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Unit 2.6

E-Business and Enterprise Systems

IT 231: IT and Application

Learning Objectives

By the end of this chapter, you will be able to:

  • โœ… Define e-business and differentiate it from e-commerce.
  • โœ… Define an enterprise system and its purpose.
  • โœ… Describe the purpose of the three main types of enterprise systems: ERP, SCM, and CRM.

What is E-Business?

E-business (Electronic Business) is the use of internet technologies to conduct all forms of business, not just buying and selling.

It's a broad term that covers any process a business conducts over a computer-mediated network.

Think bigger than just an online store! ๐ŸŒ

E-Business vs. E-Commerce

E-Business (The Whole Picture)

  • Includes e-commerce
  • Internal processes (HR, Finance)
  • Online customer service
  • Collaboration with partners
  • Digital marketing
  • Scope: The entire business ecosystem online.

E-Commerce (A Key Part)

  • A subset of e-business
  • Buying goods online
  • Selling services online
  • Processing online payments
  • Scope: The transaction of goods and services.

E-Business in Action

Examples Beyond the "Buy Now" Button

  • An employee accessing the company's internal HR portal to request leave.
  • A bank providing 24/7 customer support through an online chatbot.
  • A manufacturer sharing production data in real-time with its suppliers via a web portal.
  • A university using an online learning management system (LMS) for course delivery.

The Challenge of Complexity

How do large organizations manage all these complex online and offline activities seamlessly?

โ†“

They use Enterprise Systems to integrate everything.

What are Enterprise Systems?

Enterprise Systems are large-scale, integrated information systems that span across the entire organization and support business processes across multiple functional areas.

๐ŸŽฏ The Goal: Break Down Information Silos

Before (Silos)

HR Dept เช…เชฒเช—

Finance Dept เช…เชฒเช—

Sales Dept เช…เชฒเช—

After (Integrated)

One Unified System

Single Source of Truth

The Three Pillars of Enterprise Systems

There are three main types, each focusing on a different part of the business.

1. ERP

Internal Focus

Manages core business processes.

2. SCM

Supplier/Partner Focus

Manages the flow of goods.

3. CRM

Customer Focus

Manages customer relationships.

1. Enterprise Resource Planning (ERP)

Goal: Provide a "single source of truth" for the entire organization.

  • Purpose: To integrate and manage all core business processes in a single system.
  • Modules Include:
    • ๐Ÿ“Š Finance & Accounting
    • ๐Ÿ‘ฅ Human Resources (HR)
    • ๐Ÿญ Manufacturing & Production
    • ๐Ÿ“ฆ Inventory Management

2. Supply Chain Management (SCM)

Goal: Improve efficiency, reduce costs, and increase customer satisfaction.

  • Purpose: To manage the flow of goods, data, and finances from raw materials to the final customer.
  • Covers:
    • ๐Ÿšš Procurement of materials
    • ๐Ÿ“ฆ Warehousing
    • ๐Ÿš› Logistics & Transportation
    • ๐Ÿ“ˆ Demand Forecasting

3. Customer Relationship Management (CRM)

Goal: Drive customer loyalty, retention, and revenue growth.

  • Purpose: To manage all of a company's relationships and interactions with current and potential customers.
  • Manages:
    • ๐Ÿ“ž Contact Information
    • ๐Ÿ›’ Purchase History
    • ๐Ÿ“ง Marketing Campaigns
    • ๐Ÿ’ฌ Customer Service Interactions

Enterprise Systems in Nepal

Example: A large E-commerce platform like Daraz

SCM: Manages thousands of sellers, inventory levels, and logistics with delivery partners.

CRM: Tracks customer orders, preferences, and manages promotional emails/notifications.

Example: A major bank like Nabil Bank

ERP: Integrates finance, accounting, and HR for all its branches nationwide.

CRM: Manages millions of customer accounts, loan applications, and support tickets.

Summary & Key Takeaways

  • โšก E-business is broader than e-commerce. It includes all online business activities, not just transactions.
  • โšก Enterprise systems integrate the entire organization. They break down information silos and create a single source of truth.
  • โšก The three main systems have distinct focuses:
    • ERP for internal processes.
    • SCM for external supply partners.
    • CRM for customers.

Discussion Questions ๐Ÿ”

  1. Is a company's internal employee portal an example of e-business? Why or why not?
  2. How might the ERP, SCM, and CRM systems of a company like Foodmandu work together?
  3. Can a small local business operate without any enterprise systems? What challenges might it face as it grows?

Thank You!

Next Topic: Unit 7 - E-Commerce, M-Commerce, and E-Payment

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