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Management Information Systems Information Technology Concepts

Management Information Systems Information Technology Concepts. Electronic Commerce. Electronic Commerce (E-commerce) refers to a business transaction that uses network access, computer-based systems, and a Web browser interface.

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Management Information Systems Information Technology Concepts

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  1. Management Information Systems Information Technology Concepts

  2. Electronic Commerce • Electronic Commerce (E-commerce) refers to a business transaction that uses network access, computer-based systems, and a Web browser interface. • Business-to-consumer (B2C) refers to transactions between a business and the final consumer of the product. • Business-to-business (B2B) refers to transactions between businesses in which neither one is the final consumer. • Electronic Government (E-gov) refers to transactions between a government agency and typically a citizen.

  3. Electronic Commerce • Main benefits to firms: • Improved customer service before, during, and after the sale • Improved relationships with suppliers and the financial community • Increased economic return on stockholder and owner investments • Main constraints to firms: • High costs • Security concerns • Immature or unavailable software

  4. 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. • Third generation (3G) telecommunications is data-capable wireless technologies. • Early applications included news services, financial information alert/transactions, and banking. • Movie ticket purchases, parking payments, etc. gaining acceptance. • Japan is 1st country to have a 3G carrier (almost all Japanese have a cell phone).

  5. Virtual vs. Hybrid Sales • Virtual sales are those made by a firm that does not operate a physical storefront. • Customer can’t enter and purchase the product. • Hybrid sales occur when firms have both a physical storefront and a Web site where customers can purchase products.

  6. Virtual Sales Challenges • Provide necessary product information without overwhelming the customer. • Communicating image files from the Web site to the customer’s computer can take time. • Payment over the Internet has suffered bad press–credit card fraud.

  7. Hybrid Sales • Most firms had storefronts before sales over the Internet were possible. • Both a physical storefront and the Internet are necessary to their business plans. • Stores act as showcases for products. • Customers enjoy convenience of shopping over the Web. • B2C sales means less inventory at its store; more sales floor space.

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