Chapter 7: Electronic Business Systems

1. Refer to the Real World Case on Salesforce.com and Others in the chapter. What are several reasons why a business application on IT like CRM can be so costly and take so long to implement for many companies and be criticized as a most oversold, under-implemented concept?

Reasons would include:

· Lack of planning (preparing for the implementation of CRM).

· Lack of training of users (employees, customers and business partners)

· Vendors use scores of consultants to get the CRM up and running.

· The company has failed to develop the changes in the business processes necessary for CRM to be successful.

2. Why would systems like CRM which enhance a companys relationships with its customers have such a high rate of failure?

Reasons for a high rate of failure could include:

· No amount of high-level cooperation will protect a CRM project from rank-and-file employees that hate it due to fear the software would threaten their jobs.

· CRM is complex to install because it often touches many different legacy systems.

· A CRM system may prove to be very slow for customers and employees if not designed and implemented right.

· Poor project planning and training with little stakeholder involvement.

3. How could some of the spectacular failures of ERP systems in business been avoided?

Failures could be avoided by:

· Stakeholder involvement in the CRM project from the beginning.

· Adequate training of employees, customers and others that will be using the system including the re-training of employees with redefined job tasks.

· Effective CRM project planning, design and testing of the system to insure that issues such as stakeholder acceptance and system speed are managed successfully.

4. Refer to the example of Dell Computer in the chapter. What other solutions could there be for the problem of information system incompatibility in business besides EAI systems?

The lack of integration means that companies arent getting the seamless processing that would enable them to reduce costs and speeds up customer responsiveness. This is true whether you are talking about Dell Computer or any other company dependent on integrated systems. Dell Computer chose the WebMethods enterprise application integration (EAI) technology as a solution to their challenge of integrating a variety of software packages from a number of companies that they deal with. This technology acts as a software translator and creates a kind of hub that, using the Web, allows instantaneous communication among networked companies internal business systems.

Dell could have chosen to develop their own in-house system or outsourced the contracting of a new system that their clients would buy into. They could also pursue such things as joint ventures, strategic alliances, licensing, etc. for a new system.

5. Refer to the example on Charles Schwab & Co. in the chapter. What are the most important HR applications a company should offer to its employees via a Web-based system? Why?

The most important HR applications that a company should offer to its employees via a Web-based system are by giving employees access to information that they need. The HR department can do this by ensuring that employees can easily find applicable information without spending a tremendous amount of time looking for it. Applications can include a multitude of things such as benefits, training, opportunities for advancement or career growth, scheduling of time, sick and dental benefits and forms, travel and hotel directives, learning centers and many other things.

6. How could sales force automation affect salesperson productivity, marketing management, and competitive advantage?

Sales force automation is the use of computers to automate sales recording and reporting by sales people as well as communications and sales support. It improves productivity by saving time otherwise spent on manual creation of records, reports, and presentations; it improves communications and accessibility to information to support sales activities; and it may help in planning sales tactics.

Increasingly, computers and networks are providing the basis for sales force automation. In many companies, the sales force is being outfitted with notebook computers that connect them to Web browsers, and sales contact management software that connect them to marketing websites on the Internet, extranets, and their company intranets. Sales force automation has resulted in increasing the personal productivity of salespeople, dramatically speed up the capture and analysis of sales data from the field to marketing managers at company headquarters, allows marketing and sales management to improve the delivery of information and the support they provide to their salespeople. Many companies view sales force automation as a way to gain a strategic advantage in sales productivity and marketing responsiveness.

7. How can Internet technologies be involved in improving a process in one of the functions of business? Choose one example and evaluate its business value.

Students answers will vary. However, it will be relatively easy for them to choose from any of the various functions of business such as accounting, marketing, manufacturing, retailing, etc. For this answer, the accounting function will be given. For example, a accounting information systems are being affected by Internet and client/server technologies. Using the Internet, intranets, extranets, and other network changes how accounting information systems monitor and track business activity. The online, interactive nature of such networks calls for new forms of transaction documents, procedures, and controls. Many companies are using or developing network links to their trading partners through the use of the Internet or other networks for applications such as order processing, inventory control, accounts receivable, and accounts payable. These advances in the accounting function have t o vast improvements in the capturing, reporting, and the accuracy of company data. Thus, real-time processing of accounting information enables executives to make better and more informed decisions involving their firms resources.

7. Refer to the Real World Case on GE Power and Corporate Express in the chapter. Why is there a need for enterprise application integration systems in business? Will this continue to be the case in the future? Why or why not?

Enterprise application integration systems are needed for the following reasons:

· It is a critical part of the IT strategy in organizations looking to meld disparate systems and quickly deliver data to employees, customers and partners.

· Companies continue to have a need to integrate front- and back-office applications, Web services and legacy applications.

· The ability to send data in real-time from one system to another.

· The need to improve the quality and accuracy of the companys data.

· The need to cut costs both internally and for customers, so a company will remain attractive as a preferred supplier.

· The need to integrate various application with enterprise resource planning systems.

9. What are several e-business applications that you might recommend to a small company to help it survive and succeed in challenging economic times? Why?

e-business applications may take on many forms. For example data conferencing, digital information services, distance learning, facsimile, intranets, teleconferencing, videoconferencing, voice mail systems etc. It may also take on the form of applications dealing with procurement, marketing, manufacturing, financial, logistics, human resources, supplier and vendor integration applications and a multitude of other applications. What is important in the question is that a small company can use e-business applications to survive and succeed in challenging economic times by allowing it to carry out many functions more effectively. As well, as large corporations restructure and go back to concentrating on their core business there are a number of opportunities for small businesses to provide services to the larger companies.

10. Refer to the example on General Electric in the chapter. How do enterprise collaboration systems contribute to bottom-line profits for a business?

There is a growing organizational need to integrate functions and business processes to improve organizational control, coordination, and responsiveness by allowing data and information to flow more freely between different parts of the organization. Poorly integrated applications can create costly inefficiencies or slow customer service and become competitive liabilities. Enterprise collaboration system software consists of a set of interdependent modules for applications such as sales and distribution, financial accounting, investment management, materials management, production planning, plant maintenance, and human resources that allows data to be used by multiple functions and business processes for more precise organizational coordination and control. The modules can communicate with each other directly or by sharing a common repository of data. Vendors are rapidly enhancing their products to provide more capabilities for supply chain management, customer relationship management, and exchange of data with other enterprises. As such, these systems can greatly enhance the bottom-line profits for a business who knows how to use them effectively.