O'Brien - Intro. to Information Systems

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Transcript O'Brien - Intro. to Information Systems

Module III – Business Applications
Enterprise
Business Systems
Enterprise
Resource Planning
Supply Chain
Management
Transaction
Processing
Systems
Section II
Functional
Business Systems
IT in Business
Marketing
Systems
Human Resource
Systems
Accounting
Systems
Financial Mgmt.
Electronic
Business
Systems
Real World Cases
KEY TERMS
BACK NEXT
Enterprise Business Systems
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
7-1
Learning Objectives
Enterprise
Business Systems
Enterprise
Resource Planning
Supply Chain
Management
Transaction
Processing
Systems
Section II
Functional
Business Systems
IT in Business
Marketing
Systems
Human Resource
Systems
Accounting
Systems
Financial Mgmt.
Real World Cases
KEY TERMS
BACK NEXT
END
1. Identify the following cross-functional
enterprise systems and give examples of
how they can provide significant business
value to a company.
a)
b)
c)
d)
e)
f)
Enterprise resource planning
Customer relationship management
Supply chain management
Enterprise application integration
Transaction processing systems
Enterprise collaboration systems
2. 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.
Copyright 2005, McGraw-Hill/Irwin, Inc.
7-2
Enterprise
Business Systems
Enterprise
Business Systems
Enterprise
Resource Planning
Supply Chain
Management
Transaction
Processing
Systems
Section II
Functional
Business Systems
IT in Business
Marketing
Systems
Human Resource
Systems
Accounting
Systems
Financial Mgmt.
Real World Cases
KEY TERMS
BACK NEXT
END
• e-Business Applications
• e-Commerce
• Cross-functional Enterprise
Systems
• Customer Relationship
Management
• Enterprise Resource Planning
• Supply Chain Management
Real World Case 1Salesforce.Com
Copyright 2005, McGraw-Hill/Irwin, Inc.
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Case 1
7-3
Enterprise
Business Systems
Enterprise
Resource Planning
Supply Chain
Management
Transaction
Processing
Systems
Section II
Functional
Business Systems
IT in Business
Marketing
Systems
Human Resource
Systems
Accounting
Systems
Financial Mgmt.
Enterprise
Business Systems
New Product
Development Process
Customer Market Market Component Product Product
Release
Test
Design
Feedback Research Test
Process Equipment Production
Start
Design
Design
Real World Cases
KEY TERMS
BACK NEXT
Marketing
R&D/Engineering
Manufacturing
END
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7-4
Enterprise
Business Systems
Enterprise Resource Planning
Internal Business Processes
Customer Relationship Management
Marketing – Sales - Service
Partners
Supply Chain Management
Sourcing - Procurement
Partner Relationship Management
Selling – Distribution
Suppliers
Knowledge Management
Collaboration – Decision Support
Real World Cases
Enterprise Application Architecture
Employees
Enterprise
Business Systems
Enterprise
Resource Planning
Supply Chain
Management
Transaction
Processing
Systems
Section II
Functional
Business Systems
IT in Business
Marketing
Systems
Human Resource
Systems
Accounting
Systems
Financial Mgmt.
KEY TERMS
Customers
BACK NEXT
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
7-5
Enterprise
Business Systems
Enterprise
Business Systems
Enterprise
Resource Planning
Supply Chain
Management
Transaction
Processing
Systems
Section II
Functional
Business Systems
IT in Business
Marketing
Systems
Human Resource
Systems
Accounting
Systems
Financial Mgmt.
Real World Cases
KEY TERMS
BACK NEXT
IBM Corporation: Global CrossFunctional Enterprise Systems
• Created Real-time Configure-to-Order
System
• Enterprise e-Business Systems Need End-toEnd 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
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
7-6
Enterprise
Business Systems
Enterprise
Resource Planning
Supply Chain
Management
Transaction
Processing
Systems
Section II
Functional
Business Systems
IT in Business
Marketing
Systems
Human Resource
Systems
Accounting
Systems
Financial Mgmt.
Enterprise
Resource Planning
The Technological Backbone
of e-Business
Production
Planning
Sales,
Distribution,
Order
Management
Customer/
Employee
Human
Resources
Real World Cases
Integrated
Logistics
Accounting
and Finance
KEY TERMS
BACK NEXT
END
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7-7
Enterprise
Resource Planning
Enterprise
Business Systems
Enterprise
Resource Planning
Supply Chain
Management
Transaction
Processing
Systems
Section II
Functional
Business Systems
IT in Business
Marketing
Systems
Human Resource
Systems
Accounting
Systems
Financial Mgmt.
Real World Cases
KEY TERMS
BACK NEXT
END
Colgate-Palmolive: The
Business Value of ERP
• 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…
Copyright 2005, McGraw-Hill/Irwin, Inc.
7-8
Enterprise
Resource Planning
Colgate-Palmolive: The
Business Value of ERP
Demand
Planning
Manufacturing
Planning
Logistics
Planning
Distribution
Planning
MRP
Inbound
Inventory
Plant Mgmt.
Manufacturing
& Production
Scheduling
Inventory
Control &
Warehousing
Finance and Accounting
KEY TERMS
Human Resources
Distribution
& Accounts
Receivable
Customers
Purchasing
& Accounts
Payable
Real World Cases
BACK NEXT
Order
Entry
Enterprise Resource Planning
Suppliers
Enterprise
Business Systems
Enterprise
Resource Planning
Supply Chain
Management
Transaction
Processing
Systems
Section II
Functional
Business Systems
IT in Business
Marketing
Systems
Human Resource
Systems
Accounting
Systems
Financial Mgmt.
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
7-9
Enterprise
Business Systems
Enterprise
Resource Planning
Supply Chain
Management
Transaction
Processing
Systems
Section II
Functional
Business Systems
IT in Business
Marketing
Systems
Human Resource
Systems
Accounting
Systems
Financial Mgmt.
Real World Cases
KEY TERMS
BACK NEXT
END
Enterprise
Resource Planning
Benefits of ERP
• Quality and Efficiency
• Decreased Costs
• Decision Support
• Enterprise Agility
Failures in ERP Do Exist
Copyright 2005, McGraw-Hill/Irwin, Inc.
7-10
Enterprise
Resource Planning
Enterprise
Business Systems
Enterprise
Resource Planning
Supply Chain
Management
Transaction
Processing
Systems
Section II
Functional
Business Systems
IT in Business
Marketing
Systems
Human Resource
Systems
Accounting
Systems
Financial Mgmt.
Real World Cases
KEY TERMS
BACK NEXT
END
Sobeys Inc.: Failure in ERP
Implementation
• 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
Copyright 2005, McGraw-Hill/Irwin, Inc.
7-11
Enterprise
Resource Planning
Enterprise
Business Systems
Enterprise
Resource Planning
Supply Chain
Management
Transaction
Processing
Systems
Section II
Functional
Business Systems
IT in Business
Marketing
Systems
Human Resource
Systems
Accounting
Systems
Financial Mgmt.
Real World Cases
KEY TERMS
BACK NEXT
END
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
Copyright 2005, McGraw-Hill/Irwin, Inc.
7-12
CRM: The Business Focus
Enterprise
Business Systems
Enterprise
Resource Planning
Supply Chain
Management
Transaction
Processing
Systems
Section II
Functional
Business Systems
IT in Business
Marketing
Systems
Human Resource
Systems
Accounting
Systems
Financial Mgmt.
Real World Cases
KEY TERMS
BACK NEXT
END
Supports an Integrated and
Collaborative Relationship Between
a Business and it’s Customers
Customer
Life Cycle
CRM
Functional
Solutions
Acquire
Direct Marketing
Enhance
Retain
Cross-sell and Up-sell
Proactive Service
Sales Force Automation
Customer Support
The Internet
Shared
Customer Data
CRM
Integrated
Solution
Partner
Copyright 2005, McGraw-Hill/Irwin, Inc.
Collaborative
Service
Company
Customer
7-13
CRM: The Business Focus
Enterprise
Business Systems
Enterprise
Resource Planning
Supply Chain
Management
Transaction
Processing
Systems
Section II
Functional
Business Systems
IT in Business
Marketing
Systems
Human Resource
Systems
Accounting
Systems
Financial Mgmt.
CRM Uses IT to Create a CrossFunctional Enterprise System
Marketing and
Fulfillment
Fax
Sales
•Cross-Sell
•Up-Sell
Customer
Service and
Support
e-Mail
Prospect or
Employee
Telephone
Web
Contact and
Account
Management
Real World Cases
Retention
and Loyalty
Programs
KEY TERMS
BACK NEXT
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
7-14
CRM: The Business Focus
Enterprise
Business Systems
Enterprise
Resource Planning
Supply Chain
Management
Transaction
Processing
Systems
Section II
Functional
Business Systems
IT in Business
Marketing
Systems
Human Resource
Systems
Accounting
Systems
Financial Mgmt.
Real World Cases
KEY TERMS
BACK NEXT
END
Telstra Corporation: The
Business Value of CRM
• Provides Fixed, Wireless, and eCommerce 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
Copyright 2005, McGraw-Hill/Irwin, Inc.
7-15
CRM: The Business Focus
Enterprise
Business Systems
Enterprise
Resource Planning
Supply Chain
Management
Transaction
Processing
Systems
Section II
Functional
Business Systems
IT in Business
Marketing
Systems
Human Resource
Systems
Accounting
Systems
Financial Mgmt.
Real World Cases
KEY TERMS
BACK NEXT
END
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
Copyright 2005, McGraw-Hill/Irwin, Inc.
7-16
CRM: The Business Focus
Enterprise
Business Systems
Enterprise
Resource Planning
Supply Chain
Management
Transaction
Processing
Systems
Section II
Functional
Business Systems
IT in Business
Marketing
Systems
Human Resource
Systems
Accounting
Systems
Financial Mgmt.
Real World Cases
KEY TERMS
BACK NEXT
END
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
Copyright 2005, McGraw-Hill/Irwin, Inc.
7-17
Enterprise
Business Systems
Enterprise
Resource Planning
Supply Chain
Management
Transaction
Processing
Systems
Section II
Functional
Business Systems
IT in Business
Marketing
Systems
Human Resource
Systems
Accounting
Systems
Financial Mgmt.
Real World Cases
KEY TERMS
BACK NEXT
END
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
Copyright 2005, McGraw-Hill/Irwin, Inc.
7-18
Enterprise
Business Systems
Enterprise
Resource Planning
Supply Chain
Management
Transaction
Processing
Systems
Section II
Functional
Business Systems
IT in Business
Marketing
Systems
Human Resource
Systems
Accounting
Systems
Financial Mgmt.
Real World Cases
KEY TERMS
BACK NEXT
END
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
Copyright 2005, McGraw-Hill/Irwin, Inc.
7-19
SCM: The Business Network
Enterprise
Business Systems
Enterprise
Resource Planning
Supply Chain
Management
Transaction
Processing
Systems
Section II
Functional
Business Systems
IT in Business
Marketing
Systems
Human Resource
Systems
Accounting
Systems
Financial Mgmt.
Real World Cases
KEY TERMS
BACK NEXT
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
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
7-20
SCM: The Business Network
Enterprise
Business Systems
Enterprise
Resource Planning
Supply Chain
Management
Transaction
Processing
Systems
Section II
Functional
Business Systems
IT in Business
Marketing
Systems
Human Resource
Systems
Accounting
Systems
Financial Mgmt.
Real World Cases
KEY TERMS
BACK NEXT
END
SCM Software Helps Firms Reengineer and
Integrate The Functional SCM Processes
Supply Chain
Life Cycle
Commit
Schedule
Make
Deliver
Forecast and Demand Planning
Strategic Sourcing
and Procurement Customer Order Fulfillment Service
SCM
Functional
Processes
Distribution Network and Warehouse Operations
Production
Logistics
Transportation and Shipment
Management
The Internet
Shared
Market Data
SCM
Integrated
Solution
Supplier
Copyright 2005, McGraw-Hill/Irwin, Inc.
Manufacturer
Collaborative
Fulfillment
Retailer
Customer
7-21
Enterprise
Business Systems
Enterprise
Resource Planning
Supply Chain
Management
Transaction
Processing
Systems
Section II
Functional
Business Systems
IT in Business
Marketing
Systems
Human Resource
Systems
Accounting
Systems
Financial Mgmt.
Real World Cases
KEY TERMS
BACK NEXT
END
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
Copyright 2005, McGraw-Hill/Irwin, Inc.
7-22
Enterprise
Business Systems
Enterprise
Resource Planning
Supply Chain
Management
Transaction
Processing
Systems
Section II
Functional
Business Systems
IT in Business
Marketing
Systems
Human Resource
Systems
Accounting
Systems
Financial Mgmt.
Real World Cases
KEY TERMS
BACK NEXT
END
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
Copyright 2005, McGraw-Hill/Irwin, Inc.
7-23
SCM: The Business Network
Enterprise
Business Systems
Enterprise
Resource Planning
Supply Chain
Management
Transaction
Processing
Systems
Section II
Functional
Business Systems
IT in Business
Marketing
Systems
Human Resource
Systems
Accounting
Systems
Financial Mgmt.
Real World Cases
Objectives of Supply Chain
Management
Business Value Goals
Rapid Demand Fulfillment
Collaborative Supply
Chain Planning and
Execution
Interenterprise
Coordination of
Manufacturing and
Business Process
Customer Value Goals
Give customers what they
want, when and how they
want it, at the lowest cost
Effective
Responsiveness and
Distribution and
Accountability
Channel Partnerships
to Customers
KEY TERMS
BACK NEXT
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
7-24
SCM: The Business Network
Enterprise
Business Systems
Enterprise
Resource Planning
Supply Chain
Management
Transaction
Processing
Systems
Section II
Functional
Business Systems
IT in Business
Marketing
Systems
Human Resource
Systems
Accounting
Systems
Financial Mgmt.
Real World Cases
KEY TERMS
BACK NEXT
END
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
Copyright 2005, McGraw-Hill/Irwin, Inc.
7-25
Enterprise Application
Integration
Enterprise
Business Systems
Enterprise
Resource Planning
Supply Chain
Management
Transaction
Processing
Systems
Section II
Functional
Business Systems
IT in Business
Marketing
Systems
Human Resource
Systems
Accounting
Systems
Financial Mgmt.
Real World Cases
EAI Software Connects Major
e-Business Applications Like
CRM and ERP
Front-Office
CRM Applications
Customer Service
Field Service
Product Configuration
Sales Order Entry
Enterprise
Application
Integration
EAI
Back-Office
ERP Applications
Distribution
Manufacturing
Scheduling
Finance
KEY TERMS
BACK NEXT
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
7-26
Enterprise Application
Integration
Enterprise
Business Systems
Enterprise
Resource Planning
Supply Chain
Management
Transaction
Processing
Systems
Section II
Functional
Business Systems
IT in Business
Marketing
Systems
Human Resource
Systems
Accounting
Systems
Financial Mgmt.
Real World Cases
KEY TERMS
BACK NEXT
END
Dell Computer: 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
Copyright 2005, McGraw-Hill/Irwin, Inc.
7-27
Enterprise
Business Systems
Enterprise
Resource Planning
Supply Chain
Management
Transaction
Processing
Systems
Section II
Functional
Business Systems
IT in Business
Marketing
Systems
Human Resource
Systems
Accounting
Systems
Financial Mgmt.
Real World Cases
Enterprise Application
Order Entry Integration
Method
Billing
Finance
e - Mail
Fax
Web
Mail
EAI
Orders &
Fulfillment
Routing
Phone
KEY TERMS
BACK NEXT
Call Center
Manufacturing
Shipping
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
7-28
Transaction Processing
System
Enterprise
Business Systems
Enterprise
Resource Planning
Supply Chain
Management
Transaction
Processing
Systems
Section II
Functional
Business Systems
IT in Business
Marketing
Systems
Human Resource
Systems
Accounting
Systems
Financial Mgmt.
Capture and Process Transactions Immediately
Cable Company A
Cable Company B
San Francisco
Video
Server
Video
Server
Host System
Host System
Phone System
The Internet
Syntellect Interactive Systems
Interactive
Voice Response
System
Web
Servers
Fax
Servers
Middleware
Real World Cases
Communication
Servers
KEY TERMS
BACK NEXT
New York
Database
Servers
Application
Servers
Communication
Servers
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
7-29
Transaction Processing
System
Enterprise
Business Systems
Enterprise
Resource Planning
Supply Chain
Management
Transaction
Processing
Systems
Section II
Functional
Business Systems
IT in Business
Marketing
Systems
Human Resource
Systems
Accounting
Systems
Financial Mgmt.
Real World Cases
KEY TERMS
BACK NEXT
END
Syntellect’s Online Transaction
Processing
• Used for Cable Pay-PerView Events
• Access by Phone or the
WWW
• Database Captures,
Processes and Updates
• Teams with over 700 Cable
Companies
Copyright 2005, McGraw-Hill/Irwin, Inc.
7-30
Transaction Processing Cycle
Enterprise
Business Systems
Enterprise
Resource Planning
Supply Chain
Management
Transaction
Processing
Systems
Section II
Functional
Business Systems
IT in Business
Marketing
Systems
Human Resource
Systems
Accounting
Systems
Financial Mgmt.
Capture and Processing Data,
Updating Databases, and Produce
Information Products
Data
Entry
Transaction
Processing
•Batch
•Online/
Real-Time
Database
Maintenance
Real World Cases
Document
and Report
Generation
Inquiry
Processing
KEY TERMS
BACK NEXT
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
7-31
Enterprise
Business Systems
Enterprise
Resource Planning
Supply Chain
Management
Transaction
Processing
Systems
Section II
Functional
Business Systems
IT in Business
Marketing
Systems
Human Resource
Systems
Accounting
Systems
Financial Mgmt.
Real World Cases
KEY TERMS
BACK NEXT
END
Enterprise Collaboration
Systems
ECS Enables Working
Together by Helping Us to:
•Communicate
•Coordinate
•Collaborate
Tools for Enterprise
Collaboration…
Copyright 2005, McGraw-Hill/Irwin, Inc.
7-32
Enterprise Collaboration
Systems
Enterprise
Business Systems
Enterprise
Resource Planning
Supply Chain
Management
Transaction
Processing
Systems
Section II
Functional
Business Systems
IT in Business
Marketing
Systems
Human Resource
Systems
Accounting
Systems
Financial Mgmt.
Real World Cases
KEY TERMS
BACK NEXT
Tools for Enterprise Collaboration
Enterprise
Collaboration
Systems
Electronic
Communications
Tools
•e-Mail
•Instant Messaging
•Voice Mail
•Faxing
•Web Publishing
•Paging
Electronic
Conferencing
Tools
Collaborative
Work
Management
Tools
• Data Conferencing
• Calendaring and
• Voice Conferencing
• Videoconferencing
• Discussion Forums
Copyright 2005, McGraw-Hill/Irwin, Inc.
• Task and Project
Management
• Chat Systems
• Workflow Systems
• Electronic Meeting
• Document Sharing
Systems
END
Scheduling
• Knowledge Management
7-33
Enterprise Collaboration
Systems
Enterprise
Business Systems
Enterprise
Resource Planning
Supply Chain
Management
Transaction
Processing
Systems
Section II
Functional
Business Systems
IT in Business
Marketing
Systems
Human Resource
Systems
Accounting
Systems
Financial Mgmt.
QuickPlace by Lotus Development
Collaborative Software Screenshot
Real World Cases
KEY TERMS
BACK NEXT
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
7-34
Enterprise Collaboration
Systems
Enterprise
Business Systems
Enterprise
Resource Planning
Supply Chain
Management
Transaction
Processing
Systems
Section II
Functional
Business Systems
IT in Business
Marketing
Systems
Human Resource
Systems
Accounting
Systems
Financial Mgmt.
Real World Cases
KEY TERMS
BACK NEXT
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
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
7-35
Functional Business
Systems
Enterprise
Business Systems
Enterprise
Resource Planning
Supply Chain
Management
Transaction
Processing
Systems
Section II
Functional
Business Systems
IT in Business
Marketing
Systems
Human Resource
Systems
Accounting
Systems
Financial Mgmt.
Real World Cases
KEY TERMS
BACK NEXT
END
• Variety of Types of
Information Systems that
Support Business Functions
• Identification of Business
Value Created
• Analysis of Challenges to
Implementation
Real World Case 2GE Power and Corporate Click to go to
Case 2
Express
Copyright 2005, McGraw-Hill/Irwin, Inc.
7-36
Enterprise
Business Systems
Enterprise
Resource Planning
Supply Chain
Management
Transaction
Processing
Systems
Section II
Functional
Business Systems
IT in Business
Marketing
Systems
Human Resource
Systems
Accounting
Systems
Financial Mgmt.
Real World Cases
KEY TERMS
BACK NEXT
END
Functional Business
Systems
Examples of
Functional
Business
Information
Systems
Marketing
• Customer
relationship
management
• Interactive
marketing
• Sales force
automation
Production
Operations
• Manufacturing
resource planning
• Manufacturing
execution systems
• Process control
•
•
•
•
•
•
Human Resource
Management
Functional
Business
Systems
• Compensation
analysis
• Employee skills
inventory
• Personnel
requirements
forecasting
Order processing
Inventory control
Accounts receivable
Accounts payable
Payroll
General ledger
• Cash management
• Credit management
• Investment
management
• Capital budgeting
• Financial forecasting
Accounting
Finance
Copyright 2005, McGraw-Hill/Irwin, Inc.
7-37
Marketing Systems
Enterprise
Business Systems
Enterprise
Resource Planning
Supply Chain
Management
Transaction
Processing
Systems
Section II
Functional
Business Systems
IT in Business
Marketing
Systems
Human Resource
Systems
Accounting
Systems
Financial Mgmt.
Real World Cases
Marketing Information Systems
Market
Information
Systems
Interactive
Marketing
Sales Force
Automation
Market
Research and
Forecasting
Customer
Relationship
Management
Advertising
and Promotion
Sales
Management
Product
Management
KEY TERMS
BACK NEXT
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
7-38
Marketing Systems
Enterprise
Business Systems
Enterprise
Resource Planning
Supply Chain
Management
Transaction
Processing
Systems
Section II
Functional
Business Systems
IT in Business
Marketing
Systems
Human Resource
Systems
Accounting
Systems
Financial Mgmt.
Five Major Components of
Target Marketing
Online
Behavior
Demographic/
Psychographic
Community
Context
Content
Real World Cases
KEY TERMS
BACK NEXT
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
7-39
Marketing Systems
Enterprise
Business Systems
Enterprise
Resource Planning
Supply Chain
Management
Transaction
Processing
Systems
Section II
Functional
Business Systems
IT in Business
Marketing
Systems
Human Resource
Systems
Accounting
Systems
Financial Mgmt.
Real World Cases
KEY TERMS
BACK NEXT
END
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
Copyright 2005, McGraw-Hill/Irwin, Inc.
7-40
Marketing Systems
Enterprise
Business Systems
Enterprise
Resource Planning
Supply Chain
Management
Transaction
Processing
Systems
Section II
Functional
Business Systems
IT in Business
Marketing
Systems
Human Resource
Systems
Accounting
Systems
Financial Mgmt.
Real World Cases
KEY TERMS
BACK NEXT
END
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
Copyright 2005, McGraw-Hill/Irwin, Inc.
7-41
Marketing Systems
Enterprise
Business Systems
Enterprise
Resource Planning
Supply Chain
Management
Transaction
Processing
Systems
Section II
Functional
Business Systems
IT in Business
Marketing
Systems
Human Resource
Systems
Accounting
Systems
Financial Mgmt.
Web-Based Salesforce.com
Automation Package
Real World Cases
KEY TERMS
BACK NEXT
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
7-42
Manufacturing Systems
Enterprise
Business Systems
Enterprise
Resource Planning
Supply Chain
Management
Transaction
Processing
Systems
Section II
Functional
Business Systems
IT in Business
Marketing
Systems
Human Resource
Systems
Accounting
Systems
Financial Mgmt.
Real World Cases
KEY TERMS
BACK NEXT
END
Computer-Integrated
Manufacturing (CIM)
• Simplify
• Automate
• Integrate
Flexible Manufacturing Systems
Agile Manufacturing
Total Quality Management
Computer-Aided Engineering
(CAE)
Computer-Aided Manufacturing
(CAM)
Copyright 2005, McGraw-Hill/Irwin, Inc.
7-43
Enterprise
Business Systems
Enterprise
Resource Planning
Supply Chain
Management
Transaction
Processing
Systems
Section II
Functional
Business Systems
IT in Business
Marketing
Systems
Human Resource
Systems
Accounting
Systems
Financial Mgmt.
Enterprise Resource Planning
Manufacturing Systems
Manufacturing
Resources
Planning Systems
Manufacturing
Execution
Systems
Production
Forecasting
Shop Floor
Scheduling
Production
Scheduling
Material
Requirements
Planning
Shop Floor
Control
Quality
Control
Computer-Aided
Design
Computer-Aided
Engineering
Machine Control
Capacity
Planning
Production
Cost Control
Engineering
Systems
Computer-Aided
Process Planning
Robotics Control
Process Control
Product
Simulation and
Prototyping
Real World Cases
KEY TERMS
BACK NEXT
END
Computer-Integrated Manufacturing
Copyright 2005, McGraw-Hill/Irwin, Inc.
7-44
Manufacturing Systems
Enterprise
Business Systems
Enterprise
Resource Planning
Supply Chain
Management
Transaction
Processing
Systems
Section II
Functional
Business Systems
IT in Business
Marketing
Systems
Human Resource
Systems
Accounting
Systems
Financial Mgmt.
Real World Cases
KEY TERMS
BACK NEXT
END
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
Copyright 2005, McGraw-Hill/Irwin, Inc.
7-45
Human Resources Systems
Enterprise
Business Systems
Enterprise
Resource Planning
Supply Chain
Management
Transaction
Processing
Systems
Section II
Functional
Business Systems
IT in Business
Marketing
Systems
Human Resource
Systems
Accounting
Systems
Financial Mgmt.
Real World Cases
KEY TERMS
BACK NEXT
END
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
Copyright 2005, McGraw-Hill/Irwin, Inc.
7-46
Enterprise
Business Systems
Enterprise
Resource Planning
Supply Chain
Management
Transaction
Processing
Systems
Section II
Functional
Business Systems
IT in Business
Marketing
Systems
Human Resource
Systems
Accounting
Systems
Financial Mgmt.
Real World Cases
KEY TERMS
BACK NEXT
Human Resources Systems
Supports…
Staffing
Training and
Development
Strategic
Systems
• Human resource
planning
• Labor force
tracking
• Succession
planning
• Performance
appraisal
planning
Tactical
Systems
• Labor cost
analysis and
budgeting
• Turnover
analysis
• Training
effectiveness
• Career
matching
• Recruiting
• Workforce
planning/
• scheduling
• Skill assessment
• Performance
evaluations
Operational
Systems
Compensation
Administration
• Contract
costing
• Salary
forecasting
• Compensation
effectiveness
and equity
analysis
• Benefit
preference
analysis
• Payroll control
• Benefits
administration
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
7-47
Enterprise
Business Systems
Enterprise
Resource Planning
Supply Chain
Management
Transaction
Processing
Systems
Section II
Functional
Business Systems
IT in Business
Marketing
Systems
Human Resource
Systems
Accounting
Systems
Financial Mgmt.
Human Resources Systems
An Example of an Employee
Hiring Review System
Real World Cases
KEY TERMS
BACK NEXT
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
7-48
Human Resources Systems
Enterprise
Business Systems
Enterprise
Resource Planning
Supply Chain
Management
Transaction
Processing
Systems
Section II
Functional
Business Systems
IT in Business
Marketing
Systems
Human Resource
Systems
Accounting
Systems
Financial Mgmt.
Real World Cases
KEY TERMS
BACK NEXT
END
Charles Schwab & Co.: WebBased Human Resource Systems
• 23,000 Employees Access
Detailed HR Data
• Intranet Benefits
Employees Searches
• Savings of Hundreds of
Thousands Yearly
• Employees Use Online
eForms
Copyright 2005, McGraw-Hill/Irwin, Inc.
7-49
Accounting Systems
Enterprise
Business Systems
Enterprise
Resource Planning
Supply Chain
Management
Transaction
Processing
Systems
Section II
Functional
Business Systems
IT in Business
Marketing
Systems
Human Resource
Systems
Accounting
Systems
Financial Mgmt.
Real World Cases
KEY TERMS
BACK NEXT
END
• Record and Report Business
Transactions
• Trace Flows of Funds
Through a Business
• Produce Financial
Statements
• Forecasts of Future
Conditions
• Projected Financial
Statements
• Financial Budgets
Copyright 2005, McGraw-Hill/Irwin, Inc.
7-50
Accounting Systems
Enterprise
Business Systems
Enterprise
Resource Planning
Supply Chain
Management
Transaction
Processing
Systems
Section II
Functional
Business Systems
IT in Business
Marketing
Systems
Human Resource
Systems
Accounting
Systems
Financial Mgmt.
Real World Cases
Accounting Information Systems for
Transaction Processing and
Financial Reporting
Sales
Order
Processing
Billing
Cash
Receipts
Cash Receipts and
Disbursements Transaction
Processing System
Sales
Analysis
Accounts
Payable
Cash
Disbursements
General
Ledger
Financial
Reporting
General Ledger
Processing and
Reporting System
Sales Transaction
Processing System
Purchases
Transaction
Processing
System
KEY TERMS
BACK NEXT
Accounts
Receivable
Purchases
Inventory
Processing
Payroll
Timekeeping
Payroll
Transaction
Processing
System
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
7-51
Accounting Systems
Enterprise
Business Systems
Enterprise
Resource Planning
Supply Chain
Management
Transaction
Processing
Systems
Section II
Functional
Business Systems
IT in Business
Marketing
Systems
Human Resource
Systems
Accounting
Systems
Financial Mgmt.
Real World Cases
KEY TERMS
BACK NEXT
END
Examples of Widely Used
Accounting Information Systems
• Order Processing
• Inventory Control
• Accounts Receivable
• Accounts Payable
• Payroll
• General Ledger
Copyright 2005, McGraw-Hill/Irwin, Inc.
7-52
Accounting Systems
Enterprise
Business Systems
Enterprise
Resource Planning
Supply Chain
Management
Transaction
Processing
Systems
Section II
Functional
Business Systems
IT in Business
Marketing
Systems
Human Resource
Systems
Accounting
Systems
Financial Mgmt.
An On-line Accounting Report
Real World Cases
KEY TERMS
BACK NEXT
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
7-53
Enterprise
Business Systems
Enterprise
Resource Planning
Supply Chain
Management
Transaction
Processing
Systems
Section II
Functional
Business Systems
IT in Business
Marketing
Systems
Human Resource
Systems
Accounting
Systems
Financial Mgmt.
Real World Cases
KEY TERMS
BACK NEXT
END
Financial Management
Systems
Support Business
Decision Makers in:
•Financing a Business
•The Allocation and
Control of Financial
Resources
Capital Budgeting
Financial Planning
Software
Copyright 2005, McGraw-Hill/Irwin, Inc.
7-54
Financial Management
Systems
Enterprise
Business Systems
Enterprise
Resource Planning
Supply Chain
Management
Transaction
Processing
Systems
Section II
Functional
Business Systems
IT in Business
Marketing
Systems
Human Resource
Systems
Accounting
Systems
Financial Mgmt.
Real World Cases
Important Financial Management
Systems
Information
Systems in
Finance
Cash
Management
Investment
Management
Capital
Budgeting
Financial
Planning
• Forecast and
Manage cash
position
• Manage shortterm and other
securities
• Evaluate
risk/return of
capital
expenditures
• Forecast
financial
performance
and financing
needs
KEY TERMS
BACK NEXT
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
7-55
Financial Management
Systems
Enterprise
Business Systems
Enterprise
Resource Planning
Supply Chain
Management
Transaction
Processing
Systems
Section II
Functional
Business Systems
IT in Business
Marketing
Systems
Human Resource
Systems
Accounting
Systems
Financial Mgmt.
Strategic Financial Planning
Real World Cases
KEY TERMS
BACK NEXT
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
7-56
Summary
Enterprise
Business Systems
Enterprise
Resource Planning
Supply Chain
Management
Transaction
Processing
Systems
Section II
Functional
Business Systems
IT in Business
Marketing
Systems
Human Resource
Systems
Accounting
Systems
Financial Mgmt.
Real World Cases
KEY TERMS
BACK NEXT
END
• Cross-Functional Enterprise
Systems
• Enterprise Resource Planning
(ERP): The Business Backbone
• Customer Relationship
Management: The Business Focus
• Supply Chain Management: The
Business Network
• Transaction Processing Systems
• Functional Business Systems
• Marketing
• Manufacturing
• Human Resource Management
• Accounting and Finance
Copyright 2005, McGraw-Hill/Irwin, Inc.
7-57
KEY TERMS
Enterprise
Business Systems
Enterprise
Resource Planning
Supply Chain
Management
Transaction
Processing
Systems
Section II
Functional
Business Systems
IT in Business
Marketing
Systems
Human Resource
Systems
Accounting
Systems
Financial Mgmt.
Real World Cases
KEY TERMS
BACK NEXT
END
Accounting Systems
Accounts Payable
Accounts Receivable
Batch Processing
Computer-Aided Manufacturing
Computer-Integrated Manufacturing
Cross-Functional Enterprise Systems
Customer Relationship Management
a.
b.
Application Components
Business Benefits
e-Business
Enterprise Application Architecture
Enterprise Application Integration
Enterprise Collaboration Systems
Enterprise Resource Planning
a.
b.
Application Components
Business Benefits
Financial Management Systems
Functional Business Systems
General Ledger
Human Resource Systems
Interactive Marketing
Copyright 2005, McGraw-Hill/Irwin, Inc.
Inventory Control
Machine Control
Manufacturing Execution
Systems
Manufacturing Systems
Marketing Systems
Online Accounting Systems
Online HRM Systems
Online Transaction Processing
Systems
Order Processing
Payroll
Process Control
Real-time Processing
Robotics
Sales Force Automation
Supply Chain
Supply Chain Management
a. Application Components
b. Business Benefits
Targeted Marketing
Transaction Processing Cycle
7-58
Optional Case Studies
Real World Case 1
Enterprise
Business Systems
Enterprise
Resource Planning
Supply Chain
Management
Transaction
Processing
Systems
Section II
Functional
Business Systems
IT in Business
Marketing
Systems
Human Resource
Systems
Accounting
Systems
Financial Mgmt.
Real World Cases
KEY TERMS
BACK NEXT
END
Salesforce.Com and Others:
Challenges of Customer Relationship Management Systems
Click to go to
Case 1
Real World Case 2
GE Power Systems and Corporate
Express: The Business Case for
Enterprise Application Integration
Click to go to
Case 2
Real World Case 3
Welch’s, Straightline, Skyworks,
and Pella: The Business Value of
Supply Chain Management
Click to go to
Case 3
Real World Case 4
Lowe Worldwide and HP: The
Business Case for Swarming
Collaboration
Copyright 2005, McGraw-Hill/Irwin, Inc.
Click to go to
Case 4
7-59
Enterprise
Business Systems
Enterprise
Resource Planning
Supply Chain
Management
Transaction
Processing
Systems
Section II
Functional
Business Systems
IT in Business
Marketing
Systems
Human Resource
Systems
Accounting
Systems
Financial Mgmt.
Electronic Commerce
Real World Cases
Chapter 8
KEY TERMS
BACK NEXT
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
7-60
Enterprise
Business Systems
Enterprise
Resource Planning
Supply Chain
Management
Transaction
Processing
Systems
Section II
Functional
Business Systems
IT in Business
Marketing
Systems
Human Resource
Systems
Accounting
Systems
Financial Mgmt.
Salesforce.Com and Others:
Challenges of Customer
Relationship Management
Systems
1- Why have traditional CRM
software implementations
been so problematic for many
businesses?
Return to
Chapter 7
Real World Cases
KEY TERMS
BACK NEXT
Return to
Cases Page
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
7-61
Enterprise
Business Systems
Enterprise
Resource Planning
Supply Chain
Management
Transaction
Processing
Systems
Section II
Functional
Business Systems
IT in Business
Marketing
Systems
Human Resource
Systems
Accounting
Systems
Financial Mgmt.
Real World Cases
KEY TERMS
BACK NEXT
END
Salesforce.Com and Others:
Challenges of Customer
Relationship Management
Systems
Discussion Points Would Include:
• CRM Software Too
Expensive
• CRM Too Complicated
• CRM Implementation
Too Long
Copyright 2005, McGraw-Hill/Irwin, Inc.
7-62
Enterprise
Business Systems
Enterprise
Resource Planning
Supply Chain
Management
Transaction
Processing
Systems
Section II
Functional
Business Systems
IT in Business
Marketing
Systems
Human Resource
Systems
Accounting
Systems
Financial Mgmt.
Salesforce.Com and Others:
Challenges of Customer
Relationship Management
Systems
2- What are the benefits and
drawbacks of the Salesforce
Web-based CRM services
approach?
Real World Cases
KEY TERMS
BACK NEXT
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
7-63
Enterprise
Business Systems
Enterprise
Resource Planning
Supply Chain
Management
Transaction
Processing
Systems
Section II
Functional
Business Systems
IT in Business
Marketing
Systems
Human Resource
Systems
Accounting
Systems
Financial Mgmt.
Real World Cases
KEY TERMS
BACK NEXT
END
Salesforce.Com and Others:
Challenges of Customer
Relationship Management
Systems
Benefits Would Include:
•Deal with Few Consultants
•No Hardware or IT Labor
Costs
•Access Software Over Web
•Payment Based On User
Numbers
•New Version Upgraded for
All
Copyright 2005, McGraw-Hill/Irwin, Inc.
7-64
Enterprise
Business Systems
Enterprise
Resource Planning
Supply Chain
Management
Transaction
Processing
Systems
Section II
Functional
Business Systems
IT in Business
Marketing
Systems
Human Resource
Systems
Accounting
Systems
Financial Mgmt.
Real World Cases
KEY TERMS
BACK NEXT
END
Salesforce.Com and Others:
Challenges of Customer
Relationship Management
Systems
Disadvantages Would Include:
•Businesses Resist “Rent-anApp” Idea
•Security Concerns
•Lack of Control Concerns
•Problems with Customizing
•Difficulty of Software
Integration
Copyright 2005, McGraw-Hill/Irwin, Inc.
7-65
Enterprise
Business Systems
Enterprise
Resource Planning
Supply Chain
Management
Transaction
Processing
Systems
Section II
Functional
Business Systems
IT in Business
Marketing
Systems
Human Resource
Systems
Accounting
Systems
Financial Mgmt.
Real World Cases
Salesforce.Com and Others:
Challenges of Customer
Relationship Management
Systems
3- Which approach do you
prefer? Why? Visit the
websites of Salesforce.com
and Siebel Systems for more
information and customer
examples of their CRM
systems.
KEY TERMS
BACK NEXT
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
7-66
Enterprise
Business Systems
Enterprise
Resource Planning
Supply Chain
Management
Transaction
Processing
Systems
Section II
Functional
Business Systems
IT in Business
Marketing
Systems
Human Resource
Systems
Accounting
Systems
Financial Mgmt.
Salesforce.Com and Others:
Challenges of Customer
Relationship Management
Systems
Discussion Points Would Include:
•Buy vs. Rent Options
•Security and Control Concerns
•Customizing
•Web-based CRM Integration
Return to
Chapter 7
Real World Cases
KEY TERMS
BACK NEXT
Return to
Cases Page
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
7-67
Enterprise
Business Systems
Enterprise
Resource Planning
Supply Chain
Management
Transaction
Processing
Systems
Section II
Functional
Business Systems
IT in Business
Marketing
Systems
Human Resource
Systems
Accounting
Systems
Financial Mgmt.
Real World Cases
KEY TERMS
BACK NEXT
Salesforce.Com and Others:
Challenges of Customer
Relationship Management
Systems
Discussion Points Would Include:
•Buy vs. Rent Options
•Security and Control Concerns
•Customizing
•Web-based CRM Integration
•Full-fledged vs.
“stripped-down”
CRM system
Return to
Chapter 7
Return to
Cases Page
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
7-68
Enterprise
Business Systems
Enterprise
Resource Planning
Supply Chain
Management
Transaction
Processing
Systems
Section II
Functional
Business Systems
IT in Business
Marketing
Systems
Human Resource
Systems
Accounting
Systems
Financial Mgmt.
Real World Cases
KEY TERMS
BACK NEXT
GE Power Systems and
Corporate Express: The
Business Case for Enterprise
Application Integration
1- Why has EAI recently “become
a critical part of the IT strategy
at many organizations,” and a
high-ranking project of top IT
executives? Use GE
Power and Corporate
Express as examples.
Return to
Chapter 7
Return to
Cases Page
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
7-69
Enterprise
Business Systems
Enterprise
Resource Planning
Supply Chain
Management
Transaction
Processing
Systems
Section II
Functional
Business Systems
IT in Business
Marketing
Systems
Human Resource
Systems
Accounting
Systems
Financial Mgmt.
Real World Cases
KEY TERMS
BACK NEXT
END
GE Power Systems and
Corporate Express: The
Business Case for Enterprise
Application Integration
Discussion Points Include the Need to:
• To Meld Disparate Systems
• To Integrate Front/Back
Office
• To Deliver Data to All
• For GE to Connect the
Independent Operations
• To Reduce Costs
Internally/Externally
Copyright 2005, McGraw-Hill/Irwin, Inc.
7-70
Enterprise
Business Systems
Enterprise
Resource Planning
Supply Chain
Management
Transaction
Processing
Systems
Section II
Functional
Business Systems
IT in Business
Marketing
Systems
Human Resource
Systems
Accounting
Systems
Financial Mgmt.
GE Power Systems and
Corporate Express: The
Business Case for Enterprise
Application Integration
2- What is the major difference
in the business value of the
EAI projects at GE Power and
Corporate Express?
Real World Cases
KEY TERMS
BACK NEXT
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
7-71
Enterprise
Business Systems
Enterprise
Resource Planning
Supply Chain
Management
Transaction
Processing
Systems
Section II
Functional
Business Systems
IT in Business
Marketing
Systems
Human Resource
Systems
Accounting
Systems
Financial Mgmt.
Real World Cases
KEY TERMS
BACK NEXT
END
GE Power Systems and
Corporate Express: The
Business Case for Enterprise
Application Integration
Major Differences Include:
•
Business Value at GE To:
– Connect Business Units
– Send Data in Real Time
– Improve Data Quality/Accuracy
• Corporate Express’ Business Value
– Not directed To Connecting
Business Units
– Focused on Better Customer
Service
– Reducing Costs/Stay Very
Competitive
Copyright 2005, McGraw-Hill/Irwin, Inc.
7-72
Enterprise
Business Systems
Enterprise
Resource Planning
Supply Chain
Management
Transaction
Processing
Systems
Section II
Functional
Business Systems
IT in Business
Marketing
Systems
Human Resource
Systems
Accounting
Systems
Financial Mgmt.
Real World Cases
GE Power Systems and
Corporate Express: The
Business Case for Enterprise
Application Integration
3- What are some of the
challenges in developing and
implementing EAI systems?
How can companies meet
these challenges?
Return to
Chapter 7
KEY TERMS
BACK NEXT
Return to
Cases Page
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
7-73
Enterprise
Business Systems
Enterprise
Resource Planning
Supply Chain
Management
Transaction
Processing
Systems
Section II
Functional
Business Systems
IT in Business
Marketing
Systems
Human Resource
Systems
Accounting
Systems
Financial Mgmt.
Real World Cases
KEY TERMS
BACK NEXT
END
GE Power Systems and
Corporate Express: The
Business Case for Enterprise
Application Integration
Challenges Would Include:
•Need Specific IT Skills
•Need Coordination in All
Departments
•EAI Costs ($200,000
to $400,000)
Return to
Chapter 7
Return to
Cases Page
Copyright 2005, McGraw-Hill/Irwin, Inc.
7-74
Enterprise
Business Systems
Enterprise
Resource Planning
Supply Chain
Management
Transaction
Processing
Systems
Section II
Functional
Business Systems
IT in Business
Marketing
Systems
Human Resource
Systems
Accounting
Systems
Financial Mgmt.
GE Power Systems and
Corporate Express: The
Business Case for Enterprise
Application Integration
Challenges Could Be Met By:
•In-house IT Training
•Planning/Monitoring
EAI project
Return to
Chapter 7
Real World Cases
KEY TERMS
BACK NEXT
Return to
Cases Page
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
7-75
Enterprise
Business Systems
Enterprise
Resource Planning
Supply Chain
Management
Transaction
Processing
Systems
Section II
Functional
Business Systems
IT in Business
Marketing
Systems
Human Resource
Systems
Accounting
Systems
Financial Mgmt.
Real World Cases
KEY TERMS
BACK NEXT
GE Power Systems and
Corporate Express: The
Business Case for Enterprise
Application Integration
Challenges Could Be Met By:
•In-house IT Training
•Planning/Monitoring
EAI project
•Shift Costs to
Functional Users
Return to
Chapter 7
Return to
Cases Page
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
7-76
Enterprise
Business Systems
Enterprise
Resource Planning
Supply Chain
Management
Transaction
Processing
Systems
Section II
Functional
Business Systems
IT in Business
Marketing
Systems
Human Resource
Systems
Accounting
Systems
Financial Mgmt.
Welch’s - Straightline Skyworks
- and Pella: The Business
Value of Supply Chain
Management
1- What is the business value of
supply chain management
systems for Welch’s and other
companies in the consumer
packaged goods industry?
Real World Cases
KEY TERMS
BACK NEXT
Return to
Cases Page
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
7-77
Enterprise
Business Systems
Enterprise
Resource Planning
Supply Chain
Management
Transaction
Processing
Systems
Section II
Functional
Business Systems
IT in Business
Marketing
Systems
Human Resource
Systems
Accounting
Systems
Financial Mgmt.
Real World Cases
KEY TERMS
BACK NEXT
END
Welch’s - Straightline Skyworks
- and Pella: The Business
Value of Supply Chain
Management
Discussion Points Would Include:
Welch's Company:
• Collaborates Closely With
Customers
• Ensure Products Available at
Retailers
• Creates Orders
• Manages Inventories-1/3 Retail
Customers
• Allows Few Retailers to Double
Product Turns
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Enterprise
Business Systems
Enterprise
Resource Planning
Supply Chain
Management
Transaction
Processing
Systems
Section II
Functional
Business Systems
IT in Business
Marketing
Systems
Human Resource
Systems
Accounting
Systems
Financial Mgmt.
Welch’s - Straightline Skyworks
- and Pella: The Business
Value of Supply Chain
Management
2- What is the business value
of supply chain management
systems for Straightline,
Skyworks, and other
manufacturing companies?
Real World Cases
KEY TERMS
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Enterprise
Business Systems
Enterprise
Resource Planning
Supply Chain
Management
Transaction
Processing
Systems
Section II
Functional
Business Systems
IT in Business
Marketing
Systems
Human Resource
Systems
Accounting
Systems
Financial Mgmt.
Real World Cases
KEY TERMS
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Welch’s - Straightline Skyworks
- and Pella: The Business
Value of Supply Chain
Management
Discussion Points Would Include:
Straightline Company:
•Leveraging Supply-Chain
Optimization Solution
–Help Processors Manage
Inventories
–Compete More Effectively
Overseas
•Selects Inventory Process
Copyright 2005, McGraw-Hill/Irwin, Inc.
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Enterprise
Business Systems
Enterprise
Resource Planning
Supply Chain
Management
Transaction
Processing
Systems
Section II
Functional
Business Systems
IT in Business
Marketing
Systems
Human Resource
Systems
Accounting
Systems
Financial Mgmt.
Real World Cases
KEY TERMS
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END
Welch’s - Straightline Skyworks
- and Pella: The Business
Value of Supply Chain
Management
Discussion Points Would Include:
Skyworks Access Real-time Data
• Give Customers Accurate Product
Availability
–Coordinates Capacity Requirements
–Coordinates Demand Requirements
–Delivery can Occur on Time
• Modify Customer Delivery Date
• Change Factory Production
• Give Customers Fast Answers
Copyright 2005, McGraw-Hill/Irwin, Inc.
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Enterprise
Business Systems
Enterprise
Resource Planning
Supply Chain
Management
Transaction
Processing
Systems
Section II
Functional
Business Systems
IT in Business
Marketing
Systems
Human Resource
Systems
Accounting
Systems
Financial Mgmt.
Real World Cases
KEY TERMS
BACK NEXT
Welch’s - Straightline Skyworks
- and Pella: The Business
Value of Supply Chain
Management
3- How does Pella’s approach
to supply chain management
systems differ from the other
companies in this case?
Which is approach is better?
Why?
Return to
Cases Page
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
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Enterprise
Business Systems
Enterprise
Resource Planning
Supply Chain
Management
Transaction
Processing
Systems
Section II
Functional
Business Systems
IT in Business
Marketing
Systems
Human Resource
Systems
Accounting
Systems
Financial Mgmt.
Real World Cases
KEY TERMS
BACK NEXT
END
Welch’s - Straightline Skyworks
- and Pella: The Business
Value of Supply Chain
Management
Discussion Points Would Include:
• ERP vendors Oracle,
PeopleSoft and SAP
–Actively Market Supply-Chain
–Easy Integration Back-end
ERP Systems
• Close to Complete with
Supply-Chain
Automation
Copyright 2005, McGraw-Hill/Irwin, Inc.
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Enterprise
Business Systems
Enterprise
Resource Planning
Supply Chain
Management
Transaction
Processing
Systems
Section II
Functional
Business Systems
IT in Business
Marketing
Systems
Human Resource
Systems
Accounting
Systems
Financial Mgmt.
Real World Cases
KEY TERMS
BACK NEXT
Welch’s - Straightline Skyworks
- and Pella: The Business
Value of Supply Chain
Management
Discussion Points Would Include:
• Pella Didn’t Buy Separate
Software
–Turned on Different Parts of
Suite
–Leveraged Multiple Oracle EBusiness Suite
–Modules Streamlined Supply
Chain Operations
Return to
Cases Page
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
7-84
Enterprise
Business Systems
Enterprise
Resource Planning
Supply Chain
Management
Transaction
Processing
Systems
Section II
Functional
Business Systems
IT in Business
Marketing
Systems
Human Resource
Systems
Accounting
Systems
Financial Mgmt.
Welch’s - Straightline Skyworks
- and Pella: The Business
Value of Supply Chain
Management
Which Approach Is Better?
• Develop Alternatives
• Leverage-Integrated Supply
Chain Feature
• Feature-Module of Software
Suite
• Suite can be Turned On
Real World Cases
KEY TERMS
BACK NEXT
Return to
Cases Page
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
7-85
Enterprise
Business Systems
Enterprise
Resource Planning
Supply Chain
Management
Transaction
Processing
Systems
Section II
Functional
Business Systems
IT in Business
Marketing
Systems
Human Resource
Systems
Accounting
Systems
Financial Mgmt.
Real World Cases
Welch’s - Straightline Skyworks
- and Pella: The Business
Value of Supply Chain
Management
Which Approach Is Better?
• Develop Alternatives
• Leverage-Integrated Supply
Chain Feature
• Feature-Module of Software
Suite
• Suite can be Turned On
• Don’t Need Separate Software
KEY TERMS
BACK NEXT
Return to
Cases Page
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
7-86
Enterprise
Business Systems
Enterprise
Resource Planning
Supply Chain
Management
Transaction
Processing
Systems
Section II
Functional
Business Systems
IT in Business
Marketing
Systems
Human Resource
Systems
Accounting
Systems
Financial Mgmt.
Lowe Worldwide and HP:
The Business Case for
Swarming Collaboration
1- What are the business
benefits of swarming
collaboration? Use Lowe
Worldwide and HP as
examples.
Real World Cases
KEY TERMS
BACK NEXT
Return to
Cases Page
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Enterprise
Business Systems
Enterprise
Resource Planning
Supply Chain
Management
Transaction
Processing
Systems
Section II
Functional
Business Systems
IT in Business
Marketing
Systems
Human Resource
Systems
Accounting
Systems
Financial Mgmt.
Real World Cases
KEY TERMS
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END
Lowe Worldwide and HP:
The Business Case for
Swarming Collaboration
Business Benefits Would Include:
• Lowe Worldwide
– Discover Resources-Didn’t Know Existed
– Resulted-Faster Project Completion
• HP Swarming Collaboration
– Brings Right People into Team
– Quickly Plan/Execute Needs
• Swarming Collaboration
– Enables Lowe Worldwide
– To Match Smaller Competitor Agility
– Creative Hot Shops
• Save-International
Fax/Travel/Courier Costs
Copyright 2005, McGraw-Hill/Irwin, Inc.
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Enterprise
Business Systems
Enterprise
Resource Planning
Supply Chain
Management
Transaction
Processing
Systems
Section II
Functional
Business Systems
IT in Business
Marketing
Systems
Human Resource
Systems
Accounting
Systems
Financial Mgmt.
Real World Cases
KEY TERMS
BACK NEXT
Lowe Worldwide and HP:
The Business Case for
Swarming Collaboration
2- What are some possible limitations
of swarming?
Limitations of Swarming Would Include:
•Connectivity Problems
•Keeping Employees on Track
•Higher Priority Internal Tasks
•Time Management of
Collaborative Efforts
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
7-89
Enterprise
Business Systems
Enterprise
Resource Planning
Supply Chain
Management
Transaction
Processing
Systems
Section II
Functional
Business Systems
IT in Business
Marketing
Systems
Human Resource
Systems
Accounting
Systems
Financial Mgmt.
Real World Cases
KEY TERMS
BACK NEXT
Lowe Worldwide and HP:
The Business Case for
Swarming Collaboration
3- Visit the website of Groove
Networks and experience their
demo of a working in a shared
workspace. Would this support
workgroup collaboration?
Swarming collaboration? Why or
why not?
Return to
Cases Page
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
7-90
Enterprise
Business Systems
Enterprise
Resource Planning
Supply Chain
Management
Transaction
Processing
Systems
Section II
Functional
Business Systems
IT in Business
Marketing
Systems
Human Resource
Systems
Accounting
Systems
Financial Mgmt.
Real World Cases
Lowe Worldwide and HP:
The Business Case for
Swarming Collaboration
Discussion Points Would Include:
• Students Developing Their
Understanding Of:
– Support Workgroup Collaboration
– Swarming Collaboration
• Students Discussing Group
Collaboration:
– Advantages
– Disadvantages
– Using Class Experiences
KEY TERMS
BACK NEXT
Return to
Cases Page
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
7-91
Enterprise
Business Systems
Enterprise
Resource Planning
Supply Chain
Management
Transaction
Processing
Systems
Section II
Functional
Business Systems
IT in Business
Marketing
Systems
Human Resource
Systems
Accounting
Systems
Financial Mgmt.
Real World Cases
KEY TERMS
BACK NEXT
END
Lowe Worldwide and HP:
The Business Case for
Swarming Collaboration
Discussion Points Would Include:
• Students Developing Their
Understanding Of:
– Support Workgroup Collaboration
– Swarming Collaboration
• Students Discussing Group
Collaboration:
– Advantages
– Disadvantages
– Using Class Experiences
– Using Group Project
Experiences
Copyright 2005, McGraw-Hill/Irwin, Inc.
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Cases Page
7-92