After you have mastered the material in this chapter, you will be able to: Identify the following cross-functional enterprise systems, and give examples of how they can provide significant business value to a company; 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;...
Chapter Electronic Business Systems Copyright © 2006, The McGrawHill Companies, Inc. All rights reserved 7-1 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 Copyright © 2006, The McGrawHill Companies, Inc. All rights reserved 7-2 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, and production and operations management Copyright © 2006, The McGrawHill Companies, Inc. All rights reserved 7-3 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 Copyright © 2006, The McGrawHill Companies, Inc. All rights reserved 7-4 Case #1: Data-Driven Hospitality • Customers 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 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 Copyright © 2006, The McGrawHill Companies, Inc. All rights reserved 7-5 Case #1: Data-Driven Hospitality OnQ – Customers Really Matter: • Custom-built customer relationship management information system • Integrated to cover 22 million guests, all properties, eight brands • Provide employees with a clearer idea of who customer are and what their past Hilton experiences have been so they can provide constant improvement Copyright © 2006, The McGrawHill Companies, Inc. All rights reserved 7-6 Case #1: Data-Driven Hospitality OnQ Challenges: • Presenting deep customer history data clearly enough for inexperienced front desk employees • Supporting a diverse mix of brands Copyright © 2006, The McGrawHill Companies, Inc. All rights reserved 7-7 Case #1: Data-Driven Hospitality What are the benefits and drawbacks of the OnQ system at Hilton? What does Hilton have to to create a competitive advantage through OnQ? Provide some specific examples Is it possible to have too much information about a customer? Explain Copyright © 2006, The McGrawHill Companies, Inc. All rights reserved 7-8 Case #1: Data-Driven Hospitality What are several reasons why CRM software applications are so expensive? Why they seem to take so long to implement? Copyrightâ2006,TheMcGrawưHillCompanies,Inc.Allrightsreserved 7-9 Cross-Functional Enterprise Systems Definition: ã Information systems that cross the boundaries of traditional business functions in order to reengineer and improve vital business processes all across the enterprise Copyright © 2006, The McGrawHill Companies, Inc. All rights reserved - 10 Financial Management Systems Copyrightâ2006,TheMcGrawưHillCompanies,Inc.Allrightsreserved - 46 Financial Management Systems ã Capital Budgeting – evaluating the profitability and financial impact of proposed capital expenditures • Financial Planning – evaluating the present and projected financial performance of a business Copyright © 2006, The McGrawHill Companies, Inc. All rights reserved - 47 Case #3: Improving Supply-Chain Results • Supply 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 Copyright © 2006, The McGrawHill Companies, Inc. All rights reserved - 48 Case #3: Improving Supply-Chain Results Benefits of SCM • Cut costs • Increase sales with efficient and effective supply chains Copyright © 2006, The McGrawHill Companies, Inc. All rights reserved - 49 Case #3: Improving Supply-Chain Results Types of SCM: • Supply-Chain Execution – addresses particular segments along the supply chain such as warehouse management or transportation management • Supply-Chain Planning – helps companies decide which products to build and when, based on forecasts, orders, capacity, and resources Copyright © 2006, The McGrawHill Companies, Inc. All rights reserved - 50 Case #3: Improving Supply-Chain Results What 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? Copyright © 2006, The McGrawHill Companies, Inc. All rights reserved - 51 Case #4: Swarming Collaboration • Swarming 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 Copyright © 2006, The McGrawHill Companies, Inc. All rights reserved - 52 Case #4: Swarming Collaboration Benefits of Swarming: • Allows large organizations to match the agility of smaller competitors • Tap resources previously overlooked • Prospective customers become collaborators • Cuts document duplication and delivery costs Copyright © 2006, The McGrawHill Companies, Inc. All rights reserved - 53 Case #4: Swarming Collaboration What are the business benefits of swarming collaboration? Use Lowe Worldwide and HP as examples What are some possible limitations of swarming? Copyright © 2006, The McGrawHill Companies, Inc. All rights reserved - 54 Case #4: Swarming Collaboration Visit 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? Copyrightâ2006,TheMcGrawưHillCompanies,Inc.Allrightsreserved - 55 Summary ã Major 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 Copyrightâ2006,TheMcGrawưHillCompanies,Inc.Allrightsreserved - 56 Summary ã Transaction 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 Copyright © 2006, The McGrawHill Companies, Inc. All rights reserved - 57 Summary • Marketing information systems support traditional and e-commerce processes and management of the marketing function • Computer-based manufacturing information systems help a company achieve computerintegrated manufacturing, and thus simplify automate, and integrate many of the activities needed to quickly produce high-quality products to meet changing customer demands Copyright © 2006, The McGrawHill Companies, Inc. All rights reserved - 58 Summary • Human 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 Copyright © 2006, The McGrawHill Companies, Inc. All rights reserved - 59 Chapter End of Chapter Copyright © 2006, The McGrawHill Companies, Inc. All rights reserved - 60 ... Manufacturing execution systems (MES) – performance monitoring information systems for factory floor operations • Process Control – control ongoing physical processes • Machine Control – controls the... Functional Business Systems Definition: • Information systems that support the business functions of accounting, finance, marketing, operations management, and human resource management Copyright © 2006, The McGrawHill Companies, Inc. All rights reserved... software, and other information technologies Copyright © 2006, The McGrawHill Companies, Inc. All rights reserved - 38 CIM Systems • Computer-aided manufacturing (CAM) Information systems that automate