electronic business systems

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Enterprise Business SystemsEnterprise Resource PlanningSupply Chain ManagementTransaction Processing SystemsSection IIFunctional Business SystemsIT in BusinessMarketing SystemsHuman Resource SystemsAccounting SystemsFinancial Mgmt.

KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 7-1

Real World Cases

Electronic Electronic Business Business SystemsSystems

Enterprise Business Systems

Module III – Business Applications

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Real World Cases

Learning ObjectivesLearning Objectives1. Identify the following cross-functional

enterprise systems and give examples of how they can provide significant business value to a company.

a) Enterprise resource planningb) Customer relationship managementc) Supply chain managementd) Enterprise application integratione) Transaction processing systemsf) 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.

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KEY TERMS


Real World Cases

Enterprise Enterprise Business SystemsBusiness Systems

• e-Business Applications• e-Commerce• Cross-functional Enterprise

Systems• Customer Relationship

Management• Enterprise Resource Planning• Supply Chain ManagementReal World Case 1- Real World Case 1-

Salesforce.ComSalesforce.Com Click to go to

Case 1

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KEY TERMS


Real World Cases

CustomerFeedback

MarketResearch

MarketTest

ComponentDesign

ProductTest

ProductRelease

ProcessDesign

EquipmentDesign

ProductionStart

Marketing R&D/Engineering Manufacturing


New Product New Product Development ProcessDevelopment Process

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KEY TERMS


Real World Cases

Suppliers

Customers

Em

plo

yees

Par

tner

s

Supply Chain ManagementSourcing - Procurement

Enterprise Resource PlanningInternal Business Processes

Customer Relationship ManagementMarketing – Sales - Service

Kn

ow

led

ge

Ma

nag

eme

nt

Co

llab

ora

tio

n –

Dec

isio

n S

up

po

rt

Par

tner

Rel

atio

nsh

ip M

anag

emen

tS

elli

ng

– D

istr

ibu

tio

n

Enterprise Application ArchitectureEnterprise Application Architecture


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Real World Cases

• 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-IBM Corporation: Global Cross-Functional Enterprise SystemsFunctional Enterprise Systems

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KEY TERMS


Real World Cases

ProductionPlanning Integrated

Logistics

Accounting and Finance

HumanResources

Sales,Distribution,

OrderManagement

Customer/Employee

Enterprise Enterprise Resource PlanningResource Planning

The Technological Backbone The Technological Backbone of e-Businessof e-Business

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KEY TERMS


Real World Cases


Colgate-Palmolive: The Colgate-Palmolive: The Business Value of ERPBusiness 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… Graphically…

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Real World Cases

Su

pp

liers

Human Resources

Finance and Accounting

DemandPlanning

Manufacturing Planning

LogisticsPlanning

DistributionPlanning

OrderEntry

Enterprise Resource Planning

Cu

sto

mer

s

Purchasing& Accounts

Payable

MRPInbound

InventoryPlant Mgmt.

Manufacturing& ProductionScheduling

InventoryControl &

Warehousing

Distribution& AccountsReceivable


Colgate-Palmolive: The Colgate-Palmolive: The Business Value of ERPBusiness Value of ERP

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Real World Cases

Benefits of ERP

• Quality and Efficiency

• Decreased Costs

• Decision Support

• Enterprise Agility

Failures in ERP Do Exist


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Real World Cases

• 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 Sobeys Inc.: Failure in ERP ImplementationImplementation

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Real World Cases

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


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Real World Cases

Supports an Integrated and Supports an Integrated and Collaborative Relationship Between Collaborative Relationship Between a Business and it’s Customersa Business and it’s Customers

CRM: The Business FocusCRM: The Business Focus

CustomerLife Cycle

CRMFunctionalSolutions

CRMIntegratedSolution

The Internet

Acquire Enhance Retain

Direct Marketing Cross-sell and Up-sell Proactive Service

Sales Force Automation Customer Support

CollaborativeService

SharedCustomer Data

Partner Company Customer

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Real World Cases

CRM Uses IT to Create a Cross-CRM Uses IT to Create a Cross-Functional Enterprise SystemFunctional Enterprise System


Marketing andFulfillment Customer

Service andSupport

Retentionand LoyaltyPrograms

Contact andAccount

Management

Sales•Cross-Sell•Up-Sell

Prospect orEmployee

Fax e-Mail

Telephone Web

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Real World Cases

Telstra Corporation: The Business Telstra Corporation: The Business Value of CRMValue 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

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Real World Cases

CRM: The Business FocusCRM: The Business FocusBenefits and Challenges of CRM• Identify and Target the Best

Customers• Customization and Personalization

of Products and Services• Track Customer ContactsCRM Failures• 50% of Applications Fail to Meet

Expectations• 20% of the Time CRM Damaged

Customer Relationships• Lack of Understanding and

Preparation is Blamed

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Real World Cases

Gevity HR and Monster.Com: Gevity HR and Monster.Com: Failures in CRM ImplementationFailures 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

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Real World Cases

SCM: The Business NetworkSCM: 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

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Real World Cases

SCM: The Business NetworkSCM: The Business NetworkObjective of SCM

Efficiently Manages this Process by:

• Forecasting Demand• Controlling Inventory• Enhancing Business

Relationships• Receiving Feedback and

Status of Every Link of the Chain

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Real World Cases

Moen Inc., and TaylorMade Golf: Moen Inc., and TaylorMade Golf: Web-Enabling the Supply ChainWeb-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


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Real World Cases

SCM Software Helps Firms Reengineer and SCM Software Helps Firms Reengineer and Integrate The Functional SCM ProcessesIntegrate The Functional SCM Processes

Supply ChainLife Cycle

SCMFunctionalProcesses

SCMIntegratedSolution

Supplier Manufacturer CustomerRetailer

The Internet

CollaborativeFulfillment

SharedMarket Data

Commit Schedule Make Deliver

Strategic Sourcingand Procurement

Forecast and Demand Planning

Customer Order Fulfillment Service

Distribution Network and Warehouse Operations

Transportation and ShipmentManagement

ProductionLogistics


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Real World Cases

SCM: The Business NetworkSCM: The Business NetworkBenefits and Challenges of

SCM • More Accurate Order

Processing• Reductions in Inventory

Levels• Quicker Time to Market• Lower Costs• Strategic Relationships

with Suppliers

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Real World Cases

Benefits and Challenges of SCM


• Lack of Proper Planning Knowledge, Tools, and Guidelines

• Inaccurate Demand Forecasts

• Lack of Adequate Collaboration

• Software Itself Immature

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Real World Cases

Business Value GoalsRapid Demand Fulfillment

Collaborative SupplyChain Planning and

Execution

Customer Value GoalsGive customers what theywant, when and how theywant it, at the lowest cost

InterenterpriseCoordination of

Manufacturing andBusiness Process

EffectiveDistribution and

Channel Partnerships

Responsiveness andAccountabilityto Customers

Objectives of Supply Chain Objectives of Supply Chain ManagementManagement


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Real World Cases

Solectron Corp: Failures in SCMSolectron 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


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Real World Cases

Enterprise Application Enterprise Application IntegrationIntegration

EAI Software Connects Major e-Business Applications Like CRM and ERPEAI Software Connects Major e-Business Applications Like CRM and ERP

Front-OfficeCRM ApplicationsCustomer Service

Field ServiceProduct Configuration

Sales Order Entry

Back-OfficeERP Applications

DistributionManufacturing

SchedulingFinance

EnterpriseApplicationIntegration

EAI

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Real World Cases

• 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 Dell Computer: Enterprise Application IntegrationApplication Integration

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Real World Cases

Order Entry Method

EAI

Billing

Call Center

Finance

Orders &Fulfillment

Manufacturing

Routing

Shipping

e - Mail

Fax

Web

Mail

Phone


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Real World Cases

Transaction Processing Transaction Processing SystemSystem

Capture and Process Transactions ImmediatelyCapture and Process Transactions ImmediatelyCable Company A Cable Company B

VideoServer

VideoServer

Host System Host System

InteractiveVoice Response

System

WebServers

FaxServers

San Francisco New York

CommunicationServers

DatabaseServers

ApplicationServers

CommunicationServers

Phone System The Internet

Syntellect Interactive Systems

Middleware

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Real World Cases

• 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 Syntellect’s Online Transaction ProcessingProcessing

Transaction Processing Transaction Processing SystemSystem

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Real World Cases

Transaction Processing CycleTransaction Processing CycleCapture and Processing Data, Updating Capture and Processing Data, Updating Databases, and Produce Information Databases, and Produce Information Products Products

DataEntry

Documentand ReportGeneration

DatabaseMaintenance

InquiryProcessing

Transaction Processing•Batch•Online/ Real-Time

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Real World Cases

Enterprise Collaboration Enterprise Collaboration SystemsSystems

ECS Enables Working Together by Helping Us to:•Communicate•Coordinate•CollaborateTools for Enterprise Collaboration…

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Real World Cases

Tools for Enterprise CollaborationTools for Enterprise Collaboration

ElectronicCommunications

Tools

ElectronicConferencing

Tools

CollaborativeWork

ManagementTools

EnterpriseCollaboration

Systems

•e-Mail

•Instant Messaging

•Voice Mail

•Faxing

•Web Publishing

•Paging

• Calendaring and

Scheduling

• Task and Project

Management

• Workflow Systems

• Document Sharing

• Knowledge Management

• Data Conferencing

• Voice Conferencing

• Videoconferencing

• Discussion Forums

• Chat Systems

• Electronic Meeting

Systems


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Real World Cases

QuickPlace by Lotus Development QuickPlace by Lotus Development Collaborative Software ScreenshotCollaborative Software Screenshot


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Real World Cases

General Electric Co: Committed General Electric Co: Committed to Enterprise Collaborationto 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

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Real World Cases

Functional Business Functional Business SystemsSystems

• Variety of Types of Information Systems that Support Business Functions

• Identification of Business Value Created

• Analysis of Challenges to Implementation

Real World Case 2- Real World Case 2- GE Power and Corporate GE Power and Corporate

ExpressExpressClick to go to

Case 2

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Real World Cases

Functional Business Functional Business SystemsSystems

Examples of Examples of Functional Functional Business Business Information Information SystemsSystems

Marketing

ProductionOperations

Human ResourceManagement

Accounting Finance

• Customer relationship management

• Interactive marketing

• Sales force automation

• Cash management• Credit management• Investment

management• Capital budgeting• Financial forecasting

• Order processing• Inventory control• Accounts receivable• Accounts payable• Payroll• General ledger

• Compensation analysis

• Employee skills inventory

• Personnel requirements forecasting

• Manufacturing resource planning

• Manufacturing execution systems

• Process control FunctionalBusinessSystems

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Real World Cases

Marketing SystemsMarketing SystemsMarketing Information Systems

MarketInformation

Systems

InteractiveMarketing

Sales ForceAutomation

CustomerRelationshipManagement

SalesManagement

MarketResearch andForecasting

Advertisingand Promotion

ProductManagement

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Real World Cases

Marketing SystemsMarketing SystemsFive Major Components of Five Major Components of

Target MarketingTarget Marketing

OnlineBehavior Demographic/

Psychographic

Context

Content

Community

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Real World Cases

Marketing SystemsMarketing SystemsSales Force AutomationSales 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

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Real World Cases

Marketing SystemsMarketing SystemsBaker Tanks: Web-Based Baker Tanks: Web-Based Sales Force AutomationSales 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

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Real World Cases

Marketing SystemsMarketing SystemsWeb-Based Salesforce.com Web-Based Salesforce.com Automation PackageAutomation Package

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Real World Cases

Manufacturing SystemsManufacturing SystemsComputer-Integrated

Manufacturing (CIM)• Simplify• Automate• IntegrateFlexible Manufacturing SystemsAgile ManufacturingTotal Quality ManagementComputer-Aided Engineering

(CAE)Computer-Aided Manufacturing

(CAM)

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Real World Cases

Computer-Integrated Manufacturing

En

terp

rise

Res

ou

rce

Pla

nn

ing

ManufacturingResources

Planning Systems

ManufacturingExecutionSystems

EngineeringSystems

ProductionForecasting

ProductionScheduling

MaterialRequirements

Planning

CapacityPlanning

ProductionCost Control

QualityControl

Shop FloorScheduling

Shop FloorControl

Machine Control

Robotics Control

Process Control

Computer-AidedEngineering

ProductSimulation and

Prototyping

Computer-AidedDesign

Computer-AidedProcess Planning

Manufacturing SystemsManufacturing Systems

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Real World Cases

Manufacturing SystemsManufacturing SystemsThe Timken Co. Web-Based The Timken Co. Web-Based Manufacturing SystemsManufacturing Systems•Established "Electronic Visibility"

•Used Global Supply Chain•Immediate Parts Location•Speed of Internet Combined With Global Logistics Management

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Real World Cases

Human Resources SystemsHuman Resources SystemsHuman Resource Information Systems

•Recruitment, Selection, and Hiring

•Job Placement•Performance Appraisals•Employee Benefits Analysis•Training and Development•Health, Safety, and SecurityHRM and the InternetHRM and Intranets

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Real World Cases

Supports…Supports…

Staffing Training andDevelopment

CompensationAdministration

StrategicSystems

TacticalSystems

OperationalSystems

• Human resource planning

• Labor force tracking

• Labor cost analysis and budgeting

• Turnover analysis

• Recruiting• Workforce

planning/• scheduling

• Succession planning

• Performance appraisal planning

• Training effectiveness

• Career matching

• Skill assessment• Performance

evaluations

• Contract costing

• Salary forecasting

• Compensation effectiveness and equity analysis

• Benefit preference analysis

• Payroll control• Benefits

administration

Human Resources SystemsHuman Resources Systems

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Real World Cases

An Example of an Employee An Example of an Employee Hiring Review SystemHiring Review System

Human Resources SystemsHuman Resources Systems

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Real World Cases

Human Resources SystemsHuman Resources SystemsCharles Schwab & Co.: Web-Charles Schwab & Co.: Web-Based Human Resource SystemsBased Human Resource Systems• 23,000 Employees Access

Detailed HR Data• Intranet Benefits Employees

Searches • Savings of Hundreds of

Thousands Yearly• Employees Use Online

eForms

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Real World Cases

Accounting SystemsAccounting 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

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Real World Cases

Accounting SystemsAccounting SystemsAccounting Information Systems for Accounting Information Systems for Transaction Processing and Financial Transaction Processing and Financial ReportingReporting

Sales TransactionProcessing System

PurchasesTransactionProcessingSystem

PayrollTransactionProcessingSystem

General LedgerProcessing and

Reporting System

Billing AccountsReceivable

FinancialReporting

AccountsPayable

SalesAnalysis

Purchases

Time-keeping

Cash Receipts and Disbursements Transaction

Processing System

SalesOrder

Processing

CashDisburse-

ments

CashReceipts

GeneralLedger

InventoryProcessing

Payroll

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Real World Cases

Accounting SystemsAccounting Systems

• Order Processing• Inventory Control• Accounts Receivable• Accounts Payable• Payroll• General Ledger

Examples of Widely Used Examples of Widely Used Accounting Information SystemsAccounting Information Systems

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Real World Cases

Accounting SystemsAccounting SystemsAn On-line Accounting ReportAn On-line Accounting Report

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Real World Cases

Financial Management Financial Management SystemsSystems

Support Business Decision Makers in:

•Financing a Business•The Allocation and Control of Financial Resources

Capital BudgetingFinancial Planning Software

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Real World Cases

Important Financial Management Important Financial Management SystemsSystems

CashManagement

InvestmentManagement

CapitalBudgeting

FinancialPlanning

• Forecast andManage cash position

• Manage short-term and other securities

• Evaluate risk/return of capital expenditures

• Forecast financial performance and financing needs

InformationSystems in

Finance


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Real World Cases

Strategic Financial PlanningStrategic Financial Planning


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Real World Cases

SummarySummary• 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

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Real World Cases

KEY TERMSKEY TERMSAccounting SystemsAccounts PayableAccounts ReceivableBatch ProcessingComputer-Aided ManufacturingComputer-Integrated ManufacturingCross-Functional Enterprise SystemsCustomer Relationship Management

a. Application Componentsb. Business Benefits

e-BusinessEnterprise Application ArchitectureEnterprise Application IntegrationEnterprise Collaboration SystemsEnterprise Resource Planning


Financial Management SystemsFunctional Business SystemsGeneral LedgerHuman Resource SystemsInteractive Marketing

Inventory ControlMachine ControlManufacturing Execution

SystemsManufacturing SystemsMarketing SystemsOnline Accounting SystemsOnline HRM SystemsOnline Transaction Processing

SystemsOrder ProcessingPayrollProcess ControlReal-time ProcessingRoboticsSales Force AutomationSupply ChainSupply Chain Management


Targeted MarketingTransaction Processing Cycle

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KEY TERMS


Real World Cases

Real World Case 1 Salesforce.Com and Others: Challenges of Customer Relation-ship Management Systems

Click to go toCase 1

Real World Case 2 GE Power Systems and Corporate Express: The Business Case for Enterprise Application Integration


Optional Case StudiesOptional Case Studies

Real World Case 3 Welch’s, Straightline, Skyworks, and Pella: The Business Value of Supply Chain Management

Real World Case 4 Lowe Worldwide and HP: The Business Case for Swarming Collaboration



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Real World Cases

Electronic CommerceElectronic Commerce

Chapter 8

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Real World Cases

Salesforce.Com and Others: Salesforce.Com and Others: Challenges of Customer Challenges of Customer

Relationship Management Relationship Management SystemsSystems

Return toCases Page

Return toChapter 7

1- Why have traditional CRM 1- Why have traditional CRM software implementations software implementations

been so problematic for many been so problematic for many businesses? businesses?

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Real World Cases



Discussion Points Would Include: Discussion Points Would Include:

• CRM Software Too Expensive

• CRM Too Complicated• CRM Implementation

Too Long

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Real World Cases



2- What are the benefits and 2- What are the benefits and drawbacks of the Salesforce drawbacks of the Salesforce

Web-based CRM services Web-based CRM services approach?approach?

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Real World Cases



Benefits Would Include: 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

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Real World Cases



Disadvantages Would Include: Disadvantages Would Include:

•Businesses Resist “Rent-an-App” Idea

•Security Concerns•Lack of Control Concerns•Problems with Customizing•Difficulty of Software Integration

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Real World Cases



3- Which approach do you 3- Which approach do you prefer? Why? Visit the prefer? Why? Visit the

websites of Salesforce.com websites of Salesforce.com and Siebel Systems for more and Siebel Systems for more information and customer information and customer

examples of their CRM examples of their CRM systems. systems.

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Real World Cases



Discussion Points Would Include: Discussion Points Would Include: •Buy vs. Rent Options•Security and Control Concerns•Customizing•Web-based CRM Integration

Return toCases Page

Return toChapter 7

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Real World Cases



Discussion Points Would Include: 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

Cases Page

Return toChapter 7

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Real World Cases

GE Power Systems and GE Power Systems and Corporate Express: The Corporate Express: The

Business Case for Enterprise Business Case for Enterprise Application IntegrationApplication Integration

1- Why has EAI recently “become 1- Why has EAI recently “become a critical part of the IT strategy a critical part of the IT strategy at many organizations,” and a at many organizations,” and a high-ranking project of top IT high-ranking project of top IT executives? Use GE executives? Use GE Power and Corporate Power and Corporate Express Express as examples. as examples. Return to

Cases Page

Return toChapter 7

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Real World Cases

Discussion Points Include the Need to: 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



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Real World Cases



2- What is the major difference 2- What is the major difference in the business value of the in the business value of the

EAI projects at GE Power and EAI projects at GE Power and Corporate Express? Corporate Express?

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KEY TERMS


Real World Cases

Major Differences Include: 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



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Real World Cases



3- What are some of the 3- What are some of the challenges in developing and challenges in developing and implementing EAI systems? implementing EAI systems? How can companies meet How can companies meet these challenges? these challenges?

Return toCases Page

Return toChapter 7

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KEY TERMS


Real World Cases

Challenges Would Include: Challenges Would Include: •Need Specific IT Skills

•Need Coordination in All Departments

•EAI Costs ($200,000 to $400,000)



Return toCases Page

Return toChapter 7

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Real World Cases

Challenges Could Be Met By: Challenges Could Be Met By: •In-house IT Training•Planning/Monitoring EAI project



Return toCases Page

Return toChapter 7

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Real World Cases

Challenges Could Be Met By: Challenges Could Be Met By: •In-house IT Training•Planning/Monitoring EAI project

•Shift Costs to Functional Users



Return toCases Page

Return toChapter 7

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KEY TERMS


Real World Cases

Welch’s - Straightline Welch’s - Straightline Skyworks - and Pella: The Skyworks - and Pella: The Business Value of Supply Business Value of Supply

Chain ManagementChain Management

1- What is the business value of 1- What is the business value of supply chain management supply chain management systems for Welch’s and other systems for Welch’s and other companies in the consumer companies in the consumer packaged goods industry?packaged goods industry?

Return to

Cases Page

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Real World Cases

Discussion Points Would Include: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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KEY TERMS


Real World Cases

2- What is the business value 2- What is the business value of supply chain management of supply chain management systems for Straightline, systems for Straightline, Skyworks, and other Skyworks, and other manufacturing companies?manufacturing companies?



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KEY TERMS


Real World Cases

Discussion Points Would Include:Discussion Points Would Include:

Straightline Company:•Leveraging Supply-Chain Optimization Solution–Help Processors Manage Inventories

–Compete More Effectively Overseas

•Selects Inventory Process



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KEY TERMS


Real World Cases

Discussion Points Would Include: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



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Real World Cases

3- How does Pella’s approach 3- How does Pella’s approach to supply chain management to supply chain management systems differ from the other systems differ from the other companies in this case? companies in this case? Which is approach is better? Which is approach is better? Why? Why?

Return toCases Page



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Real World Cases

Discussion Points Would Include: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

Return toCases Page



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KEY TERMS


Real World Cases

Discussion Points Would Include:Discussion Points Would Include:•Pella Didn’t Buy Separate Software

–Turned on Different Parts of Suite

–Leveraged Multiple Oracle E-Business Suite

–Modules Streamlined Supply Chain Operations Return to

Cases Page



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KEY TERMS


Real World Cases

Which Approach Is Better?Which Approach Is Better?•Develop Alternatives •Leverage-Integrated Supply Chain Feature

•Feature-Module of Software Suite

•Suite can be Turned On

Return toCases Page



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KEY TERMS


Real World Cases

Which Approach Is Better?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

Return toCases Page



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Real World Cases

1- What are the business 1- What are the business benefits of swarming benefits of swarming

collaboration? Use Lowe collaboration? Use Lowe Worldwide and HP as Worldwide and HP as

examples. examples.

Return toCases Page

Lowe Worldwide and HP: Lowe Worldwide and HP: The Business Case for The Business Case for

Swarming CollaborationSwarming Collaboration

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Real World Cases

Business Benefits Would Include: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



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2- What are some possible limitations 2- What are some possible limitations of swarming?of swarming?



Limitations of Swarming Would Include:Limitations of Swarming Would Include:•Connectivity Problems•Keeping Employees on Track•Higher Priority Internal Tasks•Time Management of Collaborative Efforts

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3- Visit the website of Groove 3- Visit the website of Groove Networks and experience their Networks and experience their demo of a working in a shared demo of a working in a shared workspace. Would this support workspace. Would this support

workgroup collaboration? workgroup collaboration? Swarming collaboration? Why or Swarming collaboration? Why or

why not?why not?



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Discussion Points Would Include:Discussion Points Would Include:• Students Developing Their

Understanding Of:– Support Workgroup Collaboration– Swarming Collaboration

• Students Discussing Group Collaboration:– Advantages– Disadvantages– Using Class Experiences



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Discussion Points Would Include: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



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