1 electronic business systems dr mohammad nabil almunawar
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Electronic Business Systems
Dr Mohammad Nabil Almunawar
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Learning Objectives
Identify cross-functional E-Business systems and give examples of how they can provide significant business value to a company and its customers and business partners.
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.
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E-Business
E-business is the use of computer networks and IT to support business (transactions, communication and collaboration, business process).
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The E-Business Application Architecture
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Enterprise Resource Planning (ERP)
ERP is a cross-functional enterprise system that serve as a framework to integrate and automate of many business process.
ERP is a backbone of E-Business. ERP software is a family of office process. For example,
ERP for a manufacturing company will typically track the status of sales, inventory, shipping, invoicing forecast raw material, etc.
ERP is recognized as a necessary ingredient for the efficiency, agility, and responsiveness to customers and suppliers in the competitive environment.
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Business Value of ERP ERP creates a framework for integrating and improving
back-office systems that results in major improvement 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 across the enterprise.
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Customer Relationship Management (CRM)
It costs 6 times more to sell to a new customer than to sell to the existing one.
A typical dissatisfied customer will tell to 10 people about his/her experience.
A company can boost its profits 85% by increasing its annual customer retention by only 5%.
The odds of selling a product to a new customer are 15%, whereas the odds of selling a product to an existing customer are 15%.
70% of complaining customers will do business with the company again if it quickly takes case of a service snafu.
More than 90% of existing companies don’t have the necessary sales service integration to support E-commerce.
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CRM
CRM uses IT to create a cross-functional enterprise system that integrate and automate many customer serving process in sale, marketing, and product services.
CRM software provides tools that enable a business and its employees to provide fast, convenient, dependable, and consistent service to customers.
A typical CRM software includes sales, direct marketing and fulfillment and customer service & support.
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Major application clusters in CRM
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Business Value of CRM
Allows business to identify and target their best customer
Enables real-time customisation and personalisation of products and services.
Keeps track when customers contact the company regardless of the contact point.
Enable company to provide consistent customer experience and superior service and support all contact points a customer chooses.
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Cross-Functional Integrated Systems
Front OfficeApplications
CRM Application•Customer Service•Field Service•Sales Order•Product Config
Back OfficeApplications
ERP Application•Distribution•Manufacturing•Scheduling•Finance
EnterpriseApplicationIntegration
Enterprise ApplicationCluster
Enterprise ApplicationCluster
Cu
sto
mer
s
Suppliers
Bu
sin
ess
Par
tner
s
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Supply Chain Management
Commit
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Online Transaction Processing
Transactions are events that occur as part of doing business such as sales, purchases, deposits, withdrawals, refunds, and payments.
Transaction processing are cross functional information systems that process data resulting from the occurrence of business transactions.
Online transaction processing systems play strategic role in e-commerce.
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Example of an online transaction system
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Transaction Processing Cycle
DatabaseMaintenance
TransactionProcessing
• Batch•Online/Realtime
TransactionProcessing
• Batch•Online/Realtime
DataEntry
Documentand ReportGeneration
InquiryProcessing
1 2
3
4
5
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Functional Business Information Systems
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Marketing Information Systems
MarketingInformation
Systems
MarketingInformation
Systems
InteractiveMarketing
Sales ForceAutomation
Sales ForceAutomation
CustomerRelationshipManagement
CustomerRelationshipManagement
SalesManagement
SalesManagement
MarketResearch andForecasting
MarketResearch andForecasting
Advertisingand
Promotions
Advertisingand
Promotions
ProductManagement
ProductManagement
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Major Components of Targeted Marketing
Online Behavior
Community
Context
Demographic/Psychographic
Content
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Manufacturing Information Systems
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Human Resource Management
•Manpower Planning•Labor Force Tracking
•Labor Cost Analysis•Turnover Analysis
•Recruitment•Workforce Planning
•Skill assessment•Performanceevaluation
•Payroll control•Benefits Administration
•Compensation effectiveness•Benefits Analysis
•Contract costing•Salary forecast
•Succession planning•Performance appraisal plans
•Training effectiveness•Career matching
StaffingTraining &
Development CompensationAdministration
StrategicSystems
TacticalSystems
OperationalSystems
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Accounting Information Systems
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Financial Information Systems
Financial Information
Systems
Financial Information
Systems
FinancialPlanning
FinancialPlanning
CashManagement
InvestmentManagement
InvestmentManagement
CapitalBudgeting
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Summary The E-Business Application Architecture reflects the key
E-Business applications and their interrelationships. Cross-functional enterprise applications cross the
boundaries of traditional business functions. These systems focus on supporting integrated clusters of business processes.
Supply Chain Management relies on information technology and management practices to optimize information and product flows among the processes and business partners within the supply chain.
A transaction processing system is an information system that processes data resulting from the occurrence of business transactions.
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Summary (cont) Traditional functional business systems support specific
business functions including marketing, accounting, finance, production/operations, and human resource management.
Marketing information systems support traditional and E-commerce processes and management of the marketing function.
Computer-based manufacturing systems help a company simplify, automate, and integrate many of the activities needed to quickly produce high-quality products to meet changing customer demands.
Human resource information systems support human resource management in organizations.
Several different types of electronic payment systems are used to support E-Commerce transactions.