Chapter 6 Flashcards
is the use of the Internet and other networks and information technologies to
support e-commerce, enterprise communications and collaboration, and Web-enabled
business processes, both within a networked enterprise and with its customers and
business partners.
e-Business
includes e-commerce, which involves the buying and selling and marketing
and servicing of products, services, and information over the Internet and other networks.
E-business
Many companies today are using information technology to develop ___________ that cross the boundaries of traditional business functions in order to reengineer and improve vital business processes all across the enterprise.
integrated cross-functional enterprise systems
These organizations view cross-functional enterprise systems as a strategic way to use IT to share information resources and improve the efficiency and effectiveness of business processes, and develop strategic relationships with customers, suppliers, and business
partners.
Cross-Functional Enterprise Applications
Companies first moved from ___________ to integrated
cross-functional client/server applications. This typically involved installing enterprise resource planning, supply chain management, or customer relationship management
software from SAP America, PeopleSoft, Oracle, and others.
functional mainframe-based legacy systems
Instead of focusing on the information processing requirements of business functions, such enterprise software focuses on supporting integrated clusters of business processes involved in the operations of a business.
Cross-Functional Enterprise Applications
Companies are using the ______ and ____________ as a technology platform for their cross-functional and inter enterprise information systems.
World Wide Web
their intranets and extranets
an _________, which illustrates the
interrelationships of the major cross-functional enterprise applications that many companies have or are installing today.
enterprise application architecture
It provides a conceptual framework to help us visualize the basic components, processes, and interfaces of these major e-business applications, and their interrelationships to each other.
Enterprise application architecture
This____ also spotlights the roles these business systems play in supporting the customers, suppliers, partners, and employees of a business
application architecture
concentrates on the efficiency of a firm’s internal production, distribution, and financial processes.
enterprise resource planning (ERP)
focuses on acquiring and retaining profitable customers via marketing, sales, and service processes.
Customer relationship management (CRM)
aims to acquire and retain partners who can enhance the sale and distribution of a firm’s products and services.
Partner relationship management (PRM)
focuses on developing the most efficient and effective sourcing and procurement processes with suppliers for the products and services that a business needs.
Supply chain management (SCM)
applications provide a firm’s employees with tools that support group collaboration and decision support.
Knowledge management (KM)
software is being used by many companies to connect their major e-business applications.
Enterprise application integration (EAI) software
enables users to model the business processes involved in the interactions
that should occur between business applications
EAI software
also provides middleware that performs data conversion and coordination, application communication and messaging services, and access to the application interfaces involved.
EAI
can integrate a variety of enterprise application clusters by letting them exchange data according to rules derived from the business process models developed by users.
EAI software
can integrate the front-office and back-office applications of a business so
they work together in a seamless, integrated way.
EAI software
This is a vital capability that provides real business value to a business enterprise that
must respond quickly and effectively to business events and customer demands.
- For example, the integration of enterprise application clusters has been shown to
dramatically improve customer call center responsiveness and effectiveness.
EAI software
integrates access to all of the customer and product data that
customer representatives need to quickly serve customers.
EAI
also streamlines sales order processing so products and services can be delivered
faster
EAI
improves customer and supplier experience with the business because of its
responsiveness.
EAI
are cross-functional information systems that process data resulting from the occurrence of business transactions
Transaction processing systems (TPS)
are events that occur as part of doing business, such as sales, purchases, deposits, withdrawals, refunds, and payments.
Transactions
Data about the customer, product, salesperson, store, and so on, must be captured and processed
Transaction Processing Systems
This need prompts additional transactions, such as credit checks, customer billing, inventory changes, and increases in accounts receivable balances, which generate even more data.
Transaction Processing Systems
are needed to capture and process such data, or the operations of a business would grind to a halt
transaction processing activities
play a vital role in supporting the operations of most companies today
transaction processing systems
play a strategic role in Web-enabled businesses
Online transaction processing systems
Many firms are using the Internet and other networks that tie them electronically to their
customers or suppliers for
___________
online transaction processing (OLTP)
Such real-time systems, which capture and process transactions immediately, can help
firms provide superior service to customers and other trading partners.
- This capability adds value to their products and services, and thus gives them an important
way to differentiate themselves from their competitors.
Transaction Processing Systems
use a five cycle of data entry, transaction processing, database maintenance, document and report generation, and inquiry processing activities
transaction processing cycle
The first step of the transaction processing cycle is the capture of business data.
- For example, transaction data may be collected by point-of-sale terminals using optical scanning of bar codes and credit card readers at a retail store or other business.
- Transaction data can also be captured at an e-commerce Web site on the Internet.
- The proper recording and editing of data so they are quickly and correctly captured for processing is one of the major design challenges of information systems.
Data Entry
Transaction processing systems process data in two basic ways:
Batch processing
real-time processing
, where transaction data are accumulated over a period of time
and processed periodically
batch processing
(also called online processing), where data are processed
immediately after a transaction occurs.
real-time processing
All ____________ incorporate real-time processing capabilities
online transaction processing systems
Many online systems also depend on the capabilities of __________ computer systems that can continue to operate even if parts of the system fail.
fault tolerant
- An organization’s databases must be updated by its transaction processing systems so that they are always correct and up-to-date.
- Therefore, transaction processing systems serve to assist in maintaining the corporate databases of an organization to reflect changes resulting from day-to-day business transactions.
- For example, credit sales made to customers will cause customer account balances to be
increased and the amount of inventory on hand to be decreased. - Database maintenance ensures that these and other changes are reflected in the data records stored in the company’s databases.
Database Maintenance
- Transaction processing systems produce a variety of documents and reports.
- Examples of transaction documents include purchase orders, paychecks, sales receipts, invoices, and customer statements.
- Transaction reports might take the form of a transaction listing such as a payroll register, or edit reports that describe errors detected during processing.
Document and Report Generation
- Many transaction processing systems allow us to use the Internet, intranets, extranets, and Web browsers or database management query languages to make inquiries and receive responses concerning the results of transaction processing activity.
- Typically, responses are displayed in a variety of prespecified formats or screens.
- For example, one might check on the status of a sales order, the balance in an account, or the amount of stock in inventory and receive immediate responses at your PC.
Inquiry Processing
are cross-functional information systems that enhance communication, coordination, and collaboration among the members of business teams and workgroups.
Enterprise collaboration systems (ECS)
The goal of enterprise collaboration systems is to enable us to work together more easily
and effectively by helping us to:
communicate
coordinate
collaborate
Share information with each other.
Communicate
Organize our individual work efforts and use of resources.
Coordinate
Work together cooperatively on joint projects and assignments.
Collaborate
may use PC workstations networked to a variety of servers on which project,
corporate, and other databases are stored.
ECS
network servers may provide a variety of software resources, such as Web browsers, groupware, and application packages, to assist the team’s collaboration until the project is completed.
ECS
Tools for enterprise collaboration
-electronic communication tools
-electronic conferencing tools
-collaborative work management tools
include e-mail, voice mail, faxing, Web publishing, bulletin board systems, paging, and Internet phone systems.
. Electronic communication tools
These tools enable us to send electronically messages, documents, and files in data, text,
voice, or multimedia over computer networks.
. Electronic communication tools
This helps us share everything from voice and text messages to copies of project documents and data files with our team members, wherever they may be.
Electronic communication tools
The ease and efficiency of such communications are major contributors to the collaboration process.
Electronic communication tools
Help people communicate and collaborate as they work together
Electronic conferencing tools
A variety of conferencing methods enable the members of teams and workgroups at different locations to exchange ideas interactively at the same time, or at different times at their convenience
Electronic conferencing tools
These include data and voice conferencing, videoconferencing, chat systems, and discussion forums.
Electronic conferencing tools
Electronic conferencing options also include __________ and other _________ where team members can meet at the same time and place in a ________ setting, or use the Internet to work collaboratively anywhere in the world.
electronic meeting systems
group support systems
decision room
Help people accomplish or manage group work activities
Collaborative work management tools
This category of software includes calendaring and scheduling tools, task and project management, workflow systems, and knowledge management tools.
Collaborative work management tools
Other tools for joint work, such as joint document creation, editing, and revision, are found in the software suites.
Collaborative work management tools
As a business professional, it is important that one has a specific understanding of how
information systems affect a particular business function (e.g., marketing) or a particular
industry (e.g., banking) that is directly related to his career objectives
IT in business
Functional Business systems
Marketing
Human Resource Management
Finance
Accounting
Production/ Operations
The business function of marketing is concerned with the planning, promotion, and sale
of existing products in existing markets, and the development of new products and new
markets to better attract and serve present and potential customers.
Marketing systems
performs an essential function in the operation of a business enterprise
marketing
Business firms have increasingly turned to information technology to help them perform
vital marketing functions in the face of the rapid changes of today’s environment
marketing systems
is a customer-focused marketing process that is based on using the
Internet, intranets, and extranets to establish two-way transactions between a business and its customers or potential customers
Interactive marketing
The goal of ___________ is to enable a company to use those networks profitably to attract and keep customers who will become partners with the business in creating, purchasing, and improving products and services
interactive marketing
in ________customers are not just passive participants who receive media
advertising prior to purchase; they are actively engaged in network-enabled proactive and interactive processes
interactive marketing
encourages customers to become involved in product development,
delivery, and service issues.
Interactive marketing
This is enabled by various Internet technologies, including chat and discussion groups, Web forms and questionnaires, instant messaging, and e-mail correspondence.
Interactive Marketing
the expected outcomes of ____________are a rich mixture of vital marketing data, new product ideas, volume sales, and strong customer relationships.
interactive marketing
has become an important tool in developing advertising and promotion strategies to strengthen a company’s e-commerce initiatives, as well as its traditional business venues.
Targeted marketing
is in the digital arena, with a new way of doing something old.
Targeted marketing
is an advertising and promotion management concept that includes five targeting components
Targeted marketing
five targeting components of targeted marketing
Community
Content
Context
Demographic/ Psychographic
Online behavior
Companies can customize their Web advertising messages and promotion methods to appeal to people in specific communities
communities
They can be communities of interest, such as virtual communities of online sporting
enthusiasts, or arts and crafts hobbyists, or geographic communities formed by the
Web sites of a city or other local organization.
community
Advertising, such as electronic billboards or banners, can be placed on a variety
of selected Web sites, in addition to a company’s Web site.
content
The content of these messages is aimed at the targeted audience.
- An ad for a product campaign on the opening page of an Internet search engine is
a typical example.
content
Advertising appears only in Web pages that are relevant to the content of a product
or service
context
Web marketing efforts can be aimed only at specific types or classes of people: for example, unmarried, twenty-something, middle income, male college graduates.
demographic/ psychographic
Advertising and promotion efforts can be tailored to each visit to a site by an
individual
Online behavior
This strategy is based on a variety of tracking techniques, such as Web “cookie” files recorded on the visitor’s disk drive from previous visits.
online behavior
This enables a company to track a person’s online behavior at its Web site so marketing efforts (such as coupons redeemable at retail stores or e-commerce Web sites) can be targeted to that individual at each visit to its Web site.
online behavior
Increasingly, computers and the Internet are providing the basis for _________.
sales force automation
In many companies, the sales force is being outfitted with notebook computers, Web browsers, and sales contact management software that connect them to marketing Web sites on the Internet, extranets, and their company intranets
Sales Force Automation
This not only increases the personal productivity of salespeople, but it dramatically speeds up the capture and analysis of sales data from the field to marketing managers at company headquarters.
Sales Force Automation
In return, it allows marketing and sales management to improve the delivery of information and the support they provide to their salespeople.
Sales Force Automation
Therefore, many companies are viewing ___________ as a way to gain a strategic advantage in sales productivity and marketing responsiveness.
sales force automation
support the production/operations function that includes all activities concerned with the planning and control of the processes producing
goods or services.
Manufacturing information systems
Thus, the production/operations function is concerned with the management of the operational processes and systems of all business firms.
Manufacturing Systems
Information systems used for operations management and transaction processing support all firms that must plan, monitor, and control inventories, purchases, and the flow of goods and services.
manufacturing systems
Therefore, firms such as transportation companies, wholesalers, retailers, financial institutions, and service companies must use production/operations information systems to plan and control their operations
manufacturing systems
A variety of manufacturing information systems, many of them Web-enabled, are used to support ___________.
computer-integrated manufacturing (CIM)
is an overall concept that emphasizes that the objectives of computer-based systems in manufacturing must be to
CIM
(reengineer) production processes, product designs, and factory organization as a vital foundation to automation and integration.
Simplify
production processes and the business functions that support them with computers, machines, and robots.
Automate
all production and support processes using computer networks, cross functional business software, and other information technologies.
Integrate
The overall goal of _______ and such manufacturing information systems is to create flexible, agile, manufacturing processes that efficiently produce products of the highest quality
CIM
CIM supports the concepts of ________, ________, and ___________.
flexible manufacturing systems
agile manufacturing
total quality management
Implementing such manufacturing concepts enables a company to respond to and fulfill
customer requirements quickly with high-quality products and services.
CIM
______help companies simplify, automate, and integrate
many of the activities needed to produce products of all kinds.
Manufacturing information systems
They are also used to help plan the types of material needed in the production process, which is called _______, and to integrate MRP with production scheduling and shop floor operations, which is known as ____________.
material requirements planning (MRP)
manufacturing resource planning.
-These systems are those that automate the production process.
Computer-aided manufacturing (CAM)
These are performance-monitoring information systems for factory floor operations.
Manufacturing execution systems (MES)
They monitor, track, and control the five essential components involved in a production process: materials, equipment, personnel, instructions and specifications, and production facilities.
Manufacturing execution systems (MES)
includes shop floor scheduling and control, machine control, robotics control, and process control systems.
Manufacturing execution systems (MES)
These manufacturing systems monitor, report, and adjust the status and performance of production components to help a company achieve a flexible, high-quality manufacturing process.
Manufacturing execution systems (MES)
This is the use of computers to control an ongoing physical process.
Process control
_______ control physical processes in petroleum refineries, cement plants, steel mills, chemical plants, food product manufacturing plants, pulp and paper mills, electric power plants, and so o
Process control computers
requires the use of special sensing devices that measure physical phenomena such as temperature or pressure changes.
process control computer system
These continuous physical measurements are converted to digital form by analog-to-digital converters and relayed to computers for processing.
Process control
This is the use of computers to control the actions of machines
Machine control
This is also popularly called numerical control.
Machine control
The computer-based control of machine tools to manufacture products of all kinds is a typical numerical control application used by many factories throughout the
world.
Machine control
____________function involves the recruitment, placement, evaluation, compensation, and development of the employees of an organization.
The human resource management (HRM)
The goal of __________ is the effective and efficient use of the human resources of a company.
human resource management
human resource information systems (HRIS) are designed to support:
a. planning to meet the personnel needs of the business,
b. development of employees to their full potential, and
c. control of all personnel policies and programs.
businesses used computer-based information systems to:
a. produce paychecks and payroll reports,
b. maintain personnel records, and
c. analyze the use of personnel in business operations
Many firms have gone beyond these traditional personnel management functions and
have developed human resource information systems that also support:
a. recruitment, selection, and hiring;
b. job placement;
c. performance appraisals;
d. employee benefits analysis;
e. training and development; and
f. health, safety, and security
- The Internet has become a major force for change in human resource management.
- For example, online HRM systems may involve recruiting for employees through recruitment sections of corporate Web sites.
- Companies are also using commercial recruiting services and databases on the World Wide Web, posting messages in selected Internet newsgroups, and communicating with job applicants via email.
- The Internet has a wealth of information and contacts for both employers and job hunters. Top Websites for job hunters and employers on the World Wide Web include Monster.com, HotJobs.com, and CareerBuilder.com.
- These Websites are full of reports, statistics, and other useful HRM information, such as job reports by industry, or listings of the top recruiting markets by industry and profession.
HRM and the Internet
_______ allow companies to process most common HRM applications over their corporate intranets.
Intranet technologies
allow the HRM department to provide around-the-clock services to their customers: the employees.
Intranets
They can also disseminate valuable information faster than through previous company
channels.
Intranets
can collect information online from employees for input to their HRM files, and they can enable managers and other employees to perform HRM tasks with little intervention by the HRM department.
Intranets
Through this completely electronic process, employees can use their Web browsers to look up individual payroll and benefits information online, right from their desktop PCs, mobile computers, or intranet kiosks located around a work site.
Intranet
Another benefit of the ___ is that it can serve as a superior training tool
intranet
The _________ eliminates the need to loan out and track training videos.
intranet
are the oldest and most widely used information systems
in business
Accounting information systems
They record and report business transactions and other economic events.
Accounting Systems
record and report the flow of funds through an organization on a historical basis and produce important financial statements such as balance sheets and income statements.
Such systems also produce forecasts of future conditions such as projected financial statements and financial budgets.
Computer-based accounting systems
____________ emphasize legal and historical record-keeping and the
production of accurate financial statements.
- Typically, these systems include transaction processing systems such as order processing, inventory control, accounts receivable, accounts payable, payroll, and general ledger systems
Operational accounting systems
______ focus on the planning and control of business
operations.
- They emphasize cost accounting reports, the development of financial budgets and projected financial statements, and analytical reports comparing actual to forecasted performance
Management accounting systems
COMMON BUSINESS ACCOUNTING SYSYEMS
Order Processing
Inventory Control
Accounts receivable
Accounts payable
Payroll
General Ledger
Captures and process customer orders and produces data for inventory control and accounts receivable.
Order processing
Process data reflecting changes in inventory and provides shipping and reorder information
Inventory control
Records amounts owed by customers and produces customer invoices, monthly customer statements, and credit management reports.
Account receivable
records purchases from, amounts owed to, and payments to suppliers, and produces cash management reports
Accounts payable
records employee work and compensation data and produces paychecks and other payroll documents and reports.
Payroll
Consolidates data from other accounting systems and produces the periodic financial statements and reports of the business.
General ledger
-The accounting information systems nowadays are being transformed by Internet technologies.
- The interactive nature of online accounting systems calls for new forms of transaction documents, procedures, and controls.
- This particularly applies to systems like order processing, inventory control, accounts receivable, and accounts payable.
- These systems are directly involved in the processing of transactions between a business
and its customers and suppliers
Online Accounting Systems
Computer-based financial management systems support business managers and professionals in decisions concerning
- the financing of a business and
- the allocation and control of financial resources within a business.
Major financial management system categories
Cash and investments management
Capital budgeting
Financial forecasting
Financial planning
involves evaluating the profitability and financial impact of proposed capital expenditures. Long-term expenditure proposals for facilities and equipment can be analyzed using a variety of return on investment (ROI) evaluation techniques. This application makes heavy use of spreadsheet models that incorporate present value analysis of expected cash flows and probability analysis of risk to determine the optimum mix of capital projects for a business.
capital budgeting process
Financial analysts also typically use electronic spreadsheets and other _____ software to evaluate the present and projected financial performance of a business.
- They also help determine the financing needs of a business and analyze alternative methods of financing.
financial planning
Financial analysts use _________ concerning the economic situation, business operations, types of financing available, interest rates, and stock and bond prices to develop an optimal financing plan for the business.
financial forecasts
can be used to build and manipulate financial models
Electronic spreadsheet packages
DSS software
Web-based groupware
