Business Applications OverviewBusiness Applications Overview
Trends Driving e-businessTrends Driving e-business
Velocity of business is increasingVelocity of business is increasing Enterprise boundaries are Enterprise boundaries are
disappearingdisappearing Expectations for technology are Expectations for technology are
risingrising
Legacy SystemsLegacy Systems
Existing computer systems and Existing computer systems and software, often using 1970’s software, often using 1970’s technologytechnology
Problems:Problems:• Outdated languagesOutdated languages• Often incapable of running in real timeOften incapable of running in real time• Undocumented (designers no longer Undocumented (designers no longer
alive!)alive!)• No customer focusNo customer focus
Too many Spreadsheets!Too many Spreadsheets!
Many businesses rely on separate Many businesses rely on separate databasesdatabases
Functional manager may make Functional manager may make conflicting decisions based on conflicting decisions based on different datadifferent data• E.g., Sale figures from the sales E.g., Sale figures from the sales
department may be different to the department may be different to the accounting departmentaccounting department
Evolution of Business applicationsEvolution of Business applications
Task Oriented
Functional Applications
Integrated Cross-Functional Applications
Kalakota’s 7 types of applicationsKalakota’s 7 types of applications
Customer relationship managementCustomer relationship management Enterprise resource planningEnterprise resource planning Supply chain managementSupply chain management Selling-chain managementSelling-chain management e-Procuremente-Procurement Enterprise application integrationEnterprise application integration Business intelligence, knowledge Business intelligence, knowledge
management and decision supportmanagement and decision support
CRMCRM
CRM entails all aspects of interaction CRM entails all aspects of interaction a company has with its customer, a company has with its customer, whether it be sales or service related whether it be sales or service related
Main dimensions:Main dimensions:• SalesSales• ServiceService• MarketingMarketing
CRM software attempts to integrate CRM software attempts to integrate these functions as onethese functions as one
ERPERP
a business management system a business management system that integrates all facets of the that integrates all facets of the businessbusiness
A ERP system consists of ERP A ERP system consists of ERP software that automates internal software that automates internal business processes, hardware and business processes, hardware and Operating Systems that run ERP Operating Systems that run ERP software software
Finished Product
Distribution
Purchasing & Material Mgt
Warehousing & Inventory Mgt
Accounting Finance
Forecasting & Planning
ERP
Supply Chain ManagementSupply Chain Management
The process of optimizing delivery of The process of optimizing delivery of goods, services and information from goods, services and information from supplier to customer supplier to customer
Supply chain management applications Supply chain management applications attempt to:attempt to:• Reduce inventory with real time schedulingReduce inventory with real time scheduling• Find bottle necks in production/distributionFind bottle necks in production/distribution• Integrate activities of partner businessesIntegrate activities of partner businesses
Selling chain managementSelling chain management
Selling chain management applications integrate Selling chain management applications integrate marketing and selling and sales functions into marketing and selling and sales functions into one seamless activityone seamless activity
Aim: to process sales more quickly and reduce Aim: to process sales more quickly and reduce “sales” overheads“sales” overheads
Includes: Includes: • product customization,product customization,• Pricing and contract management,Pricing and contract management,• quotes and proposal generationquotes and proposal generation• Commission managementCommission management• Promotions ManagementPromotions Management
e-Procuremente-Procurement
These applications focus on automating and These applications focus on automating and integrating enterprise procurement activitiesintegrating enterprise procurement activities
e-Procurement
Office Supplies Services
Business Travel Computer Equipment
MRO
Enterprise application integrationEnterprise application integration
Connecting CRM to ERPConnecting CRM to ERP Allows businesses to track business Allows businesses to track business
activities from customer purchases activities from customer purchases to product deliveryto product delivery
Results in quicker product delivery Results in quicker product delivery and improved business and improved business responsivenessresponsiveness
Business intelligence, knowledge Business intelligence, knowledge management and DSSmanagement and DSS
Transform raw data into useful Transform raw data into useful informationinformation
OLAP systems (Online analytical OLAP systems (Online analytical Processing) provide fast analysis of Processing) provide fast analysis of shared multidimensional information shared multidimensional information (eg Microsoft data analyser)(eg Microsoft data analyser)
The way forward….The way forward….
In house software design is dead. In house software design is dead. Businesses can no longer afford to Businesses can no longer afford to develop systems in isolationdevelop systems in isolation
Choosing Choosing standardizedstandardized software software modules that interface seamlessly modules that interface seamlessly with existing systems is the way with existing systems is the way forwardforward
Journal question of the weekJournal question of the week
What are some of the unique What are some of the unique application integrationapplication integration issues faced issues faced by international businesses operating by international businesses operating across national boundaries? Include across national boundaries? Include three (3) issues.three (3) issues.