Fundamentals of Information Systems, Second Edition 1 Electronic Commerce and Transaction Processing Systems

Fundamentals of Information Systems, Second Edition 2 Principles and Learning Objectives E-commerce is a new way of conducting business, and as with any other new application of technology, it presents both opportunities for improvement and potential problems.

Fundamentals of Information Systems, Second Edition 3 Principles and Learning Objectives E-commerce requires the careful planning and integration of a number of technology infrastructure components.

Fundamentals of Information Systems, Second Edition 4 Principles and Learning Objectives An organization’s transaction processing system (TPS) must support the routine, day-to-day activities that occur in the normal course of business and help a company add value to its products and services.

Fundamentals of Information Systems, Second Edition 5 Principles and Learning Objectives Implementation of an enterprise resource planning (ERP) system enables a company to achieve numerous business benefits through the creation of a highly integrated set of systems.

Fundamentals of Information Systems, Second Edition 6 Introduction to Electronic Commerce

Fundamentals of Information Systems, Second Edition 7 Electronic Commerce Business-to-consumer (B2C) e-commerce Business-to-business (B2B) e-commerce Consumer-to-consumer (C2C) e-commerce

Fundamentals of Information Systems, Second Edition 8 Supply Chain Management

Fundamentals of Information Systems, Second Edition 9 Value Chains in E-Commerce Conversion to e-commerce supply chain management provides businesses with an opportunity to: –increase revenues or decrease costs by eliminating time-consuming and labor-intensive steps throughout the order and delivery process –improve customer satisfaction by enabling customers to view detailed information about delivery dates and order status –reduce inventory including raw materials, safety stocks, and finished goods

Fundamentals of Information Systems, Second Edition 10 Product and Information Flow for HP Printers Ordered Over the Web

Fundamentals of Information Systems, Second Edition 11 E-Commerce Applications

Fundamentals of Information Systems, Second Edition 12 E-Commerce Applications Retail and Wholesale Manufacturing Marketing Investment and Finance Auctions

Fundamentals of Information Systems, Second Edition 13 Retail and Wholesale Electronic retailing - the direct sale from business to consumer through electronic storefronts Cybermall - a single Web site that offers many products and services at one Internet location

Fundamentals of Information Systems, Second Edition 14 Model of an Electronic Exchange

Fundamentals of Information Systems, Second Edition 15 Technology, Infrastructure, and Development

Fundamentals of Information Systems, Second Edition 16 Key E-Commerce Technical Components

Fundamentals of Information Systems, Second Edition 17 Hardware The amount of storage capacity and computing power required of the Web server depends primarily on two things: –the software that must run on the server –the volume of e-commerce transactions that must be processed

Fundamentals of Information Systems, Second Edition 18 Software Web site development tools Web page construction software E-commerce software Catalog software Product configuration software Electronic shopping cart

Fundamentals of Information Systems, Second Edition 19 Electronic Shopping Cart

Fundamentals of Information Systems, Second Edition 20 Electronic Payment Systems Electronic cash Electronic wallets Credit, charge, debit, and smart cards

Fundamentals of Information Systems, Second Edition 21 An Overview of Transaction Processing Systems

Fundamentals of Information Systems, Second Edition 22 TPS, MIS/DSS, and Special-Purpose Information Systems

Fundamentals of Information Systems, Second Edition 23 Traditional Transaction Processing Methods Batch processing – method of computerized processing in which business transactions are accumulated over a period of time and prepared for processing as a single unit On-line transaction processing (OLTP) - method of computerized processing in which each transaction is processed immediately and the affected records are updated

Fundamentals of Information Systems, Second Edition 24 Batch versus On-Line Processing

Fundamentals of Information Systems, Second Edition 25 Integration of a Firm’s TPSs

Fundamentals of Information Systems, Second Edition 26 Transaction Processing Activities Data collection Data editing Data correction Data manipulation Data storage Document production and reports

Fundamentals of Information Systems, Second Edition 27 Data Processing Activities Common in Transaction Processing Systems

Fundamentals of Information Systems, Second Edition 28 Point-of-Sale Transaction System

Fundamentals of Information Systems, Second Edition 29 Systems that Support Order Processing

Fundamentals of Information Systems, Second Edition 30 Order Processing Systems

Fundamentals of Information Systems, Second Edition 31 Business Resumption Planning The process of anticipating and minimizing the effects of disasters. Focuses primarily on two issues: –maintaining the integrity of corporate information –keeping key information systems running until normal operations can be resumed Disaster recovery – implementation of the business resumption plan

Fundamentals of Information Systems, Second Edition 32 Enterprise Resource Planning

Fundamentals of Information Systems, Second Edition 33 Some ERP Software Vendors

Fundamentals of Information Systems, Second Edition 34 Commonalities Among ERP Systems Integrate data Operate in Client/Server Environment Based on Objects Employ Control Tables

Fundamentals of Information Systems, Second Edition 35 Advantages of ERP Elimination of costly, inflexible legacy systems Improvement of work processes Increase in access to data for operational decision making Upgrade of technology infrastructure

Fundamentals of Information Systems, Second Edition 36 Disadvantages of ERP Expense and time in implementation Difficulty integrating with other systems Risks in using one vendor