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Chapter 10

Chapter 10. E-business and Enterprise Resource Planning Systems . Outline. Expected outcomes E-business ERP systems Application service providers. Expected outcomes. Explain the nature of e-business, comparing and contrasting it with traditional “brick-and-mortar” organizations.

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Chapter 10

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  1. Chapter 10 E-business and Enterprise Resource Planning Systems

  2. Outline • Expected outcomes • E-business • ERP systems • Application service providers

  3. Expected outcomes • Explain the nature of e-business, comparing and contrasting it with traditional “brick-and-mortar” organizations. • Discuss major forms of e-business. • Describe the basic nature, purpose and structure of ERP systems. • Give examples and analyze the causes of ERP system failures. • List and discuss steps associated with successful ERP implementations. • Discuss the role of application service providers in e-business.

  4. E-business • Defining feature Business is transacted via computer networks. • Benefits • Expanded marketing • Reduced operating costs • Streamlined operations • Product / service delivery • Costs • Network setup • Different internal controls • Customer distrust potential • Consequences of technology breakdowns

  5. E-business • Five major categories • Business to consumer www.travelocity.com • Business to business www.officedepot.com • Government to consumer www.sec.gov • Government-to-business www.sba.gov • Consumer-to-consumer www.angieslist.com Lecture break 10-1 Suggest one additional example of each e-business category. Do not repeat those found in the chapter.

  6. ERP systems • Relational databases designed to provide comprehensive, integrated information about an organization • One form of event-driven AIS • Common modules • Customer relationship management • Human resource management • Supply chain management • Financial management

  7. ERP systems • Failure causes • Human resource related • Poor top management leadership • Poor project management • Inadequate education & training • Unrealistic expectations • Project seen as IT only • Business process related • Trying to maintain status quo • Automating poor processes • Bad match between processes and system • Technology related • Inaccurate data • Technical issues

  8. ERP systems • Conditions for success • Organizational commitment • Clear communication • View as enterprise-wide venture • Select compatible system • Resolve multi-site issues • Ensure data accuracy • Lecture break 10-2 Working with a group of three to five students, explain how one of the following could relate to ERP projects: • Database normalization • Expectancy theory • Systems development life cycle • COSO frameworks

  9. Application service providers • Description • Third-party entity • Deploys, hosts & manages access to packaged application • Delivers software-based services over a network • Examples • Web hosting • E-mail providers • Transaction processing • E-mail security • Virtual offices

  10. Application service providers • ASPs can present additional internal control challenges and issues • Service organization audits can address some of them • Old standard • Statement of Auditing Standards 70 (SAS 70) • Replaced since text was published

  11. Application service providers • New standard • Statement on Standards for Attestation Engagements 16 (SSAE 16) • Motivated by two forces • Misuse of SAS 70 • Convergence with international standards

  12. Classroom assessment • This chapter has focused on e-business, ERP systems and application service providers. • Form a group of three to five students. • Select one of those three topics. • As a group, write down: • Three things you know about the topic. • Three things you want to know about the topic.

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