IT APPLICATIONSProfessional Stage Application Level, ICABTeacher: Mohammad Abdul Matin

Chapter 1E-Commerce & EDI

Chapter Outline Importance of IT Strategy Process of Developing IT Strategy Electronic Commerce Risks, Limitations & Advantages of E-

commerce Electronic Data Interchange (EDI) Information Technology in Enterprises in

Bangladesh

Syllabus In the examination, candidates may be

required to

a. identify factors to consider in the decision process related to electronic commerce applications

b. identify authorization issues associated with electronic data interchange in a business information system

c. identify risks, limitations and advantages of electronic commerce applications

What is Electronic Commerce? Buying and selling products or services over the

Internet (including mobile Internet) or computer network systems are called e-commerce.

* Is advertising on an online newspaper a e-commerce? * Is buying train tickets using mobile phone a e-

commerce?

Some examples of e-commerce:- Selling plane tickets over Internet website- Purchasing cloths from online shopping site- Selling artificial stone ornaments over the

Facebook

e-Commerce Site (akhoni.com)

e-Commerce Sites (amazon.com)

e-Commerce Site (elance.com)

Decision Making Process Commitment from top management with

strategic orientation Integration between front-end applications

and subsequent business processes Cooperation from partners from own and

neighboring sectors Content or added value for customers Functions realized with a higher number of

users, the critical mass Clear structure and user friendliness, i.e.

functionality

Decision Making Process (cont.)

Users encouraged to provide critical feedbacks

Stringent marketing concept – SEO, SMM, online and traditional advertisement, etc.

Achieving “feel good” and building trust in online shopping

Using the right technology to achieve all the above

John Cato’s Model of Interaction Design

Awareness •Do you sell the product I need?

Understanding •Is this exactly the product I think it is?

Purpose •Where can I use the product for?

Choice •What are my choices?

Action •Can I easily check out and make payments?

AIDA Model

A - Attention •Attract the attention of the customer

I - Interest •Raise customer interest by focusing advantages

D - Desire •Convince that the product/service will satisfy their needs

A - Action •Lead customers towards taking action, i.e. purchasing

Risks, Limitations and Advantages Risks:– Information Risk– Technology Risk– Business Risk

Advantages:– To Business / Organization– To Customers– To Society

Risks, Limitations and Advantages Disadvantages:– Overall– Technological– Non-Technological

Limitations:– Technical Limitations– Non-Technical Limitations

Electronic Data Interchange (EDI) Electronic Data Interchange (EDI) is a

method of transmitting commonly used data between companies using computers and networks (e.g. Internet)

EDIEDI

Authorization Issues with EDI

Planning Analysis & Design

Construction &

InstallationOperation

EDI Implementation Process:

Concerns: Disclosure of Data Modification of Data Contents Modification of Data Sequences Sender Masquerade Repudiation of Data Origin or Receipt

Questions Briefly explain the John Cato's Model of

Interaction Design and AIDA Model

Draw a chart showing advantages of e-commerce applications

Thank You

Next ClassTopics: Chapter 1 – IT in Bangladesh Enterprises