1. McGraw-Hill/IrwinMcGraw-Hill/IrwinCopyright 2008, The McGraw-Hill Companies, Inc. All rights reserved.Copyright 2008 by The McGraw-Hill Companies, Inc. All rights reserved.

2. Chapter7Electronic Business SystemsMcGraw-Hill/IrwinCopyright 2008, The McGraw-Hill Companies, Inc. All rights reserved. 3. Learning Objectives Identify the following cross-functional enterprisesystems, and give examples of how they canprovide significant business value to a company Enterprise application integration Transaction processing systems Enterprise collaboration systems 7-3 4. Learning Objectives Give examples of how Internet and otherinformation technologies support businessprocesses within the business functions of Accounting Finance Human resource management Marketing Production Operations management 7-4 5. Enterprise Business Systems E-business means using the Internet, othernetworks, and IT to support Electronic commerce Enterprise communications and collaboration Web-enabled business processes E-commerce is the buying, selling, andmarketing of products, services, and informationover the Internet and other networks 7-5 6. Case 1: Hiltons Data-Driven Hospitality OnQ is part of Hilton Hotel Corp.s customer-relationship-management strategy Give employees a clearer idea of who thecustomers are Track customer experiences Combine with frequent-guest program to buildloyalty across eight hotel brands Measure of success is share of wallet About 70 percent of OnQ is custom coded 7-6 7. Case Study Questions What are the benefits and drawbacks of theOnQ system at Hilton? What does Hilton have to do to create acompetitive advantage through OnQ? Is it possible to have too much informationabout a customer?7-7 8. Cross-Functional Systems Cross the boundaries of traditional businessfunctions Used to reengineer and improve vital business processes all across the enterprise 7-8 9. Enterprise Application Architecture7-9 10. Enterprise Application Architecture Provides a conceptual framework Helps visualize the basic components, processes,and interfaces of major e-business applications Focuses on accomplishing fundamentalbusiness processes in concert with Customers Suppliers Partners Employees 7-10 11. Enterprise Application Architecture Enterprise Resource Planning (ERP) Concentrates on the efficiency of internalproduction, distribution, and financial processes Customer Relationship Management (CRM) Focuses on acquiring and retaining profitablecustomers via marketing, sales, and services Partner Relationship Management (PRM) Aims at acquiring and retaining partners whocan enhance the selling and distribution ofproducts and services7-11 12. Enterprise Application Architecture Supply Chain Management (SCM) Focuses on developing the most efficient andeffective sourcing and procurement processes Knowledge Management (KM) Focuses on facilitating internal groupcollaboration and decision support 7-12 13. Enterprise Application Integration EAI software connects cross-functional systems Serves as middleware to provide Data conversion Communication between systems Access to system interfaces 7-13 14. How EAI Works7-14 15. Transaction Processing Systems Cross-functional information systems thatprocess data resulting from the occurrence ofbusiness transactions Transactions include sales, purchases, deposits,withdrawals, refunds, and payments Online transaction processing (OLTP) is a real-time system that captures transactionsimmediately 7-15 16. Transaction Processing Systems 7-16 17. The Transaction Processing Cycle 7-17 18. Enterprise Collaboration Systems (ECS) EC systems are cross-functional informationsystems that enhance team and workgroup Communication Coordination Collaboration Systems may include Networked PC workstations Servers Databases Groupware and application packages7-18 19. ECS Tools7-19 20. Functional Business Systems A variety of types of information systemsthat support the business functions of Accounting Finance Marketing Operations management Human resource management7-20 21. Case 2: Advertising & MarketingChanges The Internet is causing a paradigm shift inadvertising Advertisers are moving away from TV, newspapers, and magazine ads Soaring profits from selling online targeted ads are boosting company values The Web is the first global advertising medium Broadband Encourages uses to spend more time surfing Allows more creative ad formats7-21 22. Case Study Questions Why are companies like Chrysler now lookingmore favorably at the Internet as a great mediumfor their advertising dollars? What has happened to change their view? How do Googles online ad revenue sourcesand strategy differ from Yahoos? Which online ad strategy is superior forattracting advertising from small companies? For attracting large companies? 7-22 23. Case Study Questions If you were in Julie Roehms position atChrysler, how would you distribute Chryslersadvertising dollars among online and traditionalTV and print media? 7-23 24. IT in Business 7-24 25. Marketing Systems Marketing systems are concerned with Planning, promotion, and sale of existingproducts in existing markets Development of new products and new markets Better attracting and serving present andpotential customers7-25 26. Marketing Information Systems7-26 27. Interactive Marketing Interactive Marketing A customer-focused marketing process Uses the Internet, intranets, and extranets Establishes two-way transactions between abusiness and its customers or potential customers Goal Profitably use networks to attract and keepcustomers Get customers to help create, purchase, andimprove products and services7-27 28. Targeted Marketing An advertising and promotion managementconcept with five targeting components7-28 29. Targeted Marketing Components Community: customized ads to appeal to specificvirtual communities Content: ads placed on a variety of selectedwebsites, aimed at a specific audience Context: ads placed on web pages that arerelevant to a product or service Demographic/Psychographic: web marketingaimed at specific types or classes of people Online behavior: promotions tailored to eachvisit to a site by an individual7-29 30. Sales Force Automation Outfit sales force with notebook computers,web browsers, and sales contact software Connect them to marketing websites and thecompany intranet Goals Increase personal productivity Speed up capture and analysis of sales data Gain strategic advantage7-30 31. Manufacturing Information Systems Supports the production/operations functions Includes all activities concerned with planningand control of the processes producing goodsor services7-31 32. Computer-Integrated Manufacturing7-32 33. CIM Objectives Simplify production processes, product designs,and factory organization Automate production processes and thebusiness functions that support them Integrate all production and supportprocesses using Networks Cross-functional business software Other information technologies7-33 34. CIM Systems Computer-aided manufacturing (CAM) Automate the production process Manufacturing execution systems (MES) Performance monitoring information systemsfor factory floor operations Process control Control ongoing physical processes Machine control Controls the actions of machines 7-34 35. 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 7-35 36. HRM Systems7-36 37. HRM and the Internet Recruiting employees using the corporatewebsite and commercial recruiting services Posting messages in selected Internetnewsgroups Communicating with job applicants via e-mail 7-37 38. HRM and Corporate Intranets Corporate intranet uses Process common HRM transactions Allow around-the-clock HRM services Disseminate information faster than throughprevious company channels Collect information from employees online Allow HRM tasks to be performed with littleHRM department intervention Training7-38 39. 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 7-39 40. Accounting Information Systems The oldest and most widely used informationsystem in business Records and reports business transactions andeconomic events Produces financial statements Forecasts future conditions7-40 41. Accounting Information Systems Typically consists of Order processing Inventory control Accounts receivable Accounts payable Payroll General ledger systems 7-41 42. Accounting Information Systems 7-42 43. Financial Management Systems Supports business managers and professionalsmaking decisions concerning The financing of a business The allocation and control of financialresources within a business 7-43 44. Financial Management System Example7-44 45. Case 3: Improving Supply-Chain Results Supply chains are a kludge of systems Internal manufacturing, warehousing, inventorycontrol, planning, shipping, and logistics Relationships with suppliers and partners Increasing dependence on customer input Now being replace with two state-of-the-art,major software types Supply-chain execution Supply-chain planning 7-45 46. Case Study Questions What is the business value of SCM systems forBrunswick and Whirlpool? Does the business value of SCM depend uponwhat type of business a company is in? How does Brunswicks approach to SCM differfrom that of Whirlpool? Is one approach superior to all others?7-46 47. Case 4: The Business Case for EAI EAI involves using software to connect avariety of applications into a cohesive unit Helps align systems more closely with business processes EAI Projects Costly and complex ($200,000 to $400,000) Technical staff need lots of training 7-47 48. Case Study Questions Why has EAI recently become a critical partof the IT strategy at many organizations, anda high-ranking project of top IT executives? Use Baxter International, GE Power, and Corporate Express as examples What is the major difference in the businessvalue of the EAI projects at Baxter International,GE Power, and Corporate Express? 7-48 49. Case Study Questions What are some of the challenges in developingand implementing EAI systems? How can companies meet these challenges?7-49