Chapter 7

e-Business Systems

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I. Introduction

e-business is much broader than e-commerce, using the Internet for any type of business activity

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II. Cross-Functional Enterprise Applications

Reengineer/improve business activities by crossing boundaries of traditional business functionsEnterprise Application Architecture –

overview of major cross-functional enterprise applications and their interrelationships

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II. Cross-Functional Enterprise Applications

The New Product Development ProcessThe New Product Development Process

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II. Cross-Functional Enterprise Applications

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Reasons for User Resistance

Construct Definition

Uncertainty User is unclear of the future Lack of Input User’s opinions are not considered Loss of Control/Power User loses control or loss of recognition as the

expert

Individual Issue

Self-Efficacy Perceived lack of capability Technical Problems Problems with the system System Issue Complexity System is complicated to use Lack of Facilitating Environment

Organizational culture is not conducive to the change

Poor Communication Communication to users is problematic

Organizational Issue

Poor Training Training does not meet organizational needs Changed Job/Job Skills User’s job or job skill requirements changes Additional Workload User is required to put forth additional effort

Process Issue

Lack of Fit Process problem between the system and organizational structure

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User Resistance Behaviors

Overt (clearly expressed)

Covert (minimally expressed)

Active (takes action)

Refusal to use system Challenge system/plan Hack at system Don’t follow process Quit job/job change

Use shadow system Try to use old system Avoid system use Enter in info

inappropriately

Passive (inert)

Complaints Lower morale Defensive Turnover Intention

Not Motivated Less Productive Impatient Not paying attention Procrastinate Don’t want to learn

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Management Strategies to Minimize User Resistance

Construct Definition Top-down communication

Top management/implementation team communicating to users

Effective Communication

Listen to Feedback Management listening and responding to the input of users

Provide Help/Support Management offering assistance to users Useful Training Train the users at an appropriate time in a way

that is suitable for their needs

Effective Education/

Support Appropriate Incentives Suitable motivators to users to learn and use

the system Clear Consistent Plan Straightforward consistent strategies Management Expertise Management understanding of processes and

system

Effective Direction/ Planning

System Customizations Customize the system to the processes in place

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III. Enterprise Application Integration

Connects e-business applications; integrates front-office and back-office applications

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IV. Transaction Processing Systems

Handles/records daily business activities (transactions) Transaction – anything that occurs

during daily business of which a record must be kept

Online transaction Processing Systems – capture and process transactions immediately, in real time

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IV. Transaction Processing Systems

Transaction Processing Cycle – 5 activities:Data Entry – capture business dataTransaction Processing

Batch Processing – record data, the process it periodically in “batches”

Real-time (Online) Processing – capture and process the data immediately after it occurs

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IV. Transaction Processing Systems

Database Maintenance – Databases must be updated so they are always correct and up-to-date

Document and Report Generation – T-P systems produce a variety of reports

Inquiry Processing – users may query and receive reports about transactions

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IV. Transaction Processing Systems

The Transaction Processing CycleThe Transaction Processing Cycle

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V. Enterprise Collaboration Systems (ECS)

Cross-functional IS help users to:Communicate – share informationCoordinate – organize work efforts and

resourcesCollaborate – work together on projects

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V. Enterprise Collaboration Systems (ECS)

Tools for Enterprise CollaborationElectronic Communication Tools

e-MailInstant MessagingVoice MailFaxingWeb PublishingPaging

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V. Enterprise Collaboration Systems (ECS)

Tools for Enterprise CollaborationElectronic Conferencing Tools

Data ConferencingVoice ConferencingVideoconferencingDiscussion ForumsChat SystemsElectronic Meeting Systems

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V. Enterprise Collaboration Systems (ECS)

Tools for Enterprise CollaborationCollaborative Work Management Tools

Calendaring and SchedulingTask and Project ManagementWorkflow SystemsDocument SharingKnowledge Management

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V. Enterprise Collaboration Systems (ECS)

Electronic Tools Enhance Enterprise Electronic Tools Enhance Enterprise CollaborationCollaboration

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Exploring Virtual Worlds as Collaboration Tools

According to the case, what service industry is interested in virtual worlds?

What interest do they have in these virtual worlds (what can be supplied here)?

What challenges must be overcome in using virtual worlds? What relation does this have to Business?

What benefits do the virtual worlds provide?

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Section 2Functional Business Systems

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I. Introduction

IT in Business – some IS support specific business functions

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I. IntroductionFunctional Business IS Support Major Functional Business IS Support Major

Functional AreasFunctional Areas

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II. Marketing Systems

IS that aid in planning, promotions and sale of existing products in existing marketsInteractive Marketing – customer-focused

two-way transactions between a firm and its (potential) customers

Sales Force Automation – connect the sales force to the Internet, intranets, and extranets

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II. Marketing Systems

Targeted Marketing – advertising/promotion concept that includes: Community – the group of people interested in

the product Content – the message aimed at the community Context – relevant/related to the target

audience Demographic/Psychographic – aimed only at

specific types/classes of people Online Behavior – track a person’s online

behavior so the advertising can be targeted to the individual

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II. Marketing Systems

Major Components Major Components of Targeted of Targeted MarketingMarketing

Marketing IS Marketing IS Support Major Support Major

Components of the Components of the Marketing FunctionMarketing Function

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III. Manufacturing Systems

Support the production/operations functionComputer-Integrated Manufacturing

Goal: to create flexible, agile, manufacturing processes that efficiently produce highest quality products 3 Objectives:Simplify (reengineer) production processesAutomate – with computers, machines, robotsIntegrate – tie together all production and support

processes with networks, cross-functional software, and other IT

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III. Manufacturing Systems

Computer-Aided Manufacturing – automate the production process

Manufacturing Execution Systems –monitor performance

Process Control – control ongoing physical processes

Machine Control – use of computers to control machines

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III. Manufacturing SystemsManufacturing IS Support Computer-Manufacturing IS Support Computer-

Integrated manufacturingIntegrated manufacturing

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IV. Human Resource Systems

Human Resource Information Systems (HRIS) support: Planning to meet personnel needs Development employee to their full potential Control personnel policies and programs

HRM and the Internet – Internet is a major force for change in HRM

HRM and Corporate Intranets – Intranets allow firms to provide services to customers and employees

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IV. Human Resource Systems

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V. Accounting Systems

The oldest and most widely used IS in business; emphasize legal/historical record keeping accurate financial statements

6 operational accounting systems:Order Processing – capture/process orders, create

data for inventory control and accounts receivableInventory Control – process data reflecting changes

in inventory, provides shipping/reorder informationAccounts Receivable – record amounts owed by

customers, produce customer invoices/statements and credit management reports

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V. Accounting Systems

6 operational systems:Accounts Payable – record purchases from,

amounts owed to, and payments to suppliers, and produce cash management reports

Payroll – record employee work and compensation data, produce paychecks and payroll documents

General Ledger – consolidate data from other accounting systems, produce periodic financial statements and reports

Online Accounting Systems – interactive, directly involved in processing business transactions

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V. Accounting Systems Note How Accounting Systems Are Note How Accounting Systems Are

Related to Each OtherRelated to Each Other

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VI. Financial Management Systems

Support decisions concerning: Financing a business – determine financing needs Allocation and control of financial resources

Capital Budgeting – evaluate profitability and financial impact of proposed capital expenditures

Financial Planning – evaluate present and projected financial performance