Sherif Kamel
Professor of MIS
Department of Management

 Electronic business is much broader as a term when compared to electronic commerce
 The formulation of buying and selling over digital networks
“the Internet”
 eBusiness help redefine the business processes and ads value to the customer and revenue to the supplier

 Corporations are increasingly interested to develop integrated cross-
functional enterprise systems in order to re-engineer and improve business processes and logistics
 Enterprise resource planning (ERP)
 Supply chain management (SCM)
 Customer relationship management (CRM)
 The objective of cross-functional enterprise applications for the business environment is to develop and implement strategic ways to share
information resources and improve the efficiency and effectiveness of a business

Suppliers
Supply Chain Management
Enterprise Resource Planning
Customers

 Business managers are moving from a tradition where they could avoid, delegate or ignore decisions about IT to one where they cannot create a marketing, product, international, organizational or financial plan that does not involve such decisions

 Business activities to be performed
 Business problems to be solved
 Business opportunities to be pursued

 ERP is a cross-functional enterprise system that serves as a framework to integrate and automate many of the business processes that must be accomplished within the manufacturing, logistics, distribution, accounting, finance and human resource functions of a business (an important tool
for better decision making)

Sales
Distribution,
Order
Management
Production
Planning
Customer/
Employee
Human
Resources
Integrated
Logistics
Accounting and Finance

 Functionality
 Degree of integration
 Architectural flexibility
 Speed of implementation
Hardware
12%
Re-engineering
43%
Software
15%
Data
Conversions
15%
Training and
Change Mgmt
15%

 Integrating and improving internal processes
 Rationalizing the use of available resources
 Providing vital cross-functional information for managers
 Enabling a flexible, dynamic and interactive organizational structure
 Underestimating the planning, development and training needed for ERP
 Introducing radical changes within the organization in relatively short periods of time
 Not sharing ERP procedures and logistics with management and staff alike

 Develop customer-centric strategies to be able to accommodate to the customer’s changing needs
 CRM uses IT to create a cross-functional enterprise system that integrates and automates many of the customer serving processes in sales, marketing and service that interact with a company’s customers
 Ultimate target is customer service and support
 CRM help companies to identify future and potential customers and hence allocate the resources in the optimal directions

Sales
Cross-Sell
Up-Sell
TeleSales
Marketing and
Fulfillment
Customer
Customer
Service and
Support
Retention and Loyalty
Programs
Contact and
Account
Management

 Acquire
 CRM helping to acquire new customers
 Enhance
 Web-enabled CRM helping to keep customers happy by supporting superior service from a real-time responsive team
 Retain
 CRM analytical software and databases helping companies proactively identify and reward its most loyal and profitable customers to retain and expand their business

 Allowing business to identify and target their best customers
 Enabling real-time customization and personalization of products and services based on individual market needs
 Tracking customer preferences
 Lack of customer understanding and preparation (role of business stakeholder)
 Change management and transformation (adaptation is a key success factor)

 eCommerce presents an opportunity to leverage and improve each company’s internal systems and its relation to its suppliers, partners and customers
 SCM help companies to better manage their business processes and to better serve its customers.
 Goal - what needed, when/where needed, at lowest cost
 More efficient distribution
 Can respond quickly to change

Supply
Chain
Life Cycle
Commit Schedule Make
SCM
Functional
Processes
SCM
Integrated
Solution
Deliver
Order
Commitment
Advance
Scheduling
Demand
Planning
Transportation
Planning
Manufacturing
Planning
Distribution
Planning
Internetworked Supply Chain Management

 The integration of the enterprise has emerged as a critical issue for organizations in all business sectors striving to maintain competitive advantage
 Integration is the key to success and it is the way to unlocking information and making it available to any user, anywhere and anytime
 The key to integration is the deployment of ERP

Marketing
Production/Operations
 Manufacturing resource planning
 Manufacturing execution systems
 Process control
Accounting
 Order processing
 Inventory control
 Accounts receivable/payable
 Payroll
 General ledger
 Customer relationship management
 Interactive marketing
 Sales force automation
Functional
Business
Systems
Human Resources
Management
 Compensation analysis
 Employee skills inventory
 Personnel requirements
 Forecasting
Finance
 Cash management
 Credit management
 Investment management
 Capital budgeting
 Financial forecasting

Interactive marketing
Market research and forecasting
Sales force automation
Marketing information systems
Customer relationship management
Advertising and promotion
Product management
Sales management

 The use of IT in leveraging the marketing function
 Example: Interactive market (Internet and Intranets)
 Customers are encouraged to be involved in the development and delivery of the product or service
 It leads to creative ideas, customer feedback, and strong customer relationships.
 Web-based
 Customer becomes involved
 Discussion groups and chat rooms

 Human resource management involves recruitment, placement, evaluation, compensation and development of the employees of the organization
 CBIS used in human resources could realize;
 produce paychecks and payroll reports
 maintain personnel records
 personnel performance in business development and business operations
 recruitment, selection and hiring
 performance appraisals
 employee benefit analysis
 training and development