Business Application (MIS)

BIT/BCA/BCS/CSIT/BCIS/BIM/BBA

1. Business Application MANAGEMENT INFORMATION SYSTEM

2. Business Application Business application or business software is any software or set of computer programs that are used by business users to perform various business functions. Business application are used to increase productivity, to measure productivity and to perform business functions accurately. These are categorized as small, medium and large. The small business market consists of home accounting software and office suites such as Microsoft office.

3. Continued………. The medium size, or small and medium- sized enterprise(SME), has a broader range of software applications, ranging from accounting, groupware, customer relationship management, human resource management systems, outsourcing relationship management, Shopping cart software and other productivity enhancing applications. The large size covers enterprise level software applications, such as those in the field of enterprise resource planning, enterprise content management, business process management and product lifecycle management.

4. E- Business system Electronic business is the administration of conducting business via internet. It is application of Information and communication technologies in support of all the activities of business. It is use of internet and other networks and information technologies to support e-commerce, enterprise communication and collaboration and web enabled business process, both within a networked enterprise and with its customer and business partners. E-business includes E-commerce, which includes buying, selling and marketing products over the internet.

5. Cross functional enterprise applications: Many companies today are using information technologies to develop integrated cross functional enterprise systems that cross the boundaries of traditional business functions in order to reengineer and improve vital business process, and develop strategic relationship with customers, suppliers, and business partners. This typically involves installing enterprise resource planning, supply chain management, or customer relationship management software. Business firms are using internet technologies to help them reengineer and integrate the flow of information among their internal business process and their customers and suppliers.

6. Enterprise application architecture The enterprise application architecture of a business is a description of the structured of the application and software use across the organization. The system are broken down into subsystem and connected to each other based on the relationship between them. It provides a conceptual framework to help visualize the basic components, processes, and interfaces of these major e-business applications, and their interrelationship to each other. It includes CRM, ERP, SCM and KM.

7. Enterprise application integration: It is the process of linking such applications within a single organization together in order to simplify and automate business process to the greatest extent possible, while at the same time avoiding having to make full changes to the existing application or data structures. Unrestricted sharing of data and business processes among any connected application or data sources in the enterprise. EAI software being used by many companies to connect their major e- business applications.

8. Continued…. EAI software can integrate the front office and back office applications of a business so they work together in a seamless, integrated way. This is a vital capability that provides real business value to business enterprise events and customer demand. E.g. Improvement in customer call center responsiveness and effectiveness because EAI integrates access to the entire customer and product data customer representative need to quickly serve customer.

9. Continued…… EAI can be used for different purpose: Data Integration: ensures that information in multiple systems are kept consistent. Vendor independence: Extracts business policies or rules from applications and implements them in EAI systems, so that even if one of the business applications is replaced with a different vendor’s application, the business rules don’t have to be re-implemented. Common interface: An EAI system can front-end cluster of applications, providing a single consistent access interface to these applications and shielding users from having to learn to use different software packages.

10. Transaction Processing System Transaction Processing System are cross- functional information systems that process data resulting the occurrence of business transactions. Transaction are the events that occurs as part of doing business, such as sales, purchases, deposits, withdrawals, refunds, and payments. Data about the customer, product, salesperson, store and so on must be captured and processed. Credit checks, customer billing, inventory c hanges, and increase In accounts recievable balances generate even more data. Transaction processing activities are needed to capture and process such data, or the operation of business would halt.

11. The transaction Processing cycle Transaction processing is of several basic activities. Data Entry: The first step of transaction processing cycle is the capture of business data. Transaction data may be collected by POS terminals and also captured at an e- commerce web site and internet. The proper recording and editing of data so they are quickly a nd correctly captured for processing is one of the major challenges of information systems.

12. Continued…. Transaction Processing: Transaction processing system processes data in two basic ways: one is batch processing, where transaction data are accumulated over a period of time and processed periodically, second is real time processing where data is processed immediately after transaction occurs. Database Maintenance: An organization’s databases must be updated by its transaction processing systems so that they are always correct and up to date. Databases maintenance ensures that the changes are reflected in the data records stored in company’s databases.

13. Continued….. Document and report generation: Transaction processing systems produce a variety of documents and reports. purchase orders, paychecks, sales receipt, invoices and customer statements are examples of transaction documents. Payroll register, edit reports are the form of transaction reports. Inquiry Processing: Many transaction processing system allow user to use the internet, intranets, extranets and web browser or database management query language to make inquiries and receive responses. For e.g. checking the status of sales order, balance in the account, amount of stock in inventory.

14. Enterprise collaboration systems Enterprise collaboration systems (ECS) are cross functional information systems that enhance communication, coordination, and collaboration among the members of business teams and workgroups. The Goal of enterprise collaboration is to enable us to work together more easily and effectively by helping to Communicate, Coordinate and Collaborate.

15. Tools for enterprise Collaboration The capabilities and potential of the internet, as well as extranets, are driving the demand for better enterprise Collaboration tools in business. The enterprise collaboration tools are: Electronic communication tools: E-Mail, Instant messaging, voice mail, faxing, web publishing, paging. Enterprise Collaboration Systems: Data Conferencing, Video Conferencing, Voice Conferencing, Discussion forums, Chat systems, Electronic Meeting Systems.

16. Collaborative work management tools Calendar and Scheduling, Task and project management, workflow systems, Document Sharing, Knowledge Management.

17. Functional business system There are many ways to use information technology in business as there are business activities to be performed, business problems to be solved, and business opportunities to be pursued. It is important to have a specific understanding of how information system affect a particular business function or particular industry. E.g someone whose career objective is marketing in banking should have a basic understanding of how information system are used in banks and how they support the marketing activities of banks and firms.

18. Marketing system The business function of marketing is concerned with planning, promotion and sales of existing products in existing markets, and development of new products and new markets to better attract and serve present and potential customer. Business firms have increasingly turned to information technology to help them perform vital marketing functions in the face of the rapid changes of today’s environment. For e.g. Internet/ intranet web sites makes interactive marketing process possible where customer can become partners in creating marketing, purchasing and improving products and services.

19. Continued….. Marketing information system assists marketing managers in product planning, pricing, and other product management decisions; advertising sales, promotion, and targeted marketing strategies and market research and forecast. Some of the marketing applications are:

20. Interactive marketing A customer focused marketing process that is based on using the internet, Intranets, and extranets to establish two- way transaction between a business and its customer or potential customers. Interactive marketing encourages customers to become involved in product development, delivery and service issues. It is enabled by various internet technologies, including chat, discussion groups, web forums, instant messaging and email correspondence. The expected outcomes of interactive marketing are the rich mixture of vital marketing data, new product ideas, volume sales and strong customer relationship.

21. Targeted marketing Targeted marketing has become an important tool in developing advertising and promotion strategies to strengthen a company’s e- commerce initiatives, as well as traditional business venues. It includes five targeting components: Community Content Context Demographic/ Psychographic Online Behaviour

22. Sales force automation Computers and the internets are providing the basis for sales force automation. IN many companies sales force are being outfitted with notebook computer, web browser and sales contact management software that connects them to marketing. It increases the personal productivity of sales person as well as speeds up the capture data from the field to marketing managers at company headquarters. Many companies are viewing sales force automation as a way to gain a strategic advantage in sales productivity and marketing responsiveness.

23. Manufacturing systems Manufacturing information system supports the production/operation function that includes all activities concerned with the planning and production of goods or services. Information systems used for operations management and transaction processing supports all firms that must plan, monitor and control inventories, purchases and the flow of goods and services.

24. Computer Integrated Manufacturing CIM is an overall concept that emphasize that the objectives of computer-based systems in manufacturing must be to: Simplify (reengineer) production processes, product designs, and factory organization as a vital foundation to automate and integration. Automate production processes and the business functions that support them with computers, machines and robots. Integrate all production and support processes using computer networks, cross functional business software and other information technologies.

25. Continued……… The overall aim of CIM and such manufacturing information systems is to create flexible, agile manufacturing processes that efficiently produce product of highest quality. Computers are used to help engineers design better products using both computer-aided engineering (CAE) and computer aided design (CAD) systems, and better production processes with computer aided process planning.

26. Computer Aided Manufacturing Those system that automates the production process. E.g. monitoring and controlling the production process in a factory or by directly controlling the a physical process, a machine tool or machine with some human like capabilities.

27. Manufacturing execution system Performance monitoring information systems for factory floor operations. They monitor and control the five essential components involved in a production process: materials, equipment, personnel, instructions and specifications, and production facilities. MES includes shop floor scheduling and control, machine control, robotis control and process control system.

28. Process Control Use of computer to control an ongoing physical process. Process control computer control physical processes in petroleum refineries, cement plants, steel mills, chemical plants, food product manufacturing plants and so on. The continuous physical measurement are converted to digital form by analog- to- digital converters and relayed to computer for processing.

29. Machine Control Use of computers to control the actions of machines. This is also popularly called numerical control. The computer based control of machine tools to manufacture products of all kinds is typical numerical control application used by many factories throughout the world.

30. Human Resource System The Human Resource Management function involves the recruitment, placement, evaluation, compensation , and development of the employees of an organization. The human resource information system are designed to support Planning to meet the personnel needs of the business Development of the employees to their full potential Control of all personnel policies and programs

31. HRM and Internet The internet has become a major force to change in human resource management. E.g. online HRM system may involve recruiting for employees through recruiting for employees through recruitment sections of corporate web sites. The web sites are full of reports, statistics, and other useful HRM information such as job reports by industry, or listings of the top recruiting markets by industry and professionals.

32. HRM and Corporate Intranets HRM and corporate intranet technologies allow companies to process most common HRM applications over their corporate intranets. Intranets can collect information online from employees for input to their HRM files, and they can enable managers and other employees to perform HRM task with little intervention by HRM department. E.g. Employee self- service (ESS) intranet application allows employees to view benefits, enter travel expense reports, verify employment and salary information, access and update their personal personal information, and enter time- sensitive data.

33. Accounting system Accounting information systems are the oldest and most widely used information systems in business and records business transaction and other economic events. Computer based accounting systems record and report the flow of funds through an organization on a historical basis and produce important financial statements such as balance sheets and income statements. Many accounting software packages are available for these applications:

34. Online accounting system Using the internet and other networks changes how accounting information system monitors and track business activity. Online accounting system particularly applies to systems like order processing, inventory control, accounts receivable, and account payable. These system are directly involved for processing of transaction between a business and its customers and suppliers. Naturally, many companies are using internet and other network links to these trading partners for such Online TPS.

35. Common Business Accounting Systems It is a system that every organization has maintained day to day to know and run the organization smoothly. It is summarized as: Order Processing: Captures and processes customer orders and produce data for inventory control and accounts receivable. Inventory control: processes data reflecting changes in inventory and provide shipping and reorder information. Accounts Receivable: Records amounts owed by customers and produce customer invoices, monthly customer statements, and credit management reports.

36. Continued…. Accounts payable: records purchases from, amounts owed to and payments to suppliers and produce cash management reports. Payroll: Records employee work and compensation data and produce paychecks and other payroll documents and reports. General Ledger: Consolidates data from other accounting systems and produce the periodic financial statements and reports of the business.

37. Financial Management Systems Computer based financial management system supports business managers and professionals in decision concerning the financing of a business and allocation and control of financial resources within a business. Major financial management systems includes cash and investment management, capital budgeting, financial forecasting, and financial planning. Financial analyst typically use electronic spreadsheets and other financial planning software to evaluate the present and projected financial performance of a business.

38. Customer Relationship Management (CRM) Customer focused business is one of the top business strategies that can be supported by information technology. Many companies are implementing customer relationship management (CRM) business initiatives and information systems as part of customer focused or customer centric strategy to improve their chances for success in today’s competitive business environment. CRM uses information technology to create a cross functional enterprise system that integrates and automates many of the customer serving processes in sales, marketing and customer service that interact with a company’s c ustomers.

39. Continued………. CRM system includes a family f software modules that provides tools that enables a business and its employees to deliver fast, convenient, dependable and consistent service to its customers. Siebel systems, Oracle, peoplesoft , SAP are some of the leading vendors of CRM software. Some major application components of a CRM system are:

40. Contact and account management CRM software helps sales, marketing, and service professionals capture and track relevant data about every past and planned contact with prospects and customers, as well as other business and life cycle events of customers. Information is captured from all customers touch points, such as telephone, fax, email, the company’s website, retail stores, kiosks, and personal contact and stores the data in a common customer database.

41. Sales A CRM provides sales representative with the software tools and company data sources they need to support and manage their sales activities and optimize cross- selling and up-selling. CRM also provides real time access to a single common view of the customer, enabling sales representative to check on all aspects of a customer’s account status and history before scheduling their sales cost.

42. Marketing and Fulfilment CRM system help marketing professionals accomplish direct marketing campaigns by automating such task as qualifying leads for targeted marketing and scheduling and tracking direct marketing mailings. CRM software helps marketing professionals capture and manage prospect and customer response data in the CRM database, and analyzes the customer’s and business value of company’s direct marketing campaigns.

43. Customer Service and support A CRM system provides service with software tools and real- time access to common customer database shared by sales and marketing professionals. CRM helps customer service mangers create, assign and mange request for service by customer.

44. Retention and Loyalty Program Enhancing and optimizing customer retention and loyalty is a major business strategy and primary objective of customer relationship management. CRM system helps a company identify, reward and market to their most profitable and loyal customer.

45. Three phases of CRM CRM can be viewed as an integrated system of web-enabled software tools and databases accomplishing a variety of customer focused business processes that support the three phases of relationship between business and its customers. ACQUIRE: A business relies on CRM software tools and databases to help it acquire new customers by doing a superior job of contract management, sales prospecting, selling, direct marketing and fulfillment. ENHANCE: CRM sales force automation and direct marketing and fulfilment tools help companies cross sell and up sell to their customer, thus increasing the profitability to the business.

46. Continued…. RETAIN: CRM analytical software and database help a company proactively identify and reward its most loyal and profitable customer to retain and expand their business via targeted marketing and relationship marketing programs.

47. Benefits and challenges of CRM The potential benefits of CRM are: CRM allows a business to identify and target its best customers It makes possible real- time customization and personalization of products and services based on customer needs, buying habits, and life cycles. CRM system can enable a company to provide a consistent customer experience and superior service and support across all the contact points a customer choose.

48. CRM Failures The business benefits of CRM are not guaranteed and instead have proven elusive at many companies. The common reasons are: Lack of senior management sponsorship Improper chain management Elongated projects that take on too much, too fast Lack of or poor integration between CRM and core business systems Lack of end- user incentives leading to poor user adoption rates

49. Trends in CRM Increasingly enterprise must create tighter collaborative linkages with partners, suppliers, and customer, squeezing out time and cost while enhancing the customer experience and total value proposition. Most of the organization implements the four types of CRM, they are Operational, analytical, Collaborative and portal- based.

50. Enterprise Resource Planning (ERP) Business of all kinds have now implemented enterprise resource planning(ERP) systems. ERP serves as a cross functional enterprise backbone that integrates and automates many internal business processes and information systems within the manufacturing logistics, distribution, accounting, finance, and human resource functions of a company. ERP is a technology backbone of e-business and is a cross functional enterprise system driven by integrated suite of software modules that support the basic internal processes of a company.

51. Benefits of ERP ERP systems can generate significant business benefits for a company. Quality and efficiency: Decreased cost Decision support Enterprise agility:

52. Causes of ERP Failures Underestimation of the complexity of the planning, development, and training Failure to involve affected employees in the planning and development phases Insufficient training in new work task Over relying of company and it management on the claims of ERP software vendors.

53. Trends in ERP Today, ERP is still evolving- adapting to developments in technology and the demands of the market. Four major trends are shaping ERP’s continuing evolution: Improvement on integration and flexibility Extension to e-business applications A broader reach to new users And the adoption of internet technologies

54. Supply chain management (SCM) Starting a e- business takes ideas, capital, and technical savvy. Operating one however takes SCM skills. A successful SCM strategy is based on accurate order processing, just in time inventory management, and timely order fulfillment. Many companies today are making supply chain management a top strategic objective and major e-business application development initiative. Supply chain management helps companies get the right products to the right place at the right time, in the proper quantity and acceptable cost.

55. Continued……. The goal of SCM is to manage this process efficiently by forecasting demand, controlling inventory, enhancing the network of business relationship a company have with customers, suppliers, distributors and others. To achieve this goal many companies today are turning to Internet technologies to web- enable their supply chain processes, decision making, and information flows.

56. Electronic Data Interchange (EDI) Electronic data interchange was one of the earliest uses of information technology for SCM. EDI involved the electronic exchange of business transaction documents over internet and other network between supply chain trading partners. EDI software’s is used to convert a company’s own document format into standardized EDI formats as specified by various industry and international protocol. EDI is an example of almost complete automation of an e-commerce supply chain process.

57. The Role Of SCM The role of information technology in SCM is to support planning, execution objectives with enterprise information systems that produce many of the outcomes a business needs to manage its supply chain effectively. Due to the reason many companies today are installing SCM software and developing web based SCM information systems.

58. Benefits and challenges of SCM Creating a real time SCM infrastructure is a discouraging and ongoing issue and often a point of failure for several reasons. SCM can provide companies with key business benefits such as faster, more accurate order processing, reductions in inventory level, quicker times to market, lower transaction and material cost and strategic relationship with the suppliers. However, developing effective systems has proven to be complex and difficult application of information technology to business operations.

59. Trends IN SCM The trends in use of SCM today as three possible stages in implementation of SCM System. In first stage the company concentrates on making improvement to its internal supply chain process and its external process and relationship with suppliers and customers . In the stage two, a company accomplish substantial supply chain management applications by using selected SCM software programs internally, as well as externally via intranet and extranet links among suppliers, distributors, customers and other trading partners. In the third stage, a company beings to develop and implement cutting- edge collaborative supply chain management applications using advanced SCM software, full service extranet links, and private and public e-commerce exchanges.

60. E- Commerce systems Electronic commerce, commonly known as e- commerce consists of the buying and selling of products and services over electronic systems such as the Internet and other computer networks. For most companies today E- commerce is more than just buying and selling products online. It encompasses the entire online process of developing , marketing, selling, delivering, servicing, and paying for products and services transacted on inter- networked, global marketplaces of customer, with the support of a worldwide network of business partners.

61. The Scope of E- Commerce The range of business processes involved in marketing, buying, selling and servicing of products and services in companies that engage e-commerce. Companies involved in e- commerce as either buyer or sellers rely on Internet based technologies and e-commerce applications and services to accomplish marketing, discovery, transaction processing, and product and customer service processes.

62. Categories of E- Commerce Many companies today are participating in or sponsoring four basic categories of e-commerce applications: Business-to-consumer (B2C) e- commerce: Business develop attractive electronic marketplaces to sell products and services to customer. Consumer-to-Consumer (C2C) e-commerce: The huge success of online auctions like e-bay, where consumer can buy from and sell to another in an auction process at an auction web site, makes this model an important e-commerce strategy.

63. Continued…… Business-to-Business (B2B) e-commerce: This category of e-commerce involves both e-business marketplace and direct market links between businesses.

64. Essential E- Commerce Processes There are nine key components of e-commerce processes architecture that is the foundation of the e- commerce initiatives of many companies today.

65. Access control and security E- commerce must establish mutual trust and secure access between the parties in an e- commerce transaction by authenticating users, authorizing access, and enforcing security features. Security process protect the resources of e- commerce sites from threats such as hacker attacks, theft of passwords or credit card numbers, and system failures.

66. Profiling and personalizing Once gained access to an e-commerce site, profiling processes can occur that gather data on you and your web sit behavior and choices, as well as build electronic profiles your characteristics and preferences. These profiles are used to recognize you as an individual user and provide you with a personalized view of the contents of the site, as well as product recommendations.

67. Search Management Efficient and effective search processes provide a top e-commerce web site capability that helps customers find the specific product or service they want to evaluate or buy. E-commerce software packages can include a web site search engine components, or a company may acquire a customized e- commerce search engine from search technology companies like google.

68. Content and catalogue management content management software helps e-commerce companies develop, generate, deliver, and archive text data and multimedia information at e-commerce web sites. E- commerce contents frequently take the form of multimedia catalogs of product information.

69. Workflow management Many of the business in e-commerce applications can be managed and partially automated with the help of workflow management software. Workflow management in both e- business and e- commerce depends on the workflow search engine containing software models of the business process to be accomplished. Workflow system ensures the that the proper transactions, decisions, and work activities are performed, and the correct data and documents are routed to right employees, customers, suppliers, and other business stakeholders.

70. Event Notifications Most e- commerce applications are event driven systems that responds to a multitude of events- from a new customer’s first website access, to payment and delivery processes, to innumerable customer relationship and supply chain management. Customers, suppliers, employees and other stakeholders must be notified of all events that might affect their status in a transaction. Event notification software works with the workflow management software to monitor all e-commerce processes and record all relevant events, including unexpected changes or problem situatuions .

71. Collaboration and trading Vital collaboration arrangements and trading services needed by customers, suppliers, and other stakeholders to accomplish e- commerce transactions. Customer focused e- business uses tools such ae e-mail, chat systems and discussion groups to nurture online communities of interest among employees and customers to enhance customer service and build customer loyalty in e- commerce.

72. Electronic Payment Process Payment for the products and services purchased is an o bvious and vital set of processes in e- commerce transaction. E-commerce payment processes are also complex because of the wide variety of debit and credit card alternatives, as well as the financial institutions and intermediaries that may be a part of the process. Therefore the variety of electronic payment systems have evolved over time.

73. Web payment process Most e-commerce systems on the web involving business and consumers (B2C) depends on credit card payment processes, but many B2B e-commerce systems rely on more complex payment processes based on the use of purchase orders. E- commerce typically use an electronic shopping cart process, which enables customers to select products from website catalog displays and put them temporarily in a virtual shopping basket for later checkout and processing.

74. Electronic Fund Transfer Electronic fund transfer systems are a major form of electronic payment systems in banking and retailing industries. EFT uses variety of technologies to capture and process money and credit transfer between banks and business and their customers. Eg . ATM, PAYPAL, Internet bill payment

75. Secure electronic payments Online purchase on the internet, makes credit card information vulnerable to interception by network sniffers. Several basic security measures are being used to solve this security problem. Encrypt the data passing between customer and merchant Encrypt the data passing between the customer and the company authorizing the credit card transaction Take sensitive information offline.

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