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Intro to Information Technology


Forecast raw material and human resource materials. Enterprise Resource Planning ... Create an IT framework that integrates all of these processes with the rest of a ... – PowerPoint PPT presentation

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Title: Intro to Information Technology

Intro to Information Technology
  • Wednesday, Nov 13th
  • Final Exam Dec 11th 7pm 9pm
  • Chapter Four Electronic Business Systems
  • Chapter Five Electronic Commerce Systems

E-business Application Architecture
E-business Application Architecture
  • This diagram illustrates the application
    components, interrelationships, and interfaces
  • customers
  • employees
  • business partners
  • other stakeholders in the E-business enterprise

E-business Application Architecture
  • It gives a good overview of
  • interrelatedness
  • Interdependence
  • Integration
  • Of the E-Business applications that are vital
    components of the successful operations and
    management of an E-business enterprise

Cross Functional Systems
  • Cross Functional Business System
  • These systems support business processes such as
    product development, production, distribution,
    order management, customer support, etc
  • Cross Functional Enterprise System
  • Cross the boundaries of traditional business
  • Reengineer and improve vital business processes
    all across the enterprise

Cross Functional Systems
  • Organizations view cross functional enterprise
    systems as strategic way to use IT to
  • Share information resources
  • Improve efficiency and effectiveness of business
  • Help business attain strategic objectives

Enterprise Resource Planning
  • ERP is a cross functional enterprise system that
    serves as a framework to integrate and automate
    many of the business processes within
  • Manufacturing
  • Logistics
  • Distribution
  • Finance
  • Accounting
  • Human Resources

Enterprise Resource Planning
  • ERP software is a family of software that
    supports the business activities involved in back
    office processes
  • Example ERP software for a manufacturing company
    will typically
  • Track status of sales, inventory, shipping, and
  • Forecast raw material and human resource materials

Enterprise Resource Planning
  • Companies began to implement ERP as a vital
    conceptual foundation for re-engineering their
    business processes, and as the software engine
    required to accomplish these new cross functional
  • Now ERP is a necessary part of an E-business
    enterprise that requires efficiency, agility, and

Enterprise Resource Planning
  • Companies are finding business value in two major
  • ERP creates a framework for integrating and
    improving their back office systems that results
    in major improvements in customer service,
    production, and distribution efficiency
  • ERP provides vital cross functional information
    quickly on business performance to managers to
    significantly improve their ability to make
    better business decisions

Customer Relationship Management
  • It costs six times more to sell to a new customer
    than to an existing one
  • A typical dissatisfied customer will tell eight
    to ten people about their experience
  • A company can boost its profits by 85 by
    increasing its annual customer retention by only
  • The odds of selling a product to a new customer
    are 15 an existing customer 50

Customer Relationship Management
  • Businesses are turning to customer relationship
    management as a major customer-centric business
  • CRM uses info technology to create a cross
    functional enterprise system that integrates and
    automates many of the customer serving processes
    in sales, marketing and product services that
    interact with a companys customers

Customer Relationship Management
  • Create an IT framework that integrates all of
    these processes with the rest of a companys
    business processes
  • Consist of a family of software modules that
    perform the business activities
  • Provides tools that enable a business and its
    employees to provide fast, convenient,
    dependable, and consistent service to its

Customer Relationship Management
  • CRM systems typically include
  • Sales
  • Track customer contacts and other business and
    life cycle events of customers
  • Direct Marketing and Fulfillment
  • Automate tasks such as qualifying leads, managing
    responses, scheduling sales contacts, and
    providing information to prospects and customers

Customer Relationship Management
  • CRM systems typically include continued…
  • Customer Service and Support
  • Helps customer service managers quickly create,
    assign, and manage service requests
  • Help desk software assists customer service reps
    in helping customers who are having problems by
    providing relevant service data and suggestions
    for resolving problems

Customer Relationship Management
  • Business benefits of CRM Systems
  • Ability to identify and target best customers
  • Allows real-time customization and
    personalization of products and services based on
    customer wants, needs, buying habits, and life
  • Keeps track of when a customer contacts the
    company regardless of contact point

Customer Relationship Management
Customer Relationship Management
  • Business benefits of CRM Systems continued…
  • Enables the company to provide consistent
    customer experience and superior service and
    support across all contact points
  • These benefits provide strategic business value
    to a company and major customer value to its

Enterprise Application Integration
  • Interconnects several E-business application
  • Enables users to model the business processes
    involved in the interactions that should occur
    between business applications
  • EAI software can integrate a variety of
    enterprise application clusters by letting them
    exchange data according to business process rules

Enterprise Application Integration
  • EAI software can integrate the front and back
    office applications of an e-business so they work
    together in a seamless integrated way
  • This is a vital capability that provides real
    business value to an e-business enterprise that
    must respond quickly and effectively to business
    events and customer requests
  • Integrates access to all customer and product
    data customer reps need to access quickly

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Supply Chain Management
  • E-Commerce customer value imperative
  • What the customer wants, when and where its
    wanted, at the lowest possible cost
  • Supply chain
  • The interrelationships with other businesses
    needed to build and sell a product, the network
    of business relationships

Supply Chain Management
  • SCM Software
  • Significantly reduce costs, increase efficiency,
    and improve supply chain cycle time
  • Help improve inter-enterprise coordination among
    supply chain process players for more effective
    distribution and and channel networks among
    business partners

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Online Transaction Processing
  • Transaction processing systems
  • Cross functional info systems that process data
    resulting from the occurrence of business
  • Transactions
  • Events that occur as a part of doing business,
    such as sales, purchases, deposits, withdrawals,
    refunds, and payments

Online Transaction Processing
  • Transaction processing activities are needed to
    capture and process data involved in transactions
  • Online transaction processing systems
  • Real-time systems that capture and process
    transactions immediately
  • Can help provide superior service to customers
    and other trading partners

Online Transaction Processing
  • Transaction Processing Cycle
  • Data Entry
  • Capture of business data
  • Transaction processing
  • Batch processing is where data is collected and
    processed periodically over time
  • Real-time processing is where data is processed
    immediately after a transaction occurs
  • All OTP systems use real-time processing

Online Transaction Processing
  • Transaction Processing Cycle continued..
  • Database maintenance
  • Databases must always be correct and up-to-date
  • Transaction processing systems update corporate
    databases to reflect changes made in day-to-day

Online Transaction Processing
  • Transaction Processing Cycle continued..
  • Document and Report Generation
  • Purchase orders
  • Pay cheques
  • Sales receipts
  • Invoices
  • Customer statements

Online Transaction Processing
  • Transaction Processing Cycle continued..
  • Inquiry processing
  • Make inquiries and receive responses concerning
    the results of transaction processing activities
  • Check on status of an order
  • Get account balances
  • Amount of stock in inventory

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Functional E-Business Systems
  • Systems that support the business functions of
  • Accounting
  • Finance
  • Marketing
  • Operations management
  • Human resource management

Functional E-Business Systems
  • Marketing Info Systems
  • Interactive Marketing
  • Customer focused marketing process
  • Two way transaction between business and customer
  • Encourages customers to become involved in
    product development, delivery and service issues
  • Enabled by various Internet technologies such as
    chat rooms, discussion forums, email, etc

Functional E-Business Systems
  • Marketing Info Systems continued…
  • Targeted marketing
  • Appeal to people in specific communities
  • Banners or billboards can be placed on websites
    other than the companies home page
  • Ads are only placed on related sites
  • Aimed at specific demographics of people
  • Track persons online behavior to target each
    visitor personally

Functional E-Business Systems
  • Marketing Info Systems continued…
  • Sales Force Automation
  • Outfitting the sales force with notebook
    computers, web sites, and software
  • Increases personal productivity of sales people
  • Speeds up capture and analysis of sales data from
    the field to headquarters

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Functional E-Business Systems
  • Manufacturing Systems
  • Computer Integrated Manufacturing
  • Simplify production processes, product designs,
    and factory organization
  • Automate production processes and the business
    functions that support them with computers,
    machines, and robots
  • Integrate all production and support processes
    using computers, telecommunications netowrks and
    other info technologies

Functional E-Business Systems
  • Manufacturing Systems
  • Process Control
  • Use of computers to control an ongoing physical
  • Machine Control
  • Use of a computer to control the actions of a
  • Robotics
  • These devices control their own activities
  • Used to increase productivity and cut costs

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Functional E-Business Systems
  • Human Resource Systems
  • Planning to meet the future needs of the
  • Development of employees to their full potential
  • Control of all personnel policies and programs

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Functional E-Business Systems
  • Accounting Systems
  • Online Accounting Systems
  • Order Processing
  • Inventory Control Systems
  • Accounts Receivable
  • Accounts Payable
  • Payroll
  • General Ledger

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Functional E-Business Systems
  • Financial Management Systems
  • Cash management
  • Online investment Management
  • Capital Budgeting
  • Financial forecasting and planning

Capital Budgeting