Irwin/McGraw-Hill Copyright © 2001, The McGraw-Hill Companies, Inc. All rights reserved.

I n t r o d u c t i o n t o I n f o r m a t i o n S y s t e m s Tenth EditionJames A. O’Brien

1

I n t r o d u c t i o n t o I n f o r m a t i o n S y s t e m s Tenth EditionJames A. O’Brien

C h a p t e r

8

Irwin/McGraw-Hill Copyright © 2001, The McGraw-Hill Companies, Inc. All rights reserved.

Electronic

Business and

Commerce

Irwin/McGraw-Hill Copyright © 2001, The McGraw-Hill Companies, Inc. All rights reserved.

I n t r o d u c t i o n t o I n f o r m a t i o n S y s t e m s Tenth EditionJames A. O’Brien

2 Chapter Objectives

• Identify several cross-functional integrated E-Business applications for the internetworked enterprise.

• 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/ operations management.

Irwin/McGraw-Hill Copyright © 2001, The McGraw-Hill Companies, Inc. All rights reserved.

I n t r o d u c t i o n t o I n f o r m a t i o n S y s t e m s Tenth EditionJames A. O’Brien

3 Chapter Objectives

• Give examples of several ways that companies can implement business-to-consumer and business-to-business electronic commerce on the Internet.

• Identify and give examples of several ways that electronic commerce applications provide significant business value to a company and its customers.

• Discuss several electronic payment challenges and solutions for electronic payment security on the Internet.

Irwin/McGraw-Hill Copyright © 2001, The McGraw-Hill Companies, Inc. All rights reserved.

I n t r o d u c t i o n t o I n f o r m a t i o n S y s t e m s Tenth EditionJames A. O’Brien

4 The E-Business Application Architecture

Irwin/McGraw-Hill Copyright © 2001, The McGraw-Hill Companies, Inc. All rights reserved.

I n t r o d u c t i o n t o I n f o r m a t i o n S y s t e m s Tenth EditionJames A. O’Brien

5 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

Irwin/McGraw-Hill Copyright © 2001, The McGraw-Hill Companies, Inc. All rights reserved.

I n t r o d u c t i o n t o I n f o r m a t i o n S y s t e m s Tenth EditionJames A. O’Brien

6 Functional Business Information Systems

ProductionOperations

ProductionOperations

MarketingMarketing

Human ResourceManagement

Human ResourceManagement

FinanceFinanceAccountingAccounting

FunctionalBusinessSystems

Irwin/McGraw-Hill Copyright © 2001, The McGraw-Hill Companies, Inc. All rights reserved.

I n t r o d u c t i o n t o I n f o r m a t i o n S y s t e m s Tenth EditionJames A. O’Brien

7 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

Irwin/McGraw-Hill Copyright © 2001, The McGraw-Hill Companies, Inc. All rights reserved.

I n t r o d u c t i o n t o I n f o r m a t i o n S y s t e m s Tenth EditionJames A. O’Brien

8 Customer Relationship Management

SalesCross-SellUp-Sell

Store Frontand FieldService

Marketing andFulfillment

CustomerService andSupport

Retentionand LoyaltyPrograms

Customer

Contact Management

Irwin/McGraw-Hill Copyright © 2001, The McGraw-Hill Companies, Inc. All rights reserved.

I n t r o d u c t i o n t o I n f o r m a t i o n S y s t e m s Tenth EditionJames A. O’Brien

9 Targeted Marketing

Online Behavior

Community

Context

Demographic/Psychographic

Content

Irwin/McGraw-Hill Copyright © 2001, The McGraw-Hill Companies, Inc. All rights reserved.

I n t r o d u c t i o n t o I n f o r m a t i o n S y s t e m s Tenth EditionJames A. O’Brien

10 Manufacturing Information Systems

Engineering Systems

•CAD•CAE•Computer-AidedProcess Planning

ManufacturingExecutionSystems

•Shop Floor•Scheduling•Machine Control•Process Control•Robotic Control

Computer Integrated ManufacturingManufacturing

ResourcePlanning

•ProductionForecasting•ProductionScheduling•Quality Control

RemoteWorker

Supplier

Extranet

Intranet

Irwin/McGraw-Hill Copyright © 2001, The McGraw-Hill Companies, Inc. All rights reserved.

I n t r o d u c t i o n t o I n f o r m a t i o n S y s t e m s Tenth EditionJames A. O’Brien

11 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

Staffing Training &

Development CompensationAdministration

StrategicSystems

TacticalSystems

OperationalSystems

Irwin/McGraw-Hill Copyright © 2001, The McGraw-Hill Companies, Inc. All rights reserved.

I n t r o d u c t i o n t o I n f o r m a t i o n S y s t e m s Tenth EditionJames A. O’Brien

12 Accounting Information Systems

Irwin/McGraw-Hill Copyright © 2001, The McGraw-Hill Companies, Inc. All rights reserved.

I n t r o d u c t i o n t o I n f o r m a t i o n S y s t e m s Tenth EditionJames A. O’Brien

13 Financial Information Systems

Financial Information

Systems

Financial Information

Systems

FinancialPlanning

FinancialPlanning

CashManagement

InvestmentManagement

InvestmentManagement

CapitalBudgeting

Irwin/McGraw-Hill Copyright © 2001, The McGraw-Hill Companies, Inc. All rights reserved.

I n t r o d u c t i o n t o I n f o r m a t i o n S y s t e m s Tenth EditionJames A. O’Brien

14 The E-Commerce Transaction Cycle

AttractLook and FeelPerformance andService

InformRelevant Information

CustomizeCustomerConfiguration

TransactBuying & Selling Models

PersonalizeBuying behaviorIncentives

PayElectronic PaymentSystemsSecurity

InteractCustomer ServiceSocialization

DeliverOrder Fulfillment

Key Processesand

Resources

Key Processesand

Resources

Irwin/McGraw-Hill Copyright © 2001, The McGraw-Hill Companies, Inc. All rights reserved.

I n t r o d u c t i o n t o I n f o r m a t i o n S y s t e m s Tenth EditionJames A. O’Brien

15 Supply Chain Management

Schedule Make Deliver

Transportation

Planning

DemandPlanningDemandPlanning

OrderCommitment

OrderCommitment

AdvanceScheduling

AdvanceScheduling

ManufacturingPlanning

ManufacturingPlanning

DistributionPlanning

DistributionPlanning

Internetworked Supply Chain ManagementInternetworked Supply Chain Management

SupplyChainLife Cycle

SCMFunctionalProcesses

SCMIntegratedSolution

Commit

Irwin/McGraw-Hill Copyright © 2001, The McGraw-Hill Companies, Inc. All rights reserved.

I n t r o d u c t i o n t o I n f o r m a t i o n S y s t e m s Tenth EditionJames A. O’Brien

16 Electronic Commerce Technologies

Irwin/McGraw-Hill Copyright © 2001, The McGraw-Hill Companies, Inc. All rights reserved.

I n t r o d u c t i o n t o I n f o r m a t i o n S y s t e m s Tenth EditionJames A. O’Brien

17 Transaction Processing Systems

DatabaseMaintenance

TransactionProcessingTransactionProcessing

DataEntry

Documentand ReportGeneration

InquiryProcessing

1 2

3

4

5

Irwin/McGraw-Hill Copyright © 2001, The McGraw-Hill Companies, Inc. All rights reserved.

I n t r o d u c t i o n t o I n f o r m a t i o n S y s t e m s Tenth EditionJames A. O’Brien

18 Electronic Payment and Security Systems

Merchant’sWeb ServerMerchant’sWeb Server

ClientBrowser

ClientBrowser

PaymentServer

PaymentServer

Electronic CashCybergoldQpass

E-Bill PaymentCheckFreeBillerXpert

Online buyingCyberCash1 ClickCharge

Bank accountsDebit CardsOnline Banking

Credit cardsVISAMasterCard

•Verify merchant•Receive order•Receive payment•Confirm order

•Verify customer•Review payment•Authorize or deny payment

Irwin/McGraw-Hill Copyright © 2001, The McGraw-Hill Companies, Inc. All rights reserved.

I n t r o d u c t i o n t o I n f o r m a t i o n S y s t e m s Tenth EditionJames A. O’Brien

19 Chapter 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.

• Traditional functional business systems support specific business functions including marketing, accounting, finance, production/operations, and human resource management.

Irwin/McGraw-Hill Copyright © 2001, The McGraw-Hill Companies, Inc. All rights reserved.

I n t r o d u c t i o n t o I n f o r m a t i o n S y s t e m s Tenth EditionJames A. O’Brien

20 Chapter Summary (cont)

• 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.

• 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.

Irwin/McGraw-Hill Copyright © 2001, The McGraw-Hill Companies, Inc. All rights reserved.

I n t r o d u c t i o n t o I n f o r m a t i o n S y s t e m s Tenth EditionJames A. O’Brien

21 Chapter Summary (cont)

• A transaction processing system is an information system that processes data resulting from the occurrence of business transactions.

• There are several different types of electronic payment systems used to support E-Commerce transactions.

• Because the Internet is not a secure network special security measures must be undertaken to protect sensitive customer information.