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Electronic Business Systems
Cross-functional Enterprise SystemsFunctional Business Systems
Chapter
7
McGraw-Hill/Irwin Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved.
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Enterprise Application Architecture
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Customer Relationship Management (CRM)
CRM uses technology toProvide single communication
channel between company and customers
That integrates many of the processes in sales, marketing and customer service that interact with customers
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CRM applications
Contract and Account ManagementCapture and track data about past
and planned contacts with customers and prospects from all touchpoints
SalesProvides software tools and data they
need to support and manage sales activities
Cross-selling and Up-selling
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CRM applications
Marketing and FulfillmentQualifying leads for targeted
marketing and scheduling and tracking direct marketing mailings
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CRM applications
Customer Service and SupportCall center software routes calls to
customer support based upon their skills
Help desk software provides relevant service data and suggestions for resolving problems for customer service reps
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CRM applications
Retention and Loyalty ProgramsTry to help a company identify,
reward, and market to their most loyal and profitable customers
Data mining tools and analytical software
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CRM benefits
Identify and target best customersReal-time customization and
personalization of products and servicesTrack when a customer contacts a
companyProvide consistent customer experience
and superior service and support
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Reasons for CRM failures
Lack of understanding and preparationRely on application to solve a problem
without first changing the business processes
Employees and customers are net prepared for new business process
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Enterprise Resource Planning (ERP)
Technological backbone of e-business that support the basic internal business
processes of a companyTrack business resources and
commitments
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Costs of implementing a new ERP
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Causes of ERP failure
Underestimating the complexity of planning, development and training
Failure to involve affected employees in planning and development
Insufficient training in new work tasks
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Supply Chain Management (SCM)
To help support and manage the links between a company’s key business processes
And those of its suppliers, customers and business partners
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SCM goal
Fast, efficient, low-cost network of business relationships or supply chain to get a company’s products from concept to market
A supply chain:Interrelationships with suppliers,
customers, distributors, and other businesses that are needed to design, build and sell a product
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SCM
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Causes of problems in SCM
Lack of proper demand-planning knowledge, tools and guidelines
Inaccurate or overoptimistic demand forecasts
Inaccurate production and inventory data
Lack of adequate collaboration within the company and between partners
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Enterprise Collaboration Systems (ECS)
Communicate: share information with each other
Coordinate: coordinate individual work efforts and use of resources with each other
Collaborate: work together cooperatively on joint projects and assignments
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ECS Tools
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Section IIFunctional Business Systems
A variety of information systems (transaction processing, management information systems, decision support, etc.)
That support the business functions of Accounting, finance, marketing, operations
management and human resource management
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Interactive marketing
Interactive marketing:A customer-focused marketing processUsing the Internet, intranets, and extranetsTo establish two-transactions Between a company and its customers or
potential customersGoal:
to profitably attract and keep customerswho will become partners with the business in creating, purchasing and improving products
and services
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Targeted Marketing Components
Community – customize advertising to appeal to people of specific virtual communities
Content – advertising placed on a variety of selected websites aimed at a specific audience
Context – advertising placed on web pages that are relevant to the content of a product or service
Demographic/Psychographic – web marketing efforts aimed at specific types or classes or people
Online Behavior – promotion efforts tailored to each visit to a site by an individual, e.g., using cookies files
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Sales Force Automation
Outfit sales force with notebook computers, web browsers and sales contract management software
Connect them to marketing websites and company intranet
Goal:Increase personal productivity Speeds up capture and analysis of sales data
from the field to marketing managersGain strategic advantage
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Manufacturing Information Systems
Support the production/operations function Includes all activities concerned with planning
and control of producing goods or services
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CIM Objectives
Simplify production processes, product designs, and factory organization as a vital foundation to automation and integration
Automate production processes and the business functions that support them with computers, machines, and robots
Integrate all production and support processes using computer networks, cross-functional business software, and other information technologies
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Human Resource Management (HRM)
Information systems designed to supportPlanning to meet the personnel needs of the
businessDevelopment of employees to their full potentialControl of all personnel policies and programs
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HRM and the Internet
Recruiting employees using the corporate website and commercial recruiting services
Posting messages in selected Internet newsgroups
Communicating with job applicants via e-mail
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HRM and Corporate Intranets
Process 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 department
Training tool
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Accounting Information Systems
Record and report the flow of funds through an organization
Produce financial statementsForecasts of future conditions
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Six essential Accounting Information Systems
Order Processing – Captures and processes customer orders and produces data for inventory control and accounts receivable
Inventory Control – Processes data reflecting changes in inventory and provides shipping and reorder information
Accounts Receivable – Records amounts owed by customers and produces customer invoices, monthly customer statements, and credit management reports
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Six essential Accounting Information Systems
Accounts Payable – Records purchases from, amounts owed to, and payments to suppliers, and produces cash management reports
Payroll – Records employee work and compensation data and produces paychecks and other payroll documents and reports
General Ledger – Consolidates data from other accounting systems and produces the periodic financial statements and reports of the business
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Financial Management Systems
Support business managers and professionals in decisions concerningThe financing of a businessThe allocation and control of financial resources
within a business