Unit -5

Business Applications

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Prepared By:
Er. Ashish Banstola
2 E-Business Systems

o use of digital technology & the internet to execute the

major business process in the enterprise.
o Includes the activities for the internal management of the
firm and for coordination with suppliers and other business
partners.
o Major applications of e-business are:-
oCross-functional enterprise systems(CRM,ERP,SCM).
3 Cross Functional Enterprise
Applications
Ø Many companies today are using IT to develop integrated
cross-functional enterprise systems that cross the
boundaries of traditional business functions in order to
reengineer and improve vital business process all across
the enterprise.
Ø Strategic way to use IT to share information resources and
improve the efficiency and effectiveness of business
processes, and develop strategic relationships with
customers, suppliers and business partners.
4 Enterprise Application Integration(EAI)

v Software is being used by many companies to connect their major e-

business applications.
v EAI software enables users to model the business process involved in the
interactions that should occur between business applications.
v EAI is an integration framework, a middleware, made of a collection of
technologies and services that allows smooth integration of all such systems
and applications throughout the enterprise and enables data sharing and
more automation of business processes.
5 Need for Enterprise-wise Integration

´ Unrestricted sharing of data and business processes across an

organization.
´ Linkage between customers, suppliers and regulators.
´ The linking of data, business processes and applications to
automate business processes.
´ Ensure consistent qualities of service (security, reliability etc.).
´ Reduce the on-going cost of maintenance and reduce the cost of
rolling out new systems.
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Enterprise Collaboration Systems

´ An Enterprise Collaboration System (ECS) is an information system used to

facilitate efficient sharing of documents and knowledge between teams and
individuals in an enterprise.
´ ECS tools include the Internet, groupware, various forms of software and
hardware and internal and external networks.
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8 Value of ECS
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10 Sales and Marketing Systems
 Manufacturing & Production Systems

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12 Finance and Accounting System

´ Accounting and Financial Management System provides a

complete set of tools to help manage and streamline your financial
operation.
´ It automates everyday accounting tasks such as maintaining
ledger and journal entries, supporting tax calculations, and
enabling multicurrency transactions.
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14 Human Resource Systems

´ The human resources system (HRS) is an information

technology system that captures, stores and shares
information related to the practices, policies and
management of human resources in an organization.
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16 Customer Relationship Management(CRM)

´ CRM is an enterprise application module that manages a company's

interactions with current and future customers by organizing and
coordinating, sales and marketing, and providing better customer services
along with technical support.
17 Why CRM?

´ To keep track of all present and future customers.

´ To identify and target the best customers.
´ To let the customers know about the existing as well as the new products
and services.
´ To provide real-time and personalized services based on the needs and
habits of the existing customers.
´ To provide superior service and consistent customer experience.
´ To implement a feedback system.
18 Components of CRM
´ People Management: Effective use of people in the right
place at the right time is called people management.
´ Lead Management:
´ Sales force automation:
´ Customer Service:
´ Marketing:
´ Work flow automation:
´ Business Reporting:
´ Analytics:
19 Phases of CRM

´ Phase 1: Acquire
v Acquiring customers has always been the first important step in
establishing business relationships.
v CRM software tools and databases help acquire new customers by
doing a superior job of contract management, sales prospecting, selling,
direct marketing, and fulfillment.
v This knowledge allows for optimized targeting to avoid bottlenecks and
to facilitate relationship-building activities.
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´ Phase 2: Enhance:
Ø CRM helps keep a customer happy by supporting superior services from a
responsive network team of sales and service specialists and business partners.
Ø A simple perspective is that satisfying a customer during one buying experience
increases the likelihood of a follow-up visit.

o Phase 3: Retained:
v CRM analytical software and databases help a company to retain and expand
their business via targeted marketing and relationship marketing programs.
v Effective data analysis, regular and systematic follow-up communication with
contacts, and well-serviced accounts help you reduce your company’s churn rate.
21 Advantages of CRM

´ Better Knowledge of Customers:

´ Retain More Customers:
´ Better Segmentation
´ Minimizes Cost
´ Enhance Corporate Image
´ Increase Business Growth
´ Controls Customer Defection Rate
22 Disadvantages of CRM

´Costly
´Training
´Security Issues
´Eliminates Human Element
´Third Party Access
23 Trends in CRM

´Operational CRM
´Analytical CRM
´Collaborative CRM
´Portal-based CRM
24 Supply Chain Management

´ It is a cross-functional inter-enterprise system that uses information

technology to help support and manage the links between company’s
key business processes and those of its suppliers, customers and
business partners.
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26 Phases of SCM

´ Plan
´ Source
´ Make
´ Deliver
´ Return
27 Plan

´ Plan and manage all resources required to meet customer demand for a
company’s product or service.
´ When the supply chain is established, determine metrics to measure
whether the supply chain is efficient, effective, delivers value to customers
and meets company goals.
28 Source

´ Choose suppliers to provide the goods and services needed to

create the product.
´ Then, establish processes to monitor and manage supplier
relationships.
´ Key processes include: ordering, receiving, managing inventory and
authorizing supplier payments.
29 Make

´ Organize the activities required to accept raw materials,

manufacture the product, test for quality, package for shipping and
schedule for delivery.
30 Deliver

´ Coordinate customer orders, schedule deliveries, dispatch loads, invoice

customers and receive payments.
31 Return

´ Create a network or process to take back defective, excess or unwanted

products.
32 Components of SCM

´ Planning
´ Information
´ Source
´ Inventory
´ Production
´ Location
´ Transportation
´ Return of Goods
33 Advantages of SCM

Ø Cost Efficiency
Ø Enhance Output
Ø Avoids Delay in Process
Ø Easily Identify Problem Areas
Ø Better Collaboration.
34 Disadvantages of SCM

´ Expensive to Implement.
´ Complicated
´ Lack of Co-ordination among Departments.
´ Required Trained and Personalized Staff.
´ Lack of Reliability.
35 Enterprise Resource Planning

´ It is a cross functional enterprise system driven by an integrated

suite of software modules that supports the basic internal
business process of a company.
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 Advantages of ERP
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´ Higher Management Performance.

´ Better Accuracy and Availability of Information.
´ Improved Coordination
´ Precise Planning
´ Enhanced Reports
´ Scalability and Flexibility
´ Cost-Effectiveness
´ Easier access to Management Systems.
´ Improved Customer Service.
´ Better Competitiveness on the Market.
38 Disadvantages of ERP
´ Large Cost of Licensing and Development
´ High Costs to deploy and Maintain.
´ Requires Training and Practice.
´ Requires Tweaking (Amendment).
´ It takes time to realize its Full Potential
39 Causes of ERP Failures
´ Under-estimating the complexity of planning, development, training.
´ Failure to involve affected employees in Planning and Development
´ Trying to doo much too fast.
´ Insufficient training.
´ Insufficient data conversion and testing.
´ Over-reliance on ERP vendor or consultants.
40 Trends in ERP

´ Flexible ERP
´ Web-Enable ERP
´ Inter-Enterprise ERP
´ E-business suite.
41 E-Commerce

´ Ecommerce, also known as electronic commerce or internet

commerce, refers to the buying and selling of goods or services
using the internet, and the transfer of money and data to execute
these transactions.
´ Ecommerce is often used to refer to the sale of physical products
online, but it can also describe any kind of commercial transaction
that is facilitated through the internet.
42 Categories of Electronic Commerce

´ B2B
´ B2C
´ C2
´ C2C
43 Features of E-commerce

´ Ubiquity
´ Global Research
´ Universal Standard
´ Richness
´ Interactivity
´ Information Density
´ Personalization/Customization
44 Benefits of E-Commerce

´ International Market Place

´ Operational Cost Savings
´ Mass Customization.
´ Enables Reduced Inventories.
´ Lower Telecommunications Cost
´ Digitization of Products and Processes
´ No more time Constraints
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Limitation of E-Commerce
´ Limitation of E-commerce to Organization
v Lack of sufficient system security, reliability, standards and
communication protocols.
v Rapidly evolving and changing technology.
v Under Pressure to innovate
v Facing increased competition
v Problems with compatibility of older and ‘newer’ technology
´ Limitations of e-commerce to Society
46 Limitation of e-commerce to Consumers

v Computing equipment.
v A basic technical knowledge.
v Cost of access to the internet.
v Cost of computing equipment.
v Lack of security and privacy of personal data.
v Physical contact and relationships are replaced by electronic processes.
v A lack of trust because they are interacting with faceless computers.
47 Limitations of e-commerce to Society

´ Breakdown in human interaction.

´ Social division.
´ Reliance on telecommunications infrastructure, power and IT skills
´ Difficulty in policing the Internet.
48 E-Commerce Success Factors

´ Selection and Values

´ Performance and Service
´ Look and Feel
´ Advertising and Incentives
´ Personal Attention
´ Community Relationships
´ Security and Reliability
49 Essential e-Commerce Process

´ Access Control and Security

´ Profiling and Personalizing
´ Search Management
´ Content and Catalog Management
´ Workflow Management
´ Event Notification
´ Collaboration and Trading
50 Electronic Payment System

´ An e-payment system is a way of making transactions or paying for

goods and services through electronic methods.
51 Some Common e-commerce Payment Systems

´ Credit Card
´ Debit Card
´ Digital Cash
´ Digital Cheque
´ Digital Wallet
52 Risk and E-Payment

´ Managing Information Privacy.

´ Managing Credit Risk.
´ Operational Risk.
´ Legal Risk.