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CH-7 (MIS)
Introduction to e-Business Systems
Functional Business Systems
IT in Business
Business managers are moving from a tradition where they could avoid, delegate, or ignore
decisions about IT to one where they cannot create a marketing, product, international,
organization, or financial plan that does not involve such decisions.

Marketing Systems
Marketing Information Systems provide information technologies that support major
components of the marketing function.
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
Targeted marketing
Five targeting components
Community
Content
Context
Demographic/psychographic
Online behavior
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.

Manufacturing Systems
Support the production/operations function

Assists firms in planning, monitoring, & controlling inventories, purchases, & the flow of
goods and services
Computer-Integrated Manufacturing (CIM)
Simplify
Automate
Integrate
Supports the concepts of flexible manufacturing systems, agile manufacturing, & total quality
management
Computer-Aided Engineering (CAE)
Computer-Aided Design (CAD)
Material Requirements Planning (MRP)
Computer-Aided Manufacturing (CAM)
Automate the production process
Manufacturing Execution Systems (MES)
Performance monitoring systems for factory floor operations
Process Control
The use of computers to control an ongoing physical process
Machine Control
The use of a computer to control the actions of a machine.
Also called numerical control

Human Resource Systems

Human Resource Information Systems
Support
Planning to meet the personnel needs of the business
Development of employees to their full potential
Recruitment, selection, & hiring
Job placement
Performance appraisals
Employee benefits analysis
Training and development
Health, safety, & security

HRM and the Internet

Allows companies to process most common HRM applications over their intranets.
Allows companies to provide around-the-clock services to their employees.
Allows companies to disseminate valuable information faster.
Allows employees to perform HRM tasks online.
Staffing
Supported by information systems that record and track human resources to
maximize their use
Training and Development
Help human resource managers plan and monitor employee recruitment,
training, and development programs

Accounting Systems
Record and report business transactions and other economic events
Online Accounting Systems
Six widely used accounting systems
Order processing
Captures & processes customer orders and produces data needed for sales
analysis and inventory control
Inventory Control
Processes data reflecting changes in items in inventory.
Helps provide high-quality service while minimizing investment in inventory &
inventory carrying costs
Accounts Receivable
Keeps records of amounts owed by customers from data generated by
customer purchases and payments
Accounts Payable
Keeps track of data concerning purchases from, and payments to, suppliers
Payroll
Receives and maintains data from employee time cards and other work records
General Ledger
Consolidates data received from accounts receivable, accounts payable,
payroll, & other accounting information systems

Financial Management Systems

Supports financial managers in decisions concerning

The financing of the business
The allocation & control of financial resources within the business.
Major financial management system categories
Cash Management
Collects information on all cash receipts and disbursements on a real-time or
periodic basis
Investment Management
Helps the financial manager make buy, sell, or hold decisions for each type of
security
Helps the financial manager develop the optimum mix of securities in order to
minimize risk and maximize return
Capital Budgeting
Involves evaluating the profitability and financial impact of proposed capital
expenditures
Allows financial managers to analyze long-term expenditure proposals for
plant and equipment
Financial Forecasting & Planning
Evaluate the present and projected financial performance of the company
Help determine financing needs and analyze alternative methods of financing
Explore what-if and goal-seeking questions

Cross-Functional Enterprise Systems

Cross-Functional Enterprise Applications
Integrated combinations of information subsystems that share information resources and
support business processes across the functional units
A strategic way to use IT to share information resources & improve efficiency & effectiveness

Enterprise Application Architecture

Focused on accomplishing fundamental business processes in concert with the

companys customer, supplier, partner, & employee stakeholders

Enterprise Application Integration (EAI)

Software enables users to model the business processes involved in the interactions that
should occur between business applications.
Also provides middleware that
Performs data conversion & coordination
Provides application communication & messaging services
Provides access to the application interfaces
Business value
Integrates front-office and back-office applications to allow for quicker, more effective
response to business events and customer demands
Improves customer and suppler experience with the business because of its
responsiveness.
Business value
Integrates front-office and back-office applications to allow for quicker, more effective
response to business events and customer demands
Improves customer and suppler experience with the business because of its
responsiveness.

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
Online transaction processing systems
Real-time systems that capture and process transactions immediately
Adds value to product or service through superior customer service
Transaction Processing Cycle
Data entry
The capture of business data
Transaction processing
Two basic ways
Batch processing where transaction data are accumulated & processed
periodically
Real-time processing where data are processed immediately after a
transaction occurs
Database maintenance
Corporate databases are updated to reflect the day-to-day business
transactions
Document and report generation
A variety of documents and reports are produced
Inquiry processing
Inquiries and responses concerning the results of transaction processing
activity

Enterprise Collaboration Systems

Cross-functional e-business systems that enhance communication, coordination, &

collaboration
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
Tools for Enterprise Collaboration
Electronic communication
E-mail
Voice mail
Fax
Web publishing
Bulletin boards
Paging
Internet phone systems
Electronic conferencing
Data & voice conferencing
Videoconferencing
Chat systems
Discussion forums
Electronic meeting systems
Synchronous. Team members can meet at the same time and place in a
decision room setting
Collaborative work management
Calendaring & scheduling
Task & project management
Workflow systems
Knowledge management