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C10 E Business and Enterprise Resource Planning System 1

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39 views9 pages

C10 E Business and Enterprise Resource Planning System 1

Uploaded by

Darlyn Dalida
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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CHAPTER 10

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E-BUSINESS AND
ENTERPRISE RESOURCE
PLANNING (ERP) SYSTEM
AIS
Accounting Information Systems

Source:
Hurt, Robert. “Accounting Information Systems: Basic Concepts and Current Issues”. McGraw-Hill International.
OBJECTIVES

1. Explain the nature of E-Business in the current business setting

2. Enumerate the major categories of E-Business

3. Discuss Enterprise Resource Planning Systems

4. Present the importance of Application Service Providers in E-Businesses


E-BUSINESS

 E-BUSINESS (E-COMMERCE) is the exchange of goods and services by means


of internet or other computers.

ADVANTAGES DISADVANTAGES

 Marketing: Market expansion and targets


• Increased financial cost
 Management: Used in decision-making
• Need to develop stronger internal control systems
 Reduced operating cost
• Potential for customer distrust
 Streamlined operations
• Technological breakdowns
 Quicker, easier delivery of products/services
INTERNAL CONTROLS IN E-BUSINESS

Codes or digits which are sequentially embedded for


Control numbers
security purposes.

Set of professional assurance and advisory services to


Trust services
address risk and opportunities of IT.

Using decryption keys to make data understandable and


Data encryption
to prevent interception of electronic data

Custody, authorization, and recording functions are


Segregation of duties
separately performed by different people
CATEGORIES OF E-BUSINESS

TYPE FUNCTION

Business-to-Business • Arrangement with partner organizations


(B2B) • Ex: Purchase of inventories to suppliers

Business-to-Consumer • Involves exchange between a seller and a buyer


(B2C) • Ex: Purchase of books for personal use

Government-to-Consumer • Allows the public to obtain information from government


(G2C) • Ex: Filing of tax returns

Government-to-Business • Partnership between government agencies and private entities


(G2B) • Ex: Developing municipal park sponsored by businesses

Consumer-to-Consumer • Facilitate business between two individuals


(C2C) • Ex: Online reselling of second hand items
ERP SYSTEM

 ENTERPRISE RESOURCE PLANNING (ERP) SYSTEM

 Relational database that provides comprehensive information for making

decisions in organizations.

 Business management software that integrate all departments and functions

across a company onto a single computer system that can serve the needs of

various departments.
ERP SYSTEM

 SUCCESSFUL ERP IMPLEMENTATION

 Obtain organizational commitment

 Communicate strategic goals clearly

 View ERP as an enterprise-wide venture

 Select a comprehensive ERP system

 Resolve multi-site issues

 Ensure data accuracy


APPLICATION SERVICE PROVIDERS

 Organizations that want to move into an e-business environment may hire an


APPLICATION SERVICE PROVIDER (ASP) to create business process applications.

 ASP provides a remote contractual service to deploy, host, and manage applications for
customers from a centralized location.

ADVANTAGES DISADVANTAGES

 Less costly than software • Psychological and behavioral factors


 Increased flexibility • Service interruptions
 Potentially improved customer service • Compromised data
 Role in disaster recovery plans • Inability to pay periodic fees
CATEGORIES OF ASPs

TYPE FUNCTION

Enterprise ASPs • Deliver high-end business applications

• Supply wide variety of application services for smaller businesses in


Local ASPs
a local or regional area

Specialist ASPs • Provide application for a specific need of an organization

Vertical Market ASPs • Provide support to a specific business industry

• Supply general SMEs with pre-packaged applications in several


Volume Business ASPs
quantities or sections

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