Electronic
Business
(E-Business)
Systems
1
Learning Objectives
•
•
•
•
•
•
Appreciate the possible changes to
organizational processes that occur when
e-business introduced
Understand major approaches to transfer
of electronic data during business events
processing
Recognize the complexities that are
introduced as electronic document
management moves us steadily toward
the paperless office
Understand the complexities surrounding
EDI that are introduced when linking two
different organizations’ computer systems
for joint business event data processing
Appreciate the challenges faced by
organizations when they pursue direct
business links with customers via the
Internet or other networks
Appreciate the business advantages
gained through effective use of electronic
business
Electronic
Business
(E-Business)
Systems
E-Business and the AIS Wheel
• E-Business is a part
of every aspect of
accounting
3
Electronic Business
• Electronically linking business
processes, individuals and
organizations
• Byproduct: elimination of sales staff,
normally intermediary between two
parties to transactions
• Transactions completed more quickly,
more efficiently, and more effectively
4
Batch Processing
• Known as periodic mode because master data is
updated periodically (e.g., nightly)
• Delay occurs between business event and updating
master data
–
–
–
–
Business event occurs
Record business event data
Update master data
Generate outputs
• The disadvantage of periodic mode systems is that the
only time the master data are up to date is right after
the processing has been completed.
• As soon as the next business event occurs, the master
data are no longer up to date.
5
Automated Equivalent to a Manual System
6
Online Transaction Entry
• Entering business events at time and place
the business event occurs
– Computer input device used to enter data at
source
– Input document is eliminated
– Price data is retrieved from the system
– Source documents are printed by the system
– Event information in accumulated on tape or disk
7
Online Transaction Entry (Batch)
8
Online Real-time
Processing
• Transaction occurrence/recording in
transaction files
• Update master files essentially
instantaneously
• Also known as “immediate mode”
• Generate reports periodically or on
an as needed basis
• Support queries to generate unique
reports for key decisions
9
Online real-time processing
10
Online Transaction
Processing
• RT system that performs all or part of
processing at data terminal location
• Updating of master data may be immediate
or delayed
• Can have memorandum update in RT and
full batch update at night (referred to as
remote batch)
• Common applications are ATMs and online
reservation systems
11
Traditional real-time processing
system
12
Online transaction
processing system
13
Methods of Conducting E-Business
• E-Mail—generally requires human translation
and data entry
• Electronic Document Management—capture and
storage of document images instead of paper
• Electronic Data Interchange—computer-tocomputer exchange of business data in
structured formats that allow direct processing of
those electronic documents by the receiving
computer system.
14
EDI
Components
1. An originating
application prepares
an electronic business
document, such as a
purchase
order (PO).
7. At the destination
organization, an
application processes
the business data.
15
EDI
Components
2 and 6. An
application’s
electronic business
document must be
translated from
standard message
format to the
structured EDI
format that will be
recognized by the
receiving computer.
16
Electronic Data Interchange Set
17
EDI
Components
3 and 5. Establish a
method to
communicate
electronic message.
EDI service bureaus
or the Internet are may
be used, saving time
and money over other
methods.
18
EDI
Components
4. Rather than
connecting each
trading partner, an
organization can use a
VAN. An organization
can connect to the
VAN when it wants,
leave its outgoing
messages and, at the
same time, pick up
incoming messages
from its “mailbox.”
19
Internet Commerce
• Circles 1 and 7
– Customer connects to vendor in client-server
configuration
• Circles 2 and 5
– Connection to Internet through direct connection
or service provider
• Circles 4 and 6
– Assurance services provide limited assurance that
web site reliable and secure
• Circle 3
– The Internet
20
Typical Internet Connection
21