Enterprise Systems & e-Business SystemsEnterprise SystemsEnterprise Systems Value ChainPorter’s Value ChainValue-Added ActivitiesInternal Focus: Value ChainExternal Focus : Value SystemThe Value of Systems IntegrationInformation SilosProblems With Information SilosInefficient Customer ServiceSolution to Inefficient Customer ServiceData Maintenance: Create Customer RecordBusiness Event Data Processing: Enter Customer OrderUsing Stored Data for Decision MakingEnterprise Systems and ERPsIntegrate Business Process FunctionalityPowerPoint PresentationEnterprise Application : Enterprise Application Integration (EAI)Selected ERP VendorsSAP Business SuiteSAP NetWeaverThird-Party ModulesThird-Party Modules . . .Connecting Third-Party ModulesOther Methods for Systems IntegrationSlide 27Major ERP ModulesMajor ERP Modules . . .Slide 30Slide 31Slide 32Order-to-Cash ProcessSD Menu Options in the SAP SystemSD Audit Trail for Completion of Steps in the SAP Sales ProcessPurchase-to-Pay ProcessMM Menu Options in the SAP SystemAudit Trail for Completion of Steps in the SAP Purchase ProcessPros of Enterprise SystemsPros of ERP PackagesCons of Enterprise Systems and ERP PackagesE-Business SystemsElectronic Business (e-Business)Journalizing, Posting, and Summarizing in a Manual Accounting SystemAutomated Accounting SystemBatch Processing and Periodic ModeOnline Transaction Entry (OLTE)Online Real-Time (OLRT)Methods of Conducting E-businessElectronic Data Interchange (EDI)Virtual Private Network ( VPN )EDI ComponentsEDI Components 1 and 7EDI Components 2 and 6Electronic Data Interchange Transaction SetEDI Components 3 and 5EDI Component 4Web Services Implementation of an SOA ApplicationTypical Electronic Communications Connection for Internet CommerceTypical Electronic Communications Connection for Internet Commerce . . .E-Business ModelsCommunication Networks in e-BusinessIntranet System ArchitectureExtranet System ArchitectureB2B Sell-side MarketplaceB2B Buy-side MarketplaceElectronic ExchangesCurrent E-Business ConceptsIS 630 : Accounting Information IS 630 : Accounting Information SystemsSystemshttp://www.csun.edu/~dn58412/IS 630/IS630_F1 4.htmEnterprise Systems & Enterprise Systems & e-Business Systemse-Business SystemsLecture 2Lecture 2Enterprise SystemsEnterprise SystemsOrganization value chain and value systemValue of systems integration.Enterprise systems and enterprise resources planning (ERP) systems.How an enterprise system supports major business event processes.Pros and cons of implementing enterprise systems.IS 630 : Lecture 2 2Enterprise Systems Value Enterprise Systems Value ChainChainThe value chain is the system of activities that transform inputs into outputs valued by the customer.Enterprise systems facilitate value chain management.The goal of an organization is to add the greatest value at the lowest cost thus increasing competitive advantage.IS 630 : Lecture 2 3IS 630 : Lecture 2 4Porter’s Value ChainPorter’s Value ChainFIRM INFRASTRUCTUREINBOUNDLOGISTICSOPERATIONSOUTBOUNDLOGISTICMARKETING& SALESLOGISTICSERVICEHUMAN RESOURCE MANAGEMENTTECHNOLOGY DEVELOPMENTPROCUREMENTVALUECOSTMARGINIS 630 : Lecture 2 5Value-Added ActivitiesValue-Added Activities Customer-Value-Added Activity (maximize)•a business process that a customer is willing to pay for Business-Value-Added Activity (minimize)•a business process that is essential to managing an organization Non-Value-Added Activity (eliminate)•customer will not pay for; business value will not be increasedGoals of a business system: effective, efficient, competitive.Internal Focus: Value ChainInternal Focus: Value ChainIS 630 : Lecture 2 6External Focus : Value SystemExternal Focus : Value SystemIS 630 : Lecture 2 7The Value of Systems The Value of Systems IntegrationIntegrationCoordinate activities in the value chain. Perform this coordination by sharing data across business processes. The major objective of ERP systems: integrate the functional areas of the organization by enabling seamless information flows across them.IS 630 : Lecture 2 8Information SilosInformation Silos IS 630 : Lecture 2 9Problems With Information SilosProblems With Information SilosIS 630 : Lecture 2 10Inefficient Customer ServiceInefficient Customer ServiceIS 630 : Lecture 2 11Solution to Inefficient Solution to Inefficient Customer ServiceCustomer ServiceEnterprise system establishes ATP (available to promise) by checking warehouses and scheduled manufacturing.Enterprise systems uses the central database to automatically determine price and creditworthiness.IS 630 : Lecture 2 12Data Maintenance: Create Data Maintenance: Create Customer RecordCustomer RecordIS 630 : Lecture 2 13Business Event Data Processing:Business Event Data Processing:Enter Customer OrderEnter Customer OrderIS 630 : Lecture 2 14Using Stored Data for Decision Using Stored Data for Decision MakingMakingIS 630 : Lecture 2 15Enterprise Systems and ERPsEnterprise Systems and ERPsEnterprise systems:•Integrate business processes and information from all of an organization’s functional areas.•Helps coordinate the operation of business functions and provide a central information resource for the organization. Enterprise Resource Planning (ERP) Systems:•Software packages that can be used for the core systems necessary to support enterprise systems.IS 630 : Lecture 2 16Integrate Business Process Integrate Business Process FunctionalityFunctionalityWhen purchasing office equipment an enterprise system might:•Provide an electronic order form.•Apply business rules.•Route the order for approvals.•Send the order to a buyer.•Connect to the vendor.•Use data to receive goods, project funding requirements, compare to budget, and analyze vendor performance.IS 630 : Lecture 2 1718Enterprise Application : Enterprise Application : Enterprise Resource PlanningEnterprise Resource PlanningIS 630 : Lecture 219Enterprise Application : Enterprise Application : Enterprise Application Integration (EAI)Enterprise Application Integration (EAI)IS 630 : Lecture 2Selected ERP VendorsSelected ERP VendorsIS 630 : Lecture 2 20SAP Business SuiteSAP Business SuiteIS 630 : Lecture 2 21SAP NetWeaverSAP NetWeaverIS 630 : Lecture 2 22Third-Party ModulesThird-Party ModulesCustomer relationship management (CRM) software: builds and maintains customer-related database.Customer self-service (CSS) software: allows customers to complete tasks
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