UNIT-III

Enterprise model system and E-Business?

Enterprise Model System is large-scale software package that able to track and control all of the
complex operations of a business. These systems are used as a central command hub to help
automate the business and make reporting and decision making easier

The model shows where the business data originates and how it flows through the various
processes. These models become the roadmap for information systems requirements.

Enterprise models can classify in to three categories such as:

I. Enterprise resource planning (ERP):

Enterprise resource planning (ERP) is business process management software that allows an

organization to use a system of integrated applications to manage the business and automate
many back office functions related to technology, services and human resources.

Enterprise Resource Planning is an integration of business management modules and user

friendly technology.

ERP is a well-managed centralized data storage house which acquires information and supply
information for complete computing solutions at universal level. In large business organization
it’s a difficult task to manage various data at different servers. ERP helps to manage data under
one common platform.

ERP software solutions are essential for optimizing costing accuracy for the benefit of making
decisions on day to day operations.

Various ERP application modules:

1. Purchase management:This application provides data relating to list of supplier details and
overview to purchase the required rawmaterils and components in the production process.

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2. Manufacturing:This application leadsdata relating to master production schedule, work
flows, material movement in production process. This application allows controlling the defect
products.

3. Inventory management:this module helps to maintain reasonable stock in the stock locaters.
Ithelps to meet production demand, production schedules and demand in the market.

4. Sales and distribution: This application provides a clear view of sales slats and distribution
channels for moving goods from firm to end customer.it design the various intermediate channels
between organizations to customer.

5. Marketing:

This module provides a clear view of customers and more informed marketing investments. This
module offers the option of creating segments of customers based on different benefit groups.

6. Human resource management:

With ERP for HR, data is stored in a central location, or brought together to a central location,
which means that data from different sources can be shared faster and easier. This also ensures
that the right data is shared, thus enhancing overall outcomes and making it simpler for other
teams to work together.

7. Enterprise Asset management:

Organizations that rely on assets need an ERP system that can provide important Enterprise
Asset Management (EAM) functionality. Both ERP and EAM systems bring unique value to
organization. While EAM modules do a better job of managing physical assets, ERP software is
best for managing financials.

8. Finance and Accounting:

ERP is best described as a relational database package that supports a company’s business
processes and operations including finance accounts receivable and accounts payable.

II.Supply chain management (SCM):

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Supply chain management is the management of the flow of goods and services and includes all
processes that transform raw materials into final products. It involves the active streamlining of a
business's supply-side activities to maximize customer value and gain a competitive advantage in
the marketplace.
Various SCM application modules:

1. Materials buy (Purchasing):This application provides data relating to list of supplier details
and overview to purchase the required raw materiels and components in the production process.

2. Manufacturing:This application leadsdata relating to master production schedule, work

flows, material movement in production process. This application allows controlling the defect
products.

3. Storing or Inventory management:this module helps to maintain reasonable stock in the

stock locaters. It helps to meet production demand, production schedules and demand in the
market.

4. Sales and distribution:This application provides clear information relating to customer and
group of customers.it allows intermediaters between organizations to customer.

Advantages of SCM:
Supply chain management can bring immense changes in business scope & progress.

1. Reduce Cost Effects

2. Raise Output
3. Raised Business Profit Level
4. Boost Cooperation
5. Lowers Delay in Processes

III.CRM:
CRM systems are processes and technologies that are used for managing relationships with
customers across business functions.CRM system helps capture and integrate customer data from
all over the organization.

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Its create loyalty and customer retention. Since customer loyalty and revenue are both qualities
that affect a company's revenue, CRM is a management strategy that results in increased profits
for a business.

Various CRM application modules:

1. Sales force automation(SFA): Sales force automation is the most widely used CRM
application in the world. The SFA module of CRM helps sales staffs manage more leads and
increase productivity. This application provides functionalities for defining sales targets,
forecasting and sales data.

2. Marketing: This module provides a clear view of customers and more informed marketing
investments. This module offers the option of creating segments of customers based on different
benefit groups.

3. Loyalty Programmes: it design offer rewards, awards and incentives to customers for their
loyalty to the organization which further help the organization retain their customers. Loyalty
programmes that offer rewards to loyal customers and help them retain the customer.

4. CustomerService: After succeful marketing and sales initivates the responsibility of the
organization is to serve the customer better and handle service complaints. Through CRM
applications the organization can respond faster to customer service issues and empower service
organizations to anticipate address and deliver consistent and efficient customer care that
contributes to long-term business profitability.

Advantages of Customer Relationship Management:

1. Enhances Better Customer Service

 2. Facilitates discovery of new customers
 3. Helps the sales team in closing deals faster

4. Simplifies the sales and marketing processes

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5. Makes call centers more efficient
 6. Enhances customer loyalty

 7. Builds up on effective internal communication

  8. Facilitates optimized marketing

 Business Process Reengineering?

Business process reengineering refers to is the act of recreating a core business process with the
goal of improving product output, quality, or reducing costs. Typically, it involves the analysis of
company workflows, finding processes that are sub-par or inefficient, and figuring out ways to
get rid of them or change them.

 Business Process Reengineering or BPR is the analysis and redesign of core business processes
to achieve the substantial improvements in its performance, productivity, and quality. The
business process refers to the set of interlinked tasks or activities performed to achieve a
specified outcome.

Steps involved in Business Process Reengineering:

1. Define objective of Business Processes: Before going to redesign a new plan first should
be define the objectives of reengineering and causes of reengineering. Such as increasing
quantity of output, efficient and decreasing cost of the production.
2. Identify and Analyze required Improvement: Identify, analyze and validate opportunities to
address the gaps and root causes identified during analysis. This step also includes identifying
and validating improvement opportunities that are forward facing – often strategic
transformational opportunities that are not tethered to current state process.
3. Study exist Business Processes: Identify gaps, root causes, strategic disconnects in the
existing process. in the context of improving organizational effectiveness, operational efficiency
and in achieving organizational strategic objectives.

4. Formulate a Redesign Plan: Select the improvement opportunities identified above that have
the most impact on organizational effectiveness, operational efficiency, and that will achieve

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organizational strategic objectives. Make sure to select opportunities for which the organization
has the budget, time, talent, etc. to implement in the project timeframe.
5. Implementa Redesign Plan: Implementation based on dependencies among
changes/opportunities, change management, project management, performance monitoring, etc.

Role of MIS in BPR:

MIS plays a significant role in reengineering most businessprocess. Many companies worldwide
have used ERP to reengineer, automate, and integrate their businessprocess such as
manufacturing, distribution, finance and human resources.

The following attributes of MIS contribute to the BPR effort in an organization:

 Shared database, making information available at many places

 Expert systems allowing generalities to perform specialist tasks
 Telecommunication networks allowing organizations to be centralized and decentralized
at the same time
 Decision support tools allowing decision making to be part of everybody’s job
 Interactive e-commerce portals facilitating immediate contact with potential buyers
 Automatic identification and tracking allowing objects to tell where they are instead of
requiring to be found
 MIS takes care of performance parameters such as data capture, processing, analysis, and
reporting which are set as per new mission and goals.
 The decision support systems are integrated in the business process and are made
available to users at the click of a button.

The principles of business process reengineering

1. Identify all the processes in an organization and prioritize them in order of redesign
urgency.

2. Integrate information processing work into the real work that produces the information.

3. Put the decision point where the work is performed and build control into the process.

4. Capture information once and at the source.

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 Benefits of Reengineering:

 Eliminates waste, and inefficient process

 Significant reduction in cost and time
 Revolutionary improvements in business processes as measured by quality and customer
service

Electronic communication?
E-communication or electronic communication refers to the transfer of writing, signals, data,
sounds, images, signs or intelligence sent via an electronic device. Some examples of e-
communication are email, text messages, social media messaging and image sharing.

Electronic communication has become a very popular means to communicate worldwide.

Electronic communication is used for the transfer of different types of data and images through
Electronic Devises; Electronic communication is so popular that many businesses and people
consider it to be essential tool in our daily lives. It engages audiences in active, two-way
communications; a self-selected audience, engaged and actively participating in the
communications process.” There are many ways to communicate electronically, each with
benefits and risks related to business or personal use.

Types of E-Communication:

1. Email:

 Email short for "electronic mail," is one of the most widely used features of the Internet, along
with the web. It allows you to send and receive messages to and from anyone with
an email address, anywhere in the world.  Messages are delivered from one specific address to
one or more specific addresses. Users are alerted to the presence of new messages in their
inboxes by email clients that display the content and offer an opportunity to reply. Messages are
primarily text but may include file attachments of various types including images and short
movies. Unlike instant messages, emails are generally not expected to be read immediately upon
receipt. Most email readers keep track of conversations that include multiple people through the
use of threads. Thus email is ideally suited for long, involved conversations between two people
or among small groups of people.

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2. Fax:

A fax machine is a device that is used to send documents electronically over a telephone

network. The transmissions it sends are called “faxes” and these can be between
two fax machines, or between a fax machine and computer or online fax service that is equipped
to send and receive faxes.

3. Tele Conference:

A teleconference is a telephone meeting among two or more participants involving technology

more sophisticated than a simple two-way phone connection. At its simplest,
a teleconference can be an audio conference with one or both ends of the conference sharing a
speaker phone

4. Video Conference:

Video conferencing is a visual communication session between two or more users regardless of
their location, featuring audio and video content transmission in real time. For effective video
conferencing, an organization needs to set up video conferencing system profiling software and
hardware solutions.
Most video conference is conducted over Internet protocols that stream images from one device
to another. At times, nothing beats a face-to-face conversation. Video chats provide immediacy
to a conversation. Businesses often use videoconferencing to aid in virtual meetings.

5. Skype:

Skype is software that enables the world's conversations. Millions of individuals and businesses
use Skype to make free video and voice one-to-one and group calls, send instant messages and
share files with other people on Skype.

6. Telephone:

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Telephone communication is one of the most important forms of communication with in the
company. Although today its use being replaced by other forms of communication such as mail.
It is very important in business because it is the medium through which the first contactwith, or
from the company is made. So, before any personal contact, the usual thing is to makea phone
call to arrange an interview or to specify any matter or topic.

7. Text Message:

Text messaging uses cellular airwaves and protocols to deliver textual messages from one
cellular phone to another or from one phone to a group of other phones. Text messaging is
usually intended as near-instant communication and can be quicker than a phone call because the
sender doesn't have to wait for the recipient to answer before delivering a message. Because text
messaging is informal and easy, it's sometimes called chatting. Text messaging can also facilitate
private discussions when there is a chance that a phone call could be overheard. Instant
messaging is similar to text messaging but is carried over the Internet rather than over cell phone
airwaves.

8. Social Media:

Facebook, My Space and Twitter a type of social media for communication purposes which lets
the user give an instant message and receive an instant response with supporting live video
images. Users are able to post messages to a particular group of people or to members of a
specific club and comment instantaneously.

Social networking sites facilitate communication among people with common interests or
affiliations. Sites such as Facebook and LinkedIn provide places for people to interact,
sometimes in real time. Micro blogging services like Twitter, allow short textual messages.

Advantages of Electronic Communication

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1. Speedy transmission:  It requires only a few seconds to communicate through electronic
media because it supports quick transmission.

2. Wide coverage: World has become a global village and communication around the globe
requires a second only.

3. Low cost: Electronic communication saves time and money. For example, Text SMS is
cheaper than the traditional letter.

4. Exchange of feedback: Electronic communication allows the instant exchange of feedback.

So communication becomes perfect using electronic media.

5. Managing global operation: Due to the advancement of electronic media, business

managers can easily control operation across the globe. Video or teleconferencing e-mail and
mobile communication are helping managers in this regard.

Disadvantages of Electronic Communication

1. The volume of data: The volume of telecommunication information is increasing at such a

fast rate that business people are unable to absorb it within the relevant time limit.

2. The cost of development: Electronic communication requires huge investment for

infrastructural development. Frequent change in technology also demands further investment.

3. Legal status: Data or information, if faxed, may be distorted and will cause zero value in the
eye of law.

4. Undelivered data: Data may not be retrieved due to system error or fault with the technology.
Hence required service will be delayed

5. Dependency: Technology is changing every day and therefore poor countries face the
problem as they cannot afford the new or advanced technology. Therefore poor countries need to
be dependent towards developed countries for sharing global network.

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E-commerce (electronic commerce)?

E-commerce (electronic commerce) is the activity of electronically buying or selling

of products on online services or over the Internet. Electronic commerce draws on technologies
such as mobile commerce, electronic funds transfer, supply chain management, inventory
management systems. E-commerce is the largest sector of the electronics industry.

Generally speaking, when most people think of e-commerce, they think of the purchase of goods
or services by use of the internet. However, there is a more specific way to refer to the type of
online transaction by the means of mentioning which e-commerce category the transfer falls
under.

There are four basic types of e-commerce:

1. Business-to-Business (B2B)

2. Business-to-Consumer (B2C)

3. Consumer-to-Consumer (C2C)

4. Consumer-to-Business (C2B)

1. Business-to-Business (B2B):

B2B e-commerce refers to all electronic transactions of goods and sales that are conducted
between two companies. This type of e-commerce typically explains the relationship between the
producers of a product and the wholesalers who advertise the product for purchase to consumers.
Sometimes this allows wholesalers to stay ahead of their competition.

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2. Business-to-Consumer (B2C):

Perhaps the most common form of e-commerce, B2C e-commerce deals with electronic business
relationships between businesses and consumers. Many people enjoy this avenue of e-commerce
because it allows them to shop around for the best prices, read customer reviews and often find
different products that they wouldn’t otherwise be exposed to in the retail world. This e-
commerce category also enables businesses to develop a more personalized relationship with
their customers.

3. Consumer-to-Consumer (C2C):

This level of e-commerce encompasses all electronic transactions that take place between
consumers. Generally, these transactions are provided by online platforms (such as PayPal), but
often are conducted through the use of social media networks (Facebook marketplace) and
websites.

4. Consumer-to-Business (C2B):

Not the most traditional form of e-commerce, C2B e-commerce is when a consumer makes their
services or products available for companies to purchase. An example of this would be a graphic
designer customizing a company logo or a photographer taking photos for an e-commerce
website.

Advantages and Disadvantages of E-Commerce:

Ecommerce offered many advantages to companies and customers but it also caused many
problems.

Advantages of E-Commerce:

 Faster buying/selling procedure, as well as easy to find products.

 Buying/selling 24/7.
 More reach to customers, there is no theoretical geographic limitations.

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 Low operational costs and better quality of services.
 No need of physical company set-ups.
 Easy to start and manage a business.
 Customers can easily select products from different providers without moving around
physically.
Disadvantages of E-Commerce:
 There is no guarantee of product quality.
 Mechanical failures can cause unpredictable effects on the total processes.
 As there is minimum chance of direct customer to company interactions, customer
loyalty is always on a check.
 There are many hackers who look for opportunities, and thus an ecommerce site, service,
payment gateways, all are always prone to attack.

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