Learning ObjectivesIdentify the following cross-functional enterprise systems, and give examples of how they can provide significant business value to a companyEnterprise application integrationTransaction processing systemsEnterprise collaboration systems

Learning ObjectivesGive examples of how Internet and other information technologies support business processes within the business functions ofAccountingFinanceHuman resource managementMarketingProduction Operations management

Enterprise Business SystemsE-business means using the Internet, other networks, and IT to supportElectronic commerceEnterprise communications and collaborationWeb-enabled business processesE-commerce is the buying, selling, and marketing of products, services, and information over the Internet and other networks

Cross-Functional SystemsCross the boundaries of traditional business functions Used to reengineer and improve vital business processes all across the enterprise

Enterprise Application Architecture

Enterprise Application ArchitectureProvides a conceptual frameworkHelps visualize the basic components, processes, and interfaces of major e-business applicationsFocuses on accomplishing fundamental business processes in concert withCustomersSuppliersPartnersEmployees

Enterprise Application ArchitectureEnterprise Resource Planning (ERP)Concentrates on the efficiency of internal production, distribution, and financial processesCustomer Relationship Management (CRM)Focuses on acquiring and retaining profitable customers via marketing, sales, and servicesPartner Relationship Management (PRM)Aims at acquiring and retaining partners who can enhance the selling and distribution of products and services

Enterprise Application ArchitectureSupply Chain Management (SCM)Focuses on developing the most efficient and effective sourcing and procurement processesKnowledge Management (KM)Focuses on facilitating internal group collaboration and decision support

Enterprise Application IntegrationEAI software connects cross-functional systemsServes as middleware to provideData conversionCommunication between systemsAccess to system interfaces

How EAI Works

Transaction Processing SystemsCross-functional information systems that process data resulting from the occurrence of business transactionsTransactions include sales, purchases, deposits, withdrawals, refunds, and paymentsOnline transaction processing (OLTP) is a real-time system that captures transactions immediately

Transaction Processing Systems

The Transaction Processing Cycle

Enterprise Collaboration Systems (ECS)EC systems are cross-functional information systems that enhance team and workgroupCommunicationCoordinationCollaborationSystems may includeNetworked PC workstationsServersDatabasesGroupware and application packages

ECS Tools

Functional Business SystemsA variety of types of information systems that support the business functions ofAccountingFinanceMarketingOperations managementHuman resource management

IT in Business

Marketing SystemsMarketing systems are concerned withPlanning, promotion, and sale of existing products in existing marketsDevelopment of new products and new marketsBetter attracting and serving present and potential customers

Marketing Information Systems

Interactive MarketingInteractive MarketingA customer-focused marketing processUses the Internet, intranets, and extranetsEstablishes two-way transactions between a business and its customers or potential customersGoalProfitably use networks to attract and keep customersGet customers to help create, purchase, and improve products and services

Targeted MarketingAn advertising and promotion management concept with five targeting components

Targeted Marketing ComponentsCommunity: customized ads to appeal to specific virtual communitiesContent: ads placed on a variety of selected websites, aimed at a specific audienceContext: ads placed on web pages that are relevant to a product or serviceDemographic/Psychographic: web marketing aimed at specific types or classes of peopleOnline behavior: promotions tailored to each visit to a site by an individual

Sales Force AutomationOutfit sales force with notebook computers, web browsers, and sales contact softwareConnect them to marketing websites and the company intranetGoalsIncrease personal productivitySpeed up capture and analysis of sales dataGain strategic advantage

Manufacturing Information SystemsSupports the production/operations functionsIncludes all activities concerned with planning and control of the processes producing goods or services

Computer-Integrated Manufacturing

CIM ObjectivesSimplify production processes, product designs, and factory organization Automate production processes and the business functions that support themIntegrate all production and support processes usingNetworksCross-functional business softwareOther information technologies

CIM SystemsComputer-aided manufacturing (CAM)Automate the production processManufacturing execution systems (MES)Performance monitoring information systems for factory floor operationsProcess controlControl ongoing physical processesMachine controlControls the actions of machines

Human Resource Management (HRM)Information systems designed to supportPlanning to meet personnel needsDevelopment of employees to their full potentialControl of all personnel policies and programs

HRM Systems

HRM and the InternetRecruiting employees using the corporate website and commercial recruiting servicesPosting messages in selected Internet newsgroupsCommunicating with job applicants via e-mail

HRM and Corporate IntranetsCorporate intranet usesProcess common HRM transactionsAllow around-the-clock HRM servicesDisseminate information faster than through previous company channelsCollect information from employees onlineAllow HRM tasks to be performed with little HRM department interventionTraining

Employee Self-ServiceIntranet applications can allow employees toView benefitsEnter travel and expense reportsVerify employment and salary informationAccess and update personal informationEnter time-sensitive data

Accounting Information SystemsThe oldest and most widely used information system in businessRecords and reports business transactions and economic eventsProduces financial statementsForecasts future conditions

Accounting Information SystemsTypically consists ofOrder processingInventory controlAccounts receivableAccounts payablePayrollGeneral ledger systems

Accounting Information Systems

Financial Management SystemsSupports business managers and professionals making decisions concerningThe financing of a businessThe allocation and control of financial resources within a business

Financial Management System Example