Slide introduction to information ssstem 10th obien chap008 eng

James A. O’Brien

Introduction to Information Systems

1

Chapter

Electronic
Business and
Commerce

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James A. O’Brien

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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.

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James A. O’Brien

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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.

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James A. O’Brien

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Introduction to Information Systems

The E-Business Application Architecture

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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
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Business Partners

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Introduction to Information Systems


James A. O’Brien

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Introduction to Information Systems

Functional Business Information Systems
Marketing
Marketing

Production
Production
Operations
Operations

Functional
Business
Systems

Accounting
Accounting

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Human
HumanResource
Resource
Management
Management

Finance
Finance


James A. O’Brien

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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

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Customer
Customer
Relationship
Relationship
Management
Management

Advertising
Advertising
and
and
Promotions
Promotions

Sales
Sales
Management
Management

Product
Product
Management
Management


James A. O’Brien

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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

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James A. O’Brien

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Introduction to Information Systems

Targeted Marketing

Context
Demographic/
Psychographic

Content
Online Behavior

Community

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James A. O’Brien

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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
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James A. O’Brien

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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
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James A. O’Brien

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Introduction to Information Systems

Accounting Information Systems

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James A. O’Brien

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Introduction to Information Systems

Financial Information Systems

Financial
Financial
Information
Information
Systems
Systems

Cash
Management

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Investment
Investment

Management
Management

Capital
Budgeting

Financial
Financial
Planning
Planning


James A. O’Brien

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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

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Deliver
Order Fulfillment

Interact

Pay
Electronic Payment
Systems
Security

Customer Service
Socialization


James A. O’Brien

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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

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Internetworked Supply Chain Management

James A. O’Brien

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6

Introduction to Information Systems

Electronic Commerce Technologies

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James A. O’Brien

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Introduction to Information Systems

Transaction Processing Systems
1

2

Data
Entry

Transaction
Processing

4
Document
and Report
Generation

5
Inquiry
Processing

3

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Database
Maintenance


James A. O’Brien

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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 1 ClickCharge BillerXpert
Qpass
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James A. O’Brien

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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.

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James A. O’Brien

2
0

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.

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James A. O’Brien

2
1

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.

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