e-business Systems

Enterprise Collaboration Systems (ECS)

Definition: Enterprise collaboration systems (ECS) are cross-functional information systems that enhance communication, coordination, and collaboration among members of business teams and workgroups.

Goals of ECS:

1. Communicate:
   • Share information efficiently among team members.
2. Coordinate:
   • Organize individual work efforts and manage resource utilization.
3. Collaborate:
   • Work together cooperatively on joint projects and assignments.

Example Scenario: A project involving engineers, business specialists, and external consultants may form a virtual team. This team can use various ECS tools to collaborate:

• Intranets and Extranets:
  • Enable team members to collaborate through platforms like e-mail, videoconferencing, discussion forums, and multimedia databases.
  • A project website can serve as a centralized repository for work-in-progress information.

Technology Infrastructure:

• Networked PC Workstations:
  • Connected to various servers storing project, corporate, and other databases.
• Network Servers:
  • Provide software resources such as Web browsers, groupware, and application packages to assist collaboration until project completion.

Benefits of ECS:

1. Improved Communication:
   • Enhanced sharing of information reduces misunderstandings and speeds up decision-making processes.
2. Efficient Coordination:
   • Better organization of tasks and resources leads to higher productivity and resource optimization.
3. Effective Collaboration:
   • Joint efforts on projects become more manageable, with tools facilitating real-time updates and collaborative work environments.

Tools and Resources in ECS:

a. Electronic communication tools
– include e-mail, voice mail, faxing, Web publishing, bulletin board systems, paging, and Internet phone systems.
– These tools enable us to send electronically messages, documents, and files in data, text, voice, or multimedia over computer networks.
– 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.
– The ease and efficiency of such communications are major contributors to the collaboration process.

b. Electronic conferencing tools

– Help people communicate and collaborate as they work together.
– 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.
– These include data and voice conferencing, videoconferencing, chat systems, and discussion forums.
– Electronic conferencing options also include electronic meeting systems and other group support systems where team members can meet at the same time and place in a decision room setting, or use the Internet to work collaboratively anywhere in the world.

c. Collaborative work management tools
– Help people accomplish or manage group work activities.
– This category of software includes calendaring and scheduling tools, task and project management, workflow systems, and knowledge management tools.
– Other tools for joint work, such as joint document creation, editing, and revision, are found in the software suites.

Functional Business Systems

Introduction

Information technology (IT) has become an integral part of business operations. The ways in which IT can be utilized in business are as diverse as the business activities, problems, and opportunities it aims to address. From streamlining operations and enhancing productivity to solving complex business problems and seizing new opportunities, IT plays a crucial role in the modern business environment.

IT in Business

As a business professional, it is essential to have a specific understanding of how information systems impact particular business functions or industries. This knowledge is critical to achieving career objectives and excelling in your chosen field.

Example: Marketing in the Banking Industry

For instance, if your career objective is to secure a marketing position in the banking industry, it is important to understand how information systems are employed in this sector. Here are a few key points:

1. Customer Relationship Management (CRM): Banks use CRM systems to manage customer interactions, gather data on customer behavior, and tailor marketing campaigns to individual customer needs. These systems help banks to maintain strong customer relationships and improve customer satisfaction.
2. Data Analytics: Information systems enable banks to analyze large volumes of data to identify trends and patterns. This analysis helps in making informed marketing decisions, such as targeting specific customer segments with personalized offers.
3. Digital Marketing: With the rise of digital channels, banks use information systems to manage their online presence, run digital marketing campaigns, and engage with customers through social media, email marketing, and online advertising.
4. Mobile Banking: Mobile banking apps are a crucial part of a bank’s marketing strategy. These apps provide customers with convenient access to banking services and offer personalized marketing messages based on user behavior and preferences.
5. Regulatory Compliance: Information systems help banks to ensure compliance with regulatory requirements related to marketing activities, such as data protection and privacy laws.

Marketing Systems

Marketing systems are crucial for the planning, promotion, and sales of existing products within current markets, as well as for the creation of new products and exploration of new markets to better attract and serve both current and potential customers. As marketing plays a fundamental role in the functioning of a business, firms are increasingly leveraging information technology to manage these vital functions effectively, especially given the rapid changes in today’s business environment. Three of the marketing applications:

1. Interactive Marketing
– Interactive marketing 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.
– The goal of interactive marketing 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.
– In interactive marketing, 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.
– This is enabled by various Internet technologies, including chat and discussion groups, Web forms and questionnaires, instant messaging, and e-mail correspondence.
– Finally, the expected outcomes of interactive marketing are a rich mixture of vital marketing data, new product ideas, volume sales, and strong customer relationships.

2. Targeted Marketing
– Targeted 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.
– Target 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:
a. Community
– Companies can customize their Web advertising messages and promotion methods to appeal to people in specific 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.

b. Content
– 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.
– 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.
c. Context
– Advertising appears only in Web pages that are relevant to the content of a product or service.
– So, advertising is targeted only at people who are already looking for information about a subject matter (e.g., vacation travel) that is related to a company’s products (e.g., car rental services).
d. Demographic/Psychographic
– Web marketing efforts can be aimed only at specific types or classes of people: for example, unmarried, twenty-something, middle income, male college graduates.
e. Online Behavior
– Advertising and promotion efforts can be tailored to each visit to a site by an individual.
– 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.
– 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.

3. Sales Force Automation
– 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.
– 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.
– In return, it allows marketing and sales management to improve the delivery of information and the support they provide to their salespeople.
– Therefore, many companies are viewing sales force automation as a way to gain a strategic advantage in sales productivity and marketing responsiveness.
– For example, salespeople use their PCs to record sales data as they make their calls on customers and prospects during the day. Then each night, sales reps in the field can connect their computers by modem and telephone links to the Internet and extranets, which can access intranet or other network servers at their company. Then, they can upload information on sales orders, sales calls, and other sales statistics, as well as send e-mail messages and access Web site sales support information. In return, the network servers may download product availability data, prospect lists of information on good sales prospects, and e-mail messages.

Manufacturing Systems

Manufacturing information systems play a key role in supporting the production and operations functions, which encompass all activities related to planning and controlling the processes involved in producing goods or services. This function is vital for managing the operational processes and systems within any business. Information systems used for operations management and transaction processing are essential for firms that need to plan, monitor, and control inventories, purchases, and the movement of goods and services. Consequently, industries such as transportation, wholesale, retail, finance, and services rely on these systems to effectively plan and manage their operations.

Computer Integrated Manufacturing
– A variety of manufacturing information systems, many of them Web-enabled, are used to support computer-integrated manufacturing (CIM).
– CIM is an overall concept that emphasizes that the objectives of computer-based systems in manufacturing must be to:
● Simplify (reengineer) production processes, product designs, and factory organization as a vital foundation to automation and integration.
● Automate production processes and the business functions that support them with computers, machines, and robots.
● Integrate all production and support processes using computer networks, cross functional business software, and other information technologies.
– The overall goal of CIM and such manufacturing information systems is to create flexible, agile, manufacturing processes that efficiently produce products of the highest quality.
– Thus, CIM supports the concepts of flexible manufacturing systems, agile manufacturing, and total quality management.
– Implementing such manufacturing concepts enables a company to respond to and fulfill customer requirements quickly with high-quality products and services.
– Manufacturing information systems help companies simplify, automate, and integrate many of the activities needed to produce products of all kinds.
– For example, computers are used to help engineers design better products using both computer-aided engineering (CAE) and computer-aided design (CAD) systems, and better production processes with computer-aided process planning.
– They are also used to help plan the types of material needed in the production process, which is called material requirements planning (MRP), and to integrate MRP with production scheduling and shop floor operations, which is known as manufacturing
resource planning.

• Computer-Aided Manufacturing (CAM):CAM systems are designed to automate the production process. This automation can involve monitoring and controlling the entire production process within a factory (through manufacturing execution systems), or directly managing specific processes such as machine tools, process control, or robots with humanlike capabilities.
• Manufacturing Execution Systems (MES):MES are performance-monitoring information systems focused on factory floor operations. They oversee and manage the five key elements of the production process: materials, equipment, personnel, instructions and specifications, and production facilities. MES encompasses various functions such as shop floor scheduling, machine control, robotics control, and process control. These systems are crucial for monitoring, reporting, and adjusting the status and performance of production components, thereby enhancing the flexibility and quality of the manufacturing process.
• Process Control: Process control involves using computers to regulate ongoing physical processes. These systems are employed in industries such as petroleum refining, cement production, steel manufacturing, chemical processing, food production, and power generation. Process control systems rely on specialized sensors to measure physical phenomena like temperature and pressure. These measurements are converted into digital data by analog-to-digital converters and then processed by computers.
• Machine Control: Machine control, often referred to as numerical control, uses computers to direct the actions of machines. This type of control is widely used in manufacturing to operate machine tools for producing various products. Numerical control systems enable precise control of machines, which is essential for efficient and accurate manufacturing.

Human Resource Systems

Human resource management (HRM) encompasses activities such as recruiting, placing, evaluating, compensating, and developing employees within an organization. The primary aim of HRM is to utilize the company’s human resources effectively and efficiently.

Human resource information systems (HRIS) are designed to assist with:

1. Planning: Ensuring that the business’s personnel needs are met.
2. Development: Helping employees reach their full potential.
3. Control: Managing all personnel policies and programs.

Initially, HRIS were used primarily for:

1. Generating paychecks and payroll reports.
2. Maintaining personnel records.
3. Analyzing the use of personnel in business operations.

However, many companies have expanded their HRIS capabilities to include:

1. Recruitment, selection, and hiring processes.
2. Job placement and management.
3. Performance evaluations and appraisals.
4. Analysis of employee benefits.
5. Training and development programs.

HRM and the Internet

The Internet has significantly transformed human resource management (HRM). Online HRM systems now often include:

– Recruitment: Companies can recruit employees through their corporate websites and use commercial recruiting services and databases available on the World Wide Web.
– Communication: Job applicants can be contacted via email, and companies can post job openings in selected Internet newsgroups.

The Internet offers a vast array of information and connections for both employers and job seekers. Top job-related websites include Monster.com, HotJobs.com, and CareerBuilder.com. These platforms provide valuable HRM resources, including industry-specific job reports, statistics, and listings of top recruiting markets by industry and profession.

HRM and Corporate Intranets

Intranet technologies have revolutionized HRM by enabling companies to handle many common HR applications directly through their corporate intranets. These intranets offer several benefits:

• 24/7 Services: HR departments can provide continuous support to employees, ensuring that HR services are accessible around the clock.
• Faster Information Dissemination: Information can be shared more quickly than through traditional company communication channels.
• Online Data Collection: Intranets facilitate the collection of information from employees, which can be used to update HRM files.
• Self-Service: Employee self-service (ESS) applications allow staff to manage various HR tasks independently. Through intranet applications, employees can view benefits, submit travel and expense reports, verify employment and salary details, update personal information, and enter time-sensitive data, reducing the need for direct HR intervention.

Accounting Systems

Accounting information systems are among the oldest and most prevalent types of information systems in business. Their primary functions include:

• Recording and Reporting: They document and report business transactions and other economic activities.
• Historical Reporting: Computer-based accounting systems track the flow of funds within an organization over time and generate essential financial statements, such as balance sheets and income statements.
• Forecasting: These systems also produce forecasts of future financial conditions, including projected financial statements and budgets.
• Performance Measurement: Financial performance is assessed using analytical accounting reports that compare actual results against forecasts.

Operational Accounting Systems:

• Focus on maintaining legal and historical records and ensuring the accuracy of financial statements.
• Commonly include transaction processing systems such as order processing, inventory control, accounts receivable, accounts payable, payroll, and general ledger systems.

Management Accounting Systems:

• Concentrate on the planning and control of business operations.
• Include cost accounting reports, financial budgets, projected financial statements, and analytical reports that compare actual performance to forecasts.

Online Accounting Systems

Online accounting systems are evolving due to advancements in Internet technologies. The interactive features of these systems require updated transaction documents, procedures, and controls. This is especially relevant for systems such as order processing, inventory management, accounts receivable, and accounts payable. These systems play a crucial role in managing transactions between businesses and their customers or suppliers. As a result, many companies are leveraging the Internet and network connections with their trading partners to enhance these online transaction processing systems.

Financial Management Systems
– Computer-based financial management systems support business managers and professionals in decisions concerning:
1. the financing of a business and
2. the allocation and control of financial resources within a business.
– Major financial management system categories include cash and investment management, capital budgeting, financial forecasting, and financial planning.

For example, the capital budgeting process 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.
– Financial analysts also typically use electronic spreadsheets and other financial planning 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 analysts use financial forecasts 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.
– Electronic spreadsheet packages, DSS software, and Web-based groupware can be used to build and manipulate financial models.