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Running Head: Technical Business Report

Technical Business Report-Enterprise Information Management Systems

Thomas Ortiz

Bus 4200 Enterprise Management Information Systems

Instructor: Dr. Rodney Heisterberg

August 13, 2017

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Technical Business Report

Introduction

Information Technology has created a new world for business to operate in. A business

can no longer afford to stay within its physical infrastructure of a brick and mortar building.

Cloud technology, big data, social, mobility, and video are a few of the tool leading to the

change in the new digital world. Using these tools businesses have adopted and adjsted their

business model to become customer centric. A customer centric business model is where a

business focuses on a positive customer experience prior, during, and after a transition. A

positive experience will lead to repeat customers and customer loyalty (MacDonald 2017).

A business must leverage Information Technology and tools created by cloud based

software developers in order to stay competitive. The following areas will be covered within the

sections below: understanding Web 2.0, background information on a business ecosystem, trends

with in a business ecosystem, core functions of an enterprise information management systems,

business intelligence and analytics, collaborative marketing campaign management, and use of

social media. By covering the sections listed the technical paper is intended to translate

theoretical research on enterprise information management systems into specific implications for

general business ecosystem management issues and concerns.

Web 2.0

Web 2.0 can be defined as the second generation of the World Wide Web. This new

generation allows websites to move from static pages to dynamic user generated content. Web

2.0 is built on the idea that focuses on collaboration and sharing. Characteristic of Web2.0 are

listed below (Baltzan 2015).

Content sharing through open sourcing User contributed content Collaboration inside an organization Collaboration outside and organization

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In the pasts businesses were only capable with one-way communication via the web, now

communication can happen live through chat, instant messaging and even video. Web 2.0 has

also opened the door for business to participate on social media and become part of a customer’s

“network”. In a later section the benefits and effects of social media will discussed.

Business Ecosystem

Before the advancement of the internet businesses used IT for internal tasks and limited

functions. As the internet has advanced the term collaborative commerce was created to describe

business that used technology for internal and external use to grow and strengthen relationships

(Chen, Zhang, Zhou, 2007). The top five information technology trends used by collaborative

commerce include cloud, big data, social, mobility, and video. Through the growth of these

trends businesses began to use the internet to make business transactions with external users,

these businesses are now known as E- Commerce.

A business ecosystem is a group of organizations connected through a common product,

service or industry. An ecosystem may include but not limited to suppliers, distributers,

customers and competitors (Investopedia). Members of the ecosystem interact through

competition and cooperation which allow the ecosystem to stay agile and strengthen over time.

Collaborative commerce or C-Commerce within an ecosystem use the internet and cloud

technology to create business agility with the hopes of becoming efficient, cutting down costs

and lead times while increasing profits (Heisterberg & Verma 2014). To get a visual

understanding of components within a business ecosystem see Figure 1, as shown there are many

layers within an ecosystem.

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Figure 1:

Business Ecosystem

Trends in a business Ecosystem

In the attempt to gain a competitive advantage C-Commerce need to capitalize on the

technology advancement avalible in the market place and must be willing to stay agile by

adapting to new technology as it becomes available. As information technology has advanced

members of a business ecosystem must adjust. The problem then arises “How do C-Commerce

trend drive enterprise management systems development, implantation and operations” within an

ecosystem. In the previous section the history and definition of an ecosystem was explored. In

this section we will examine how managers responded the problems, what were the lessons

learned from the problem and the impact they have on an ecosystem.

Business process management has become a key element in the success of collaborative

commerce (Chen, Zhang, Zhou, 2007). Business process are “a standardize set of activities that

accomplice a specific task (Baltzan, 2015)”. A business can then evaluate the activities and

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determine which are most important by creating a value chain. Figure 2 below shows a detailed

example of a value chain (Value Chain Analysis).

Figure 2

When a business grows and evolve into C-Commerce or E-Commerce a major challenge

becomes, does the business have the agility to adopt the changes? Do they have the right

management to implement the changes and a trainable staff under them to support the manager?

Do they have the capital to invest in the tools such as software or training for employees? All

these questions must be answered when a company when a business becomes C-Commerce or E-

Commerce because the business must realign its core competencies to fit the new business

model.

In order to be successful C-Commerce must develop a plan to address the top five IT

trends- cloud, big data, social, mobile, and video. New Executive Management positions have

been created to lead the company’s growth in IT. Some examples of the new positions are:

Chief Information Officer Chief Technology Officer Chief Digital Officer

Figure 3 gives a visual example of a cloud based company who has created IT related

departments. As you can see the company has two executive positions that relate to IT (Hancock

2011). This trend is now becoming the norm.

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Figure 3: IT Roles

To get a better idea of how IT positions are being utilized by Fortune 500 companies we will

examine Figure 4. Figure 4 is a chart from a study completed by Brian Manning which covered

how and why Fortune 500 companies are creating C-level IT positions. These positions are

relatively new and their roles and responsibilities are constantly changing and technology is

growing.

Figure 4: C-Level

IT Positions

After C- Commerce assembles the right management team to lead their business, they can

implement the tools need for success. One major tool would be using cloud technology which

will allow users access from almost any location. Figure 5 shows the benefits of switching to a

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cloud based system (Koultorides 2016). By having instant cloud access to transfer information

anytime anywhere creates leverage for the other four IT trends big data, social, and mobile, and

video. Figure 5 also shows the impact a cloud service has financially on a company and the

amount of labor resources and capital it can free up. By freeing up labor resources a company

can choose to reallocate them to a new location to improve business process in other areas or

eliminate the positions and save money.

Figure 5: Benefits of Cloud Computing

C-commerce understand it is important to remain agile in order to stay competitive with

in a business ecosystem. They also know an ecosystem needs expand and be able to renew itself

or it could become extinct (Heisterberg & Verma 2014). Competition is healthy for an ecosystem

and can be good for the ecosystem as a whole because it can motivate businesses to look at its

business process and value chain to become more efficient. The effects of the changes can then

be measured by the ability to convert the change in efficient into a reduction in costs or increase

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in profits. Even market leaders should be constantly adjusting their strategy in order to keep their

competitive advantage. They must also find continue new ways to leverage Enterprise

Information Management Systems.

Core Enterprise Information Management Systems

As stated in the previous sections advancement in cloud, social, mobile, video and big

data technology has allowed software development companies to take Enterprise Information

Management Systems (EIMS) to the next level (Heisterberg & Verma, 2014). Gartner, a research

advisory firm that specializes in information technology, defines an Enterprise Information

Management Systems as “an integrative discipline for structuring, describing and governing

information assets across organizational and technological boundaries to improve efficiency,

promote transparency and enable business insight.” Figure 6 from scholarsu.com shows the

information cycle within an Enterprise Information Management System. As we can see from

the Figure 6, information flows from one area to the next highlighting the importance of each

individual function and the importance of collaboration with in the system.

Figure 6: Enterprise Information Management

Businesses investing resources into integrating an EIMS software package understand the

importance of cloud computing. Businesses are using EIMS software package to also create

competitive advantages within their business ecosystem, by leveraging real time data provided

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by the software to make faster and better decisions (Information Resources Management

Association).

An EIMS software package contains three core functions Customer Relations

Management (CRM), Enterprise Resource Planning (ERP), and Supply Chain Management

(SCM). Software developers are responding to the need businesses have for a collaborative cloud

based EIMS. Some developers provide a wide range of packages that cover all three core

functions and others focus on a small niche segment. Businesses have many software options in

the market place and must invest the resources and do their due diligence when finding the right

software to fit their industry, business size, and the needs of the business.

Customer Relations Management (CRM) is a way for businesses to manage and analyze

customer interaction and data through the customer life cycle (Rouse). A business must be able

to track all communication with a customer in order to store valuable data that can be used to

build the trust with the customer and develop a marketing plan to fit the customer’s needs. Figure

7 below provided by pureflexsystems.com shows a CRM cycle.

Figure 7, CRM Cycle

The cycle shows how sales, orders, customer support and marketing are all needed to build a

long-lasting relationship with a customer.

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Gartner publishes a useful “Magic Quadrant” where they perform an expert analysis,

evaluate companies, and rate how they compare to each other. Each software categories is

measured by different x and y axis value that fits the specific category. Figure 8, below is a

Gartner “Magic Quadrant” for CRM software applications.

Figure 8 2016 “Magic Quadrant” for CRM

As shown on the graph, each software application is plotted based on their capabilities vs value.

When evaluating CRM software a business should look for the following key features.

Call Logging Contact Management Customer Support Document Management Email Marketing Campaign Management Interaction Tracking Lead Management Lead Scoring List Management Marketing Automation Referral Tracking

These key features will allow users to get the most of out the software package.

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The second core function of an EIMS is an Enterprise Resource Planning (ERP) system.

ERP is software that allows a business to use a system of integrated applications to manage the

back office of a business and business processes. The back office includes Finance and

Accounting, Human Resources, Access Control, Program Management, Customer Relations,

Data Services, Engineering, and Purchasing. Figure 9 below visually shows how all parts of an

ERP system are connected (one point hosting).

Figure 9: Enterprise Resource Planning

System

Gartner also performs a detailed analysis on ERP software applications and is able to

compare them using the “Magic Quadrant”. Figure 10 below is Gartner’s 2017 rating on ERP

software. The packages are rated on capability and value. Then the companies are rated on how

the fit within the industry i.e. Leaders, Masters, Contenders, and Pacesetters.

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Figure10: Gartner 2017 “Magic Quadrant” for ERP

Each of the top companies listed in the “Magic Quadrant” offer many different features

within their packages. When evaluating an ERP system it is importing to ensure that the package

includes core features to maximize the use and performance of the software. Below is a list of the

core features:

Accounting Management CRM Dashboard Distribution Management Enterprise Asset Management Financial Management HR Management Inventory Management Project Management Purchasing Sales Management Warehouse Management

These key futures listed ensure that information business can organize and transfer

information within the company. Getting the right information in the right hand within the

company is needed to stay competitive and reduce waste.

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The third core EIMS function is Supply Chain Management (SCM). Most businesses use

SCM in order to create integration and link information between different functions within a

business. This allows a business to synchronize flow of both information and product to

customers, suppliers, and transportation providers across the supply chain (Baltzan 2015). SCM

helps link Supply/Demand Planning, Logistic Management, Assets Management, Procurement,

and Information Management. SCM also link a business to external users like Suppliers,

Manufacturing, Warehouses, Stores, and Customers.

Data integrity is important in a SCM system the without it a company can experience a

bullwhip effect. The bullwhip effect is when bad data gets loaded in the system which causes

another user with in the system to act on the bad data, causing a chain reaction of wrong actions.

For example if a demand planner loads demand of the wrong part, it can lead a buyer to go out

and buy the wrong part. Buying the wrong part can lead excess inventory and not having the

correct parts to delivery to a customer. Excess inventory leads to a waste in capital and not

delivering to a customer on time can lead to a loss in revenue (Baltzan 2015).

Key features that a SCM software package are: Demand Planning Electronic Data Interchange Import/Export Management Inventory Management Order Management Sales and Operation Planning Shipment Management Supplier Management Transport Management Warehouse Management

The research provided highlights how difficult it can be to implement an EIMS software

application package, due to the many options available in the market place. Managers must allow

time to research and evaluate all possible options. When selecting a package it is important to

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find a solution that will work best for the business. It should also be compatible to work together

with the three core functions of enterprise management: CRM, ERP, and SCM. Having synergy

between the CRM, ERP, and SCM software packages can reduce waste and increase employee

workflow. Providing employees the right tools for the right job gives them a chance to grow and

become more efficient. If a company is considering a new cloud based software package it

should be evaluated by multiple departments within a company and a trail version should be

implements as a test before converting the whole company over.

Business Intelligence and Analytics

To enhance a strong EIMS software package a business should consider integrating a

business intelligence, business analytics, and predictive analytics software package. Adding one

or all thee can increase communication and collaboration within the company along with giving

the business a chance to use data to make better decisions. Collaboration between these three

packages is important to management when making decision at a managerial or strategic level.

Heisterberg & Verma stated “The power of collaborative management and use if collaborative

tools cannot be understated in driving business.” Management must be able to consolidate, drill-

down, and slice-and dice the data that is produced by the EIMS software (Baltzan, 2015).

Business intelligence (BI), business analytics (BA), and predictive analytics (PA)

software offers users the ability to dive deeper into data to help improve process, reduce wastes

and creates a competitive advantage. The ability for a business to visually see data from across

the enterprise can lead to better decision making. Also it allows businesses to reduce risks when

forecasting by making their decisions based on historical data and the ability to spot trends.

Within this section we will explore and identify key functions of BI, BA, and PA software

packages.

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The words “Business intelligence” can be used to characterize products and approaches

aimed at making a desired result a reality. Many of those desired results include securing a

competitive advantage, improving operational efficiency, and increasing profitability (Vitt,

Luckevich & Misner,2002).

Gartner also publishes its “Magic Quadrant” analysis for BI software. Figure 11 was

published by Gartner in February 2017. The “Magic Quadrant” compares software packages by

completeness of version vs. ability to execute. The packages are also measured by where the

developer rates within the ecosystem, the categories for these measurements are: Leader,

Challengers, Visionaries, and Niche Players.

Figure 11: Gartner Magic Quadrant BI 2017

As show in Figure 11 there are many well equipped software packages available in the market. Below is a list of many key features a BI package should include:

Ad hoc Analysis Ad hoc Query Ad Hoc Reports Benchmarking Budgeting & Forecasting Dashboard

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Data Analysis Data Visualization Key Performance Indicators OLAP Performance Metrics Predictive Analytics Profitability Analysis Strategic Planning Trend / Problem Indicator

These key features listed empower organizations to make better faster decisions by

improving the data available to decision makers (Vitt, Luckevich & Misner,2002). Benefits to

integrating a BI package are it allows internal users a single point of information, allows

information to transfer across departments and provides real time data to users (Baltzan 2015).

Business analytics (BA) is a methodical exploration of an organizations data, that focuses

on statistical analysis. A business that uses BA is committed to data driving decision making

(Rouse). Data can be useless and misleading if an analysts does not have right tools to turn data

into information. In order to get valuable information from data a user must be able to

summarize statistics, frequency tables and histograms and boxplots for exploring, scatterplots,

correlation tables and cross tabulation (Jank2011). BA can be used to examine internal

processes in order to create efficiency in those processes.

In general most people tend to believe that business intelligence and business analytics

are the same thing. Although they both deal with data and have the same goal of make better

faster decisions they are different. Figure 12 gives a side by side comparison of BI and BA.

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Figure12: BI VS BA

As shown BI asks questions on How? What? Where? Who?, while finding metrics and creating

reports. BI looks at information in a different way and asks the question of Why? is something

happening and “What” will be the effects of a change, while exploring text, big data, and

statistics.

When a business is evaluating BA software packages they should look for the following

key features in order to get the most out of the investment:

Data visualization tools Self-service analytics platforms Statistical analysis tools Big data platforms Mobile Exploration and Authoring Collaboration & Social BI Ease of use to deploy and administer Analytics Dashboards Publishing Analytic Content Embedded Advanced Analytics Governance and Metadata Management Timeliness of Vendor Response Optimize your entire organization: Get customized, interactive business apps tailored to

meet your unique business needs.

By having the above features incorporated with in a software package business can start to turn

data into information.

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Predictive analytics is the art and science of using data to make better informed decisions,

by uncovering hidden patterns and relationships within data. Predictive analytics helps to build

confidence it understanding trends and understand what might happen it the future (Bari,

Chaouchi & Jung 2014). Predictive analytics software takes BI and BA one step further by

allowing uses view predicted future out comes of a given scenario. The main difference between

BI and PA is:

PA- Shows what the future may have instoreBI-What happened and what’s going on

The functions that make up PA can be seen in Figure 13 (Salleh 2013). The figure also

show how the activity cycle is continues within circle and every part plays and important role.

Data Access, Exploration, Data Transformation, Modeling, Validation, and Implementation are

the core functions within PA.

Figure 13: Predictive Analytics Cycle

Not only can a company use PA to understand future earning or loss profits, it can be

used for examine internal issues as well. For example Hewlett-Packard started to notice that they

were losing productivity when employees left the company and HP had little time to train a

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backup. So HP developed a PA tool to monitor employees’ habits and was able to start

forecasting the probability of an employee leaving (Salleh 2013).

When a business is looking into a PA software package they should be look for the key

features listed below:

Analytic Data Preparation Data Exploration and data discovery Machine Learning and Predictive Algorithms Automated Model Tournaments Batch or Real-Time Scoring Model Validation and Assessments Automated and Governed Decision Flows

It is clear from the research provided when used correctly business intelligence, business

analytics, and predictive analytics software adds tremendous value to users. In most industries

the ability to identify trends and forecast correctly will allow a business to make faster smarter

decisions, which can create a competitive advantage for your business. Software developers in

this industry are constantly improving their products and integrating new technology as it

becomes available. With so many software options available managers from multiple business

areas within a company need to do the proper research and evaluation prior to purchasing and

implementing a new application.

Collaborative Marketing Campaign Management

After evaluating the and highlighting the importance of the core functions of an EMIS

software packages, we then evaluated business intelligence (BI), business analytics (BA), and

predictive analytics packages. These alone are powerful tool that when used right they can

change the landscape for a company, but these packages focus on running a business and

analyzing data to make better strategic decisions. To connect with customers in the Web 2.0 era

business must do more to understand a customer and reach out to a customer.

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In order to follow through on a business’s customer centric business model they must

invest the resource in developing a collaborative marketing campaign. A collaborative marketing

package should include three key marketing management functions: Marketing Planning,

Campaign Management, and Customer Analytics.

Marketing can be simply described as attracting and retaining customers, but for a

business it is much more than that. A marketing team must make strategic moves in order to

deliver the right information or product to the right customer at the right time. In order to identify

what collaborative marketing package to invest in a business must first research and understand

the capabilities of each application and identify the key functions.

Marketing planning software provides surveys, knowledge center, idea crowdsourcing,

and expenses tracking. Marketing planning software should provide a cloud based solution for

the following areas:

Budgeting & Forecasting Collaboration Flowchart Goal Setting / Tracking- sets goals in a cloud based system allowing employees to see

where they stand Marketing Calendar Media Planning Predictive Analytics- project what the outcome will be from prior to making a decision. Presentation Tools- allows customers to present data direct from the platform Spend Management-tracks where the money is going

Figure 14 below is from Percolate.com, who is a marketing planning software developer.

The figure shows the cycle of information that the software package includes: Planning,

Briefing, Production, Distribution, Monitoring, and Analysis. With the core of the cycle being:

Channels, Branding, Objective, and Audience. All of these tools are necessary in order for a

business to stay competitive and sever a customer’s needs.

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Figure 14: Cycle of Work within Planning Software

A campaign management system is designed to measure the elements and individual

components of a marketing campaign. Techopedia.com describes “a typical campaign

management system splits out different screens and presentations for social media platforms like

Facebook, Twitter and others”, showing at a glance how each one of these campaign parts is

different. A campaign management software package can analyzed based on the following

features:

Deployment method- Cloud based? Mobile? Analytics/ROI tracking- Input investment made by marketing and track sales produced

by investment. Content/Blogging Platform- Can the system link directly to blogging accounts Email Drip Campaigns- a set of marketing emails that will be sent out automatically on a

schedule. Landing Pages/Web Form- Web page customers are directed to after clicking on

advertisement link. Lead Management- Manage customer’s leads that develop from other platforms. Multivariate Testing- determine which combination of variations performs the best out of

all of the possible combinations. Social Marketing- develop activities aimed at changing or maintaining people's behavior

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By ensuring that the package has a majority of the key features a business can determine

what their ROI is per campaigns and develop effective strategies to increase sales and cut

marketing costs.

Customer analytics allows businesses to segment markets, as well as track and predict

customer behavior. By tracking customer data trends and segmentation can then occurs, this

allows business deploy the right marketing plan for the right location with the right pricing. The

software also allows a business to discover methods and metrics to improve a customer’s

experience with a product, service or brand (Sauro 2015). Customer analytics software should

have the following key features.

Access Control- customize security to their specific needs Data –discovery, mapping, and profiling Finding the right channels to connect with a customer Maximize customer lifetime value through personalized up-sell and cross-sell offers

NG Data is a customer analytics software developer and has provided Figure 15, which

shows the customer life cycle and how implementing customer analytics software can change the

curve of results as it relates to margin (NG Data.com). By understanding a customer needs better

a business can provide the right sales campaign to the right customer. This allows for a business

to upsell customers which will increase their margins.

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Figure 15:

Customer Life vs Margin

A business must be diligent when researching and evaluating a collaborative marketing

package. The package should be able to connect to a business’s social media platforms to

recorded, track, and disperse data. Overall the implementation should add value to the company

while increasing a company’s ROI as it relates to marketing campaigns.

Use of Social Media

As discussed in the previous section businesses are investing in Collaborative Marketing

Campaign Management Systems that connect directly to a business’s social media platforms.

These social media platforms such as Facebook and Youtube allow businesses to have direct

access to customers and customer feedback. In the past business worried about collecting

customer feedback, so they offered incentives and discounts to fill out a survey form. Now with

social media businesses need to focus how to gather all the data, how to sort it, and how to

respond to it.

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Social media sites have led the way for users to connect with each other and creating

social networking. Social networking sites allow users the ability to create and maintain a profile

that acts as an online identity with in the network (Baltzan 2015).

Commerce’s are able to gather tons of valuable data from Social Networking sites. C-

Commerce’s understand that their best “sales people” are their customers and their “network” of

friends. C-Commerces are also able to track and monitor social networking sites to gather data

on their customers. Businesses are now creating accounts on the networking sites in order to

instantly reach customers and let them know about promotions, sales,and new items. This also

allows business to get instant feedback from customers. Social networking sites provide

businesses with a better and faster way to hear the customers. Networking sites created a

platform for users to have their voice hear and share information with their friends “following”

them.

It is now a common practice for C-Commers to reach out to customers directly via a

social networking site. If a customer posts a negative comment on a social networking site about

a business it can be available for their whole network to see. It can also be reposted over and

over again, which means bad news can spread like a wild fire. It is important that a business be

proactive and address negative feedback posted on social networking sites.

Social Networking sites can also be a great spot for business to post positive thing they

are doing. For example, if a business is sponsoring an event or doing good things for a

community they can post detail on a social media site. After the event they can even post pictures

and videos of the event which is a good PR move. Social media sites also let a user feel like they

are a part of a business. With these platforms businesses are able to get closer to customers; it

can help them find out areas of improvements a lot faster than traditional ways. A customer can

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feel like their personal view and morals are the same as a company which creates brand

awareness and brand loyalty that translates in to more sales and profits.

Many social media sites are realizing the power and control they have with connecting

customers to businesses. Shopping online is becoming even easier. In the past buying items

online took time, you had to set up an account enter all your information and had to remember

your password. All of these obstacles can discourage potential customers and also gave

customers time to back out of ordering something. Social media sites have stepped in and created

a solution, they allow customers to uses their existing social media account to login to an E-

commerce websites. Figure 16 is a typical example how a business offers a customer to login

using social media.

Figure 16: Logging in using Social Media

This is a win, win, win situation for everyone and highlights the importance of a customer centric

business model:

Social Media- allows them to track users spending and searching habits for better add

placements and keeps users connected to their sites longer.

Businesses- are able close a transactions faster and they can buy effective ad space from

social media site.

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Customers- gives customer access to deals or new items they are interested in and makes

shopping online easier/ faster.

Social media and social networking sites will continue to push technology to the next

level and develop new tool to help better link customers and businesses. It is up to consumers

and business to make the most of these available tools in order to keep improving the customer

experience management life cycle.

Conclusion

In concluding it is important that businesses stay agile and embrace and utilize

Information Technology as it advances and changes. This technical paper is has translate

theoretical research on enterprise information management systems into specific implications for

general business ecosystem management issues and concerns. The areas below were researched

and covered with in the sections above: understanding Web 2.0, background information on a

business ecosystem, trends with in a business ecosystem, core functions of an enterprise

information management systems, business intelligence and analytics, collaborative marketing

campaign management, and use of social media.

Advancement in cloud technology, big data, social, mobility, and video has opened up

new opportunities for businesses to connect and better understand a customer’s needs. A

business must create the appropriate positions to manage their Enterprise Information

Management System, along with providing them with the software and tools to be successful,

remain agile, and create a competitive advantage.

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References

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Education.

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https://ebookcentral.proquest.com

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43(2), 530-546. doi:10.1016/j.dss.2005.05.014

Gartner- http://www.gartner.com/it-glossary/enterprise-information-management-eim

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Manning, B. (2015, May 19). Too Many Chiefs? How CDOs, CIOs, CTOs, and CMOs Must

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analytics-in-enterprise-decision-making

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http://www.onepointhosting.co.za/enterprise-resource-planning/

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