Thursday, February 10, 20001 Management of Information Systems: 45-870 Mini-3 Spring 2000

Thursday, February 10, 2000 1

Management of Information Systems: 45-870

Mini-3Spring 2000


Agenda Announcements Return of IT Exercise #2 Fundamentals of E-Commerce Applications of E-Commerce

(Video) IT Diagnosis Case Assignment #1: Sonoco


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


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


Categories of E-commerce Applications Business to Consumer Business to Business Internal Business Processes


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


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?


Example: amazon.com


Business to BusinessE-Commerce Supply Chain Management Electronic Data Interchange


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


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


Example: Marshall Industries See

www.ims.avnet.com/welcome.shtml


Examples: UPS, Fedex See:

www.ups.com www.fedex.com


Electronic Data Interchange Electronic exchange of business

transaction documents over computer networks between trading partners (manufacturers, customers, suppliers)


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


An Example: Singapore Tradenet System

Singapore


ApplicationServices

InterfaceServices

SecureMessaging

NetworkInfrastructure

Brokerage andData Management

MiddlewareServices

ECTechnology

Services

E-Commerce Technologies


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


35% Cost Savings

32%CustomerService

18% RevenueGeneration

13%Marketing

2%Other

Business Value of E-Commerce


Micropayments Systems

Secure Socket Layer (SSL)

Digital Wallet

Secure Electronic

Transaction (SET)

Offline Method

Examples of Electronic Commerce

Security Methods

Security for E-Commerce


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?


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?”


IT Diagnosis:The IS Component Matrix

IS Activities and Resources

Hardware

Software

People

Data Informa-tion Products

Input

Processing

Output

Storage

Control


IS Component Matrix: Key Definitions Information Systems Activities

Input Processing Output Storage Control

Information Systems Resources People Procedures Data Software Hardware


Use of the IS Component Matrix: An Example


Case Analysis #1:Sonoco IT Diagnosis Read the Sonoco Case (pp. A8-

A13) Also check:www.datamation.com


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

Documents

Thursday, February 10, 20001 Management of Information Systems: 45-870 Mini-3 Spring 2000