Bài giảng Management information systems - Chương 7: Electronic Business Systems

Electronic Business SystemsChapter7Identify the following cross-functional enterprise systems, and give examples of how they can provide significant business value to a company:Enterprise application integrationTransaction processing systemsEnterprise collaboration systemsLearning ObjectivesLearning ObjectivesGive 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.What is E-Business?The use of the Internet and other networks and information technologies to support electronic commerce, enterprise communications and collaboration, and Web-enabled business processes, both within a networked enterprise and with its customers and business partners.Case #1: Data-Driven HospitalityCustomers are more satisfied when they have a problem and the hotel staff takes care of it than if the stay goes flawlessly.The hospitality industry is a people business. It doesn’t do any good to have great customer information that’s only in the reservations system and available to the call center. It must be common across all systems.Case #1: Data-Driven HospitalityOnQ – Customers Really Matter:Custom-built customer relationship management information systemIntegrated to cover 22 million guests, all properties, eight brandsProvide employees with a clearer idea of who customer are and what their past Hilton experiences have been so they can provide constant improvementCase #1: Data-Driven HospitalityOnQ Challenges:Presenting deep customer history data clearly enough for inexperienced front desk employeesSupporting a diverse mix of brandsCase #1: Data-Driven HospitalityWhat are the benefits and drawbacks of the OnQ system at Hilton?What does Hilton have to do to create a competitive advantage through OnQ? Provide some specific examples.Is it possible to have too much information about a customer? Explain.Case #1: Data-Driven HospitalityWhat are several reasons why CRM software applications are so expensive? Why do they seem to take so long to implement?Cross-Functional Enterprise SystemsDefinition:Information systems that cross the boundaries of traditional business functions in order to reengineer and improve vital business processes all across the enterpriseCross-Functional Information SystemsEnterprise Application ArchitectureEnterprise Application Integration (EAI)Definition:Software that integrates a variety of enterprise application clusters by letting them exchange data according to rules derived from the business process models developed by usersEnterprise Application IntegrationEAI ExampleTransaction Processing Systems (TPS)Definition:Cross-functional information systems that process data resulting from the occurrence of business transactionsTransactions – events that occur as part of doing businessOnline Transaction Processing Systems (OLTP) – real-time systems that capture and process transactions immediatelyTransaction Processing CycleData Entry – capture of business dataTransaction Processing Batch – transaction data are accumulated over a period of time and processed periodicallyReal-Time – data are processed immediately after a transaction occursTransaction Processing CycleDatabase Maintenance – updating corporate databases of an organization to reflect changes resulting from day-to-day business transactionsDocument and Report Generation – including transaction documents, transaction listings and error reportsInquiry Processing – making inquiries and receiving responses concerning the results of transaction processing activitiesTransaction Processing CycleEnterprise Collaboration Systems (ECS)Definition:Cross-functional information systems that enhance communication, coordination, and collaboration among the members of business teams and workgroupsECS GoalsCommunicate – share informationCoordinate – coordinate individual work efforts and share resourcesCollaborate – work together cooperatively on joint projects and assignmentsECS ToolsCase #2: Business Case for EAIEAI Benefits:Share data among legacy systemsImprove data quality and accuracyAlign systems more closely with business processesImprove customer serviceCut costsCase #2: Business Case for EAIEAI Challenges:Specific IT skills requiredExtensive coordination among multiple departmentsCase #2: Business Case for EAIWhy has EAI recently “become a critical part of the IT strategy at many organizations,” and a high-ranking project of top IT executives? Use GE Power and Corporate Express as examples.What is the major difference in the business value of the EAI projects at GE Power and Corporate Express?Case #2: Business Case for EAIWhat are some of the challenges in developing and implementing EAI systems? How can companies meet these challenges?Why is there a need for enterprise application integration systems in business? Will this continue to be the case in the future? Why or why not?Functional Business SystemsDefinition:Information systems that support the business functions of accounting, finance, marketing, operations management, and human resource managementFunctional Business ISMarketing SystemsInteractive MarketingDefinition:Customer-focused marketing process that is based on using the Internet, intranets, and extranets to establish two-way transactions between a business and its customers or potential customersGoal:Use networks to attract and keep customers who will become partners with the business in creating, purchasing, and improving products and servicesTargeted MarketingDefinition:Tool for developing advertising and promotion strategies to strengthen a company’s e-commerce initiatives, as well as its traditional business venuesTargeted Marketing ComponentsTargeted Marketing ComponentsCommunity – customize advertising to appeal to people of specific virtual communitiesContent – advertising placed on a variety of selected websitesContext – advertising placed on web pages that are relevant to the content of a product or serviceTargeted Marketing ComponentsDemographic/Psychographic – web marketing efforts aimed at specific types or classes or peopleOnline Behavior – promotion efforts tailored to each visit to a site by an individualSales Force AutomationDefinition:Information systems that improve the delivery of information and support to salespeople with the goal of improving sales productivity and marketing responsivenessManufacturing SystemsDefinition:Information systems that support the production/operations function that includes all activities concerned with the planning and control of the processes producing goods and servicesManufacturing SystemsComputer-Integrated Manufacturing (CIM)Objectives:Simplify production processes, product designs, and factory organization as a vital foundation to automation and integrationAutomate production processes and the business functions that support them with computers, machines, and robotsIntegrate all production and support processes using computer networks, cross-functional business software, and other information technologiesCIM SystemsComputer-aided manufacturing (CAM) - Information systems that automate the production processManufacturing execution systems (MES) – performance monitoring information systems for factory floor operationsProcess Control – control ongoing physical processesMachine Control – controls the actions of machinesHuman Resource SystemsHRM and the InternetRecruiting employees through recruiting services and databases on the World Wide WebPosting messages in selected Internet newsgroupsCommunicating with job applicants via e-mailHRM and Corporate IntranetsProcess common HRM applicationsAllow HRM department to provide around-the-clock servicesDisseminate valuable information faster than through previous company channelsCollect information from employees onlineAllow managers and other employees to perform HRM tasks with little intervention by the HRM departmentAccounting Information SystemsCommon Business Accounting SystemsOrder Processing – Captures and processes customer orders and produces data for inventory control and accounts receivableInventory Control – Processes data reflecting changes in inventory and provides shipping and reorder informationAccounts Receivable – Records amounts owed by customers and produces customer invoices, monthly customer statements, and credit management reportsCommon Business Accounting SystemsAccounts Payable – Records purchases from, amounts owed to, and payments to suppliers, and produces cash management reportsPayroll – Records employee work and compensation data and produces paychecks and other payroll documents and reportsGeneral Ledger – Consolidates data from other accounting systems and produces the periodic financial statements and reports of the businessFinancial Management SystemsFinancial Management SystemsCapital Budgeting – evaluating the profitability and financial impact of proposed capital expendituresFinancial Planning – evaluating the present and projected financial performance of a businessCase #3: Improving Supply-Chain ResultsSupply chains are, by definition, a kludge of systems, comprising software for manufacturing, warehousing, inventory control, planning, shipping, and logistics.They also involve intimate relationships with suppliers and partners, and, on the front end, an increasing dependence on the input of customers.Case #3: Improving Supply-Chain ResultsBenefits of SCMCut costsIncrease sales with efficient and effective supply chainsCase #3: Improving Supply-Chain ResultsTypes of SCM:Supply-Chain Execution – addresses particular segments along the supply chain such as warehouse management or transportation managementSupply-Chain Planning – helps companies decide which products to build and when, based on forecasts, orders, capacity, and resourcesCase #3: Improving Supply-Chain ResultsWhat is the business value of SCM systems for Brunswick?Does the business value of SCM depend upon what type of business a company is in? Explain.How does Brunswick’s approach to SCM differ from that of the other companies? Is one approach superior to all others? Why or why not?Case #4: Swarming CollaborationSwarming is a type of collaboration in which large numbers of geographically dispersed people quickly self-organize in a peer-to-peer network to deal with a problem or opportunity.It’s a fluid, shifting network with no central control or hub.Case #4: Swarming CollaborationBenefits of Swarming:Allows large organizations to match the agility of smaller competitorsTap resources previously overlookedProspective customers become collaboratorsCuts document duplication and delivery costsCase #4: Swarming CollaborationWhat are the business benefits of swarming collaboration? Use Lowe Worldwide and HP as examples.What are some possible limitations of swarming?Case #4: Swarming CollaborationVisit the website of Groove Networks and experience their demo of working in a shared workspace. Would this support workgroup collaboration? Swarming collaboration? Why or why not?SummaryMajor e-business applications are integrated cross-functional enterprise systems such as enterprise resource planning (ERP), customer relationship management (CRM), and supply chain management (SCM).Enterprise application integration (EAI) systems interconnect other information systems so that business professionals can more easily access the information resources they need to support the needs of customers, suppliers, and business partners.SummaryTransaction processing involves the basic activities of data entry, transaction processing, database maintenance, document and report generation, and inquiry processing.Functional business information systems support the business functions of marketing, production/operations, accounting, finance, and human resource management through a variety of e-business operational and management information systems.SummaryMarketing information systems support traditional and e-commerce processes and management of the marketing function.Computer-based manufacturing information systems help a company achieve computer-integrated manufacturing, and thus simplify automate, and integrate many of the activities needed to quickly produce high-quality products to meet changing customer demands.SummaryHuman resource information systems support human resource management in organizations including staffing, training and development, and compensation administration.Accounting information systems record, report and analyze business transactions and events for the management of the business enterprise.End of ChapterChapter7