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Module III – Business Applications. Electronic Business Systems. Enterprise Business Systems. Learning Objectives. Identify the following cross-functional enterprise systems and give examples of how they can provide significant business value to a company. Enterprise resource planning

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Electronic Business Systems

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    1. Module III – Business Applications Electronic Business Systems Enterprise Business Systems

    2. Learning Objectives • Identify the following cross-functional enterprise systems and give examples of how they can provide significant business value to a company. • Enterprise resource planning • Customer relationship management • Supply chain management • Enterprise application integration • Transaction processing systems • Enterprise collaboration systems • 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.

    3. Enterprise Business Systems Section 1 • e-Business Applications • e-Commerce • Cross-functional Enterprise Systems • Customer Relationship Management • Enterprise Resource Planning • Supply Chain Management Real World Case 1- Salesforce.Com Click to go to Case 1

    4. Production Start Equipment Design Process Design Product Release Product Test Component Design Market Test Market Research Customer Feedback Enterprise Business Systems New Product Development Process Marketing R&D/Engineering Manufacturing

    5. Suppliers Supply Chain Management Sourcing - Procurement Partner Relationship Management Selling – Distribution Enterprise Resource Planning Internal Business Processes Knowledge Management Collaboration – Decision Support Employees Partners Customer Relationship Management Marketing – Sales - Service Customers Enterprise Business Systems Enterprise Application Architecture

    6. Enterprise Business Systems • Created Real-time Configure-to-Order System • Enterprise e-Business Systems Need End-to-End Connectivity: • Across Different Processes • From Legacy Systems to its Suppliers, Customers and Partners • Orders by Customers Travel Great Global Distances • Systems Update Order Status • Communicate with Other Systems-Real Time • Orders Zip Across Atlantic Average 4 Times IBM Corporation: Global Cross-Functional Enterprise Systems

    7. Enterprise Resource Planning The Technological Backbone of e-Business Production Planning Integrated Logistics Sales, Distribution, Order Management Customer/ Employee Accounting and Finance Human Resources

    8. Enterprise Resource Planning • Use of Software across the Entire Spectrum of the Business • Activities That Once Took Days now Take Hours • On-Time and Correctness of Deliveries Improved Significantly • Inventories Reduced by 1/3 and Realized Meaningful Cost Savings Graphically… Colgate-Palmolive: The Business Value of ERP

    9. Enterprise Resource Planning Colgate-Palmolive: The Business Value of ERP Demand Planning Manufacturing Planning Logistics Planning Distribution Planning Order Entry Enterprise Resource Planning MRP Inbound Inventory Plant Mgmt. Purchasing & Accounts Payable Manufacturing & Production Scheduling Inventory Control & Warehousing Distribution & Accounts Receivable Suppliers Customers Finance and Accounting Human Resources

    10. Enterprise Resource Planning Benefits of ERP • Quality and Efficiency • Decreased Costs • Decision Support • Enterprise Agility Failures in ERP Do Exist

    11. Enterprise Resource Planning • SAP AG’s Software Installation Problems of ERP Integrated Suite into a Retail Environment • Sobey’s Grocer Had Problems with Number of Transactions • Jo-Ann Stores and Petsmart Blamed Software for Poor Financial Performance • Sobey’s is Replacing System Sobeys Inc.: Failure in ERP Implementation

    12. Enterprise Resource Planning Causes of ERP Failures • Underestimating the Complexity of Planning, Development, and Training Needed • Failure to Involve Affected Employees • Trying to do Too Much Too Fast • Over Reliance by Company on Claims of Software Companies

    13. Acquire Enhance Retain Direct Marketing Cross-sell and Up-sell Proactive Service Sales Force Automation Customer Support Partner Company Customer CRM: The Business Focus Supports an Integrated and Collaborative Relationship Between a Business and it’s Customers Customer Life Cycle CRMFunctional Solutions The Internet Collaborative Service Shared Customer Data CRMIntegrated Solution

    14. CRM: The Business Focus CRM Uses IT to Create a Cross-Functional Enterprise System Marketing and Fulfillment Customer Service and Support e-Mail Fax • Sales • Cross-Sell • Up-Sell Prospect or Employee Web Telephone Retention and Loyalty Programs Contact and Account Management

    15. CRM: The Business Focus Telstra Corporation: The Business Value of CRM • Provides Fixed, Wireless, and e-Commerce Services to Customer Base in 19 Countries • Offers Voice, Data, Internet, Multimedia and Communications Services • Sought CRM Solution to Integrate More than 20 Core Legacy Databases Across the System • Benefits Quickly Followed • Reduced Training Time

    16. CRM: The Business Focus Benefits and Challenges of CRM • Identify and Target the Best Customers • Customization and Personalization of Products and Services • Track Customer Contacts CRM Failures • 50% of Applications Fail to Meet Expectations • 20% of the Time CRM Damaged Customer Relationships • Lack of Understanding and Preparation is Blamed

    17. CRM: The Business Focus Gevity HR and Monster.Com: Failures in CRM Implementation • Employees Undercut the System Believing Their Jobs Threatened by CRM On-Line Customer Problem Solutions. • Complex Installation Since it Touches So Many Legacy Systems • Failures Lead to Loss of Customer Goodwill and Business and Negatively Affects Employees Also

    18. SCM: The Business Network Supply Chain Management • SCM – A Top Strategic Objective for Many Firms • The Right Products • The Right Place • The Right Time • In the Proper Quantity • At an Acceptable Cost

    19. SCM: The Business Network Objective of SCM Efficiently Manages this Process by: • Forecasting Demand • Controlling Inventory • Enhancing Business Relationships • Receiving Feedback and Status of Every Link of the Chain

    20. SCM: The Business Network Moen Inc., and TaylorMade Golf: Web-Enabling the Supply Chain • Simultaneous Sharing of Designs Worldwide with Suppliers • Design Problems Discovered Instantly • Extranet Site Allows Suppliers to Check Orders Online • Company has Saved $3 Million or 6% off of Raw Material and Work-in-Progress Inventory Costs

    21. Commit Schedule Make Deliver Retailer Supplier Customer Manufacturer SCM: The Business Network SCM Software Helps Firms Reengineer and Integrate The Functional SCM Processes Supply Chain Life Cycle Forecast and Demand Planning Strategic Sourcing and Procurement SCMFunctional Processes Customer Order Fulfillment Service Distribution Network and Warehouse Operations Production Logistics Transportation and Shipment Management The Internet Collaborative Fulfillment Shared Market Data SCMIntegrated Solution

    22. SCM: The Business Network Benefits and Challenges of SCM • More Accurate Order Processing • Reductions in Inventory Levels • Quicker Time to Market • Lower Costs • Strategic Relationships with Suppliers

    23. SCM: The Business Network Benefits and Challenges of SCM • Lack of Proper Planning Knowledge, Tools, and Guidelines • Inaccurate Demand Forecasts • Lack of Adequate Collaboration • Software Itself Immature

    24. SCM: The Business Network Objectives of Supply Chain Management Customer Value Goals Give customers what they want, when and how they want it, at the lowest cost Business Value Goals Rapid Demand Fulfillment Collaborative Supply Chain Planning and Execution Interenterprise Coordination of Manufacturing and Business Process Effective Distribution and Channel Partnerships Responsiveness and Accountability to Customers

    25. SCM: The Business Network Solectron Corp: Failures in SCM • Software Can’t Compensate for Business Judgment • Forecasts Driving Entire Flow of Work is Concocted by People, Not Real-time Bits of Data • Solectron – World’s Biggest Electronics Contract Maker • Supply Glut Was Brewing • Unrealized Overly Optimistic Ordering Resulted in Suppliers Sending Excessive Materials Left Solectron Holding the Bag

    26. Enterprise Application Integration EAI Software Connects Major e-Business Applications Like CRM and ERP Enterprise Application Integration Back-Office ERP Applications Distribution Manufacturing Scheduling Finance Front-Office CRM Applications Customer Service Field Service Product Configuration Sales Order Entry EAI

    27. Enterprise Application Integration • Survey of 75 Related Companies Revealed 18 Different Software Packages • Lack of Integration Reduces Cost and Speed Savings that Might Be Realized • Use of WebMethods EAI to Coordinate Processes • New System Generated Cost Savings • Orders for Product Automatically Orders Parts Dell Computer: Enterprise Application Integration

    28. Call Center Billing e - Mail Finance Fax Web Orders & Fulfillment Mail Routing Phone Manufacturing Shipping Enterprise Application Integration Order Entry Method EAI

    29. Phone System The Internet Interactive Voice Response System Web Servers Fax Servers Database Servers Communication Servers Communication Servers Application Servers Transaction Processing System Capture and Process Transactions Immediately Cable Company A Cable Company B San Francisco New York Video Server Video Server Host System Host System Syntellect Interactive Systems Middleware

    30. Transaction Processing System • Used for Cable Pay-Per-View Events • Access by Phone or the WWW • Database Captures, Processes and Updates • Teams with over 700 Cable Companies Syntellect’s Online Transaction Processing

    31. Document and Report Generation Database Maintenance Transaction Processing Cycle Capture and Processing Data, Updating Databases, and Produce Information Products • Transaction • Processing • Batch • Online/ • Real-Time Data Entry Inquiry Processing

    32. Enterprise Collaboration Systems ECS Enables Working Together by Helping Us to: • Communicate • Coordinate • Collaborate Tools for Enterprise Collaboration…

    33. Collaborative Work Management Tools Electronic Communications Tools Electronic Conferencing Tools Enterprise Collaboration Systems Tools for Enterprise Collaboration Enterprise Collaboration Systems • e-Mail • Instant Messaging • Voice Mail • Faxing • Web Publishing • Paging • Data Conferencing • Voice Conferencing • Videoconferencing • Discussion Forums • Chat Systems • Electronic Meeting Systems • Calendaring and Scheduling • Task and Project Management • Workflow Systems • Document Sharing • Knowledge Management

    34. Enterprise Collaboration Systems QuickPlace by Lotus Development Collaborative Software Screenshot

    35. Enterprise Collaboration Systems General Electric Co: Committed to Enterprise Collaboration • Committed to Lotus Tools – QuickPlace • QuickPlace-Web-based Work Spaces • Sametime (Real-time Online Meetings) • Tools Streamline Communication • 18,000 QuickPlaces for 250,000 Users

    36. Functional Business Systems Section II • Variety of Types of Information Systems that Support Business Functions • Identification of Business Value Created • Analysis of Challenges to Implementation Real World Case 2- GE Power and Corporate Express Click to go to Case 2

    37. Functional Business Systems Examples of Functional Business Information Systems Marketing • Customer relationship management • Interactive marketing • Sales force automation Production Operations Human Resource Management • Compensation analysis • Employee skills inventory • Personnel requirements forecasting • Manufacturing resource planning • Manufacturing execution systems • Process control Functional Business Systems • Cash management • Credit management • Investment management • Capital budgeting • Financial forecasting • Order processing • Inventory control • Accounts receivable • Accounts payable • Payroll • General ledger Finance Accounting

    38. Customer Relationship Management Interactive Marketing Sales Force Automation Sales Management Market Research and Forecasting Advertising and Promotion Product Management Marketing Systems Marketing Information Systems Market Information Systems

    39. Marketing Systems Five Major Components of Target Marketing Online Behavior Demographic/ Psychographic Community Context Content

    40. Marketing Systems Sales Force Automation • Use of Computers and the Internet • Improves the Delivery of Information • Support for Sales People Provides a Strategic Advantage in Sales and Marketing Responsiveness

    41. Marketing Systems Baker Tanks: Web-Based Sales Force Automation • Leader in Rentals of Industrial Containment • Foremost in Transfer Equipment • Serves Customers in Construction to Aerospace • Ineffective Access to Huge Data • Used Salesforce.com Web-based System - PDAs Connected for Data • Much Better Communication • Salespeople More Productive

    42. Marketing Systems Web-Based Salesforce.com Automation Package

    43. Manufacturing Systems Computer-Integrated Manufacturing (CIM) • Simplify • Automate • Integrate Flexible Manufacturing Systems Agile Manufacturing Total Quality Management Computer-Aided Engineering (CAE) Computer-Aided Manufacturing (CAM)

    44. Production Forecasting Shop Floor Scheduling Computer-Aided Design Production Scheduling Shop Floor Control Computer-Aided Engineering Material Requirements Planning Enterprise Resource Planning Machine Control Capacity Planning Computer-Aided Process Planning Robotics Control Production Cost Control Product Simulation and Prototyping Quality Control Process Control Computer-Integrated Manufacturing Manufacturing Systems Manufacturing Resources Planning Systems Manufacturing Execution Systems Engineering Systems

    45. Manufacturing Systems The Timken Co. Web-Based Manufacturing Systems • Established "Electronic Visibility" • Used Global Supply Chain • Immediate Parts Location • Speed of Internet Combined With Global Logistics Management

    46. Human Resources Systems Human Resource Information Systems • Recruitment, Selection, and Hiring • Job Placement • Performance Appraisals • Employee Benefits Analysis • Training and Development • Health, Safety, and Security HRM and the Internet HRM and Intranets

    47. Staffing Training and Development Compensation Administration • Succession planning • Performance appraisal planning • Contract costing • Salary forecasting • Human resource planning • Labor force tracking Strategic Systems • Compensation effectiveness and equity analysis • Benefit preference analysis • Labor cost analysis and budgeting • Turnover analysis • Training effectiveness • Career matching Tactical Systems • Recruiting • Workforce planning/ • scheduling • Skill assessment • Performance evaluations • Payroll control • Benefits administration Operational Systems Human Resources Systems Supports…

    48. Human Resources Systems An Example of an Employee Hiring Review System

    49. Human Resources Systems Charles Schwab & Co.: Web-Based Human Resource Systems • 23,000 Employees Access Detailed HR Data • Intranet Benefits Employees Searches • Savings of Hundreds of Thousands Yearly • Employees Use Online eForms

    50. Accounting Systems • Record and Report Business Transactions • Trace Flows of Funds Through a Business • Produce Financial Statements • Forecasts of Future Conditions • Projected Financial Statements • Financial Budgets