e-Business Systems Chapter 7

Chapter 7: e-Business Systems

• e-business encompasses any business activity utilizing the internet, broader than e-commerce
• Learning Objectives include identifying cross-functional enterprise systems, and examples of their business value; examples of how internet technologies support business functions within accounting, finance, human resources, marketing, and production/operations.

Section 1: E-Business Systems

• This section introduces e-business systems.

I. Introduction

• e-business is a broader term than e-commerce, using the internet for any business activity.

II. Cross-Functional Enterprise Applications

• Reengineering/improving business activities by crossing traditional business function boundaries is discussed.
• Enterprise Application Architecture – provides an overview of major cross-functional enterprise applications and their relationships. Includes the new product development process (Customer Feedback, Market Research, Market Test, Component Design, Product Test, Product Release, Process Design, Equipment Design, Production Start; Marketing, R & D/Engineering, Manufacturing).
• Interrelationships of Cross-Functional Enterprise Applications depict Employee knowledge management, collaboration, and decision support, Suppliers (Supply Chain Management, Sourcing Procurement), Enterprise Resource Planning (ERP) with Internal Processes, Customer Relationship Management (CRM), Marketing, Sales, Service, & Customers; Partner Relationship Management (PRM), Selling, and Distribution.

III. Enterprise Application Integration

• Connects e-business applications, integrating front-office and back-office applications.

IV. Transaction Processing Systems

• Handles/records daily business activities (transactions).
• A transaction is anything occurring during daily business that requires a record.
• Online Transaction Processing Systems immediately capture and process transactions in real-time.
• The Transaction Processing Cycle includes: data entry, transaction processing (batch & real-time), database maintenance, document & report generation, and inquiry processing.

V. Enterprise Collaboration Systems (ECS)

• Cross-functional IS help users to communicate, coordinate resources, and collaborate on projects.
• Tools for Enterprise Collaboration include electronic communication tools (e-mail, instant messaging, voice mail, faxing, web publishing, paging), electronic conferencing tools (data conferencing, voice conferencing, video conferencing, discussion forums, chat systems, electronic meeting systems), and collaborative work management tools (calendaring, scheduling, task/project management, workflow systems, document sharing, knowledge management).
• Electronic Tools Enhance Enterprise Collaboration features a hierarchical diagram illustrating relationships between enterprise collaboration systems, electronic communication tools, electronic conferencing tools, and collaborative work management tools.

Section 2: Functional Business Systems

• This section explores systems supporting specific business functions.

I. Introduction

• Information Systems (IS) support distinct business functions.

II. Marketing Systems

• Aid in planning, promotions, and sale of existing products in existing markets.
• Interactive Marketing focuses on customer-focused two-way transactions between firms and customers.
• Sales Force Automation connects the sales force to the internet, intranets, and extranets.
• Targeted Marketing includes community, content, context, demographic/psychographic, and online behavior. Marketing Information Systems (MIS) support components like interactive marketing, sales force automation, customer relationship management, sales management, market research & forecasting, advertising & promotion, and product management.
• Major Components of Targeted Marketing includes community, context, online behavior, demographics/psychographics.

III. Manufacturing Systems

• Support production/operations function, aiming to create flexible and agile processes to efficiently produce high-quality products.
• Computer-Integrated Manufacturing (CIM) goals include greater flexibility, agility, and top-quality product output. Objectives for CIM include simplifying production processes, automating with computer/machine/robot integration, and integrating production/support processes with networks, cross-functional software, and other IT resources. Manufacturing IS support Computer-Integrated manufacturing with detailed systems like Manufacturing Resource Planning (MRP) Systems, Production Forecasting, Production Scheduling, Material Requirements Planning, Capacity Planning, Manufacturing Execution Systems (MES), Shop Floor Scheduling and Control, Machine Control, Robotics Control, Cost Control, Quality Control, and Process Control (for ongoing physical processes). Computer-aided design (CAD), engineering (CAE), process planning (CAPP), and product simulation and prototyping (3D modeling) are also part of Manufacturing IS.

IV. Human Resource Systems

• Human Resource Information Systems (HRIS) support personnel needs planning, employee development, and control of personnel policies/programs.
• HRM is majorly influenced by the internet and corporate intranets. Intranets allow firms to provide services to customers and employees. Human Resource Systems are organized into Strategic systems (staffing – Human Resource planning, Labor Force Tracking), Tactical Systems (labor cost analysis, budget, and turnover analysis), and Operational Systems (recruiting, workforce planning, and scheduling), each with detailed sub-systems. Sub-systems include training and development with concepts like succession planning and performance planning, compensation administration including contract costing/salary forecasting or benefit-preference-analysis, and also includes staffing, training & development, and compensation administration.

V. Accounting Systems

• The oldest and most widely used ISs in business emphasize legal/historical record-keeping and precise financial statements. 6 operational accounting systems are described: Order Processing, Inventory Control, Accounts Receivable, Accounts Payable, Payroll, and General Ledger. Online Accounting Systems are interactive and direct in processing business transactions. Accounting Systems are interdependent, with diagrams showing the interrelationships between Sales Order Processing, Billing, Accounts Receivable, Cash Receipts, General Ledger, Financial Reporting, Sales Analysis, Purchases Transaction Processing System, Accounts Payable, Cash Disbursements, and Payroll.

VI. Financial Management Systems

• Support decisions regarding financing, financial resource allocation/control, capital budgeting, and financial planning/performance evaluation.

This quiz covers Chapter 7 on e-Business Systems, emphasizing the broad scope of e-business beyond e-commerce. It highlights cross-functional enterprise applications and how internet technologies enhance various business functions, including accounting, finance, and marketing.