e-GovernmentPUAD 626: Information Resources Management

MANAGER’S e-COMMERCE“WHAT, ME WORRY?”

QUIK TUTORIAL————

Think About Information FlowAnd Business Processes

NOT Technology

Process View of OrganizationsTransforming Inputs; Creating Customer Value

Inputs Outputs Outcomes

HorizontalWorkflow

Suppliers Customers

Electronic Commerce is any “interaction” between an enterprise and a customer or

business partner, that is processed or facilitated electronically, regardless if it is by

voice, interactive voice, fax, or online.

What Is e-CommerceInteractions that Cross Organizational Boundaries

CustomersYour

BusinessSuppliers

and BusinessPartners

Why do companies do e-commerce? To reach a broader market. To reduce operating costs. To reduce capital costs (fewer branches). To speed up the process. To reduce errors. To please the customer.

Why do customers do e-commerce? Convenience, convenience, convenience. To reduce costs. To speed up the process. To reduce errors.

Examples B2B: Wal-Mart (B2B); B2C: On-line Banking,

Amazon G2G: NVRA, Special Needs Kids; G2C?: DLLR

Why e-Commerce?Saving Money/Adding Value

“Snail” mail is information technology! Moving(?) information across a network. One way, not two way! Not an exchange. Usually one-to-one, but not always (mass mailings). Accepting orders by mail: known customers. Accepting orders by mail: unknown customers. +: A “serial” process. +: Creates a record. --: Delayed information processing (slow). --: Information is hard-copy, not electronic

(data requires re-entry). +: Can move goods as well as information.

The fax is information technology. +: Speed. +: Record (but not a legal signature in some states). --: Cost.

Info. Technology Without a ComputerA Human is the Information Processor

The telephone is information technology. Information (voice) across a network. Usually one-to-one, but not always. Accepting orders by phone: known customers. Accepting orders by phone: unknown customers. +: Allows immediate information exchange/processing

(answers/clarification of questions). --: A “parallel” process (telephone tag). --: No record.

Interactive voice/auto-fax back is information technology. Moving information across a network. One way or 2 way? Specific request, but information

“push.” +: A “serial” process; works 24 / 7.

Info. Technology Without a ComputerIT You Understand

Confidentiality Can the information be seen by the “wrong” someone.

Integrity How do I know the information was not accidentally or

maliciously altered or destroyed.

Authentication How do I know it was the “real” Ray Skinner?

Non-Repudiation of Origin (NRO) If the transaction has integrity and authentication,

the sender can not deny sending it or the content.

Non-Repudiation of Receipt The recipient can not later deny having received it. Return receipt requested.

Security ConceptsIs the Mail or Telephone Safe?

Confidentiality = Encryption Encryption key (public/private)

Integrity + Authentication: Electronic Signature N.B. – Thus we have non-repudiation of origin.

Non-Repudiation of Receipt: Electronic Replies Can include the “check sum.” Arrived at mailbox or was read?

Proof of date/time is still a little tricky There are ways to get around this using reliable third

parties.

Security SolutionsIs e-Mail Better than Mail?

Phase I: Pushing Information It’s the web site (fax-back, but better). Finding information. Downloading forms. Example: IRS. +: there for customer 24 / 7 –: folks get annoyed when it goes “down” +: may reduce telephone calls –: but if people find out about you through web search

it might increase them +: usually reduces copying & postage costs if folks can

find what they want

Implementation: FY 2001 Web-site policy, format, etc. – steering committee Web-site maintenance – IT Division. Web-site content – Applicable DHCD Division. Web-site forms – Applicable DHCD Division

(special file types with help from IT Division).

Levels of Computerized e-CommercePhase I – The Web-Site

Phase I – e-mail attachments The user creates a document (word processor,

spreadsheet, etc.) on their computer and sends it to you attached to an e-mail

+: as fast as fax; no waiting for busy signal +: prints prettier than fax +/–: you have an electronic version of the document

and can edit it –: no signature Implementation: Available now. Hint: this is part of telecommuting, or even in office

workflow.

Levels of Computerized e-CommercePhase I – Non-secure e-mail Attachments

Phase IIa: Form to e-Mail (They Push) The user fills out the form on the web, and the web server sends you

(and, perhaps, them) an e-mail with the data fields. +: fast +: you appear web savvy –: you now have info on them, raises confidentiality issues –: no “reliability,” what if there was a typo –: no authentication, don’t know who sent it Uses: request mail info, register for seminar, survey

(but not up to electronic payments… yet) Implementation: RSN (“real soon now”)

Phase IIb: Load a Database (They Push) The web server loads the data fields into a database. +/–: same as above +: saves data entry –: the application should check the data for obvious data entry errors

(all required fields completed, zip code is all numbers, etc.), and ask the customer to correct the errors.

Levels of Computerized e-CommercePhase II – Non-secure Web-Forms

Phase II + : Hybrid The user fills out the form on the web,

and the web server loads it into a temporary (holding) database file.

Then the web server sends a “printable” web page back to the “customer”, with a unique numeric code (or bar code) on it.

The customer signs the form and mails it. When received, a data-entry person brings up the data file

(using the unique numeric code), enters any changes, and submits it to the “production system.”

+: data entry done for you +: legible information +: as legal as any signed document Implementation: late FY2001, FY2002

Example: The NVRA Saga

Levels of Computerized e-CommercePhase II+ – Hybrid Web-Forms/Regular Mail

Phase IIIa: Taylored responses (Not Secure) Create web-pages “on the fly” Database queries, but requires database. GIS maps.

Phase IIIb: Secure Credit Card Ordering Probably outsourced or state provided function. Database queries.

Phase IVa: electronic data interchange (Secure!) 100% automated application-to-application exchange of

business information with known partners

Phase IVb: Taylored responses (Secure!) Known business partners

Phase V: Taylored responses (Secure!) Unknown business partners & citizens

Advanced Levels of e-CommerceWhere a Large Chunk of the Real Value Is

Direct Return-on-Investment It pays for itself by savings. “3-Year revolving loan fund.” In public organizations, “business-to-business” (B2B)

applications are more likely to generate this kind of return than “business-to-customer” (B2C)

However, “marginal benefits” – after primary/required database is in place often can yield positive return.

Improve Speed/Accuracy of Service This is a good thing, but if no actual savings,

is it worth the investment? (But this should create savings.)

New Services? Do they add value? To government? To customers?

Technology BenefitsWhy Should Government Make the Investment?

Reach More Customers But government must serve all; digital divide. Unclear on savings. Meet citizen expectations.

Citizen Convenience What is the value of night-time road repairs? It costs

more.

Technology BenefitsNon-Financial Returns; Can We Afford Them