Business Applications OverviewBusiness Applications Overview

Trends Driving e-businessTrends Driving e-business

Velocity of business is increasingVelocity of business is increasing Enterprise boundaries are Enterprise boundaries are

disappearingdisappearing Expectations for technology are Expectations for technology are

risingrising

Legacy SystemsLegacy Systems

Existing computer systems and Existing computer systems and software, often using 1970’s software, often using 1970’s technologytechnology

Problems:Problems:• Outdated languagesOutdated languages• Often incapable of running in real timeOften incapable of running in real time• Undocumented (designers no longer Undocumented (designers no longer

alive!)alive!)• No customer focusNo customer focus

Too many Spreadsheets!Too many Spreadsheets!

Many businesses rely on separate Many businesses rely on separate databasesdatabases

Functional manager may make Functional manager may make conflicting decisions based on conflicting decisions based on different datadifferent data• E.g., Sale figures from the sales E.g., Sale figures from the sales

department may be different to the department may be different to the accounting departmentaccounting department

Evolution of Business applicationsEvolution of Business applications

Task Oriented

Functional Applications

Integrated Cross-Functional Applications

Kalakota’s 7 types of applicationsKalakota’s 7 types of applications

Customer relationship managementCustomer relationship management Enterprise resource planningEnterprise resource planning Supply chain managementSupply chain management Selling-chain managementSelling-chain management e-Procuremente-Procurement Enterprise application integrationEnterprise application integration Business intelligence, knowledge Business intelligence, knowledge

management and decision supportmanagement and decision support

CRMCRM

CRM entails all aspects of interaction CRM entails all aspects of interaction a company has with its customer, a company has with its customer, whether it be sales or service related whether it be sales or service related

Main dimensions:Main dimensions:• SalesSales• ServiceService• MarketingMarketing

CRM software attempts to integrate CRM software attempts to integrate these functions as onethese functions as one

ERPERP

a business management system a business management system that integrates all facets of the that integrates all facets of the businessbusiness

A ERP system consists of ERP A ERP system consists of ERP software that automates internal software that automates internal business processes, hardware and business processes, hardware and Operating Systems that run ERP Operating Systems that run ERP software software

Finished Product

Distribution

Purchasing & Material Mgt

Warehousing & Inventory Mgt

Accounting Finance

Forecasting & Planning

ERP

Supply Chain ManagementSupply Chain Management

The process of optimizing delivery of The process of optimizing delivery of goods, services and information from goods, services and information from supplier to customer supplier to customer

Supply chain management applications Supply chain management applications attempt to:attempt to:• Reduce inventory with real time schedulingReduce inventory with real time scheduling• Find bottle necks in production/distributionFind bottle necks in production/distribution• Integrate activities of partner businessesIntegrate activities of partner businesses

Selling chain managementSelling chain management

Selling chain management applications integrate Selling chain management applications integrate marketing and selling and sales functions into marketing and selling and sales functions into one seamless activityone seamless activity

Aim: to process sales more quickly and reduce Aim: to process sales more quickly and reduce “sales” overheads“sales” overheads

Includes: Includes: • product customization,product customization,• Pricing and contract management,Pricing and contract management,• quotes and proposal generationquotes and proposal generation• Commission managementCommission management• Promotions ManagementPromotions Management

e-Procuremente-Procurement

These applications focus on automating and These applications focus on automating and integrating enterprise procurement activitiesintegrating enterprise procurement activities

e-Procurement

Office Supplies Services

Business Travel Computer Equipment

MRO

Enterprise application integrationEnterprise application integration

Connecting CRM to ERPConnecting CRM to ERP Allows businesses to track business Allows businesses to track business

activities from customer purchases activities from customer purchases to product deliveryto product delivery

Results in quicker product delivery Results in quicker product delivery and improved business and improved business responsivenessresponsiveness

Business intelligence, knowledge Business intelligence, knowledge management and DSSmanagement and DSS

Transform raw data into useful Transform raw data into useful informationinformation

OLAP systems (Online analytical OLAP systems (Online analytical Processing) provide fast analysis of Processing) provide fast analysis of shared multidimensional information shared multidimensional information (eg Microsoft data analyser)(eg Microsoft data analyser)

The way forward….The way forward….

In house software design is dead. In house software design is dead. Businesses can no longer afford to Businesses can no longer afford to develop systems in isolationdevelop systems in isolation

Choosing Choosing standardizedstandardized software software modules that interface seamlessly modules that interface seamlessly with existing systems is the way with existing systems is the way forwardforward

Journal question of the weekJournal question of the week

What are some of the unique What are some of the unique application integrationapplication integration issues faced issues faced by international businesses operating by international businesses operating across national boundaries? Include across national boundaries? Include three (3) issues.three (3) issues.