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Chapter
7
Electronic
Business Systems

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What is E-Business?
 Theuse of the Internet and other
networks and information
technologies
– to support electronic commerce,
enterprise communications and
collaboration, and Web-enabled
business processes, both within a
networked enterprise and with its
customers and business partners.

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Section I
 Cross-Functional Enterprise
Systems

1. CFEA (Cross-Functional Enterprise Apps)

2. EAI (Enterprise Application Integration)
3. TPS
4. ECS (Enterprise Collaboration Systems)

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1. Cross-Functional Enterprise
Applications
 Integratedcombinations of information
subsystems that share information
resources and support business
processes across the functional units
– Define functional?

A strategic way to use IT to share

information resources & improve
efficiency & effectiveness
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“Product Development Process”, a Business
Process that is Supported by
“Cross-Functional Information Systems”

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 Cross-Functional Enterprise Applications
 Enterprise Application Architecture
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Cross-Functional Enterprise
Applications

Applications that facilitate conduct

of fundamental business and help
deal with the company’s customer,
supplier, partner, & employee
stakeholders

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2. Enterprise Application Integration 8

(EAI)
Provides middleware that
– Performs data conversion & coordination
between different software in the org

– Provides communication & messaging

services between applications

– Provides one interface to access all

applications

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E.g. of a new customer order process showing how EAI
middleware connects several business ISs within a company
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3. Transaction Processing Systems

 Cross-functional information systems that
process data resulting from the occurrence
of business transactions
– Transactions – events that occur as part of doing
business
 Sales
 Purchases
 Deposits
 Withdrawals
 Refunds
 Payments

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TPS CYCLE
 Data Entry
 Transaction Processing

– Batch Processing
– Real Time Processing
 Database Maintenance
 Document and Report Generation

 Inquiry Processing

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4. Enterprise Collaboration
Systems
 e-business systems that enhances
communication, coordination, &
collaboration amongst different
department/members (cross
functional)
– Communicate – share information with each
other
– Coordinate – coordinate individual work efforts
& use of resources with each other.
– Collaborate – work together cooperatively on
joint projects and assignments
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Three Enterprise Collaboration Systems
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Enterprise Collaboration Systems

 ThreeTools for Enterprise

Collaboration
– 1. Electronic communication
 E-mail

 Voice mail
 Fax

 Web publishing
 Bulletin boards

 Internet phone systems

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Enterprise Collaboration Systems

2. Electronic conferencing
Data & voice conferencing
– E.g. MS Word reviewing feature
 Tools menu | Track Changes

Videoconferencing

Chat systems
Discussion forums

Electronic meeting systems

– Team members can meet at the same time

and place in a “decision room” setting
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Enterprise Collaboration Systems

– 3. Collaborative work management

Calendaring& scheduling
Project management (MS Project)

Workflow systems

– Collaborate to manage flow of tasks

– e-document processing in a process (e.g.
using MS Outlook)
Knowledge management
– Organize and share information created with
an organization: project libraries and
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Enterprise Collaboration Systems

 Collaboration/onlinemeetings
 In conjunction with MS NetMeeting
MS Word: Tools menu |Online Collaboration | Meet
Now
– Online meeting allowing users to share and edit
documents with others in real time, as everyone
sees the changes simultaneously.

– Participants may open a separate window and

type messages to one another (a chat room),
transfer files, or use a whiteboard.

– All these three italicized features are included

with NetMeeting.
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Enterprise Collaboration Systems

 Windows Vista business edition has

– Windows Meeting Space, a social
collaboration technology for small
groups of users.

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Lotus QuickPlace helps virtual workgroups set

up Web-based work spaces for collaborative
work assignments.

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IBM Lotus Notes

– For collaboration and messaging

– Email
– Calendar and scheduling capabilities
– Integrated instant messaging
– Personal information management (PIM)
– Discussion forums
– Teamrooms
– Reference databases

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Section II

Functional Business Systems

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Functional Business Systems Overview

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What is Marketing?
 Planning, Promotion and sale of
– existing products in existing markets
 Development of
– new products and new markets
 Attract and serve
– Present and Potential customers

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Marketing Systems

 MarketingInformation Systems provide

information technologies that support
major components of the marketing
function.
– Interactive Marketing
– Sales Force Automation
– Customer Relationship Management
– Sales Management
– Market Research and Forecasting
– Advertising and Promotion
– Product Management
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Three major types of systems

 1. Interactive Marketing
 Customer focused marketing process
 Based on using Internet, intranets, &
extranets to establish two-way
communications between customers or
potential customers and the business
 Customers become involved in product
development, delivery, & service issues

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 Marketing Systems
– 2. Targeted marketing
Five targeting components
– Community
 Virtual communities of interest: sports

– Content
 Banners placed on site (ad on Yahoo)

– Context / Relevant Pages

 Advertising appears in web pages that are
relevant to the content of a product or
service (car rentals for travel)
– Demographic/psychographic
 Psychographic: personality, values, lifestyles

– Online behavior
 Customize marketing based on information
collected from cookies (shopping habits)
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Targeted Marketing
Components

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Marketing Systems
– 3. Sales Force Automation
 The sales force is connected to marketing
websites on the Internet, extranets, & the
company intranet
 Increases productivity of sales force
 Speeds up the capture & analysis of sales
data
 Allows management to provide improved
delivery information & better support of the
sales force.

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Manufacturing Systems
 Support the production/operations. Assists firms
in planning, monitoring, & controlling
inventories, purchases, & flow of goods and
services.

 New Concepts that take advantage of IT

– JIT
– Build to Order (BTO) Manufacturing
– End to end supply chain visibility
– Contract Manufacturing
– Web based Collaborative Manufacturing

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Manufacturing Systems
 1. Computer-Integrated Manufacturing (CIM)
1. Simplify (reengineer) production for automation and
integration
2. Automate production process (robots)
3. Integrate all production using computers, telecom
networks and other information technologies
– CIM leads to processes like:
 Flexible manufacturing systems (FMS)
 Agile manufacturing
 Total Quality Management (TQM)
– Use computers to Automate the production using
 Computer-Aided Engineering (CAE)
 Computer-Aided Design (CAD)
 Material Requirements Planning (MRP) 30
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Manufacturing Systems
 2. Process Control
– The use of computers to control all
ongoing physical processes
 E.g. oil refinery

 3. Machine Control
– The use of a computer to control the
actions of a machine

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Manufacturing Systems
 2. Process Control
– The use of computers to control all
ongoing physical processes
 E.g. oil refinery

 3. Machine Control
– The use of a computer to control the
actions of a machine

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Human Resource Management

 What is HRM
– HRM involves recruitment, placement,
evaluation, compensation and
development of employees.
 Goal of HRM
– Effective and efficient use of human
resources of a company.

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HRMIS Primary tasks

 Produce paychecks and payroll

 Maintain personnel records

 Analyze the use of personnel in

business operations

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HRMIS Special tasks

 Planning to meet the personal needs of

the business
 Development of employees to their full
potential
 Control of all personnel policies and
programs
 Recruitment, job placement, performance
appraisal, employee benefit analysis,
training and development, health safety
and security

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Human Resource Systems

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Accounting Information Systems

 Oldest Information Systems
 Record and report business transactions
and other economic events
 Record and report flow of funds and
produce financial statements
 Produce forecasts of future conditions
(Projected financial statements and
financial budgets)
 Help measure firm’s performance
measured against forecasts
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Accounting Systems

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Financial Management Systems

 Systems support business managers &
professionals in decision concerning
– Financing of a business
– Allocation and control of financial resources
within a business

 Major Financial Management Systems

– Cash and Investment management
– Capital Budgeting
– Financial Forecasting
– Financial Planning
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Financial Management Systems

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