Eleventh Edition

1

Introduction to Information Systems Essentials for the Internetworked E-Business Enterprise

Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.

C h a p t e r

James A. O’Brien

7Electronic

Business

Systems

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Chapter Objectives

• Identify each of the following cross-functional e-business systems and give examples of how they can provide significant business value to a company and its customers and business partners.

• Enterprise resource planning• Customer relationship management• Enterprise application integration• Supply chain management• Online transaction processing• Enterprise collaboration

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Chapter 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 and operations management.

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The e-Business Application Architecture

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Enterprise Resource Planning

SalesDistribution,OrderManagement

Accountingand Finance

ProductionPlanning

Human Resources

IntegratedLogistics

Customer/Employee

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Customer Relationship Management

SalesCross-SellUp-SellTeleSales

Store Frontand FieldService

Marketing andFulfillment

CustomerService andSupport

Retentionand LoyaltyPrograms

Customer

Contact Management

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Cross-Functional Integrated Systems

Front OfficeApplications

CRM Application•Customer Service•Field Service•Sales Order•Product Config

Back OfficeApplications

ERP Application•Distribution•Manufacturing•Scheduling•Finance

EnterpriseApplicationIntegration

Enterprise ApplicationCluster

Enterprise ApplicationCluster

Cu

sto

mer

s

Suppliers

Bu

sin

ess

Par

tner

s

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Supply Chain Management

Schedule Make Deliver

Transportation

Planning

DemandPlanningDemandPlanning

OrderCommitment

OrderCommitment

AdvanceScheduling

AdvanceScheduling

ManufacturingPlanning

ManufacturingPlanning

DistributionPlanning

DistributionPlanning

Internetworked Supply Chain ManagementInternetworked Supply Chain Management

SupplyChainLife Cycle

SCMFunctionalProcesses

SCMIntegratedSolution

Commit

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Transaction Processing Systems

DatabaseMaintenance

TransactionProcessing

• Batch•Online/Realtime

TransactionProcessing

• Batch•Online/Realtime

DataEntry

Documentand ReportGeneration

InquiryProcessing

1 2

3

4

5

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Tools for Enterprise Collaboration

EnterpriseCollaboration

System

ElectronicCommunications

Tools

ElectronicCommunications

Tools

ElectronicConferencing

Tools

ElectronicConferencing

Tools

CollaborativeWork

ManagementTools

CollaborativeWork

ManagementTools

•E-Mail•Voice Mail, I Phone•Web Publishing•Faxing

•Data Conferencing•Voice Conferencing•Videoconferencing•Discussion Forums•Electronic Meetings

•Calendaring•Task and Project Mgt•Workflow Systems•Knowledge Mgt•Document Sharing

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Functional Business Information Systems

ProductionOperations

ProductionOperations

MarketingMarketing

Human ResourceManagement

Human ResourceManagement

FinanceFinanceAccountingAccounting

FunctionalBusinessSystems

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Marketing Information Systems

MarketingInformation

Systems

MarketingInformation

Systems

InteractiveMarketing

Sales ForceAutomation

Sales ForceAutomation

CustomerRelationshipManagement

CustomerRelationshipManagement

SalesManagement

SalesManagement

MarketResearch andForecasting

MarketResearch andForecasting

Advertisingand

Promotions

Advertisingand

Promotions

ProductManagement

ProductManagement

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Targeted Marketing

Online Behavior

Community

Context

Demographic/Psychographic

Content

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Manufacturing Information Systems

Engineering Systems

•CAD•CAE•Computer-AidedProcess Planning

ManufacturingExecutionSystems

•Shop Floor•Scheduling•Machine Control•Process Control•Robotic Control

Computer Integrated ManufacturingManufacturing

ResourcePlanning

•ProductionForecasting•ProductionScheduling•Quality Control

RemoteWorker

Supplier

Extranet

Intranet

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Human Resource Management

•Manpower Planning•Labor Force Tracking

•Labor Cost Analysis•Turnover Analysis

•Recruitment•Workforce Planning

•Skill assessment•Performanceevaluation

•Payroll control•Benefits Administration

•Compensation effectiveness•Benefits Analysis

•Contract costing•Salary forecast

•Succession planning•Performance appraisal plans

•Training effectiveness•Career matching

Staffing Training &

Development CompensationAdministration

StrategicSystems

TacticalSystems

OperationalSystems

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Accounting Information Systems

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Financial Information Systems

Financial Information

Systems

Financial Information

Systems

FinancialPlanning

FinancialPlanning

CashManagement

InvestmentManagement

InvestmentManagement

CapitalBudgeting

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Chapter Summary• The e-Business Application Architecture

reflects the key e-business applications and their interrelationships.

• Cross-functional enterprise applications cross the boundaries of traditional business functions. These systems focus on supporting integrated clusters of business processes.

• Supply Chain Management relies on information technology and management practices to optimize information and product flows among the processes and business partners within the supply chain.

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Chapter Summary (cont)

• A transaction processing system is an information system that processes data resulting from the occurrence of business transactions.

• Traditional functional business systems support specific business functions including marketing, accounting, finance, production/operations, and human resource management.

• Marketing information systems support traditional and e-commerce processes and management of the marketing function.

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Chapter Summary (cont)

• Computer-based manufacturing systems help a company simplify, automate, and integrate many of the activities needed to quickly produce high-quality products to meet changing customer demands.

• Human resource information systems support human resource management in organizations.

• Several different types of electronic payment systems are used to support e-commerce transactions.

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Chapter Summary (cont)

• Because the Internet is not a secure network special security measures must be undertaken to protect sensitive customer information.