Intro to Information Technology

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Intro to Information Technology

• Wednesday, Nov 13th
• Final Exam Dec 11th 7pm 9pm
• Chapter Four Electronic Business Systems
• Chapter Five Electronic Commerce Systems

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E-business Application Architecture
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E-business Application Architecture

• This diagram illustrates the application
  components, interrelationships, and interfaces
  with
• customers
• employees
• business partners
• other stakeholders in the E-business enterprise

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E-business Application Architecture

• It gives a good overview of
• interrelatedness
• Interdependence
• Integration
• Of the E-Business applications that are vital
  components of the successful operations and
  management of an E-business enterprise

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Cross Functional Systems

• Cross Functional Business System
• These systems support business processes such as
  product development, production, distribution,
  order management, customer support, etc
• Cross Functional Enterprise System
• Cross the boundaries of traditional business
  functions
• Reengineer and improve vital business processes
  all across the enterprise

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Cross Functional Systems

• Organizations view cross functional enterprise
  systems as strategic way to use IT to
• Share information resources
• Improve efficiency and effectiveness of business
  processes
• Help business attain strategic objectives

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Enterprise Resource Planning

• ERP is a cross functional enterprise system that
  serves as a framework to integrate and automate
  many of the business processes within
• Manufacturing
• Logistics
• Distribution
• Finance
• Accounting
• Human Resources

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Enterprise Resource Planning

• ERP software is a family of software that
  supports the business activities involved in back
  office processes
• Example ERP software for a manufacturing company
  will typically
• Track status of sales, inventory, shipping, and
  invoices
• Forecast raw material and human resource materials

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Enterprise Resource Planning

• Companies began to implement ERP as a vital
  conceptual foundation for re-engineering their
  business processes, and as the software engine
  required to accomplish these new cross functional
  processes
• Now ERP is a necessary part of an E-business
  enterprise that requires efficiency, agility, and
  responsiveness

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Enterprise Resource Planning

• Companies are finding business value in two major
  ways
• ERP creates a framework for integrating and
  improving their back office systems that results
  in major improvements in customer service,
  production, and distribution efficiency
• ERP provides vital cross functional information
  quickly on business performance to managers to
  significantly improve their ability to make
  better business decisions

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Customer Relationship Management

• It costs six times more to sell to a new customer
  than to an existing one
• A typical dissatisfied customer will tell eight
  to ten people about their experience
• A company can boost its profits by 85 by
  increasing its annual customer retention by only
  5
• The odds of selling a product to a new customer
  are 15 an existing customer 50

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Customer Relationship Management

• Businesses are turning to customer relationship
  management as a major customer-centric business
  strategy
• CRM uses info technology to create a cross
  functional enterprise system that integrates and
  automates many of the customer serving processes
  in sales, marketing and product services that
  interact with a companys customers

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Customer Relationship Management

• Create an IT framework that integrates all of
  these processes with the rest of a companys
  business processes
• Consist of a family of software modules that
  perform the business activities
• Provides tools that enable a business and its
  employees to provide fast, convenient,
  dependable, and consistent service to its
  customers

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Customer Relationship Management

• CRM systems typically include
• Sales
• Track customer contacts and other business and
  life cycle events of customers
• Direct Marketing and Fulfillment
• Automate tasks such as qualifying leads, managing
  responses, scheduling sales contacts, and
  providing information to prospects and customers

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Customer Relationship Management

• CRM systems typically include continued
• Customer Service and Support
• Helps customer service managers quickly create,
  assign, and manage service requests
• Help desk software assists customer service reps
  in helping customers who are having problems by
  providing relevant service data and suggestions
  for resolving problems

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Customer Relationship Management

• Business benefits of CRM Systems
• Ability to identify and target best customers
• Allows real-time customization and
  personalization of products and services based on
  customer wants, needs, buying habits, and life
  cycles
• Keeps track of when a customer contacts the
  company regardless of contact point

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Customer Relationship Management
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Customer Relationship Management

• Business benefits of CRM Systems continued
• Enables the company to provide consistent
  customer experience and superior service and
  support across all contact points
• These benefits provide strategic business value
  to a company and major customer value to its
  customers

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Enterprise Application Integration

• Interconnects several E-business application
  clusters
• Enables users to model the business processes
  involved in the interactions that should occur
  between business applications
• EAI software can integrate a variety of
  enterprise application clusters by letting them
  exchange data according to business process rules

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Enterprise Application Integration

• EAI software can integrate the front and back
  office applications of an e-business so they work
  together in a seamless integrated way
• This is a vital capability that provides real
  business value to an e-business enterprise that
  must respond quickly and effectively to business
  events and customer requests
• Integrates access to all customer and product
  data customer reps need to access quickly

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Supply Chain Management

• E-Commerce customer value imperative
• What the customer wants, when and where its
  wanted, at the lowest possible cost
• Supply chain
• The interrelationships with other businesses
  needed to build and sell a product, the network
  of business relationships

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Supply Chain Management

• SCM Software
• Significantly reduce costs, increase efficiency,
  and improve supply chain cycle time
• Help improve inter-enterprise coordination among
  supply chain process players for more effective
  distribution and and channel networks among
  business partners

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Online Transaction Processing

• Transaction processing systems
• Cross functional info systems that process data
  resulting from the occurrence of business
  transactions
• Transactions
• Events that occur as a part of doing business,
  such as sales, purchases, deposits, withdrawals,
  refunds, and payments

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Online Transaction Processing

• Transaction processing activities are needed to
  capture and process data involved in transactions
• Online transaction processing systems
• Real-time systems that capture and process
  transactions immediately
• Can help provide superior service to customers
  and other trading partners

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Online Transaction Processing

• Transaction Processing Cycle
• Data Entry
• Capture of business data
• Transaction processing
• Batch processing is where data is collected and
  processed periodically over time
• Real-time processing is where data is processed
  immediately after a transaction occurs
• All OTP systems use real-time processing

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Online Transaction Processing

• Transaction Processing Cycle continued..
• Database maintenance
• Databases must always be correct and up-to-date
• Transaction processing systems update corporate
  databases to reflect changes made in day-to-day
  processing

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Online Transaction Processing

• Transaction Processing Cycle continued..
• Document and Report Generation
• Purchase orders
• Pay cheques
• Sales receipts
• Invoices
• Customer statements

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Online Transaction Processing

• Transaction Processing Cycle continued..
• Inquiry processing
• Make inquiries and receive responses concerning
  the results of transaction processing activities
• Check on status of an order
• Get account balances
• Amount of stock in inventory

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Functional E-Business Systems

• Systems that support the business functions of
• Accounting
• Finance
• Marketing
• Operations management
• Human resource management

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Functional E-Business Systems

• Marketing Info Systems
• Interactive Marketing
• Customer focused marketing process
• Two way transaction between business and customer
• Encourages customers to become involved in
  product development, delivery and service issues
• Enabled by various Internet technologies such as
  chat rooms, discussion forums, email, etc

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Functional E-Business Systems

• Marketing Info Systems continued
• Targeted marketing
• Appeal to people in specific communities
• Banners or billboards can be placed on websites
  other than the companies home page
• Ads are only placed on related sites
• Aimed at specific demographics of people
• Track persons online behavior to target each
  visitor personally

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Functional E-Business Systems

• Marketing Info Systems continued
• Sales Force Automation
• Outfitting the sales force with notebook
  computers, web sites, and software
• Increases personal productivity of sales people
• Speeds up capture and analysis of sales data from
  the field to headquarters

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Functional E-Business Systems

• Manufacturing Systems
• Computer Integrated Manufacturing
• Simplify production processes, product designs,
  and factory organization
• Automate production processes and the business
  functions that support them with computers,
  machines, and robots
• Integrate all production and support processes
  using computers, telecommunications netowrks and
  other info technologies

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Functional E-Business Systems

• Manufacturing Systems
• Process Control
• Use of computers to control an ongoing physical
  process
• Machine Control
• Use of a computer to control the actions of a
  machine
• Robotics
• These devices control their own activities
• Used to increase productivity and cut costs

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Functional E-Business Systems

• Human Resource Systems
• Planning to meet the future needs of the
  organization
• Development of employees to their full potential
• Control of all personnel policies and programs

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Functional E-Business Systems

• Accounting Systems
• Online Accounting Systems
• Order Processing
• Inventory Control Systems
• Accounts Receivable
• Accounts Payable
• Payroll
• General Ledger

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Functional E-Business Systems

• Financial Management Systems
• Cash management
• Online investment Management
• Capital Budgeting
• Financial forecasting and planning

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Capital Budgeting