James A O’Brien Introduction to Information Systems Chapter Electronic Business and Commerce Irwin/McGraw-Hill James A O’Brien Introduction to Information Systems Chapter Objectives • Identify several cross-functional integrated EBusiness 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 James A O’Brien Introduction to Information Systems 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 James A O’Brien Introduction to Information Systems The E-Business Application Architecture Irwin/McGraw-Hill James A O’Brien Cross-Functional Integrated Systems Customers Enterprise Application Cluster Front Office Applications CRM Application •Customer Service •Field Service •Sales Order •Product Config Enterprise Enterprise Application Cluster Application Integration Back Office Applications ERP Application •Distribution •Manufacturing •Scheduling •Finance Suppliers Irwin/McGraw-Hill Business Partners Introduction to Information Systems James A O’Brien Introduction to Information Systems Functional Business Information Systems Marketing Marketing Production Production Operations Operations Functional Business Systems Accounting Accounting Irwin/McGraw-Hill Human HumanResource Resource Management Management Finance Finance James A O’Brien Introduction to Information Systems Marketing Information Systems Marketing Marketing Information Information Systems Systems Interactive Marketing Sales SalesForce Force Automation Automation Market Market Research Researchand and Forecasting Forecasting Irwin/McGraw-Hill Customer Customer Relationship Relationship Management Management Advertising Advertising and and Promotions Promotions Sales Sales Management Management Product Product Management Management James A O’Brien Introduction to Information Systems Customer Relationship Management Retention Marketing and and Loyalty Fulfillment Programs Sales Store Front Customer Cross-Sell and Field Up-Sell Customer Service Service and Support Contact Management Irwin/McGraw-Hill James A O’Brien Introduction to Information Systems Targeted Marketing Context Demographic/ Psychographic Content Online Behavior Community Irwin/McGraw-Hill James A O’Brien Introduction to Information Systems Manufacturing Information Systems Intranet Computer Integrated Manufacturing Manufacturing Manufacturing Engineering Resource Execution Systems Planning Systems •CAD •Production Forecasting •Production Scheduling •Quality Control •Shop Floor •Scheduling •Machine Control •Process Control •Robotic Control Remote Worker •CAE •ComputerAided Process Planning Supplier Extranet Irwin/McGraw-Hill James A O’Brien 1 Introduction to Information Systems Human Resource Management •Manpower Planning •Labor Force Tracking Training & Compensation Administration Development •Succession •Contract planning costing •Performance •Salary forecast appraisal plans •Labor Cost Analysis •Turnover Analysis •Training effectiveness •Career matching •Compensation effectiveness •Benefits Analysis •Skill assessment •Performance evaluation •Payroll control •Benefits Administration Staffing Strategic Systems Tactical Systems •Recruitment Operationa •Workforce l Planning Systems Irwin/McGraw-Hill James A O’Brien Introduction to Information Systems Accounting Information Systems Irwin/McGraw-Hill James A O’Brien Introduction to Information Systems Financial Information Systems Financial Financial Information Information Systems Systems Cash Management Irwin/McGraw-Hill Investment Investment Management Management Capital Budgeting Financial Financial Planning Planning James A O’Brien Introduction to Information Systems The E-Commerce Transaction Cycle Attract Look and Feel Performance and Service Inform Personalize Relevant Information Buying behavior Incentives Customize Customer Configuration Key KeyProcesses Processes and and Resources Resources Transact Buying & Selling Models Irwin/McGraw-Hill Deliver Order Fulfillment Interact Pay Electronic Payment Systems Security Customer Service Socialization James A O’Brien Introduction to Information Systems Supply Chain Management Supply Chain Life Cycle SCM Functional Processes Commit Schedule Make Deliver Order Commitment Demand Planning Manufacturing Planning Advance Scheduling Transportation Planning Distribution Planning SCM Integrated Solution Irwin/McGraw-Hill Internetworked Supply Chain Management James A O’Brien Introduction to Information Systems Electronic Commerce Technologies Irwin/McGraw-Hill James A O’Brien Introduction to Information Systems Transaction Processing Systems Data Entry Transaction Processing Document and Report Generation Inquiry Processing Irwin/McGraw-Hill Database Maintenance James A O’Brien Introduction to Information Systems Electronic Payment and Security Systems Client Browser •Verify merchant •Receive order •Receive payment •Confirm order Merchant’s Web Server Payment Server •Verify customer •Review payment •Authorize or deny payment Credit cards Bank accounts Online buying E-Bill Payment Electronic Cash VISA Debit Cards CyberCash CheckFree Cybergold MasterCard Online Banking ClickCharge BillerXpert Qpass Irwin/McGraw-Hill James A O’Brien Introduction to Information Systems 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 James A O’Brien Introduction to Information Systems 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 James A O’Brien Introduction to Information Systems 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 Irwin/McGraw-Hill ... O’Brien Introduction to Information Systems Accounting Information Systems Irwin/McGraw-Hill James A O’Brien Introduction to Information Systems Financial Information Systems Financial Financial Information. .. O’Brien Introduction to Information Systems Marketing Information Systems Marketing Marketing Information Information Systems Systems Interactive Marketing Sales SalesForce Force Automation Automation... O’Brien Introduction to Information Systems Customer Relationship Management Retention Marketing and and Loyalty Fulfillment Programs Sales Store Front Customer Cross-Sell and Field Up-Sell Customer