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Chapter

7
Electronic Business Systems

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Learning Objectives
1. Identify the following cross-functional
enterprise systems, and give examples
of how they can provide significant
business value to a company:
•
•
•

Enterprise application integration
Transaction processing systems
Enterprise collaboration systems

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Learning Objectives
2. 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 and operations management.

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What is E-Business?
• 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.

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Case #1: Data-Driven Hospitality

• Customers are more satisfied when they
have a problem and the hotel staff takes
care of it than if the stay goes flawlessly.
• The hospitality industry is a people
business. It doesn’t do any good to have
great customer information that’s only in
the reservations system and available to
the call center. It must be common
across all systems.
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Case #1: Data-Driven Hospitality
OnQ – Customers Really Matter:
• Custom-built customer relationship
management information system
• Integrated to cover 22 million guests, all
properties, eight brands
• Provide employees with a clearer idea of who
customer are and what their past Hilton
experiences have been so they can provide
constant improvement
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Case #1: Data-Driven Hospitality

OnQ Challenges:
• Presenting deep customer history data
clearly enough for inexperienced front
desk employees
• Supporting a diverse mix of brands

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Case #1: Data-Driven Hospitality
1. What are the benefits and drawbacks of
the OnQ system at Hilton?
2. What does Hilton have to do to create a
competitive advantage through OnQ?
Provide some specific examples.
3. Is it possible to have too much
information about a customer? Explain.
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Case #1: Data-Driven Hospitality
4. What are several reasons why CRM
software applications are so expensive?
Why do they seem to take so long to
implement?


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Cross-Functional Enterprise Systems
Definition:
• Information systems that cross the
boundaries of traditional business
functions in order to reengineer and
improve vital business processes all
across the enterprise

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Cross-Functional Information Systems

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Enterprise Application Architecture

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Enterprise Application Integration (EAI)
Definition:
• 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

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Enterprise Application Integration

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EAI Example

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Transaction Processing Systems (TPS)

Definition:
• Cross-functional information systems that
process data resulting from the occurrence of
business transactions
• Transactions – events that occur as part of
doing business
• Online Transaction Processing Systems (OLTP)
– real-time systems that capture and process
transactions immediately
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Transaction Processing Cycle
• Data Entry – capture of business data
• Transaction Processing
• Batch – transaction data are accumulated
over a period of time and processed
periodically
• Real-Time – data are processed immediately
after a transaction occurs

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Transaction Processing Cycle
• Database Maintenance – updating corporate

databases of an organization to reflect changes
resulting from day-to-day business transactions
• Document and Report Generation – including
transaction documents, transaction listings and
error reports
• Inquiry Processing – making inquiries and
receiving responses concerning the results of
transaction processing activities
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Transaction Processing Cycle

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Enterprise Collaboration Systems (ECS)
Definition:
• Cross-functional information systems that
enhance communication, coordination,
and collaboration among the members of
business teams and workgroups

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ECS Goals
• Communicate – share information
• Coordinate – coordinate individual work
efforts and share resources
• Collaborate – work together cooperatively
on joint projects and assignments

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ECS Tools

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Case #2: Business Case for EAI
EAI Benefits:
• Share data among legacy systems
• Improve data quality and accuracy
• Align systems more closely with business
processes
• Improve customer service
• Cut costs
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Case #2: Business Case for EAI
EAI Challenges:
• Specific IT skills required
• Extensive coordination among multiple
departments

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