Session#3; enterprise e business & e-commerce systems

1 N.Karami, MIS-Spring 2012

Management Information Systems

Enterprise E-business & E-Commerce Systems

Graduate School of

Management & Economics

Enterprise E-Business

& E-Commerce

Systems




Graduate School of


Learning Objectives

• Describe E-business & E-commerce, including its

scope, benefits, limitations, and types.

• Distinguish between pure and partial electronic

commerce.

• Differentiate among business-to-consumer,

business-to-business, consumer-to-consumer,

business-to-employee and government-to-citizen

electronic commerce.

• Describe the major e-commerce support services.

• Discuss some ethical and legal issues relating to e-

commerce.




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Opening Case




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E-Business & E-Commerce:

Overview

• E-business

• Use of digital technology and Internet to drive

major business processes

• E-commerce

• Subset of e-business

• Buying and selling goods and services

through Internet




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Every business, regardless of

its size, must perform four

functions to succeed. It must

produce the product or

service; market and sell the

product; keep track of

accounting and financial

transactions; and perform

basic human resources tasks,

such as hiring and retaining

employees.

The Four Major Functions of a

Business




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Accounting information systems include features that reflect up-to-date performance of

the organization in financial terms.

Accounting Systems




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Financial information systems help manage cash and investment portfolios.

Finance Systems




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Marketing and sales information systems help target potential buyers and serve clients.

Sales and Marketing Systems




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Manufacturing, Production and inventory control information systems help reduce cycle

times and the cost of maintaining inventory.

Manufacturing and Production

Systems




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Engineering Systems

Engineering information systems aid engineers in designing new products and

simulating operations.




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Human resource management information systems help managers optimize the assignment of

employees and provide payroll, benefits, and other employee-related services.

Human Resources Systems




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E-Commerce Definition

”The online process of developing, marketing, selling,

delivering, servicing, and paying for products &

services transacted on internetworked, global

marketplaces of customers, with the support of a

worldwide network of business partners.“

– Use of the Internet and Web to transact business; digitally enabled

transactions




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Retail e-commerce revenues have grown exponentially since 1995 and have only recently

“slowed” to a very rapid 25 percent annual increase, which is projected to remain the

same until 2010.

The Growth of E-Commerce




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EC: Overview

• Pure versus Partial Electronic Commerce

depends on the degree of digitization involved.

– Brick-and-mortar organizations

– Virtual organizations

– Click-and-mortar organizations




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Graduate School of





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Types of E-Commerce

• Business-to-Consumer (B2C)

• Business-to-Business (B2B)

• Consumer-to-Consumer (C2C)

• Business-to-Employee (B2E)

• E-Government

• Mobile Commerce (m-commerce)




Graduate School of


E-Commerce Categories (1)

BUSINESS

GOVERNMENT

CONSUMER

B2B C2C

G2G

B2C

B2GG2C




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Elements of E-Commerce




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E-Commerce Business Models

Online direct marketing

Electronic tendering system

Name-your-own-price

Find-the-best-price

http://www.dell.com/

http://www.dell.com/

http://www.priceline.com/

http://www.priceline.com/

http://www.hotwire.com/

http://www.hotwire.com/

http://www.e-tendering.com/

http://www.e-tendering.com/




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E-Commerce Business Models (continued)

Affiliate

marketing

Note the

Sony logo

at the top

of this Web

page

www.howstuffworks.com

http://www.howstuffworks.com/

http://www.howstuffworks.com/




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Viral marketing

Group purchasing

Online auctions

Product customization

http://www.mybizpurchasinggroup.com/

http://www.mybizpurchasinggroup.com/

http://www.ebay.com/

http://www.ebay.com/

http://www.jaguarusa.com/us/en/xj/build_your_xj/build_your_xj.htm

http://www.jaguarusa.com/us/en/xj/build_your_xj/build_your_xj.htm




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Deep discounters

Membership

Bartering online

http://www.half.com/


http://www.egreetings.com/

http://www.egreetings.com/

http://www.bbu.com/

http://www.bbu.com/




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Major E-Commerce Mechanisms

• E-marketplaces

• E-catalogs

• E-auctions

• E-bartering

• E-storefronts

• E-malls

• E-tailing




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Major E-Commerce Mechanisms

Auctions

Forward Auctions

Reverse Auctions

http://www.sothebys.com/

http://www.sothebys.com/




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Forward and Reverse Auctions

Bid

priceBid

pric

e

Time Time

Forward Auction Reverse Auction




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Business-to-Consumer (B2C)

Electronic Commerce

Electronic storefronts

Electronic malls

http://www.hermes.com/

http://www.hermes.com/

http://www.thesharperimage.com/

http://www.thesharperimage.com/

http://www.officedepot.com/

http://www.officedepot.com/

http://shopping.yahoo.com/

http://shopping.yahoo.com/

http://www.hawaii.com/

http://www.hawaii.com/




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Leading E-Tailing Websites

B2C electronic commerce is also known

as e-tailing. Examples of e-tailing

Websites include:

http://www.amazon.com/

http://www.amazon.com/

http://www.eddiebauer.com/

http://www.eddiebauer.com/

http://www.circuitcity.com/

http://www.circuitcity.com/

http://www.llbean.com/

http://www.llbean.com/

http://www.niketown.com/

http://www.niketown.com/



http://www.bizrate.com/

http://www.bizrate.com/




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Online Service Industries

Cyberbanking

Online securities trading

Online job market

Travel services

http://www.ingdirect.com/

http://www.ingdirect.com/

http://money.cnn.com/

http://money.cnn.com/

http://www.bloomberg.com/

http://www.bloomberg.com/

http://www.monster.com/

http://www.monster.com/

http://www.simplyhired.com/

http://www.simplyhired.com/

http://www.sidestep.com/

http://www.sidestep.com/

http://www.expedia.com/

http://www.expedia.com/

http://www.kayak.com/

http://www.kayak.com/




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Business-to-Business (B2B)

Sell-Side Marketplace

Key mechanisms:

electronic catalogs and

forward auctions

http://www.ariba.com/

http://www.ariba.com/

http://www.dellauction.com/

http://www.dellauction.com/

http://www.bigboxx.com/

http://www.bigboxx.com/




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Buy-Side Marketplace

Key mechanism:

reverse auctions

http://www.usa-llc.com/

http://www.usa-llc.com/




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Electronic Exchanges

http://www.boeing.com/assocproducts/bpart/partpage/featpg.html

http://www.boeing.com/assocproducts/bpart/partpage/featpg.html

http://www.plasticsnet.com/

http://www.plasticsnet.com/

http://www.alibaba.com/

http://www.alibaba.com/




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Electronic Payments

Electronic payment systems enable you to pay

for goods and services electronically.

– Electronic checks (e-checks)

– Electronic credit cards

– Purchasing cards

– Electronic cash

• Stored-value money cards

• Smart cards

• Person-to-person payments

– Electronic bill presentment and payments

– Digital wallet




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Purchasing cards

Smart

cards

Visa

Cash

cards

E-Checks

E-Payments: Examples




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Benefits of E-Commerce

• Benefits to organizations

– Makes national and international markets more

accessible

– Lowering costs of processing, distributing, and

retrieving information

• Benefits to customers

– Access a vast number of products and services around

the clock (24/7/365)

• Benefits to Society

– Ability to easily and conveniently deliver information,

services and products to people in cities, rural areas

and developing countries.




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Limitations of E-Commerce

• Technological Limitations

– Lack of universally accepted security standards

– Insufficient telecommunications bandwidth

– Expensive accessibility

• Non-technological Limitations

– Perception that EC is unsecure

– Unresolved legal issues

– Lacks a critical mass of sellers and buyers




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Legal Issues Specific to EC

• Privacy

• Fraud on the Internet

• Domain Names

• Cybersquatting

• Taxes and other Fees

• Copyright




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The Next Step for E-commerce• Mobile commerce (m-commerce) is the use of cell phones

and personal digital assistants (PDAs) to engage in wireless

e-commerce.• Location-based services; Banking and financial services; Wireless

Advertising; Games and entertainment

• Third generation (3G) telecommunications is data-capable

wireless technologies.– Japan is 1st country to have a 3G carrier (almost all Japanese have a

cell phone).

– Europe purchased 3G licenses in 2000; United States in 2004

– The United States have 4G: A comprehensive and secure IP-based

mobile broadband solution to laptop computer wireless modems,

smartphones, and other mobile devices.




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M-commerce sales represent a small fraction of total e-commerce sales, but that

percentage is steadily growing. (Totals for 2007–2008 are estimated.)

Global M-commerce Revenue

2000-2009

Documents

Session#3; enterprise e business & e-commerce systems