Essays /

1256589 Essay

Essay preview

Electronic Business Systems
IV: LECTURE NOTES Section I: Enterprise Business Systems
This chapter introduces the fast-changing world of business applications of information technology, which increasingly consists of what is popularly called e-business applications. e-Business is the use of the Internet and other networks and information technologies to support electronic commerce, enterprise communications and collaboration, and Web-enabled business processes, both within a networked enterprise, and with its customers and business partners. Distinction between e-commerce and e-business: e-Commerce is defined as buying and selling over digital media. e-Business encompasses e-commerce, but also includes both front- and back-office applications that form the engine for modern business. e-Business redefines old business models, with the aid of technology, to maximize customer value.

Analyzing Hilton Hotels We can learn a lot about the challenges and benefits of customer relationship management systems from this case. Take a few minutes to read it, and we will discuss it (See Hilton Hotels Corporation: Data-Driven Hospitality in Section IX).

Cross-Functional Enterprise Systems:
Many companies today are using information technology to develop integrated cross-functional enterprise systems that cross the boundaries of traditional business functions in order to reengineer and improve vital business processes all across the enterprise. 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.

Enterprise Application Architecture: [Figure 7.3] Figure 7.3 is an excellent illustration of the concept of enterprise application architecture. It illustrates the interrelationships of the major cross-functional enterprise applications that many companies have or are installing today. This architecture spotlights the roles these business systems play in supporting the customers, suppliers, partners, and employees of a business.

Enterprise Application Integration: [Figure 7.4]
How does a business interconnect some of the cross-functional enterprise systems? Enterprise application integration (EAI) software is being used by many companies to connect major e-business applications. EAI software: Enables users to model the business processes involved in the interactions that should occur between business O’Brien, Management Information Systems, 7/e IM - Chapter 7 pg. 1

applications. Provides middleware that performs data conversion and coordination, application communication and messaging services, and access to the application interfaces involved. Integrate a variety of enterprise application clusters by letting them exchange data according to rules derived from the business process models developed by users. Integrate the front-office and back-office applications of an e-business, so they work together in a seamless, integrated way. This is a vital capability that provides real business value to an e-business enterprise that must respond quickly and effectively to business events and customer demands.

Transaction Processing Systems
Transaction processing systems (TPS) are cross-functional information systems that process data resulting from the occurrence of business transactions. Transactions are events that occur as part of doing business, such as sales, purchases, deposits, withdrawals, refunds, and payments. Transaction processing activities are needed to capture and process data. Therefore TPS play a vital role in supporting the operations of an e-business enterprise. Online transaction processing systems play a strategic role in electronic commerce. • Many firms are using the Internet, extranets, and other networks that tie them electronically to their customers or suppliers for online transaction processing (OLTP). • These real-time systems, which capture and process transactions immediately, can help them provide superior service to customers and other trading partners. • OLTP systems add value to a company’s products and services, and thus give them an important way to differentiate themselves from their competitors.

The Transaction Processing Cycle: [Figure 7.6] Transaction processing systems capture and process data describing business transactions. Then they update organizational files and databases, and produce a variety of information products for internal and external use. A transaction processing cycle consists of several basic activities, which involve: Data entry activities Transaction processing activities Database maintenance activities Document and report generation Inquiry processing activities.

Data Entry The input activity in TPS involves a data entry process. In this process, data is captured or collected by recording, coding, and editing activities. Trend: Move from traditional (manual) data entry systems toward source data automation (automated systems). The reason for this trend is that direct methods are more efficient and reliable than manual systems. Examples of devices used in data automation include: Point-of-sale (POS) transaction terminals ATM (Automated Teller Machine) terminals Optical character recognition (OCR) scanners and wands PCs and network computers with cash drawers as intelligent POS terminals Portable digital radio terminals and pen-based tablet PCs for remote date entry PCs equipped with touch screens and voice recognition systems for data entry O’Brien, Management Information Systems, 7/e IM - Chapter 7 pg. 2

Bar coded tags Magnetic stripe cards Electronic website on the Internet.

Transaction Processing Transaction processing systems process data in two basic ways: • Batch Processing - transaction data are accumulated over a period of time and processed periodically. • Real-time Processing - (also called online processing), where data are processed immediately after a transaction occurs. All online transaction processing systems incorporate real-time processing capabilities. Many online systems also depend on the capabilities of fault tolerant systems that can continue to operate even if parts of the system fail.

Database Maintenance: An organization’s data must be maintained by its transaction processing systems so that they are always correct and up-to-date. Therefore, transaction processing systems update the corporate database of any organization to reflect changes resulting from day-to-day business transactions.

Document and Report Generation: Transaction processing systems produce a variety of documents and reports. Examples of transaction documents include: • Purchase orders • Paychecks • Sales receipts • Invoices • 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.

Inquiry Processing: Many transaction processing systems allow you 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. Examples of queries include: • Checking on the status of a sales order • Checking on the balance in an account • Checking on the amount of stock in inventory

Enterprise Collaboration Systems
Enterprise collaboration systems provide tools to help us collaborate - to communicate ideas, share resources, and coordinate our cooperative work efforts as members of the many formal and informal process and project teams and workgroups that make up many of ...

Read more


1 10 11 12 1256589 13 14 15 2 214 216 218 220 221 222 226 228 229 230 231 232 233 234 235 236 238 3 4 5 6 7 7.11 7.12 7.13 7.15 7.16 7.18 7.20 7.21 7.3 7.4 7.6 7.7 7.8 7/e 8 9 access accomplish accord account accumul accur achiev across action activ actual add addit administr advantag advertis affect agil aid aim alloc allow alreadi also altern alway among amount analog analog-to-digit analys analysi analyst analyt analyz answer appeal appear applic apprais appreci architectur around around-the-clock art aspect assign assist atm attain attract audienc autom avail back back-offic balanc banner bar base basi basic batch becom behavior behaviour believ benefit better beyond billboard board bond boundari brien browser budget build bulletin busi buy cad cae calendar call cam capabl capac capit capp captur card career case cash categori chain challeng chang channel chapter charact characterist chat check cim citi class client/server clock close cluster code coin collabor collect colleg combin commerc commerci common communic communiti compani compar compens competitor compon compos composit comput computer-aid computer-bas computer-integr computerintegr con concept concern condit conferenc connect consist consolid contact content context continu control conveni convers convert cooki cooper coordin copi corpor correct correspond cost could craft creat credit crm cross cross-funct custom cycl data data-driven databas date day day-to-day decis defin deliveri demand demographic/psychographic depart depend deposit deriv describ design detect determin develop devic differ differenti digit direct discuss disk display dissemin distinct distribut divis document dramat drawer drive driven dss due dynam e e-busi e-commerc e-mail eai easili ebusi ec econom edit effect effici effort either electron emphas emphasi employe enabl encompass encourag engag engin enhanc enterpris enthusiast entri equip erp error essenti establish etc evalu even event everyth exampl excel exchang execut exist expect expenditur explos express extern extranet facil factori fail fast fast-chang faster fault fax feedback field figur file final financ financi finish firm five flexibl floor flow focus forc forecast form formal format forum foundat frequent front front-offic fulfil full function fund futur gain ge general generat geograph give goal goal-seek gone good graduat group groupwar growth hand hardwar headquart health heavi help high high-qual higher highest hilton hire histor hobbyist home hospit hotel hr hris hrm human humanlik hypermedia idea ii illustr im immedi impact implement import improv includ incom incorpor increas individu industri inform input inquiri instal instant instruct integr intellig interact interconnect interest interfac intern internet internet/intranet internetwork interorganiz interrelationship intervent intranet introduc introduct inventori invest invoic involv issu iv ix job joint just-in-tim keep key kind knowledg languag larg learn lectur ledger legal let level like link list littl local locat long look lot machin magnet mail maintain mainten major make male manag mani manipul manual manufactur market materi matter maxim may measur media meet member mes messag method middl middlewar might minut mix mixtur mobil model modern monitor month move mrp mrp-ii multimedia must nation natur need network network-en new newsgroup note notebook numer o object occur occurr ocr offic old oldest oltp one ongo onlin oper opportun optic optim optimum option order organ organis organiz out-of-stock outcom outfit overal owe packag page paid part particip particular partner passiv pay payabl paycheck payment payrol pcs pen pen-bas peopl perform period person personnel petrochem pg phenomena phone physic place placement plan plant platform play point point-of-sal polici popular portabl pos possibl post potenti power present prespecifi pressur previous price proactiv probabl problem procedur process produc product production/operations productions/operations profession profit program project promot propos prospect provid publish purchas pursu qualiti queri question questionnair quick radio rate rather reach read real real-tim realtim reason receipt receiv recognit record record-keep recruit redefin reduc reengin refer reflect refund regard regist relat relationship relay relev reliabl remot reorder report requir research resourc respond respons result rich risk robot role room rule safeti sale salespeopl scanner schedul scm screen seamless section secur see seek select sell send sens serv server servic set sever share sheet ship shop simplif simplifi site situat six small softwar solv someth sourc special specif speed sport spotlight spreadsheet staf stakehold statement status stock strateg strategi stress stripe strong subject subsidiari succeed summar summari superior suppli supplier support system tablet tag tailor take target task team techniqu technolog telecommun teller temperatur term termin text therefor throughout thus tie time timecard today togeth toler tool total touch toward tps track trade tradit train transact trend turn twenti twenty-someth two two-way type typic understand unit unmarri up-to-d updat us use user util v valu valuabl varieti various videoconferenc view virtual visit visitor vital voic volum wage wand want way web web-en websit well what-if wherev wide withdraw within work workflow workgroup workload world