1. James A. O’Brien I n t r o d u c t i o n t o I n f o r m a t i o n S y s t e m s Tenth Edition
1
Chapter
8
Electronic
Business and
Commerce
Irwin/McGraw-Hill Copyright © 2001, The McGraw-Hill Companies, Inc. All rights reserved.

2. James A. O’Brien I n t r o d u c t i o n t o I n f o r m a t i o n S y s t e m s Tenth Edition
2
Chapter Objectives
• Identify several cross-functional integrated
E-Business 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 Copyright © 2001, The McGraw-Hill Companies, Inc. All rights reserved.

3. James A. O’Brien I n t r o d u c t i o n t o I n f o r m a t i o n S y s t e m s Tenth Edition
3
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 Copyright © 2001, The McGraw-Hill Companies, Inc. All rights reserved.

4. James A. O’Brien I n t r o d u c t i o n t o I n f o r m a t i o n S y s t e m s Tenth Edition
4
The E-Business Application Architecture
Irwin/McGraw-Hill Copyright © 2001, The McGraw-Hill Companies, Inc. All rights reserved.

5. James A. O’Brien I n t r o d u c t i o n t o I n f o r m a t i o n S y s t e m s Tenth Edition
5
Cross-Functional Integrated Systems
Enterprise Application
Enterprise Enterprise Application
Business Partners
Cluster Cluster
Application
Customers
Front Office Integration
Back Office
Applications Applications
CRM Application ERP Application
•Customer Service •Distribution
•Field Service •Manufacturing
•Sales Order •Scheduling
•Product Config •Finance
Suppliers
Irwin/McGraw-Hill Copyright © 2001, The McGraw-Hill Companies, Inc. All rights reserved.

6. James A. O’Brien I n t r o d u c t i o n t o I n f o r m a t i o n S y s t e m s Tenth Edition
6
Functional Business Information Systems
Marketing
Production Human Resource
Operations
Functional Management
Business
Systems
Accounting Finance
Irwin/McGraw-Hill Copyright © 2001, The McGraw-Hill Companies, Inc. All rights reserved.

7. James A. O’Brien I n t r o d u c t i o n t o I n f o r m a t i o n S y s t e m s Tenth Edition
7
Marketing Information Systems
Marketing
Information
Systems
Customer
Interactive Sales Force Sales
Relationship
Marketing Automation Management
Management
Market Advertising
Product
Research and and
Management
Forecasting Promotions
Irwin/McGraw-Hill Copyright © 2001, The McGraw-Hill Companies, Inc. All rights reserved.

8. James A. O’Brien I n t r o d u c t i o n t o I n f o r m a t i o n S y s t e m s Tenth Edition
8
Customer Relationship Management
Retention
Marketing and and Loyalty
Fulfillment Programs
Sales
Customer Store Front
Cross-Sell
and Field
Up-Sell
Customer Service
Service and
Support
Contact Management
Irwin/McGraw-Hill Copyright © 2001, The McGraw-Hill Companies, Inc. All rights reserved.

9. James A. O’Brien I n t r o d u c t i o n t o I n f o r m a t i o n S y s t e m s Tenth Edition
9
Targeted Marketing
Context
Content
Demographic/
Psychographic Online Behavior
Community
Irwin/McGraw-Hill Copyright © 2001, The McGraw-Hill Companies, Inc. All rights reserved.

10. James A. O’Brien I n t r o d u c t i o n t o I n f o r m a t i o n S y s t e m s Tenth Edition
10
Manufacturing Information Systems
Intranet
Computer Integrated Manufacturing
Manufacturing Manufacturing
Engineering
Resource Execution Systems
Planning Systems Remote
•CAD Worker
•Production •Shop Floor •CAE
Forecasting •Scheduling •Computer- Supplier
•Production •Machine Control Aided
Scheduling •Process Control Process
•Quality Control •Robotic Control Planning
Extranet
Irwin/McGraw-Hill Copyright © 2001, The McGraw-Hill Companies, Inc. All rights reserved.

11. James A. O’Brien I n t r o d u c t i o n t o I n f o r m a t i o n S y s t e m s Tenth Edition
11
Human Resource Management
Training & Compensation
Staffing Administration
Development
•Manpower •Succession
Strategic •Contract
Planning planning
Systems costing
•Labor Force •Performance
•Salary forecast
Tracking appraisal plans
•Labor Cost •Training •Compensation
Tactical Analysis effectiveness effectiveness
Systems •Turnover •Career •Benefits
Analysis matching Analysis
•Payroll
•Recruitment •Skill assessment
Operationa control
•Workforce •Performance
l •Benefits
Planning evaluation
Systems Administration
Irwin/McGraw-Hill Copyright © 2001, The McGraw-Hill Companies, Inc. All rights reserved.

12. James A. O’Brien I n t r o d u c t i o n t o I n f o r m a t i o n S y s t e m s Tenth Edition
12
Accounting Information Systems
Irwin/McGraw-Hill Copyright © 2001, The McGraw-Hill Companies, Inc. All rights reserved.

13. James A. O’Brien I n t r o d u c t i o n t o I n f o r m a t i o n S y s t e m s Tenth Edition
13
Financial Information Systems
Financial
Information
Systems
Cash Investment Capital Financial
Management Management Budgeting Planning
Irwin/McGraw-Hill Copyright © 2001, The McGraw-Hill Companies, Inc. All rights reserved.

14. James A. O’Brien I n t r o d u c t i o n t o I n f o r m a t i o n S y s t e m s Tenth Edition
14
The E-Commerce Transaction Cycle
Attract
Look and Feel
Performance and
Service
Inform Personalize
Relevant Buying behavior
Information Incentives
Key Processes
Customize and Deliver
Customer Resources Order Fulfillment
Configuration
Transact Interact
Buying & Customer Service
Selling Pay
Electronic Payment Socialization
Models
Systems
Security
Irwin/McGraw-Hill Copyright © 2001, The McGraw-Hill Companies, Inc. All rights reserved.

15. James A. O’Brien I n t r o d u c t i o n t o I n f o r m a t i o n S y s t e m s Tenth Edition
15
Supply Chain Management
Supply
Chain Commit Schedule Make Deliver
Life Cycle
Order Demand Manufacturing
SCM Commitment Planning Planning
Functional
Processes
Advance Transportatio Distribution
Scheduling n Planning
Planning
SCM
Integrated
Solution Internetworked Supply Chain Management
Irwin/McGraw-Hill Copyright © 2001, The McGraw-Hill Companies, Inc. All rights reserved.

16. James A. O’Brien I n t r o d u c t i o n t o I n f o r m a t i o n S y s t e m s Tenth Edition
16
Electronic Commerce Technologies
Irwin/McGraw-Hill Copyright © 2001, The McGraw-Hill Companies, Inc. All rights reserved.

17. James A. O’Brien I n t r o d u c t i o n t o I n f o r m a t i o n S y s t e m s Tenth Edition
17
Transaction Processing Systems
1 2 4
Document
Data and Report
Entry Generation
Transaction
Processing
5
Inquiry
Processing
3 Database
Maintenance
Irwin/McGraw-Hill Copyright © 2001, The McGraw-Hill Companies, Inc. All rights reserved.

18. James A. O’Brien I n t r o d u c t i o n t o I n f o r m a t i o n S y s t e m s Tenth Edition
18
Electronic Payment and Security Systems
Client Merchant’s
Browser Web Server
•Verify merchant Payment •Verify customer
•Receive order Server •Review payment
•Receive payment •Authorize or deny payment
•Confirm order
Credit cards Bank accounts Online buying E-Bill Payment Electronic Cash
VISA Debit Cards CyberCash CheckFree Cybergold
MasterCard Online Banking 1 ClickCharge BillerXpert Qpass
Irwin/McGraw-Hill Copyright © 2001, The McGraw-Hill Companies, Inc. All rights reserved.

19. James A. O’Brien I n t r o d u c t i o n t o I n f o r m a t i o n S y s t e m s Tenth Edition
19
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 Copyright © 2001, The McGraw-Hill Companies, Inc. All rights reserved.

20. James A. O’Brien I n t r o d u c t i o n t o I n f o r m a t i o n S y s t e m s Tenth Edition
20
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 Copyright © 2001, The McGraw-Hill Companies, Inc. All rights reserved.

21. James A. O’Brien I n t r o d u c t i o n t o I n f o r m a t i o n S y s t e m s Tenth Edition
21
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 Copyright © 2001, The McGraw-Hill Companies, Inc. All rights reserved.