Chapter

7
Electronic Business Systems

McGraw-Hill/Irwin Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.
 Learning Objectives

• Identify the following cross-functional

enterprise systems, and give examples of
how they can provide significant business
value to a company
– Enterprise application integration
– Transaction processing systems
– Enterprise collaboration systems

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 Learning Objectives

• Give examples of how Internet and other

information technologies support business
processes within the business functions of:
– Accounting
– Finance
– Human resource management
– Marketing
– Production
– Operations management

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 Enterprise Business Systems

• Use Internet, networks, and IT to support

– Electronic commerce
– Enterprise communications and collaboration
– Web-enabled business processes

• E-commerce is the buying, selling, and

marketing of products, services, and
information over the Internet and other
networks

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 Cross-Functional Systems
• Cross the boundaries of traditional business
functions
– Reengineer and improve vital business processes
– R&D overlaps Marketing and Manufacturing

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Enterprise Application Architecture

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 Implementing Global Applications

• Globalization vs true-blue American formula

– What is Globalization?
– What is the true-blue American business formula?
• Working virtually is critical
– Why?
• What is the difference between decision
making approach in UK and US?

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 Enterprise Application Integration

• EAI connects cross-functional systems

• Serves as middleware to provide
– Data conversion
– Communication between systems
– Access to system interfaces

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How EAI Works

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Transaction Processing Systems

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The Transaction Processing Cycle

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ECS Tools

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 Exploring Virtual Worlds

• Virtual world - training

– Rollovers
– Multicar pileups
– Life threatening injuries
– Police training
– Military use

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 Functional Business Systems

• Information systems that support

– Accounting
– Finance
– Marketing
– Operations management
– Human resource management

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 Marketing Systems

• Marketing systems are concerned with

– Existing products in existing markets
– New products and new markets
– Serving present and potential customers

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 RWC 2: Unified Financial Reporting

• Originally non-uniform reporting

– 14 general ledgers
– 12 reporting tools
– 17 financial data repositories
– 300,000 spreadsheets
• Finance Tranformation Program - Focus
– Common definitions, rules and procedures
– Trade-offs to target core functionalities
– All subscribe to central book of record
– Unify all financial people

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IT in Business

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Marketing Information Systems

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 Targeted Marketing

• Advertising and promotion management conce

– Five targeting components

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 Sales Force Automation

• Outfit sales force

– Notebook computers,
– Web browsers
– Sales contact software
– Marketing websites
– Company intranet
• Goals
– Increase personal productivity
– Speed up capture and analysis of sales data
– Gain strategic advantage

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Computer-Integrated Manufacturing

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HRM Systems

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 HRM and the Internet

• Recruiting employees
– Corporate website
– Commercial recruiting services
• Posting in Internet newsgroups
• Communicating with job applicants via
– e-mail
– Monster.com
– HotJobs.com
– CareerBuilder.com

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 HRM and Corporate Intranets

• Corporate intranet uses

– Process common HRM transactions
– Allow around-the-clock HRM services
– Disseminate information faster than previous
company channels
– Collect information from employees online
– Allow HRM tasks to be performed with little HRM
department intervention
– Provide training

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 Employee Self-Service (ESS)

• Intranet applications allow employees to

– View benefits
– Enter travel and expense reports
– Verify employment and salary information
– Access and update personal information
– Enter time-sensitive data
• Provide hiring systems

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Accounting Information Systems

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Business Accounting Systems

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Financial Management System

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 RWC 3: Cisco Systems

• TelePresence
– Life-like, in-person experiences
– Promises to revolutionize collaboration
• Strong competition
– HP - Halo telepresence system
– Polycom - high-end telepresence system
• Biggest challenge
– Innovation and growth

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 RWC 4: Strategic Information Systems

• Electronic hiring system

• Significant payoff is significant
– Filling job openings two weeks faster
– Saving at least $1,500 per job.
• HR called to be a strategic business partner,
• IT provides innovative solutions.

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