COMP5 Functional Business System

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    Electronic Business Systems

    OBrien Chapter Seven

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    Objectives

    Cross-functional e-business systems Provide significant business value to company, its

    customers & partners Examples

    Enterprise resource planning (ERP)

    Customer relationship management (CRM)

    Supply chain management (SCM)

    Integrated Systems

    nline transaction processing

    Enterprise collaboration

    !o" Internet # other technologies

    support business processes

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    Case 1: Hilton Hotels Corporation

    Data-Driven Hospitality

    OnQ the IT piee o! a "#sto$ers

    really $atter% strate&y

    'oal to B#il( #sto$er loyalty

    )ore reven#e per visit

    C#sto$er pro!iles

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    Case St#(y Q#estions

    1* +hat are the ,ene!its an( (ra,a.s o!the OnQ syste$ at Hilton/

    2* +hat (oes Hilton have to (o to reate a

    o$petitive a(vanta&e thro#&h OnQ/rovi(e so$e spei!i ea$ples*

    * Is it possi,le to have too $#h

    in!or$ation a,o#t a #sto$er/ 3plain*

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    )a4or 3-B#siness 5ppliations

    EnterpriseCommunication

    Coordination #

    Collaboration

    EnterpriseCommunication

    Coordination #

    Collaboration

    Electronic$usiness

    %pplications

    &elecommunications

    'et"ors

    Electronic

    Commerce

    Electronic

    Commerce

    Internal

    $usiness

    Systems

    Internal$usiness

    Systems

    Intranets

    Extranets&he Internet

    6 other

    netor.

    s

    Front End Back End

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    Cross-!#ntional Syste$s

    Cross the ,o#n(aries o! tra(itional ,#siness!#ntions

    In or(er to reen&ineer an( i$prove vital ,#siness

    proesses all aross the enterprise

    New Product Development ProcessNew Product Development Process

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    Suppliers

    Customers

    Employees

    Partners

    Supply Chain Management

    Sourcing - Procurement

    Enterprise Resource PlanningInternal $usiness Processes

    Customer Relationship ManagementMareting Sales - Ser*ice

    +no"ledgeManagemen

    t

    Collaboration),ecisionSu

    pport

    PartnerR

    elationshipManagement

    Selling),istribution

    Enterprise Application ArchitectureEnterprise Application Architecture

    3nterprise B#siness Syste$s

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    C#sto$er 7elationship )ana&e$ent

    C7)9

    C7) #ses tehnolo&y to

    Create a ross-!#ntional enterprise syste$

    That inte&rates an( a#to$ates $any o! the

    proesses in sales $ar.etin& 6 #sto$erservie that interat ith #sto$ers

    Create a !ra$eor. o! e,-ena,le( so!tare

    6 (ata,ases that inte&rate these proessesith the rest o! the o$panys proesses

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    CRM Uses IT to Create a Cross-FunctionalCRM Uses IT to Create a Cross-FunctionalEnterprise SystemEnterprise System

    C#sto$er 7elationship )ana&e$ent

    Mareting andulfillment Customer

    Ser*ice andSupport

    Retention

    and .oyaltyProgramsContact and

    %ccountManagement

    SalesCross-Sell/p-Sell

    Prospect orEmployee

    ax e-Mail

    &elephone 0eb

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    C7) appliations

    Contrat an( 5o#nt )ana&e$ent

    Helps sales $ar.etin& 6 servie pro!essionals

    Capt#re 6 tra. (ata a,o#t past;planne(

    ontats ith #sto$ers;prospets

    Sales rovi(es sales reps ith so!tare tools 6 (ata

    they nee( to s#pport 6 $ana&e sales ativities

    Cross-sellin&is tryin& to sell a #sto$er o! one

    pro(#t ith a relate( pro(#t

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    C7) appliations

    )ar.etin& an( F#l!ill$ent Help $ar.etin& pro!essionals ao$plish

    (iret $ar.etin& a$pai&ns ,y tas.s s#h

    as Q#ali!yin& lea(s !or tar&ete( $ar.etin&

    6 she(#lin& 6 tra.in& (iret $ar.etin&

    $ailin&s

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    C7) appliations

    C#sto$er Servie an( S#pport

    rovi(es sales reps ith so!tare tools 6 (ata,ase

    aess to #sto$er (ata,ase share( ,y sales 6

    $ar.etin& pro!essions

    Helps reate assi&n an( $ana&e re=#ests !or

    servie

    Call enterso!tare ro#tes alls to #sto$er

    s#pport a&ents ,ase( #pon their s.ills an( type o!

    all

    Help (es.so!tare provi(es relevant servie (ata 6

    s#&&estions !or resolvin& pro,le$s !or #sto$er

    servie reps helpin& #sto$ers ith pro,le$s

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    C7) appliations

    7etention an( >oyalty ro&ra$s Try to help a o$pany i(enti!y rear( 6

    $ar.et to their $ost loyal an( pro!ita,le

    #sto$ers Data $inin& tools 6 analytial so!tare

    C#sto$er (ata areho#se

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    Supports integrated & collaborative relationshipSupports integrated & collaborative relationship

    beteen a business & it!s customersbeteen a business & it!s customers

    C7): The B#siness Fo#s

    Customer.ife Cycle

    CRMunctionalSolutions

    CRMIntegratedSolution

    &he Internet

    %c1uire Enhance Retain

    ,irect Mareting Cross-sell and /p-sell Proacti*e Ser*ice

    Sales orce %utomation Customer Support

    Collaborati*eSer*ice

    SharedCustomer ,ata

    Partner Company Customer

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    Bene!its 6 Challen&es o! C7)

    C7) Bene!its I(enti!y an( tar&et the ,est #sto$ersC#sto$i?ation 6 personali?ation o! pro(#ts 6

    serviesTra. #sto$er ontatsrovi(e onsistent #sto$er eperiene 6

    s#perior servie;s#pport

    C7) !ail#res

    @0A o! appliations !ail to $eet epetations 20A o! the ti$e C7) (a$a&e( #sto$er

    relationships>a. o! #n(erstan(in& 6 preparation is ,la$e(

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    3nterprise 7eso#re lannin& 379

    Cross-!#ntional enterprise syste$ ith an inte&rate( s#ite o! so!tare

    $o(#les

    that s#pport the ,asi internal ,#siness

    proesses o! a o$pany

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    3nterprise 7eso#re lannin&

    Sales,istribution2

    rder

    Management

    %ccounting

    and inance

    Production

    Planning

    !uman

    Resources

    Integrated

    .ogistics

    Customer3Employee

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    Q#ality an( 3!!iieny

    Derease( CostsDeision S#pport

    3nterprise 5&ility

    Bene!its o! 37

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    Costs o! i$ple$entin& a ne 37

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    S5 5's So!tare Installation ro,le$so! 37 Inte&rate( S#ite into a 7etail3nviron$ent

    o-5nn Stores an( ets$art Bla$e(So!tare !or oor Finanial er!or$ane

    So,eys 'roer Ha( ro,le$s ith#$,er o! Transations

    So,eys is 7eplain& Syste$

    Fail#res in 37 Do 3ist

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    S#pply Chain )ana&e$ent SC)9

    5 ross-!#ntional interenterprise syste$

    To help s#pport an( $ana&e the lin.s

    ,eteen a o$panys .ey ,#siness

    proesses

    5n( those o! its s#ppliers #sto$ers 6

    ,#siness partners

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    Supply Chain Management

    Schedule Ma

    e

    ,eli*er

    &ransportation

    Planning

    ,emandPlanning,emandPlanning

    rderCommitment

    rderCommitment

    %d*ance

    Scheduling

    %d*ance

    Scheduling

    ManufacturingPlanning

    ManufacturingPlanning

    ,istribution

    Planning

    ,istribution

    Planning

    Internet"ored Supply Chain ManagementInternet"ored Supply Chain Management

    Supply

    Chain

    .ife Cycle

    SCMunctional

    Processes

    SCMIntegrated

    Solution

    Commit

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    S#pply Chain )ana&e$ent

    SC) 5 top strate&i o,4etive !or$any !ir$s

    The ri&ht pro(#tsThe ri&ht plae

    The ri&ht ti$eIn the proper =#antity5t an aepta,le ost

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    7ole o! SC)

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    SCM So"tare #elps Firms Reengineer andSCM So"tare #elps Firms Reengineer andIntegrate The Functional SCM $rocessesIntegrate The Functional SCM $rocesses

    Supply Chain.ife Cycle

    SCMunctionalProcesses

    SCMIntegratedSolution

    Supplier Manufacturer Customer Retailer

    &he Internet

    Collaborati*eulfillment

    SharedMaret ,ata

    Commit Schedule Mae ,eli*er

    Strategic Sourcing

    and Procurement

    orecast and ,emand Planning

    Customer rder ulfillment Ser*ice

    ,istribution 'et"or and 0arehouse perations

    &ransportation and Shipment

    Management

    Production

    .ogistics

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    SC) &oal

    Fast e!!iient lo-ost netor. o!,#siness relationships or s#pply hainto

    &et a o$panys pro(#ts !ro$ onept

    to $ar.et

    5 s#pply hain:

    Interrelationships ith s#ppliers #sto$ers

    (istri,#tors an( other ,#sinesses that are

    nee(e( to (esi&n ,#il( an( sell a pro(#t

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    Ca#ses o! pro,le$s in SC)

    >a. o! proper (e$an(-plannin& .nole(&etools 6 i(elines

    Ina#rate or overopti$isti (e$an( !oreasts

    Ina#rate pro(#tion inventory 6 other (ata

    >a. o! a(e=#ate olla,oration ithin the

    o$pany 6 ,eteen partners

    SC) so!tare onsi(ere( i$$at#re ino$plete

    6 har( to i$ple$ent

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    SC)

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    Cross-F#ntional Inte&rate( Syste$s

    ront ffice

    %pplicationsCRM %pplicationCustomer Ser*iceield Ser*iceSales rderProduct Config

    $ac ffice

    %pplicationsERP %pplication,istributionManufacturing

    Schedulinginance

    Enterprise

    %pplicationIntegration

    Enterprise %pplication

    Cluster

    Enterprise %pplication

    Cluster

    Customer

    s

    Suppliers

    $u

    sine

    ss

    Pa r

    tner

    s

    E%I So"tare Connects Maor e-'usiness %pplicationsE%I So"tare Connects Maor e-'usiness %pplications

    (i)e CRM and ER$(i)e CRM and ER$

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    S#rvey o! E@ relate( o$panies reveale( 18(i!!erent so!tare pa.a&es

    >a. o! inte&ration re(#es ost an( spee(savin&s that $i&ht ,e reali?e(

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    Ho 35I or.s

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    3nterprise 5ppliation Inte&ration 35I9

    35I onnets ross-!#ntional syste$s

    Serves as $i((leareto rovi(e (ata onversion

    Co$$#niation ,eteen syste$s

    5ess to syste$ inter!aes

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    3nterprise Colla,oration Syste$s

    3CS9

    3CS

    Cross-!#ntional IS that enhane

    o$$#niation oor(ination an(olla,oration a$on& the $e$,ers o!

    ,#siness tea$s an( or.&ro#ps

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    3CS 'oals

    Co$$#niate: share in!or$ation itheah other

    Coor(inate: oor(inate in(ivi(#al

    or. e!!orts an( #se o! reso#res itheah other

    Colla,orate: or. to&ether

    ooperatively on 4oint pro4ets an(

    assi&n$ents

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    3CS Tools

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    +hy Colla,orate/

    Workgroups & project teams orktogethere!!iciently & e!!ectively regardless o! location

    Share in!ormation"

    Coordinate ork e!!orts and resourcesWork together cooperatively#

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    3eneral Electric Co+3eneral Electric Co+Committed to Enterprise CollaborationCommitted to Enterprise Collaboration

    page ,4 /,052page ,4 /,052

    Co$$itte( to >ot#s tools Q#i.plae

    Q#i.plae-e,-,ase( or. spaesSa$eti$e real-ti$e online $eetin&s9Tools strea$line o$$#niation18000 Q#i.plaes !or 2@0000 #sers

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    F#ntional B#siness Syste$s

    5 variety o! in!or$ation syste$stransation proessin& $ana&e$ent

    in!or$ation syste$s (eision s#pport et*9

    That s#pport the ,#siness !#ntions o! 5o#ntin& !inane $ar.etin&

    operations $ana&e$ent 6 h#$an

    reso#re $ana&e$ent

    F i l B i S

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    F#ntional B#siness Syste$sE6amples o"E6amples o"FunctionalFunctional

    'usiness'usinessIn"ormationIn"ormationSystemsSystems

    Mareting

    Productionperations

    !uman ResourceManagement

    %ccounting inance

    Customerrelationshipmanagement

    Interacti*emareting

    Sales forceautomation

    Cash managementCredit management In*estment

    managementCapital budgetinginancial forecasting

    rder processingIn*entory control%ccounts recei*able%ccounts payablePayroll4eneral ledger

    Compensationanalysis

    Employee sillsin*entory

    Personnelre1uirementsforecasting

    Manufacturingresource planning

    Manufacturingexecution systems

    Process control unctional

    $usiness

    Systems

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    )ar.etin& In!or$ation Syste$s

    MaretInformation

    Systems

    Interacti*eMareting

    Sales orce%utomation

    CustomerRelationshipManagement

    SalesManagement

    MaretResearch andorecasting

    %d*ertisingand Promotion

    ProductManagement

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    Interative $ar.etin&

    Interative $ar.etin&:

    5 #sto$er-!o#se( $ar.etin& proess

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    Tar&ete( )ar.etin&

    5n a(vertisin& 6 pro$otion $ana&e$ent oneptthat inl#(es !ive tar&etin& o$ponents

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    Tar&ete( )ar.etin& Co$ponents

    Co$$#nity #sto$i?e a(vertisin& to appeal topeople o! spei!i virt#al o$$#nities

    Content a(vertisin& plae( on a variety o!selete( e,sites ai$e( at a spei!i a#(iene

    Contet a(vertisin& plae( on e, pa&es that arerelevant to the ontent o! a pro(#t or servie

    De$o&raphi;syho&raphi e, $ar.etin&e!!orts ai$e( at spei!i types or lasses or people

    Online Behavior pro$otion e!!orts tailore( toeah visit to a site ,y an in(ivi(#al e*&* #sin&oo.ies !iles

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    Internet )ar.etin&

    E-Mail

    WebPublishing

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    Sales Fore 5#to$ation

    O#t!it sales !ore ith note,oo. o$p#ters e,,rosers 6 sales ontrat $ana&e$ent so!tare

    Connet the$ to $ar.etin& e,sites 6 o$pany

    intranet

    'oal: Inrease personal pro(#tivity

    Spee(s #p apt#re 6 analysis o! sales (ata !ro$ the

    !iel( to $ar.etin& $ana&ers

    'ain strate&i a(vanta&e

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