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

Management Information Systems
Enterprise E-business & E-Commerce Systems
Graduate School of
Management & Economics
Enterprise E-Business
& E-Commerce
Systems
1 N.Karami, MIS-Spring 2012

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.

Graduate School of
Opening Case

Graduate School of
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

Graduate School of
The Four Major Functions of a
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.
Business

Graduate School of
Accounting Systems
Accounting information systems include features that reflect up-to-date performance of
the organization in financial terms.

Graduate School of
Finance Systems
Financial information systems help manage cash and investment portfolios.

Graduate School of
Sales and Marketing Systems
Marketing and sales information systems help target potential buyers and serve clients.

Graduate School of
Manufacturing and Production
Systems
Manufacturing, Production and inventory control information systems help reduce cycle
times and the cost of maintaining inventory.

Graduate School of
Engineering Systems
Engineering information systems aid engineers in designing new products and
simulating operations.

Graduate School of
Human Resources Systems
Human resource management information systems help managers optimize the assignment of
employees and provide payroll, benefits, and other employee-related services.

Graduate School of
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

Graduate School of
The Growth of E-Commerce
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.

Graduate School of
EC: Overview
• Pure versus Partial Electronic Commerce
depends on the degree of digitization involved.
– Brick-and-mortar organizations
– Virtual organizations
– Click-and-mortar organizations

Graduate School of

Graduate School of
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)
B2B C2C
BUSINESS
B2C
GOVERNMENT
CONSUMER
G2G
B2G
G2C

Graduate School of
Elements of E-Commerce

Graduate School of
E-Commerce Business Models
Online direct marketing
Electronic tendering system
Name-your-own-price
Find-the-best-price

Graduate School of
(continued)
Affiliate
marketing
Note the
Sony logo
at the top
of this Web
page
www.howstuffworks.com

Graduate School of
(continued)
Viral marketing
Group purchasing
Online auctions
Product customization

Graduate School of
(continued)
Deep discounters
Membership
Bartering online

Graduate School of
Major E-Commerce Mechanisms
• E-marketplaces
• E-catalogs
• E-auctions
• E-bartering
• E-storefronts
• E-malls
• E-tailing

Graduate School of
Major E-Commerce Mechanisms
Auctions
Forward Auctions
Reverse Auctions

Graduate School of
Forward and Reverse Auctions
Bid
price
Bid
pric
e
Time Time
Forward Auction Reverse Auction

Graduate School of
Business-to-Consumer (B2C)
Electronic Commerce
Electronic storefronts
Electronic malls

Graduate School of
Leading E-Tailing Websites
B2C electronic commerce is also known
as e-tailing. Examples of e-tailing
Websites include:

Graduate School of
Online Service Industries
Cyberbanking
Online securities trading
Online job market
Travel services

Graduate School of
Business-to-Business (B2B)
Sell-Side Marketplace
Key mechanisms:
electronic catalogs and
forward auctions

Graduate School of
Buy-Side Marketplace
Key mechanism:
reverse auctions

Graduate School of
Electronic Exchanges

Graduate School of
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

Graduate School of
E-Payments: Examples
Purchasing cards
Smart
cards
Visa
Cash
cards
E-Checks

Graduate School of
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.

Graduate School of
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

Graduate School of
Legal Issues Specific to EC
• Privacy
• Fraud on the Internet
• Domain Names
• Cybersquatting
• Taxes and other Fees
• Copyright

Graduate School of
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.

Graduate School of
Global M-commerce Revenue
2000-2009
M-commerce sales represent a small fraction of total e-commerce sales, but that
percentage is steadily growing. (Totals for 2007–2008 are estimated.)

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

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