1 / 29

Chapter 5 Electronic Commerce, Intranets, and Extranets

Chapter 5 Electronic Commerce, Intranets, and Extranets. Information Systems Today Leonard Jessup and Joseph Valacich. Today’s agenda. Chapter 5 Understand e-commerce and how it evolved Understand e-commerce strategies Understand the difference between intranets and extranets

Télécharger la présentation

Chapter 5 Electronic Commerce, Intranets, and Extranets

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Chapter 5Electronic Commerce, Intranets, and Extranets Information Systems Today Leonard Jessup and Joseph Valacich

  2. Today’s agenda • Chapter 5 • Understand e-commerce and how it evolved • Understand e-commerce strategies • Understand the difference between intranets and extranets • Understand consumer-focused and business-focused e-commerce • Understand key e-commerce applications

  3. Electronic Commerce Defined • E-Commerce – online exchange of goods, services, and money between firms, and between firms and their customers • More than just buying and selling: • Pre-sale events and marketing • After-sale customer service

  4. Major Types of E-commerce business to business B2B business to consumer B2C consumer to consumer C2C business to employee B2E

  5. Electronic Commerce Defined • Internet and World Wide Web Capabilities • Expanding market • Wider customer base • More products • Closer relationships with customers

  6. Electronic Commerce Defined • Internet and World Wide Web Capabilities • Global Information Dissemination • Virtual storefront open 24/7 365 days a year with global reach • Integration • Web site linked to corporate database • Example: Alaska Air • Mass customization • Tailoring products to a customers needs • Example: Lands’ End • Interactive communication • Improving firm’s image through responsiveness • Example: E*Trade

  7. Electronic Commerce Defined • Internet and World Wide Web Capabilities • Collaboration • Transaction Support • Reduced transaction costs • Enhanced operational efficiency • Disintermediation • Cutting out the “middleman” • Reaching customers directly • Typical Cost Savings (1999 report)

  8. Electronic Commerce Defined • Electronic Commerce Business Strategies • Brick-and-mortar • Traditional, physical companies • Click-only (“virtual”) companies • Online only • Example: Amazon.com • Click-and-mortar (“Brick & Click”) • Both physical and virtual • Challenge: increased IS complexity

  9. Revenue and Business Models • You should review the revenue and Business models on page 164 – might be helpful to your group project.

  10. Business-to-Business Electronic Commerce • Electronic Data Interchange • Definition – EDI refers to the transmission of business documents between organizations via networks • “EDI is the forefather of B2B” • Estimated $500 billion worth of goods per year • EDI: usually over value-added networks (VANs)

  11. Business-to-Business Electronic Commerce • Electronic Data Interchange • Advantages • Wide variety of business documents • Streamlines business processes • Reduced document handling • Shortens time of business transaction • Reduces errors • RJR Nabisco was able to? • Reduce purchase order from $70 to less than $1

  12. Electronic Data Interchange Disadvantages Costly to implement Costly to maintain Requires skilled technicians Often too costly for small or medium-sized companies ~$100,000 $1000s per month Business-to-Business Electronic Commerce

  13. Business-to-Business Electronic Commerce • The Internet Changed Everything • B2B now available to companies of all sizes • Intranet – internal, private network using Web technologies to facilitate transmission of proprietary information within the organization • Extranet – two or more firms using the Internet to do business together

  14. Business-to-Business Electronic Commerce

  15. Business-to-Business Electronic Commerce • Intranet System Architecture • Firewalls – hardware devices with special software that prevent unauthorized access • An intranet server is placed behind the firewall • Packets are never routed outside the firewall, but remain within the organizations network

  16. Business-to-Business Electronic Commerce • Intranet Applications • Training • Application Integration • Enterprise Resource Planning (ERP) • Customer Relationship Management (CRM) • Sales Force Automation (SFA) • Online Entry of Information • Real-Time Access to Information • Collaboration

  17. Business-to-Business Electronic Commerce • Extranet System Architecture • Extranet • Connects two or more business partners • Like an intranet • Same software, hardware, and networking • Additional component: • Virtual Private Network (VPN) • Secure transmission of proprietary info

  18. Business-to-Business Electronic Commerce • Extranet System Architecture • Virtual Private Network (VPN) • Tunneling • A technology that encapsulates, encrypts, and transmits data over the Internet • A secure “tunnel” is created over the VPN connecting the two intranets • Authentication • Confirms the identity of the remote user who is attempting to access information from the Web server

  19. Business-to-Business Electronic Commerce • Extranet Applications • Supply Chain Management • Example: Dell Computers • Real-Time Access to Information • Example: CSX railroad • Collaboration • Example: Caterpillar

  20. B2B E-Commerce • New Technologies for: • XML = eXtensible Markup Language • May become the standard for electronic data interchange • Allows you to create your own “tag” language • XBRL = eXtensible Business Reporting Language • Example of XML based language for publishing finanacial information. • RFID = Radio Frequency Identification • Passive “bar-code” tags that are cheap • Used to manage inventory • Don’t need “line-of-sight” to read “bar-code”

  21. Business-to-Business Electronic Commerce • Enterprise Portals • Enterprise portals • Extranets for business partners • Access points (or front doors) by which a business partner accesses secured, proprietary information from an organization

  22. Business-to-Business Electronic Commerce • Enterprise Portals • Distribution portals • Automate the business processes in selling products to multiple buyers • Procurement portals • Automate the business processes that occur before, during, and after sales have been transacted between a buyer and multiple suppliers • Trading Exchanges • Electronic marketplaces run by 3rd-party vendors • Revenues are from commissions on transactions

  23. Business-to-Consumer Electronic Commerce • B2C • Internet – fastest acceptance of any communications technology • Retail transactions between a company and end consumers • Electronic retailing (e-tailing)

  24. C2C? Business-to-Consumer Electronic Commerce • Stages of B2C E-Commerce • E-Information • Disseminate information globally • Example: Ferrari • E-Integration • Consumer-driven access to information • Example: Allstate and Burlington Northern Santa Fe • E-Transaction • Interactive communication and transaction support • Example: eBay and Priceline.com

  25. B2C Dell Amazon.com Office Depot Bn.com … C2C Peer-to-peer sharing Kazaa gnutella Auctions: ebay B2C vs C2C – Some Examples

  26. Formula for Electronic Commerce Success • The Rules for Web Site Success • 1. Offer something unique • 2. Web site must be aesthetically pleasing • 3. Easy to use and fast • 4. Motivate people to visit, stay, and return • 5. Advertise your Web presence • 6. Learn from your Web site

  27. Best Products to Sell on the Web? • Digital delivery • Lowest distribution costs • Immediate customer satisfaction • Electronic watermarking? • So that any illegal copy can be traced to the original purchases to prevent counterfeiting

  28. Quiz Time • Clear your desks • 10 Questions…from Chapter 5

  29. B D A B C False False True False True Grading the Quizzes

More Related