thursday, february 10, 20001 management of information systems: 45-870 mini-3 spring 2000
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Thursday, February 10, 2000 2
Agenda Announcements Return of IT Exercise #2 Fundamentals of E-Commerce Applications of E-Commerce
(Video) IT Diagnosis Case Assignment #1: Sonoco
Thursday, February 10, 2000 3
Fundamentals of E-Commerce What is “e-commerce” Categories of E-commerce
applications E-Commerce Technologies Economic model for e-commerce Approaches to assure secure
electronic transactions
Thursday, February 10, 2000 4
What is E-commerce? online process of developing, marketing,
selling, delivering, servicing, paying for products & services using Internet technologies
Includes: Interactive marketing, ordering, payment process on
the www Extranet access of inventory databases by
customers & suppliers Internet access of customer records by sales reps &
customer service Involvement in product development via Internet
newsgroups and e-mail exchanges
Thursday, February 10, 2000 5
Categories of E-commerce Applications Business to Consumer Business to Business Internal Business Processes
Thursday, February 10, 2000 6
Business to ConsumerE-Commerce Imperative: develop attractive
electronic marketplaces to entice and sell products and services to customers
How? virtual storefronts virtual shopping malls interactive order processing secure electronic payment
Thursday, February 10, 2000 7
Performance andService
Socialization
Look and Feel
Security andReliability
Personalization Incentives
FactorsAffecting
Retailing onthe Web
How can businesses get customers to come back to their web site?
Thursday, February 10, 2000 9
Business to BusinessE-Commerce Supply Chain Management Electronic Data Interchange
Thursday, February 10, 2000 10
Supplier ManagementSupplier Management
Inventory ManagementInventory Management
Distribution ManagementDistribution Management
Channel ManagementChannel Management
Payment ManagementPayment Management
Financial ManagementFinancial Management
Sales Force ManagementSales Force Management
Componentsof Supply ChainManagement (SCM)
Supply Chain Management
Thursday, February 10, 2000 11
What ITs are used in SCM? E-mail Electronic Business Forms Bulletin Board Systems Electronic Funds Transfer Web product catalogues Interactive order processing Electronic Data Interchange
Thursday, February 10, 2000 14
Electronic Data Interchange Electronic exchange of business
transaction documents over computer networks between trading partners (manufacturers, customers, suppliers)
Thursday, February 10, 2000 15
Features of EDI EDI Software converts company’s own
document formats into standardized EDI formats
Data transmitted over network links directly between computers
Use of third-party services Eliminates printing, mailing, checking,
handling of multiple business documents
Thursday, February 10, 2000 17
ApplicationServices
InterfaceServices
SecureMessaging
NetworkInfrastructure
Brokerage andData Management
MiddlewareServices
ECTechnology
Services
E-Commerce Technologies
Thursday, February 10, 2000 18
Barriers to Entry are LowBarriers to Entry are Low
Market Niches AboundMarket Niches Abound
Revenue Sources are ManyRevenue Sources are Many
No One Owns the MarketNo One Owns the Market
The Same Technology isAvailable to Everyone
The Same Technology isAvailable to Everyone
Access is Becoming Universal
Access is Becoming Universal
There is Room for Teamsof Successful Players
There is Room for Teamsof Successful Players
KeyCharacteristicsof the EconomicModel for Electronic Commerceon the Internet
Economic Model forE-Commerce
Thursday, February 10, 2000 19
35% Cost Savings
32%CustomerService
18% RevenueGeneration
13%Marketing
2%Other
Business Value of E-Commerce
Thursday, February 10, 2000 20
Micropayments Systems
Secure Socket Layer (SSL)
Digital Wallet
Secure Electronic
Transaction (SET)
Offline Method
Examples of Electronic Commerce
Security Methods
Security for E-Commerce
Thursday, February 10, 2000 21
Applications of E-Commerce In-Class Exercise Video How are businesses using the Web? How can the Internet improve a
company’s customer relationships and service?
Are there any differences in how online-only (e.g., “virtual”) companies use the Internet vs. existing (“brick & mortar”) companies? Why?
Thursday, February 10, 2000 22
IT Diagnosis: Assessing Opportunities for E-Commerce IT Diagnosis
Describes how IS activities (input, processing, output, storage, control) are accomplished
Describes how use of resources (people, hardware, network, software) support the conversion of data resources into information products
Answers the question: “what resources are required to accomplish the activities that can produce the information products needed by end users?”
Thursday, February 10, 2000 23
IT Diagnosis:The IS Component Matrix
IS Activities and Resources
Hardware
Software
People
Data Informa-tion Products
Input
Processing
Output
Storage
Control
Thursday, February 10, 2000 24
IS Component Matrix: Key Definitions Information Systems Activities
Input Processing Output Storage Control
Information Systems Resources People Procedures Data Software Hardware
Thursday, February 10, 2000 26
Case Analysis #1:Sonoco IT Diagnosis Read the Sonoco Case (pp. A8-
A13) Also check:www.datamation.com
Thursday, February 10, 2000 27
Case Analysis #1:Sonoco IT Diagnosis
Write a short report to briefly address these questions: Create an IS component matrix to:
document the IS activities and resources in Sonoco’s order fulfillment and other information systems
Using your IS component matrix: identify some opportunities for e-commerce for Sonoco based
upon their IS activities describe how Sonoco should adapt or extend its IS resources to
realize these opportunities Describe the role of IT in Sonoco:
in the late 1980’s and early 1990’s in the new business strategies in an e-commerce marketplace