Accounting Information Systems: The Processes and Controls, 2nd Edition

E-BUSINESS AND IT ENABLEMENT (STUDY OBJECTIVE 6)

As discussed previously, e-business is a very broad, encompassing term for the electronic enabling of business processes. The business processes enabled by IT systems can be internal and external. Examples of internal processes are the movement of raw materials within a company, the timekeeping and labor management of workers, the dissemination of employee information such as health and retirement benefits, and the sharing of data files among workers. These types of internal processes can be streamlined and enhanced by incorporating electronic forms of these processes through the use of IT systems. Likewise, there are many external business processes that can be streamlined and enhanced through the use of IT systems. For example, the processes that involve suppliers and distributors can be streamlined, enhanced, and improved by the use of IT systems.

The supply chain is the set of linked processes that take place from the acquisition and delivery of raw materials, through the manufacturing, distribution, wholesale, and delivery of the product to the customer. The supply chain includes vendors; manufacturing facilities; logistics providers; internal distribution centers such as warehouses, distributors, and wholesalers; and any other entities that are involved, up to the final customer. In some cases, the supply is larger at both ends because it can include secondary suppliers to the company's suppliers and the customers of the company's ...