2. Define e-buisness. Explain with a neat sketch the transaction processing cycle in detail.

Transcription

1 1. With the help of neat figure, explain the enterprise application architecture illustrating the major cross functional enterprise application and their interrelationships. 2. Define e-buisness. Explain with a neat sketch the transaction processing cycle in detail. 3. Explain: a. Human Resource Systems. b. Accounting Systems 4. What is manufacturing information system? Explain CIM in detail. 5. Define CRM. Explain the phases of CRM and support between business and its customers. 6. What is ERP? Explain in detail the benefits and challenges of ERP. 7. What is SCM? What are the objectives and outcomes of SCM? 8. Explain the ethical responsibilities of Business Professionals. 1. Software that integrates a variety of enterprise application clusters by letting them exchange data according to rules derived from the business process models developed by users

2 EAA gives a overview of interrelatedness, interdependence, and integration of the e-business applications. They are the vital components of the successful operations and management of an e-business enterprise. EAA illustrates the application components, interrelationships, and interfaces with customers, employees, business partners, and other stakeholders of an e-business enterprise. Many e-business applications are integrated into cross-functional enterprise application clusters like: 1. Enterprise resource planning 2. Customer relationship management 3. Decision support. 4. Supply chain management 5. Selling chain management. The Application Architecture spotlights the roles these business systems play in supporting the customers, suppliers, partners and employees of a business. 2. e-business 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. transaction processing cycle of several basic activities, is described below: Data Entry. 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.

3 Transaction Processing System Transaction Processing. Transaction processing systems process data in two basic ways: (1) batch processing, where transaction data are accumulated over a period of time and processed periodically, and (2) 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 computer systems that can continue to operate even if parts of the system fail. Database Maintenance. 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 cor- porate 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. Document and Report Generation. Transaction processing systems produce a variety of documents and reports. Examples of transaction documents include purchase orders, paychecks, sales receipts,

4 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. 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 trans- action processing activity. Typically, responses are displayed in a variety of pre- specified formats or screens. For example, you 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. 3a. The human resource management (HRM) function involves the recruitment, placement, evaluation, compensation, and development of the employees of an organization. The goal of human resource management is efficient and effective use of human resources of a company. Thus, human resource information systems (HRIS) are designed to support (1) planning to meet the personnel needs of the business, (2) development of employees to their full potential, and (3) control of all personnel policies and programs. Originally, businesses used computer-based information systems to (1) produce paychecks and payroll reports, (2) maintain personnel records, and (3) 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 (1) recruitment, selection, and hiring; (2) job placement; (3) performance appraisals; (4) employee benefits analysis; (5) training and development; and (6) health, safety, and security.

5 Human Resource System 3b. Accounting information systems are the oldest and most widely used information systems in business. They record and report business transactions and other economic events. Computer-based 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 fore- casts of future conditions such as projected financial statements and financial budgets. A firm s financial performance is measured against such forecasts by other analytical accounting reports. Operational accounting systems emphasize legal and historical recordkeeping and the production of accurate financial statements. Typically, these systems include transac- tion processing systems such as order processing, inventory control, accounts receivable, accounts payable, payroll, and general ledger systems. Management 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.

6 Accounting System 4. Manufacturing information systems support the production/operations function that includes all activities concerned with the planning and control of the processes producing goods or services. Thus, the production/operations function is concerned with the management of the operational processes and systems of all business firms. 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. 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. In this section, we will concentrate on computer-based manufacturing applications to illustrate information systems that support the production/operations function. 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.

7 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. Computer Integrated Manufacturing 5. Customer relationship management (CRM) systems Capture and integrate customer data from all over the organization. Consolidate and analyze customer data.

8 Distribute customer information to various systems and customer touch points across enterprise. Provide single enterprise view of customers. CRM software helps sales, marketing, and service professionals capture and track relevant data about every past and planned contact with prospects and customers, as well as other business and life cycle events of customers. Information is captured from all customer touch points, such as telephone, fax, , the company s Web site, retail stores, kiosks, and personal contact. CRM systems store the data in a common customer database that integrates all customer account information and makes it available throughout the company via Internet, intranet, or other network links for sales, marketing, service, and other CRM applications. Siebel Systems, Oracle, PeopleSoft, SAP AG, and Epiphany are some of the leading vendors of CRM software. Customer-focused business processes that support the three phases of the relationship between a business and its customers. Acquire. A business relies on CRM software tools and databases to help it acquire new customers by doing a superior job of contact management, sales prospecting, selling, direct marketing, and fulfilment. The goal of these CRM functions is to help customers perceive the value of a superior product offered by an outstanding company. Enhance. Web-enabled CRM account management and customer service and support tools help keep customers happy by supporting superior service from a responsive networked team of sales and service specialists and business partners. In addition, CRM sales force automation and direct marketing and fulfilment tools help companies cross-sell and up-sell to their customers, thus increasing their profitability to the business. The value the customers perceive is the convenience of one-stop shopping at attractive prices. Retain. CRM analytical software and databases help a company proactively identify and reward its most loyal and profitable customers to retain and expand their business via targeted marketing and relationship marketing programs. The value the customers perceive is of a rewarding personalized business relationship with their company.

9 6. ERP is a cross-functional enterprise backbone that integrates and automates internal business processes and information system within Manufacturing Logistics Distribution Accounting Finance Human resources Enterprise resource planning is a cross-functional enterprise system driven by an integrated suite of software modules that supports the basic internal business processes of a company. For example, ERP software for a manufacturing company will typically process the data from and track the status of sales, inventory, shipping, and invoicing, as well as forecast raw material and human resource requirements. Figure 8.8 presents the major application components of an ERP system. Figure 8.9 illustrates some of the key cross-functional business processes and supplier and customer information flows supported by ERP systems. ERP gives a company an integrated real-time view of its core business processes, such as production, order processing, and inventory management, tied together by the ERP application software and a common database maintained by a database management system. ERP systems track

10 business resources (such as cash, raw materials, and production capacity), and the status of commitments made by the business (such as customer orders, purchase orders, and employee payroll), no matter which department (manufacturing, purchasing, sales, accounting, and so on) has entered the data into the system. ERP software suites typically consist of integrated modules of manufacturing, distribution, sales, accounting, and human resource applications. Examples of manufacturing processes supported are material requirements planning, production planning, and capacity planning. Some of the sales and marketing processes supported by ERP are sales analysis, sales planning, and pricing analysis, while typical distribution applications include order management, purchasing, and logistics planning. ERP systems support many vital human resource processes, from personnel requirements planning to salary and benefits administration, and accomplish most required financial recordkeeping and managerial accounting applications. Many other companies have found major business value in their use of ERP in several basic ways: Quality and efficiency. ERP creates a framework for integrating and improving a company s internal business processes that results in significant improvements in the quality and efficiency of customer service, production, and distribution. Decreased costs. Many companies report significant reductions in transaction processing costs and hardware, software, and IT support

11 staff compared to the nonintegrated legacy systems that were replaced by their new ERP systems. Decision support. ERP provides vital cross-functional information on business performance to managers quickly to significantly improve their ability to make better decisions in a timely manner across the entire business enterprise. Enterprise agility. Implementing ERP systems breaks down many former departmental and functional walls or silos of business processes, information systems, and information resources. This results in more flexible organizational structures, managerial responsibilities, and work roles, and therefore a more agile and adaptive organization and workforce that can more easily capitalize on new business opportunities. ERP Costs Risks and costs are considerable Hardware and software are a small part of total costs Failure can cripple or kill a business 7. Fundamentally, supply chain management helps a company Get the right products To the right place At the right time In the proper quantity At an acceptable cost

12 Key Benefits Faster, more accurate order processing Reductions in inventory levels Quicker times to market Lower transaction and materials costs Strategic relationships with supplier

13 8. IT has both beneficial and detrimental effects on society and people Manage work activities to minimize the detrimental effects of IT Optimize the beneficial effects However, the social contract theory states that companies have ethical responsibilities to all members of society, which allows corporations to exist according to a social contract. The first condition of the contract requires companies to enhance the economic satisfaction of consumers and employees. They must do that without polluting the environment or depleting natural resources, misusing political power, or subjecting their employees to dehumanizing working conditions. The second condition requires companies to avoid fraudulent practices, show respect for their employees as human beings, and avoid practices that systematically worsen the position of any group in society. The stakeholder theory of business ethics maintains that managers have an ethical responsibility to manage a firm for the benefit of all its stakeholders, that is, all individuals and groups that have a stake in, or claim on, a company. These stakeholders usually include the corporation s stockholders, employees, customers, suppliers, and the local community. Sometimes the term is broadened to include all groups who can affect or be affected by the corporation, such as competitors, government agencies, and special-interest groups. Balancing the claims of conflicting stakeholders is obviously not an easy task for managers. Technology Ethics Another important ethical dimension deals specifically with the ethics of the use of any form of technology. For example, Figure below outlines four principles of technology ethics. These principles can serve as basic ethical requirements that companies should meet to help ensure the ethical implementation of information technologies and information systems in business.

14 One common example of technology ethics involves some of the health risks of using computer workstations for extended periods in high-volume data entry job positions. Many organizations display ethical behavior by scheduling work breaks and limiting the exposure of data entry workers to staring at a computer monitor to minimize their risk of developing a variety of work-related health disorders, such as hand or eye injuries.