CHAPTER E-BUSINESS AND COLLABORATION

Lecture Introduction The basics of business processes Develop a taxonomy of Information Systems Understand the role of IT in E-business Significance of collaboration systems in the world of social systems.

Business Processes (Introduction) It’s how we organize work (By the way it’s what we do in IS 365) How do we make a PBJ How do we make a 747 How do we repair a copier We improve processes by operationalizing, automating, optimizing tasks

How do we Improve Processes Make processes more stable by reducing variation Make a process more capable by reducing variation from a defined specification

Business Process Example (Fulfillment)

Taxonomy of Systems Transactional MIS / Reporting Decision support systems Business intelligence

Transaction Processing Systems (1) POS transactions All of those Amazon sales Routine banking debit and credits Every credit card swipe VISA processes roughly 12,000,000,000 transactions / year (growing at 14% / year) http://investor.visa.com/phoenix.zhtml?c=215693&p=quarterlyearnings

Transaction Processing Systems (2) System runtime functions Ensures data integrity, availability, security System administration functions Configuration and monitoring Development functions Development of custom business applications

Transaction Processing Systems (3)

Management Information Systems The core role of IT in the 1970’s and early 1980’s Aggregate transaction and produce summary reports Accounting (AR / AP / Payroll / GL) Inventory control Financial statements These are analytical systems

MIS Critical Success Factors Timeliness Users get information when they need it Accuracy Automated and manual internal controls must ensure accuracy Consistency In data collection and processing

Decision Support Systems (1) Decision Support Systems (DSS) provide quantitative tools to help managers make better decisions Executive Information Systems (EIS) are a specialized form of DSS DSS and EIS systems often use data warehousing and data mining to find interesting nuggets DSS and EIS systems often use artificial intelligence

Decision Support Systems (2) Quote from Frito-Lay President Ten years ago, I could have told you how Doritos were selling west of the Mississippi Today, I can tell you how well they are selling in California, in Orange County, in the town of Irvine, in the local Vons supermarket, in the special promotion, at the end of Aisle 4, on Thursdays

Decision Support Systems (3) What-If analysis Sensitivity analysis (Elasticity) Goal-seeking Optimization analysis Excel’s Solver is a good example Data mining may play a part Market basket analysis (AM/PM example)

Who Uses a DSS? Make sure to watch the FedEx custom critical video Insurance (Florida hurricanes) Assess regions most prone to disaster and the probable risk Predict types of structures most prone to hurricanes Telecommunications Examine call patterns of delinquent customers to predict which will become bad debts Use neural networks to detect fraudulent calls and charges Make sure to watch the FedEx custom critical video

Who Uses a DSS? Credit cards Airlines Examine transactions and compare against known spending patterns Use known customers to predict credit worthiness of new accounts Airlines Fares change every hour or so Maximize revenue per seat mile Think of the scheduling problem during a snowstorm

Executive Information Systems These are a specialized form of DSS Goals Consolidation of information Drill-down Slice and dice Many EIS systems rely on digital dashboards

Business Intelligence New term but not a new idea Analytical tools to help managers make better decisions

View of IT

Linking the Enterprise Enterprise applications (ERPs) span functional areas Most enterprise systems were derived from SCM systems CRM for customers

Introduction to E-Business E-business is the conducting of business on the Internet using digital technologies E-business and Ecommerce are not the same E-commerce is a subset of e-business Social business Using social platforms as part of an e-business strategy

E-Business Issues Issues Disruptive technology Evolution of the Internet

Collaboration (Introduction) Anyone can now reach anyone Because of that the nature of work has changed across different dimensions From manufacturing to knowledge workers From firms with employees to firms with project-based consultants From a physical place to anywhere any time I categorize these a bit differently than your text

Collaboration Systems (Illustration)

Collaboration Systems (Types) Groupware to collaborate Content management systems are used as an information repository Knowledge management Workflow management Much of the software performs many of these tasks

Collaboration Systems (Groupware) Groupware allows us to work together Functions Calendaring, scheduling, and conferencing File sharing and change tracking Providers Lotus Notes SharePoint

Collaboration Systems (Content Management) Information creating Information storage Changes to information Information publishing and acquisition

Collaboration Systems (Knowledge Management) Closely related to content management Capture, classify, retrieve, and share information It preserves organizational memory SharePoint

Collaboration Systems (Workflow) Workflow describes how work gets done You don’t have the prerequisites for a class you want to take You fill out the College of Business automated add slip form It’s routed to the department or advisement center An advisor approves or disapproves the request You are notified

Ebusiness Strategies Sales and marketing Communication Financial services Procurement of goods and services Customer service Intermediaries

Electronic Data Interchange (EDI) Your book does not really talk about this much EDI automates nearly all common transactions Purchase orders / invoices / payments / etc… Very complex to implement creating a barrier to entry

Electronic Data Interchange (Implementation) There are transaction sets for finance, government, transportation, health care, supply chain A transaction set defines the rules for a common business transaction

Electronic Data Interchange (Implementation) Made up of data elements, segments and envelopes

Ebusiness Stratigies (Sales) It began with direct selling Pure-play retailing Dell / Gateway / Amazon Multichannel retailing JC Penney moves catalog sales to the Internet Expanding reach That little bed and breakfast in Napa

Ebusiness Strategies (Marketing) Popup and other ads RSS – You don’t ask for the data, you just get it How does Google make money? How does Facebook make money?

Ebusiness Stratigies (Financial) Online financial services has seen explosive growth Banking / stocks Online exchanges New industries have emerged PayPal The U.S is quite behind in micropayments

Ebusiness Stratigies (Procurement) It’s now much easier to buy common business items Office supplies / etc B to B exchanges www.alibaba.com

Ebusiness Strategies (Customer Service) Self-service customer service tools Get current interest rates online Get product information online Repair manuals Electronic funds transfer

Ebusiness (Intermediaries) Match buyers (consumers) and sellers (producers) in new ways Create new markets (Ebay) (Match.com) (AliBaba.com) Aggregate and disseminate content (wsj.com, CNBC) Infomediaries (Web MD) The distinction gets blurry and the roles are not mutually exclusive

Ebusiness (Social Media) LinkedIn for business contacts Here is a non-canonical list http://en.wikipedia.org/wiki/List_of_social_networking_websites#A

Ebusiness Metrics (1) Click-through tracking Web site pattern usage Users clicked on a Web site ad for further information Web site pattern usage How users navigate from page to page Per page view times Completed shopping cart transactions

Tracking Web Site Visitors Unidentified We know what you do but not who your are Tracked with cookie We know what you do and verify uniqueness but not identity Identified / Authenticated We know who you are and everything you do?

Ebusiness Challanges International ecommerce laws don’t exist or are not enforceable Security and trust Taxation Monetization of services

Government Trends in Ebusiness Even the government has gotten on the Ebusiness bandwagon IRS electronic tax filings Edgar Common DMV transactions are online along with common forms We have done a terrible job with medical healthcare

The IS Department Programmers Help desk Analysists CIO CFO CKO