chapter 18 - the digital enterprise

Chapter 18

The Digital Enterprise

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Introduction

• What Is the Digital Enterprise?– Key Concepts

• Business processes

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Information Technology Infrastructure for the Digital Enterprise

• IT Infrastructure’s Role– Key Concepts

• Internetworking• Internet• Internet service provider (ISP)• World Wide Web (WWW or www)• Webpage

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Go to the Web

• Bring up your school’s webpage. How could it be improved?

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Information Technology Infrastructure for the Digital Enterprise

• IT Infrastructure’s Role– Key Concepts (cont’d)

• Website• Webmaster• Uniform resource locator (URL)• Hypertext transfer protocol (http)• Search engine• Intranet

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2004 Nielsen NetRatingsTop Five Search Engine Destinations

Source: http://searchenginewatch.com/reports/article.php/2156451

Percentages total more than 100% because web surfers may visit more than one service. For a complete list of the top 15 destinations, see http://searchenginewatch.com/reports/article.php/2156451

7.00%

13.60%

27.40%

31.50%

41.60%

Ask Jeeves

AOL

MSN

Yahoo!

Google

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Information Technology Infrastructure for the Digital Enterprise

• IT Infrastructure’s Role– Key Concepts (cont’d)

• Extranet• Virtual private network (VPN) • Network firewall• Client/server network• Clients• Servers• Three-tier client/server network

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Debate Issue

• The cost of a network firewall typically exceeds the benefits.

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Enterprise Resource Planning Systems

• Defining Enterprise Resource Planning– Key Concepts

• Information fragmentation • ERP (enterprise resource planning)

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Anatomy of an ERP System

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Enterprise Resource Planning Systems

• Defining Enterprise Resource Planning– Key Concepts (cont’d)

• Legacy systems• Multilanguage• Multicurrency• Multinational

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Enterprise Resource Planning Systems (cont’d)

• Benefits of ERP Systems – Improved financial management– Faster, more accurate transactions– Better managerial decision making– Improved inventory and asset management– Ease of expansion or growth and increased flexibility– Use of fewer physical resources and improved logistics– Cycle time reduction– Improved customer service and retention– Headcount reduction– Increased revenue

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Enterprise Resource Planning Systems (cont’d)

• Costs of ERP Systems – Software– Additional hardware– Consultants– Employee training

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Enterprise Resource Planning Systems (cont’d)

• ERP Software Vendors– Baan– J.D. Edwards– PeopleSoft– Oracle– SAP

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Enterprise Resource Planning Systems (cont’d)

• ERP Software Modules– Key Concepts

• Best-of-breed approach• Monolithic approach

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Enterprise Resource Planning Systems (cont’d)

• Implementing ERP Systems– Key Concepts

• Phased strategy• Big-bang strategy

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Think About It

• What types of organizations or industries might be better served by a big-bang versus a phased strategy? What factors might be involved?

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Supply Chain Management (SCM)

• A Simple Supply Chain

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The Bullwhip Effect

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Supply Chain Management (SCM) (cont’d)

• Economic Impact of Supply Chain Management

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Examples of Supply Chain Costs as a Percentage of Sales

Source: From Jay Heizer and Barry Render. Operations Management, 7th Edition, © 2004. Adapted by permission of Pearson Education, Inc., Upper Saddle River, NJ.

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Economic Impact on Profits of Reducing Supply Chain Costs Versus Increasing Sales

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Supply Chain Management (SCM) (cont’d)

• Supply Chain Management Strategies– Key Concepts

• Vertical integration• Backward vertical integration• Forward vertical integration• Virtual collaboration• Bypassing

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The Dell Supply Chain

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E-Business

• E-Business and the Digital Enterprise– Key Concepts

• Business-to-consumer (B2C) e-business • Business-to-business (B2B) e-business • Consumer-to-consumer (C2C) e-business• Mobile commerce (m-commerce)

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ExerciseOnline or Mall?

• Develop a list of the advantages and disadvantages for a customer doing business with an e-retailer such as Amazon.com and a traditional retailer like Wal-Mart or Borders. List at least five advantages and five disadvantages.

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E-Business (cont’d)

• Electronic Payment Systems– Key Concepts

• Digital credit card• Digital cash• Digital wallet• Digital checking

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Examples of Digital Payment Systems

• PayPal

• Western Union

• ePaystream

• Ikobo

• Paychex

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E-Business (cont’d)

• Opportunities and Challenges– Challenges include

• Unproven business models• Far-reaching organizational changes• Legal issues• Security

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Careers in the Digital Enterprise

• Information Technology Infrastructure for the Digital Enterprise

• ERP Systems

• Supply Chain Management

• E-Business