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Prof. Anatoly Sachenko
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Introduction to e-BusinessSystems
I. LECTURE OVERVIEW
Foundation Concepts: Introduction to e-Business Systems
describes how information systems integrate andsupport enterprisewide business processes and the business functions of marketing, manufacturing, human resourcemanagement, accounting, and finance.
 Functional Business Systems -
Functional business information systems support the business functions of marketing, production/operations, accounting, finance, and human resource management through a variety of e- business operational and management information systems summarized in Figure 5.1
Marketing
- Marketing information systems support traditional and e-commerce processes and management of themarketing function. Major types of marketing information systems include interactive marketing at e-commercewebsites, sales force automation, customer relationship management, sales management, product management,targeted marketing, advertising and promotion, and market research. Thus, marketing information systems assistmarketing managers in electronic commerce product development and customer relationship decisions, as well asin planning advertising and sales promotion strategies and developing the e-commerce potential of new and present products, and new channels of distribution.
Manufacturing
- Computer-based manufacturing information systems help a company achieve computer-integrated manufacturing (CIM), and thus simplify, automate, and integrate many of the activities needed toquickly produce high-quality products to meet changing customer demands. For example, computer-aided designusing collaborative manufacturing networks helps engineers collaborate on the design of new products and processes. Then manufacturing resource planning systems help plan the types of resources needed in the production process. Finally, manufacturing execution systems monitor and control the manufacture of products onthe factory floor through shop floor scheduling and control systems, controlling a physical process (processcontrol), a machine tool (numerical control), or machines with some humanlike work capabilities (robots).
Human Resources Management -
Human resource information systems support human resource management inorganizations. They include information systems for staffing the organization, training and development, andcompensation administration. HRM websites on the Internet or corporate intranets have become important toolsfor providing HR services to present and prospective employees.
Accounting and Finance
- Accounting information systems record, report, and analyze business transactions andevents for the management of the business enterprise. Examples of common accounting information systemsinclude order processing, inventory control, accounts receivable, accounts payable, payroll, and general ledger systems. Information systems in finance support financial manager in decisions regarding the financing of a business and the allocation of financial resources within a business. Financial information systems include cashmanagement, online investment management, capital budgeting, and financial forecasting and planning.
Cross-Functional Enterprise Systems
- Major e-business applications and their interrelationships aresummarized in the enterprise application architecture of Figure 5.18 many e-business applications are integratedcross-functional enterprise applications like enterprise resource planning (ERP), customer relationshipmanagement (CRM), and supply chain management (SCM), which also reengineer the business processesinvolved. Enterprise collaboration systems (ECS) support and enhance communication and collaboration amongthe teams and workgroups in an organization.These systems themselves are being interconnected with enterprise application integration (EAI) software so thatthe business users of these applications can more easily access the information resources they need to support theneeds of customers, suppliers, and business partners. Refer to Figures 5.19, 5.23, and 5.25 for summary views of the e-business applications of EAI systems and enterprise collaboration systems.
Transaction Processing Systems
- Online transaction processing systems play a vital role in e-commerce.Transaction processing involves the basic activities of (1) data entry, (2) transaction processing, (3) database
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Prof. Anatoly Sachenko
maintenance, (4) document and report generation, and (5) inquiry processing. Many firms are using the Internet,intranets, extranets, and other networks for online transaction processing to provide superior service to their customers and suppliers. See Figure 5.22
II. LEARNING OBJECTIVES
•
Give examples of how Internet and other information technologies support business processes within the business functions of accounting, finance, human resource management, marketing, and production andoperations management.
•
Identify the following cross-functional concepts, and give examples of how they can provide significant business value to a company.
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Cross-functional enterprise systems
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Enterprise application integration
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Transaction processing systems
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Enterprise collaboration systems
III: LECTURE NOTESSection I: Functional Business Systems
INTRODUCTION
e-business is the use of the Internet and other networks and information technologies to support electroniccommerce, enterprise communications and collaboration, and Web-enabled business processes both within anetworked enterprise, and with its customers and business partners.
 Analyzing Cypress Semiconductor and FleetBoston
We can learn a lot from this case about how information technologies are transforming and improving themanagement of the business processes of many companies today. Take a few minutes to read it, and we willdiscuss it (See Cypress Semiconductor and FleetBoston in Section IX).
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Prof. Anatoly Sachenko
IT IN BUSINESS [Figure 5.2]
Information systems can be grouped into business function categories; however, in the real world informationsystems are typically integrated combinations of functional information systems.
Functional business systems
arecomposed of a variety of types of information systems (transaction processing, management information, decisionsupport, etc) that support the business functions of:
•
Accounting
•
Finance
•
Marketing
•
Productions/operations management
•
Human resource managementThere is a strong emphasis in many organizations to develop such composite or cross-functional informationsystems
 
that cross the boundaries of traditional business functions in order to reengineer and improve vital business processes.
 
These organizations view cross-functional information systems as a strategic way to share informationresources and improve the efficiency and effectiveness of a business, thus helping it attain its strategic objectives.Business firms are turning to Internet technologies to integrate the flow of information among their internal business functions and their customers and suppliers. Companies are using the World Wide Web and their intranets and extranets as the technology platform for their cross-functional and interorganizational informationsystems.
MARKETING SYSTEMS - [Figure 5.3]
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