Enterprise Systems and Transaction Processing

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Questions and Answers

What is the definition of Cross-Functional Enterprise Systems?

Systems that operate independently within each business function.

Systems that integrate traditional business functions to enhance productivity.

Software designed to manage individual departments more efficiently.

Information systems that cross the boundaries of traditional business functions to improve business processes. (correct)

How does Enterprise Application Integration (EAI) function within a business?

By automating customer service tasks through a single software platform.

By managing data entry and storage exclusively for finance applications.

By allowing different enterprise applications to share and exchange data according to business process models. (correct)

By consolidating human resources data for reporting purposes only.

Which statement best describes the role of Internet and information technologies in business processes?

They support electronic commerce exclusively without impacting other business functions.

They are limited to improving communication within an organization.

They facilitate the enhancement of business processes across all functions, including accounting and marketing. (correct)

They are primarily used for data storage and retrieval.

Which is NOT an example of a cross-functional enterprise system?

Software that focuses solely on payroll management Signup and view all the answers

What is a key benefit of utilizing Enterprise Application Integration (EAI) within a company?

It allows for seamless data flow and communication between varied enterprise applications. Signup and view all the answers

What is the primary function of a Transaction Processing System (TPS)?

To process data resulting from business transactions Signup and view all the answers

What defines Online Transaction Processing Systems (OLTP)?

They capture and process transactions in real-time. Signup and view all the answers

Which phase of the Transaction Processing Cycle involves updating databases with transaction results?

Database Maintenance Signup and view all the answers

What is a primary goal of Enterprise Collaboration Systems (ECS)?

To enhance communication and collaboration among team members Signup and view all the answers

Which of the following is NOT a function of the Transaction Processing Cycle?

Financial Forecasting Signup and view all the answers

What does the inquiry processing phase involve in Transaction Processing Systems?

Making inquiries and receiving responses about transaction results Signup and view all the answers

In Transaction Processing Systems, what does the term 'batch processing' refer to?

Collecting and processing transaction data at scheduled intervals Signup and view all the answers

What is the primary goal of Sales Force Automation systems?

To enhance sales productivity and marketing responsiveness Signup and view all the answers

Which of the following best describes Manufacturing Systems?

Information systems concerned with planning and control of production processes Signup and view all the answers

What is a key objective of Computer-Integrated Manufacturing (CIM)?

To simplify production processes and integrate support functions Signup and view all the answers

What does Computer-aided Manufacturing (CAM) primarily focus on?

Automating the production process Signup and view all the answers

What function do Manufacturing Execution Systems (MES) primarily serve?

Performance monitoring for factory operations Signup and view all the answers

Which system controls ongoing physical processes in manufacturing?

Process Control systems Signup and view all the answers

How do Human Resource Systems leverage the Internet?

Through recruiting services and databases Signup and view all the answers

What is a function of Machine Control systems?

To control the actions of machines Signup and view all the answers

Which of the following is NOT a feature of CIM systems?

Designing software for financial analysis Signup and view all the answers

What is the primary purpose of interactive marketing?

To facilitate two-way transactions between businesses and customers Signup and view all the answers

Which component of targeted marketing focuses on tailoring advertisements to specific virtual communities?

Community Signup and view all the answers

How does targeted marketing utilize online behavior?

By analyzing individual site visit patterns for customized promotions Signup and view all the answers

What is NOT a goal of interactive marketing?

To reduce customer input in product development Signup and view all the answers

In targeted marketing, what is the purpose of placing advertisements based on content relevance?

To increase the likelihood of engagement with advertisements Signup and view all the answers

Which statement best describes demographic/psychographic targeting in marketing?

Promotions aimed at specific classes or psychological traits Signup and view all the answers

What is one functionality of functional business systems?

They integrate all business functions including marketing and finance. Signup and view all the answers

Which of the following components is least likely to be part of targeted marketing?

Generalization Signup and view all the answers

Why is targeted marketing important for e-commerce initiatives?

It enhances the effectiveness of advertising by focusing on relevant audiences. Signup and view all the answers

Study Notes

Lecture 9: Electronic Business Systems

Lecture number 9 covers electronic business systems
Copyright © 2006, The McGraw-Hill Companies, Inc.

Learning Objectives 1

Identify cross-functional enterprise systems
Provide examples of how systems provide business value to a company
Subtopics include:
- Enterprise application integration
- Transaction processing systems
- Enterprise collaboration systems

Learning Objectives 2

Give examples of how the Internet and other information technologies support business processes.
Topics covered include accounting, finance, human resources management, marketing, production, and operations management.

What is E-Business?

The use of the Internet and other networks and information technologies support electronic commerce, enterprise communications, collaboration, Web-enabled business processes.
These processes occur both within a networked enterprise and with its customers and business partners.

Cross-Functional Enterprise Systems - Definition

Information systems that cross traditional business function boundaries.
These systems reengineer and improve vital business processes across the entire enterprise

Cross-Functional Information Systems Diagram

Diagram of interrelated business functions and processes.
Shows interconnected functions like customer feedback, market research, design, product release, process design, and equipment design.
Also shows the connection between these processes and marketing, R & D, and manufacturing

Enterprise Application Architecture Diagram

Diagram of a systems architecture depicting suppliers, employees, customers, and partners.
Depicts interconnected relationships among these participants and their processes like supply chain management, sourcing, procurement, enterprise resource planning, internal business processes, customer relationship management, and partner relationship management.

Enterprise Application Integration (EAI) - Definition

Software that integrates various enterprise application clusters.
Clusters exchange data based on business process rules defined by users

Enterprise Application Integration - Diagram

Front office functions like customer service and sales are linked to back-office functions such as manufacturing, scheduling, and finance through EAI
Business processes are connected through EAI.

EAI Example: How it Works

A numbered process of order receipt, order validation, order fulfillment, and the return of status and shipment information to the order entry system and call center.
This illustrates how EAI connects different aspects of the business.

Transaction Processing Systems (TPS) - Definition

Cross-functional information systems processing business transaction data.
Subtopics include transactions (events in business activity), Online Transaction Processing (OLTP) (real-time systems for transaction capture and processing).

Transaction Processing Cycle

Data entry — capturing business data
Transaction processing
- Batch — aggregating and processing data periodically
- Real-time — processing data immediately after a transaction occurs
Database maintenance — updating databases
Document and report generation - creating transaction documents and error reports
Inquiry processing — handling user inquiries and responses

Transaction Processing Cycle- Diagram

Depicts the cyclical structure of transaction processing.
Elements include data entry, transaction processing (batch, online/real-time), database maintenance, and inquiry processing. Showing how data moves between different systems.

Enterprise Collaboration Systems (ECS) - Definition

Cross-functional information systems enhancing communication, coordination, and collaboration amongst business teams and workgroups.

ECS Goals

Information sharing
Coordination of individual work efforts and sharing resources
Collaboration on joint projects and assignments

ECS Tools (Diagram)

Includes electronic communications tools like email, instant messaging, voice mail, faxing, and web publishing.
Includes data and electronic conferencing tools like voice conferencing, videoconferencing, discussion forums, and chat systems
Includes collaborative work management tools like calendaring, scheduling, task management, workflow systems, document sharing, and knowledge management

Functional Business Systems - Definition

Information systems supporting accounting, finance, marketing, operations, and human resource management

Functional Business IS - Diagram

Diagram of interrelated business functions.
Shows the interdependency of functional systems with different business processes.

Marketing Systems - Diagram

Diagram showing interconnected elements of a marketing system, including interactive marketing, sales force automation, customer relations management, sales management.
Advertising and promotions, market research, and forecasting are also shown.

Interactive Marketing - Definition

Customer-focused marketing based on two-way transactions between a business and its customers.
Utilizes the Internet, intranets, and extranets

Targeted Marketing - Definition

Tool for developing advertising and promotion strategies strengthening e-commerce initiatives.

Targeted Marketing Components - Diagram

Diagram with pie chart showing components of targeted marketing including online behavior, demographic/psychographic, community, and content.

Targeted Marketing Components

Community - customizing advertising to people within specific virtual communities
Content - placing advertising on websites relevant to a product or service
Context - advertising on web pages relevant to product or service content

Demographic/Psychographic - Definition

Web marketing efforts aimed at specific types of people or classes of people.

Online Behavior - Definition

Promotion efforts tailored to individual visits to web sites

Sales Force Automation - Definition

Information systems improving information delivery and support for salespersons, with the goal of improving sales productivity and response time.

Manufacturing Systems - Definition

Information systems supporting production/operations functions including all planning and control processes associated with producing goods and services

Manufacturing Systems Diagram

Diagram depicting the interconnectivity of various components in a manufacturing system.

Computer-Integrated Manufacturing (CIM) — Objectives

Simplifying production processes, product designs, and factory organization to be foundations for automation and integration
Automating production processes and supporting functions using computers, machines, and robots
Integrating production and support processes using computer networks, business software, and information technologies

CIM Systems (List)

Computer-aided manufacturing (CAM)
Manufacturing execution systems (MES) — performance monitoring information systems
Process Control – controlling ongoing physical processes
Machine Control — controls machine actions

Human Resource Systems

Diagram showing staffing, training and development, and compensation administration.
Subtopics include strategic systems, tactical systems, and operational systems

HRM and the Internet

Recruiting employees through services and databases on the World Wide Web
Posting messages in selected Internet newsgroups
Communicating with job applicants via email

HRM and Corporate Intranets

Processing common HRM application
Providing HRM Department services around the clock
Disseminating information faster than through previous pathways
Collecting employee information online
Enabling managers/employees to perform HRM tasks with less HRM department intervention

Accounting Information Systems

Diagram of interconnected accounting processes including sales order processing, billing, accounts receivable, cash receipts, general ledger, financial reports, sales analysis, accounts payable, cash disbursements, purchases processing, inventory processing, payroll, and timekeeping.

Common Business Accounting Systems (List)

Order processing — capturing and processing customer orders
Inventory control — data processing for inventory changes and reorder information
Accounts Receivable — tracking amounts owed by customers, producing invoices, statements, and credit management reports
Accounts Payable — recording purchases from, amount owed to, and payments to suppliers along with cash management reports
Payroll — recording employee work and compensation data to produce paychecks and other payroll reports
General Ledger — Consolidating data for periodic financial statements and reports

Financial Management Systems

Diagram showing sections for investment management, cash management, capital budgeting, and financial planning.

Financial Management Systems (List)

Capital Budgeting – evaluating profitability and financial impact of proposed capital expenditures
Financial Planning – evaluating present and projected financial performance.

Summary

Major e-business applications are integrated into cross-functional enterprise systems (ERP), customer relationship management (CRM), and supply chain management (SCM).
Enterprise application integration (EAI) systems interconnect other information systems providing easier access to customer, supplier, and business partner needs.
Transaction processing involves basic data entry, transaction processing, database maintenance, document generation, and inquiry processing.
Functional business information systems support functions like marketing, production/operations, accounting, finance, and HRM.
Marketing information systems aid in managing traditional and e-commerce processes.
Computer-aided manufacturing (CIM) systems integrate manufacturing processes, automating and simplifying production.

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Description

Test your knowledge on cross-functional enterprise systems and transaction processing frameworks in business. This quiz covers definitions, functions, and key benefits of various systems such as EAI, TPS, and ECS. Dive into the critical roles of technology in enhancing business processes.