chapter 6 e-business: intra-business e-commerce. copyright © 2003, addison-wesley internal...
TRANSCRIPT
Copyright © 2003, Addison-Wesley
Internal Communication
Historically, paper Updating a paper procedures manual
Outdated material Numerous misunderstandings Some legal actions
B2Employee E-commerce Maintain online – Web site
E-business more general than B2E
Copyright © 2003, Addison-Wesley
B2C vs. Intra-business E-commerce
Consumer oriented B2C Revolutionary Aggressive and risky First movers
Intra-business and B2B Evolutionary Methodical In business context
Copyright © 2003, Addison-Wesley
Figure 6.3 The value chain.
Inboundlogistics
Productionprocesses
Outboundlogistics
Sales andmarketing
Customerservice
Information technology infrastructure
Upstream Downstream
The key to intra-business e-commerce is improving value chain efficiency.
Copyright © 2003, Addison-Wesley
Figure 6.4 The value chain for a personal computer manufacturer.
Inbound logisticsPurchase componentsPurchase raw materials
ProductionR&DEngineering/product designOrder componentsOrder raw materialsManufacture products
Outbound logisticsInventory managementOrder entryOrder fulfillment
Sales &marketing
Customerservice
Information technology infrastructure
Copyright © 2003, Addison-Wesley
Figure 6.5 Each value chain process consists of sub-processes.
ProductionR&DEngineering/product designOrder componentsOrder raw materialsManufacture products
Design/build/maintain production lineManufacture components
Configure/setup production runsDeliver materials to production line
Manufacture subassembliesConfigure/setup production runsDeliver components to production line
Assemble final productConfigure/setup production runsDeliver subassemblies to production line
Sales &marketing
Customerservice
Information technology infrastructure
Inboundlogistics
Outboundlogistics
Copyright © 2003, Addison-Wesley
Efficiency and Effectiveness
Objective: reduce operating costs Efficiency gains
Within individual processes Across the value chain
Efficiency-based competitive advantage Hidden from public view Relatively easy to sustain
Copyright © 2003, Addison-Wesley
Figure 6.6 The organizational pyramid.
Before computers, companies organized along functional lines.
Functional groups exchanged paperwork.
Early computer applications supported a single function.
CEO
OperationsMarketing &
SalesCFO CIO
Production
Purchasing
Warehouse
Distribution
Productdevelopment
Sales
Advertising
Marketresearch
Accounting
Payroll
Auditing
Finance
Personnel
Operations
Databaseadministrator
Systems &programming
Copyright © 2003, Addison-Wesley
Figure 6.7 A manual payroll system.
Payroll was done manually until at least the late 1950s.
Collecttimesheets
Recordtimesheets
Compilepayroll
Preparechecks
Deliverchecks
Copyright © 2003, Addison-Wesley
Figure 6.8 Automating selected processes made payroll more efficient.
Automate expensive processes first Compile payroll Prepare (print) paychecks
Automate remaining manual processes next
Record timesheets Objective—process optimization.
Recordtimesheets
Compilepayroll
Printchecks
Copyright © 2003, Addison-Wesley
Figure 6.9 Islands of automation.
Other functional groups
Sales Accounting Purchasing Inventory Production
Independent fiefdoms
Office political base Sub-optimization
Island ASales
Island BPayroll
Island CInventory
Island DAccountsrecievable
Island EBilling
Sales report
A/R report
Sales report
Sales report
Bills
Copyright © 2003, Addison-Wesley
Figure 6.10 The competitive advantage model.
Competition forced Information sharing Integration across
value chain Including legacy
applications
Stimulus for action
First major move
Customer acceptance
Competitor catch up moves First mover expansion moves
Commoditization
Copyright © 2003, Addison-Wesley
Incompatibilities
Hardware, software, and data Data redundancy was a major
problem Same data value on multiple files Independently maintained Values differed Data formats differed
Solution – central database
Copyright © 2003, Addison-Wesley
New Approaches to System Development
Information system planning Elevated to strategic level
Information technology infrastructure Basic blueprint for technology integration Enterprise data model (EDM)
Business process reengineering Process improvements in context
Problem – legacy applications
Copyright © 2003, Addison-Wesley
Partitioning Order Entry
Client Display online
order form Display order
acknowledgement Error-check form
data
Server Record order Read quantity on
hand Access A/R Validate stock Check credit
Either – Calculate taxes and total
Copyright © 2003, Addison-Wesley
Figure 6.17 A two-tier client/server application.
Maintenance problem Multiple copies of
software on multiple clients
Development problem Multiple client platforms
Middleware
ServerData/information logic
Fat clientsPresentation logicBusiness logic
Copyright © 2003, Addison-Wesley
Figure 6.18 A three-tier client/server application.
Middleware
Web ServerBusiness logicTransaction management
Thinner clientsPresentation logicSome business logic
Database ServerData/information logic
Middleware
Copyright © 2003, Addison-Wesley
Figure 6.19 Enterprise application integration.
Objective: coordinate all applications, databases, and info technologies.
Enterprise resource planning (ERP)
Means of implementing the EAI principle
Purchasedapplications
New and oldclient/serverapplications
EAI Web basedapplications
Legacyapplications
Copyright © 2003, Addison-Wesley
Virtual Value Chain
Digital picture of value chain Coordinate and monitor processes Organizational (not local) efficiency
Applications Fuel business process reengineering Mirror or replace physical processes Data mining
Copyright © 2003, Addison-Wesley
Web Services
Application server software A server for middleware Scalable platform
Application service provider (ASP) Intermediary that supplies applications Including mission-critical applications
Management service provider (MSP) Intermediary that manages IT services
Copyright © 2003, Addison-Wesley
Corporate Intranets Private corporate network Uses standard Internet protocols
TCP/IP HTML and HTTP Browser and Web server
Internet and intranet differences Intranet is smaller in scope Intranet limited to organization’s
employees
Copyright © 2003, Addison-Wesley
Figure 6.22 Encasing a legacy message in a TCP/IP wrapper allows a legacy application to communicate with the intranet.
Legacy message
Legacy application
TCP/IPwrapper
Legacy message
Company intranet
Middleware
Company intranet
Copyright © 2003, Addison-Wesley
Figure 6.23 Some examples of groupware.
E-mail Scheduling and calendars Whiteboarding Chat rooms and bulletin boards Video conferencing Electronic meetings Document management Workflow management Collaborative writing Group decision support systems
Copyright © 2003, Addison-Wesley
Figure 6.24 Typical enterprise portal services.
Structured data management
Unstructured data management
Content management
Information filtering Search capabilities
Collaboration User
administration Expense account
management Ordering supplies Security Personalization