Information and Enterprise Systems in Today's Businesses

Edition: 3

Copyright: 2023

Pages: 494

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The third edition of Information and Enterprise Systems in Today’s Businesses builds on the strengths of the second edition. Like its predecessors, the third edition assumes that most of today’s business school students will work in organizations that utilize enterprise systems (such as ERP and CRM) to support their daily operations. Hence, a MIS textbook with a strong focus on enterprise systems and their roles in supporting and integrating business processes is important. This edition also assumes that today’s businesses will continue to be buffeted by technological advancements including artificial intelligence (AI), Blockchain, the Internet of Things (IoT), 5G, and other maturing technologies that can be leveraged to improve operations or provide competitive advantage. It is also assumed that business analytics and Big Data will be increasingly used to drive business performance and exploit strategic opportunities. Accordingly, this new edition includes expanded coverage of evolving technologies, especially AI, the IoT, and business analytics.

Some additions and tweaks have been made to the ERP tutorials to ensure that students will have the opportunity to gain hands-on experience with how ERP software supports business processes. Tweaks have also been made to end-of-chapter exercises and cases to illustrate and reinforce especially important concepts.

Numerous figures and tables have been refreshed and new ones have been added to better summarize and illustrate chapter content. Several chapters have been reorganized to provide a tighter and more logical flow to the discussion of their concepts. New sections have been added to several chapters to ensure that their contents are up-to-date and accurately reflect the current state of information and enterprise systems in today’s businesses.

The ancillary materials for Information and Enterprise Systems in Today’s Businesses have also been updated and expanded. The PowerPoint slides and Test Bank have been updated to reflect the revised content of the book. The KHQ app, a mobile study app for students, has also been updated. An instructor’s manual has been added to the book’s companion website.

We are confident that the changes that have been made provide added value for both students and instructors. The third edition is a solid textbook that accurately portrays information and enterprise systems in today’s businesses and how they are evolving to accommodate technological advancements.

Chapter 1 The Competitive Landscape: The Technology-Focused World of Today’s Businesses 
Chapter Objectives 
Introduction 
Technological Disruption of the Global Business Environment 
     Technology Driven Globalization 
     Technological Advancement 
          Moore’s Law 
          Nielsen’s Law 
          Bell’s Law 
          Metcalfe’s Law 
     Technological Disruption 
          Artificial Intelligence 
          Business Analytics 
          The Internet of Things 
          Robotic Process Automation 
          Other Disruptive Technologies 
          Digital Transformation 
Technology’s Impact on Job Markets
The New Ethical Concerns 
About This Course 
Summary 
Key Terms 
Review Questions 
References
Chapter 1 Cases
     IT and Your Career
     Personal Data for Sale
          Case Reference

Chapter 2 Business Information Systems: Fostering Competitiveness in Today’s Business Environments 
Chapter Objectives
Introduction 
Systems Theory
     Business Environments
     Information Systems
Information 
     Data and Information
     Information Assets vs. Physical Assets
     Information Quality 
Business Information Systems
     BIS Components
     BIS Goals and Benefits 
          Customized Information and Format 
          Access to Real-time and Archived Data 
          Operational Efficiencies
          Improved Effectiveness
          Cost Reductions
          Better Customer Service
          Continuous Availability
          Expanded Communication Capabilities 
          Product Creation and Enhancement
          Greater Competitiveness
          Identifying and Exploiting Business Opportunities
     BIS Challenges and Risks 
          Increasing Reliance on BISs
          Failing to Strategize
          BIS and Business Alignment Can Be Difficult to Maintain
          Investing in IT Is Still Somewhat of a Mystery 
          BIS Success Relies a Wide Variety of Knowledge Areas
           “Hot” IT Talent Is in High Demand and Short Supply
               BIS Technologies Are Evolving at an Extremely Fast and Unpredictable Pace
               Adding New Technologies to Existing BISs 
               BIS Terms Can Be Imprecise and Controversial
               Lack of Rapport between BIS Users and Technical Staffs
               No Amount of Security Is Ever Enough
               Balancing Personalization, Privacy, and Ethical Data Handling 
     Enterprise Information Systems
          EIS Components
          EIS Goals and Benefits 
          EIS Challenges and Risks
               EIS Implementation Projects Can Be Lengthy and Expensive
          Change Management 
          Managing Relationships with Vendors and Consultants 
     BIS and EIS Trends
     Summary 
     Key Terms
     Review Questions
     Chapter 2 Exercises
          Exercise 1: Information Quality
          Exercise 2: Using Data Filters on LinkedIn
     Chapter 2 Appendix – The Evolution of BIS and EIS 
          The Evolution of BIS
          EIS Evolution
          BIS and EIS Evolution Review Questions

Chapter 3 Using Information Systems to Gain and Maintain Competitive Advantage 
Chapter Objectives
Introduction 
What is Competitive Advantage? 
Creating and Sustaining Competitive Advantage 
     Understanding Industry Structure 
          Competitive Forces
          Supply Chain Forces
          An Example Analysis
     Selecting a Competitive Strategy
          Example of Competitive Strategy in the Automobile Industry 
                    Impacts of Competitive Strategy on IS 
          Work Systems
Using ISs to Achieve Competitive Advantage
     Creating or Improving Products 
     Enabling Processes
     Changing the Structure of the Marketplace 
     New Technology Adoption Patterns
Disruptive Technologies
     Artificial Intelligence
     Blockchain
     The Internet of Things
     5G
     Virtual and Augmented Reality 
Summary 
Key Terms
Review Questions
References
Chapter 3 Cases
     POGO Air Taxi Service Case
          Industry Analysis
          POGO Case References
     Analysis of ERPSim Market in Germany 
     Valdez’s Carniceria Case

Chapter 4 BIS Infrastructure and Competitive Capability 
Chapter Objectives
Introduction 
Business Strategy, EA, and BIS Infrastructure 
     Enterprise Architecture Components
          Business Architecture
          Data/Information Architecture
          Application Architecture
          Technology Architecture
          Security Architecture
     Importance of Strategy, Architecture, and Infrastructure Alignment 
BIS Infrastructure
     Telecommunications Components
          Local Area Networks 
          Backbone Networks
          Wide Area Networks 
          Internet Service Providers (ISPs)
          The Internet 
          Client-Server Networks 
          Ecommerce Architectures
          Telecommunications Trends 
     Hardware Components and Trends 
          Input Technologies
          Input Technology Trends 
          Processing Technologies
          Processing Technology Trends 
          Storage Technologies 
          Storage Technology Trends 
          Output Technologies
          Output Technology Trends 
     Software Components 
          System Software 
          Application Software
               COTS Software
               Custom Software
               Horizontal Market Software
               Vertical Market Software
               Open-Source Software
               Mobile Apps
               Virtual Desktops 
          Software Trends
     Data Management Components
          Relational Databases
          Database Management Systems (DBMS) 
          Data Management Trends
BIS and Cloud Computing
     Cloud Infrastructure
     The IoT and the Cloud 
BIS Security
     Layered Security and Information Assurance
     Risk Assessment and Continued Vigilance
BIS Infrastructure and Business Strategy
Summary 
Key Terms
Review Questions
Chapter 4 Exercises & Cases
     Chapter 4 Exercise 1: Blockchain Applications in Business
          Case Reference
     Chapter 4 Case: Electrical Component Distributors
          Company Background and Strategy 
          The Role of the MaxService Order Entry System
          Customer Benefits
          Benefits to ECD
          The Changing Market 
          Case Questions
Chapter 4 Appendix 
     Determinants of Computer Performance

Chapter 5 BIS Acquisition and Implementation 
Chapter Objectives
Introduction 
Project Management
     The Formal Project Management Process
          Initiate
          Plan
          Execute
          Monitor and Control
          Closure
     Benefits of a Formal Project Management Process
Designing the Work System
Developing the Work System
Acquiring the Technology 
     Definition
     Requirements Analysis
          Determining How to Acquire the System
          Purchase Off the Shelf and Implement “Vanilla”
          Purchase Off the Shelf and Modify
          Custom Development 
          Outsourcing 
Determining the Correct Acquisition Approach 
Determination Process
               Step 1: Gather information 
               Step 2: Evaluate Acquisition Options 
In-House Development 
     Traditional Waterfall Approach
          Design
          Construction
          Testing 
     Agile Development Methods 
          Agile Scrum Methodology
          Lean and Kanban Software Development
          AI and Agile Development and Project Management 
Outsourcing 
Implementing Systems
Summary 
Key Terms
Review Questions
References

Chapter 6 Information Systems and Business Processes 
Chapter Objectives
Introduction 
The Value Chain
     Primary Activities 
     Support Activities
     Competitive Strategy and Value Chains
Business Processes
     Business Process Decomposition
     Business Process Categories
     Cross-Functional Business Processes 
     Structured vs. Dynamic Processes 
     Process-Centered Organizations 
Business Process Physical, Document, Data, and Information Flows
Documenting Business Processes 
     Business Process Flowcharts
     Business Process Model and Notation Diagrams
          Flow Objects 
          Connecting Objects
          Swimlanes

Chapter 7 Enterprise Systems and Integrated Business Processes 
Chapter Objectives
Introduction 
Why do Businesses Implement ESs? 
ESs and Business Transformation
ES Examples
     CRM Systems
     SCM Systems 
     SRM Systems 
     ERP Systems 
Enterprise Systems Architecture
ES Ecosystems 
ERP Architecture and Infrastructure
     ERP Three-Tier Architectures
          ERP and Client–Server Architectures 
     ERP Infrastructures 
     ERP Instances
     ERP System Landscapes 
ERP and Integrated Business Processes 
     CRM and ERP Integration
     SRM and ERP Integration
     SCM and ERP Integration 
ERP Product Selection and Implementation 
     ERP Product and Vendor Selection Process Phases 
     Business and Technical Considerations 
     ERP Product and Vendor Selection Factors and Considerations 
          ERP Product Technical Capabilities
          ERP Product Functionalities and Ease of Use
          ERP Product Costs and Return on Investment
          Vendor Reputation and Financial Situation 
          Training and Support 
     ERP Implementation Project Challenges and Issues
          Selecting Employees 
          ERP Consultants
          Employee Training 
          Business Process Modifications
          Integrating Other Systems with the ERP System 
          Top Management Commitment
          Change Management 
     ERP Implementation Strategies
ES Management and Governance
     Center of Excellence
     Enterprise Data Management
          Master Data Management
Summary 
Key Terms
Review Questions
Chapter 7 Exercises
     Exercise 1: Nestle Case Study

Chapter 8 ERP and Procurement 
Chapter Objectives
Introduction 
What is Procurement?
     Strategic and Operational Procurement 
     Strategic Procurement
     Direct, Indirect, and Capital Goods and Services Procurement
Procurement Process Goals and Measures
     Strategic Goals
     Operational Procurement Goals 
     Key Performance Indicators
Procurement Process Actors
Procurement Process Physical, Document, Data, and Information Flow
Factors/Issues that Complicate the Procurement Process
     Supply Chain Scope 
     Legal Issues
     Backorders
     Returns Processes
     Payment Terms
Procurement Process Automation 
     E-Procurement 
          Electronic Data Interchange
          Online Marketplaces 
     Vendor-Managed Inventory
     Enterprise Systems
     AI, Procurement, and SCM
Procurement Process and ERP Systems
Summary 
Key Terms
Review Questions

Chapter 9 ERP and Order Fulfillment 
Chapter Objectives
Introduction 
Sales and Distribution Process Overview
Fulfillment Strategies
Fulfillment Process Goals and Measures
Fulfillment Process Actors
Fulfillment Process Document and Data Flow
     Backorders and Returns
     Fulfillment Process Physical Flow 
     Fulfillment Process Instance and Process-Level Information
     Additional Fulfillment Process Documents
Fulfillment Process Automation
     CRM Systems
     Electronic Data Interchange 
     Warehouse Automation Systems
     ERP Systems 
The Fulfillment Process and SAP ERP Systems
Summary 
Key Terms
Review Questions

Chapter 10 ERP and the Production Process 
Chapter Objectives
Introduction 
Production/Manufacturing Strategies
     Manufacturing Strategies
Production Process Goals and Measures
     Production Execution Measures 
     Production Quality Measures 
Production Process Actors
Production Process Document, Data, and Information Flow
     Data Flow
     Physical Flow
     Instance- and Process-Level Information
     Integration with Other Processes 
Manufacturing/Production Process Automation 
     Material Requirements Planning
     Manufacturing Resource Planning (MRP II)
     ERP Systems 
     Warehouse Management Systems 
Industry 4.0 Technologies
     Robotics 
     Additive Manufacturing
     Industrial IoT
     Manufacturing and AI
Manufacturing/Production and ERP Systems
Summary 
Key Terms
Review Questions

Chapter 11 Business and the Web: e-Commerce, e-Business, and Digital Business 
Chapter Objectives
Introduction 
Information Economics
     Reach and Richness
E-Commerce
     Types of e-Commerce
     Web 1.0 Business Models 
          Direct-to-Consumer (D2C) 
          Full-Service Provider
         Whole of the Enterprise 
          Navigators, Aggregators, and Portals
          Virtual Community
          Content Provider
          Hybrid Models
E-Business 
          Search Engine Optimization
          Digital Marketing
               Search Engine Marketing (SEM)
               Email Marketing 
          Web 2.0 and Social Media
               Web 2.0 Content Features
               Web 2.0 Applications 
               Business and Social Media
               Social Capital 
               LinkedIn 
               Social Media Policy and Ethics
Crowdsourcing 
Collaboration 
     Virtual Business Teams
     Collaboration Technologies
          Media Richness 
     Other E-Business Technologies
Digital Business 
               Social Commerce 
               Content Commerce
Summary 
Key Terms
Review Questions
References
Chapter 11 Exercises
     Building a Business Network on LinkedIn
     Google Docs Collaboration Exercise
     Collaborating About Virtual Teams and Collaboration

Chapter 12 Business Analytics, Business Intelligence, and Ethical Data Use 
Chapter Objectives 
Introduction 
Business Intelligence? Business Analytics?
     What’s in a Name?
     Data Governance 
The Business Intelligence Process
     Business Understanding 
     Data Understanding 
          Data Sources 
          Data Quality 
          Data Preparation 
          Data Extraction
          Data Cleansing
          Data Transformation 
     Modeling
          Descriptive Analytics
               Online Analytical Processing (OLAP) 
               RFM Analysis
               Web Analytics 
          Predictive Analytics 
               Regression Analysis
               Time Series Analysis
               Cluster Analysis
Market Basket Analysis
Decision Trees
Machine Learning 
Prescriptive Analytics
               Linear Programming 
               Other Tools Used for Predictive Analytics 
          Data Presentation and Visualization 
     Evaluation 
     Deployment 
Big Data 
     NoSQL Databases
     MapReduce
     Hadoop 
     SAP HANA®
BI and Big Data Ethical Issues
     Privacy
     Ethical Principles for BI and Big Data 
Summary 
Key Terms
Review Questions
References
Chapter 12 Exercises
     Exercise 1: Selecting Analytic Techniques for Business Scenarios 
     Exercise 2: RFM in Excel Tutorial
Chapter 12 Appendix: Relational Databases 
     Logical Data Models and Queries
     Review Questions

Thomas Case

Thomas Case is Emeritus Professor of Information Systems of the Parker College of Business at Georgia Southern University. His teaching and research include business data communications, enterprise systems, information systems education, and digital disruption. Professionally, he was instrumental in founding AIS SIGED and the SAIS chapter of AIS. He was Conference Co-Chair for AMCIS 2015 and served as an Associate Editor for Communications of the Association for Information Systems (CAIS) for 10 years and on the editorial boards of several IS journals; he has authored six textbooks. Tom is a recipient of the university’s Excellence in Contributions to Instruction Award and as well as its Excellence in Service Award.

Michael Cuellar

Dr. Michael Cuellar is Professor of Information Systems and Analytics at Georgia Southern University. He obtained his Ph.D. in Computer Information Systems from Georgia State University in 2009. His research focuses on project management, including project success and failure, as well as philosophy and ethics for Information Systems, and Information Systems adoption and use. Before his academic career, Dr. Cuellar spent 25 years in practice with companies such as EDS, CSC, Lockheed Space Operations, and American Software. He has worked in IS in Federal, State, and Local Government, Manufacturing, and the High Technology industries. He has published in the European Journal of Information Systems, Journal of the Association for Information Systems, the European Journal of Operational Research, and other journals and conferences in the Information Systems field.

The third edition of Information and Enterprise Systems in Today’s Businesses builds on the strengths of the second edition. Like its predecessors, the third edition assumes that most of today’s business school students will work in organizations that utilize enterprise systems (such as ERP and CRM) to support their daily operations. Hence, a MIS textbook with a strong focus on enterprise systems and their roles in supporting and integrating business processes is important. This edition also assumes that today’s businesses will continue to be buffeted by technological advancements including artificial intelligence (AI), Blockchain, the Internet of Things (IoT), 5G, and other maturing technologies that can be leveraged to improve operations or provide competitive advantage. It is also assumed that business analytics and Big Data will be increasingly used to drive business performance and exploit strategic opportunities. Accordingly, this new edition includes expanded coverage of evolving technologies, especially AI, the IoT, and business analytics.

Some additions and tweaks have been made to the ERP tutorials to ensure that students will have the opportunity to gain hands-on experience with how ERP software supports business processes. Tweaks have also been made to end-of-chapter exercises and cases to illustrate and reinforce especially important concepts.

Numerous figures and tables have been refreshed and new ones have been added to better summarize and illustrate chapter content. Several chapters have been reorganized to provide a tighter and more logical flow to the discussion of their concepts. New sections have been added to several chapters to ensure that their contents are up-to-date and accurately reflect the current state of information and enterprise systems in today’s businesses.

The ancillary materials for Information and Enterprise Systems in Today’s Businesses have also been updated and expanded. The PowerPoint slides and Test Bank have been updated to reflect the revised content of the book. The KHQ app, a mobile study app for students, has also been updated. An instructor’s manual has been added to the book’s companion website.

We are confident that the changes that have been made provide added value for both students and instructors. The third edition is a solid textbook that accurately portrays information and enterprise systems in today’s businesses and how they are evolving to accommodate technological advancements.

Chapter 1 The Competitive Landscape: The Technology-Focused World of Today’s Businesses 
Chapter Objectives 
Introduction 
Technological Disruption of the Global Business Environment 
     Technology Driven Globalization 
     Technological Advancement 
          Moore’s Law 
          Nielsen’s Law 
          Bell’s Law 
          Metcalfe’s Law 
     Technological Disruption 
          Artificial Intelligence 
          Business Analytics 
          The Internet of Things 
          Robotic Process Automation 
          Other Disruptive Technologies 
          Digital Transformation 
Technology’s Impact on Job Markets
The New Ethical Concerns 
About This Course 
Summary 
Key Terms 
Review Questions 
References
Chapter 1 Cases
     IT and Your Career
     Personal Data for Sale
          Case Reference

Chapter 2 Business Information Systems: Fostering Competitiveness in Today’s Business Environments 
Chapter Objectives
Introduction 
Systems Theory
     Business Environments
     Information Systems
Information 
     Data and Information
     Information Assets vs. Physical Assets
     Information Quality 
Business Information Systems
     BIS Components
     BIS Goals and Benefits 
          Customized Information and Format 
          Access to Real-time and Archived Data 
          Operational Efficiencies
          Improved Effectiveness
          Cost Reductions
          Better Customer Service
          Continuous Availability
          Expanded Communication Capabilities 
          Product Creation and Enhancement
          Greater Competitiveness
          Identifying and Exploiting Business Opportunities
     BIS Challenges and Risks 
          Increasing Reliance on BISs
          Failing to Strategize
          BIS and Business Alignment Can Be Difficult to Maintain
          Investing in IT Is Still Somewhat of a Mystery 
          BIS Success Relies a Wide Variety of Knowledge Areas
           “Hot” IT Talent Is in High Demand and Short Supply
               BIS Technologies Are Evolving at an Extremely Fast and Unpredictable Pace
               Adding New Technologies to Existing BISs 
               BIS Terms Can Be Imprecise and Controversial
               Lack of Rapport between BIS Users and Technical Staffs
               No Amount of Security Is Ever Enough
               Balancing Personalization, Privacy, and Ethical Data Handling 
     Enterprise Information Systems
          EIS Components
          EIS Goals and Benefits 
          EIS Challenges and Risks
               EIS Implementation Projects Can Be Lengthy and Expensive
          Change Management 
          Managing Relationships with Vendors and Consultants 
     BIS and EIS Trends
     Summary 
     Key Terms
     Review Questions
     Chapter 2 Exercises
          Exercise 1: Information Quality
          Exercise 2: Using Data Filters on LinkedIn
     Chapter 2 Appendix – The Evolution of BIS and EIS 
          The Evolution of BIS
          EIS Evolution
          BIS and EIS Evolution Review Questions

Chapter 3 Using Information Systems to Gain and Maintain Competitive Advantage 
Chapter Objectives
Introduction 
What is Competitive Advantage? 
Creating and Sustaining Competitive Advantage 
     Understanding Industry Structure 
          Competitive Forces
          Supply Chain Forces
          An Example Analysis
     Selecting a Competitive Strategy
          Example of Competitive Strategy in the Automobile Industry 
                    Impacts of Competitive Strategy on IS 
          Work Systems
Using ISs to Achieve Competitive Advantage
     Creating or Improving Products 
     Enabling Processes
     Changing the Structure of the Marketplace 
     New Technology Adoption Patterns
Disruptive Technologies
     Artificial Intelligence
     Blockchain
     The Internet of Things
     5G
     Virtual and Augmented Reality 
Summary 
Key Terms
Review Questions
References
Chapter 3 Cases
     POGO Air Taxi Service Case
          Industry Analysis
          POGO Case References
     Analysis of ERPSim Market in Germany 
     Valdez’s Carniceria Case

Chapter 4 BIS Infrastructure and Competitive Capability 
Chapter Objectives
Introduction 
Business Strategy, EA, and BIS Infrastructure 
     Enterprise Architecture Components
          Business Architecture
          Data/Information Architecture
          Application Architecture
          Technology Architecture
          Security Architecture
     Importance of Strategy, Architecture, and Infrastructure Alignment 
BIS Infrastructure
     Telecommunications Components
          Local Area Networks 
          Backbone Networks
          Wide Area Networks 
          Internet Service Providers (ISPs)
          The Internet 
          Client-Server Networks 
          Ecommerce Architectures
          Telecommunications Trends 
     Hardware Components and Trends 
          Input Technologies
          Input Technology Trends 
          Processing Technologies
          Processing Technology Trends 
          Storage Technologies 
          Storage Technology Trends 
          Output Technologies
          Output Technology Trends 
     Software Components 
          System Software 
          Application Software
               COTS Software
               Custom Software
               Horizontal Market Software
               Vertical Market Software
               Open-Source Software
               Mobile Apps
               Virtual Desktops 
          Software Trends
     Data Management Components
          Relational Databases
          Database Management Systems (DBMS) 
          Data Management Trends
BIS and Cloud Computing
     Cloud Infrastructure
     The IoT and the Cloud 
BIS Security
     Layered Security and Information Assurance
     Risk Assessment and Continued Vigilance
BIS Infrastructure and Business Strategy
Summary 
Key Terms
Review Questions
Chapter 4 Exercises & Cases
     Chapter 4 Exercise 1: Blockchain Applications in Business
          Case Reference
     Chapter 4 Case: Electrical Component Distributors
          Company Background and Strategy 
          The Role of the MaxService Order Entry System
          Customer Benefits
          Benefits to ECD
          The Changing Market 
          Case Questions
Chapter 4 Appendix 
     Determinants of Computer Performance

Chapter 5 BIS Acquisition and Implementation 
Chapter Objectives
Introduction 
Project Management
     The Formal Project Management Process
          Initiate
          Plan
          Execute
          Monitor and Control
          Closure
     Benefits of a Formal Project Management Process
Designing the Work System
Developing the Work System
Acquiring the Technology 
     Definition
     Requirements Analysis
          Determining How to Acquire the System
          Purchase Off the Shelf and Implement “Vanilla”
          Purchase Off the Shelf and Modify
          Custom Development 
          Outsourcing 
Determining the Correct Acquisition Approach 
Determination Process
               Step 1: Gather information 
               Step 2: Evaluate Acquisition Options 
In-House Development 
     Traditional Waterfall Approach
          Design
          Construction
          Testing 
     Agile Development Methods 
          Agile Scrum Methodology
          Lean and Kanban Software Development
          AI and Agile Development and Project Management 
Outsourcing 
Implementing Systems
Summary 
Key Terms
Review Questions
References

Chapter 6 Information Systems and Business Processes 
Chapter Objectives
Introduction 
The Value Chain
     Primary Activities 
     Support Activities
     Competitive Strategy and Value Chains
Business Processes
     Business Process Decomposition
     Business Process Categories
     Cross-Functional Business Processes 
     Structured vs. Dynamic Processes 
     Process-Centered Organizations 
Business Process Physical, Document, Data, and Information Flows
Documenting Business Processes 
     Business Process Flowcharts
     Business Process Model and Notation Diagrams
          Flow Objects 
          Connecting Objects
          Swimlanes

Chapter 7 Enterprise Systems and Integrated Business Processes 
Chapter Objectives
Introduction 
Why do Businesses Implement ESs? 
ESs and Business Transformation
ES Examples
     CRM Systems
     SCM Systems 
     SRM Systems 
     ERP Systems 
Enterprise Systems Architecture
ES Ecosystems 
ERP Architecture and Infrastructure
     ERP Three-Tier Architectures
          ERP and Client–Server Architectures 
     ERP Infrastructures 
     ERP Instances
     ERP System Landscapes 
ERP and Integrated Business Processes 
     CRM and ERP Integration
     SRM and ERP Integration
     SCM and ERP Integration 
ERP Product Selection and Implementation 
     ERP Product and Vendor Selection Process Phases 
     Business and Technical Considerations 
     ERP Product and Vendor Selection Factors and Considerations 
          ERP Product Technical Capabilities
          ERP Product Functionalities and Ease of Use
          ERP Product Costs and Return on Investment
          Vendor Reputation and Financial Situation 
          Training and Support 
     ERP Implementation Project Challenges and Issues
          Selecting Employees 
          ERP Consultants
          Employee Training 
          Business Process Modifications
          Integrating Other Systems with the ERP System 
          Top Management Commitment
          Change Management 
     ERP Implementation Strategies
ES Management and Governance
     Center of Excellence
     Enterprise Data Management
          Master Data Management
Summary 
Key Terms
Review Questions
Chapter 7 Exercises
     Exercise 1: Nestle Case Study

Chapter 8 ERP and Procurement 
Chapter Objectives
Introduction 
What is Procurement?
     Strategic and Operational Procurement 
     Strategic Procurement
     Direct, Indirect, and Capital Goods and Services Procurement
Procurement Process Goals and Measures
     Strategic Goals
     Operational Procurement Goals 
     Key Performance Indicators
Procurement Process Actors
Procurement Process Physical, Document, Data, and Information Flow
Factors/Issues that Complicate the Procurement Process
     Supply Chain Scope 
     Legal Issues
     Backorders
     Returns Processes
     Payment Terms
Procurement Process Automation 
     E-Procurement 
          Electronic Data Interchange
          Online Marketplaces 
     Vendor-Managed Inventory
     Enterprise Systems
     AI, Procurement, and SCM
Procurement Process and ERP Systems
Summary 
Key Terms
Review Questions

Chapter 9 ERP and Order Fulfillment 
Chapter Objectives
Introduction 
Sales and Distribution Process Overview
Fulfillment Strategies
Fulfillment Process Goals and Measures
Fulfillment Process Actors
Fulfillment Process Document and Data Flow
     Backorders and Returns
     Fulfillment Process Physical Flow 
     Fulfillment Process Instance and Process-Level Information
     Additional Fulfillment Process Documents
Fulfillment Process Automation
     CRM Systems
     Electronic Data Interchange 
     Warehouse Automation Systems
     ERP Systems 
The Fulfillment Process and SAP ERP Systems
Summary 
Key Terms
Review Questions

Chapter 10 ERP and the Production Process 
Chapter Objectives
Introduction 
Production/Manufacturing Strategies
     Manufacturing Strategies
Production Process Goals and Measures
     Production Execution Measures 
     Production Quality Measures 
Production Process Actors
Production Process Document, Data, and Information Flow
     Data Flow
     Physical Flow
     Instance- and Process-Level Information
     Integration with Other Processes 
Manufacturing/Production Process Automation 
     Material Requirements Planning
     Manufacturing Resource Planning (MRP II)
     ERP Systems 
     Warehouse Management Systems 
Industry 4.0 Technologies
     Robotics 
     Additive Manufacturing
     Industrial IoT
     Manufacturing and AI
Manufacturing/Production and ERP Systems
Summary 
Key Terms
Review Questions

Chapter 11 Business and the Web: e-Commerce, e-Business, and Digital Business 
Chapter Objectives
Introduction 
Information Economics
     Reach and Richness
E-Commerce
     Types of e-Commerce
     Web 1.0 Business Models 
          Direct-to-Consumer (D2C) 
          Full-Service Provider
         Whole of the Enterprise 
          Navigators, Aggregators, and Portals
          Virtual Community
          Content Provider
          Hybrid Models
E-Business 
          Search Engine Optimization
          Digital Marketing
               Search Engine Marketing (SEM)
               Email Marketing 
          Web 2.0 and Social Media
               Web 2.0 Content Features
               Web 2.0 Applications 
               Business and Social Media
               Social Capital 
               LinkedIn 
               Social Media Policy and Ethics
Crowdsourcing 
Collaboration 
     Virtual Business Teams
     Collaboration Technologies
          Media Richness 
     Other E-Business Technologies
Digital Business 
               Social Commerce 
               Content Commerce
Summary 
Key Terms
Review Questions
References
Chapter 11 Exercises
     Building a Business Network on LinkedIn
     Google Docs Collaboration Exercise
     Collaborating About Virtual Teams and Collaboration

Chapter 12 Business Analytics, Business Intelligence, and Ethical Data Use 
Chapter Objectives 
Introduction 
Business Intelligence? Business Analytics?
     What’s in a Name?
     Data Governance 
The Business Intelligence Process
     Business Understanding 
     Data Understanding 
          Data Sources 
          Data Quality 
          Data Preparation 
          Data Extraction
          Data Cleansing
          Data Transformation 
     Modeling
          Descriptive Analytics
               Online Analytical Processing (OLAP) 
               RFM Analysis
               Web Analytics 
          Predictive Analytics 
               Regression Analysis
               Time Series Analysis
               Cluster Analysis
Market Basket Analysis
Decision Trees
Machine Learning 
Prescriptive Analytics
               Linear Programming 
               Other Tools Used for Predictive Analytics 
          Data Presentation and Visualization 
     Evaluation 
     Deployment 
Big Data 
     NoSQL Databases
     MapReduce
     Hadoop 
     SAP HANA®
BI and Big Data Ethical Issues
     Privacy
     Ethical Principles for BI and Big Data 
Summary 
Key Terms
Review Questions
References
Chapter 12 Exercises
     Exercise 1: Selecting Analytic Techniques for Business Scenarios 
     Exercise 2: RFM in Excel Tutorial
Chapter 12 Appendix: Relational Databases 
     Logical Data Models and Queries
     Review Questions

Thomas Case

Thomas Case is Emeritus Professor of Information Systems of the Parker College of Business at Georgia Southern University. His teaching and research include business data communications, enterprise systems, information systems education, and digital disruption. Professionally, he was instrumental in founding AIS SIGED and the SAIS chapter of AIS. He was Conference Co-Chair for AMCIS 2015 and served as an Associate Editor for Communications of the Association for Information Systems (CAIS) for 10 years and on the editorial boards of several IS journals; he has authored six textbooks. Tom is a recipient of the university’s Excellence in Contributions to Instruction Award and as well as its Excellence in Service Award.

Michael Cuellar

Dr. Michael Cuellar is Professor of Information Systems and Analytics at Georgia Southern University. He obtained his Ph.D. in Computer Information Systems from Georgia State University in 2009. His research focuses on project management, including project success and failure, as well as philosophy and ethics for Information Systems, and Information Systems adoption and use. Before his academic career, Dr. Cuellar spent 25 years in practice with companies such as EDS, CSC, Lockheed Space Operations, and American Software. He has worked in IS in Federal, State, and Local Government, Manufacturing, and the High Technology industries. He has published in the European Journal of Information Systems, Journal of the Association for Information Systems, the European Journal of Operational Research, and other journals and conferences in the Information Systems field.