In order to implement E-business systems effectively, it is important to understand the business components and processes that require management and information systems to operate successfully. A business is basically a formal organization that produces and sells goods and services for profit. A typical business organization is organized into basic functions that help the organization to carry out its operations cohesively to achieve set goals and objectives (Pappenheim, 1981). Some of these functions include: manufacturing and production, human resources, sales and marketing, and Finance and Accounting. The five business elements that interrelate in the organization to achieve its objectives include: suppliers, employees, customers, transactions (payments) and products and services.
A business organization also has hierarchies or levels of management which help in coordination and control of operations in the four major departments. The hierarchy starts with top management followed by middle and bottom level of management. The senior managers make long term strategic decisions regarding the operations and products and services of the organization (Pappenheim, 1981). The bottom level of management includes operational managers and supervisors (operational managers). They monitor the daily activities of the organization. There are data workers and production workers at the bottom of the hierarchy. Data workers handle paperwork at all of the organizational levels. All these groups require information. Management information systems help them to communicate, collaborate and carry out business processes to achieve the goals and objectives of the organization.
Business process refers to the set of tasks performed interactively by different departments to achieve the business goals and objectives. Business tasks are arranged according to the department, employees’ specialization, and business focus of the organization. They are ordered and scheduled in a specific manner to ensure efficiency and effectiveness of business operations. The effectiveness and success of ordering and scheduling of business operations can be achieved through the use of E-business information systems (Heuvel, 2007). For example, fulfilling customer order can be achieved by developing and sales management system that links the company to the customer through the internet. An example of a business process is the order fulfillment process shown below.
Figure: Order Fulfilment Process (Hoque, 2000).
The figure above shows a complicated set of steps that an order takes from the time it is made to the time the product or service ordered is delivered to the customer. This process can be made more effective by using an E-business system that coordinates the sales, accounting and manufacturing function of the organization as shown by the arrows. The direction of the arrows in the figure indicates the direction of flow of information through the order fulfilment process.
References
Heuvel, W.J. (2007). Aligning modern business processes and legacy systems: A component-based perspective. Cambridge, Mass: MIT Press.
Hoque, F. (2000). E-enterprise: Business models, architecture, and components. Cambridge, U.K: Cambridge University Press.
Pappenheim, A.E. (1981). Business information systems. Maidenhead, Berkshire: Pergamon Infotech
