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Chapter 10 - E-business and enterprise resource planning systems. When you''ve finished studying this chapter, and completing the activities at its conclusion, you should be able to: Explain the nature of e-business, comparing and contrasting it with traditional “brick-and-mortar” organizations; discuss major forms of e-business; describe the basic nature, purpose, and structure of enterprise resource planning systems;...
Chapter 10 E-business and Enterprise Resource Planning Systems Copyright © 2016 McGrawHill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGrawHill Education Outline • Learning objectives • Nature & forms of e-business • Enterprise resource planning systems • Application service providers 102 Learning objectives Explain the nature of e-business, comparing and contrasting it with traditional “brickand-mortar” organizations Discuss major forms of ebusiness Give examples and analyze the causes of ERP system failures List and discuss steps associated with successful ERP implementations Discuss the role 103 Nature & forms of e-business • Central feature • Forms – Business is transacted over a B2C www.graze.com – B2B www.oracle.com network – G2C www.irs.gov – G2B www.sba.gov 104 Enterprise resource planning systems • Purpose Providing comprehensive information for decision making • • Nature – Fundamentally, relational databases – Modular organization Major companies – Oracle (PeopleSoft) – SAP 105 Enterprise resource planning systems Table 10.1 Modular organization of ERP systems Generic module name Primary stakeholder group Module components in SAP Customer relationship management (CRM) Customers Sales and distribution Human resource management (HRM) Employees Human resources Supply chain management (SCM) Vendors Materials management Stockholders Financial accounting Financial management 106 Enterprise resource planning systems • Selected failure causes – – – Poor top management leadership Unrealistic expectations • Selected conditions for success – Obtain organizational commitment Communicate strategic goals Inaccurate data in clearly Umble, E., and M Umble 2002 “Avoiding ERP Implementation the system – Failure.” Industrial Management, January/February, pp 25–34 – Significant – View ERP as an 107 Application service providers An organization that provides a contractual service to deploy, host and manage applications for customers remotely from a centralized location Jaruzelski, Ribeiro and Lake (2014) 108 Application service providers • ASP types – Local / regional Payroll services for companies in Denver – Specialist Vertical market Patient billing for hospitals Enterprise ERP systems – – – Volume business Comprehensive human resource services for midrange businesses in Nashville Online diversity compliance training 109 Application service providers • • • • Using ASPs involves risk The risk can complicate a financial statement audit The AICPA issued SSAE 16 to help address that risk in the context of an audit Title Reporting on Controls at a Service Organization • Three report types – SOC Financial reporting – SOC Security, confidentiality, privacy and related areas – SOC Less detailed version of SOC 1010 1011 ... • Nature & forms of e-business • Enterprise resource planning systems • Application service providers 10? ?2 Learning objectives Explain the nature of e-business, comparing and contrasting it with... contrasting it with traditional “brickand-mortar” organizations Discuss major forms of ebusiness Give examples and analyze the causes of ERP system failures List and discuss steps associated with... – SOC Financial reporting – SOC Security, confidentiality, privacy and related areas – SOC Less detailed version of SOC 10? ?10 1011