Thursday, February 10, Management of Information Systems: Mini-3 Spring 2000

Thursday, February 10, Agenda Announcements Return of IT Exercise #2 Fundamentals of E-Commerce Applications of E-Commerce (Video) IT Diagnosis Case Assignment #1: Sonoco

Thursday, February 10, Fundamentals of E-Commerce What is “e-commerce” Categories of E-commerce applications E-Commerce Technologies Economic model for e-commerce Approaches to assure secure electronic transactions

Thursday, February 10, What is E-commerce? online process of developing, marketing, selling, delivering, servicing, paying for products & services using Internet technologies Includes: Interactive marketing, ordering, payment process on the www Extranet access of inventory databases by customers & suppliers Internet access of customer records by sales reps & customer service Involvement in product development via Internet newsgroups and exchanges

Thursday, February 10, Categories of E-commerce Applications Business to Consumer Business to Business Internal Business Processes

Thursday, February 10, Business to Consumer E-Commerce Imperative: develop attractive electronic marketplaces to entice and sell products and services to customers How? virtual storefronts virtual shopping malls interactive order processing secure electronic payment

Thursday, February 10, Performance and Service Socialization Look and Feel Security and Reliability PersonalizationIncentives Factors Affecting Retailing on the Web How can businesses get customers to come back to their web site?

Thursday, February 10, Example: amazon.com

Thursday, February 10, Business to Business E-Commerce Supply Chain Management Electronic Data Interchange

Thursday, February 10, Supplier Management Inventory Management Distribution Management Channel Management Payment Management Financial Management Sales Force Management Components of Supply Chain Management (SCM) Supply Chain Management

Thursday, February 10, What ITs are used in SCM? Electronic Business Forms Bulletin Board Systems Electronic Funds Transfer Web product catalogues Interactive order processing Electronic Data Interchange

Thursday, February 10, Example: Marshall Industries See

Thursday, February 10, Examples: UPS, Fedex See:

Thursday, February 10, Electronic Data Interchange Electronic exchange of business transaction documents over computer networks between trading partners (manufacturers, customers, suppliers)

Thursday, February 10, Features of EDI EDI Software converts company’s own document formats into standardized EDI formats Data transmitted over network links directly between computers Use of third-party services Eliminates printing, mailing, checking, handling of multiple business documents

Thursday, February 10, An Example: Singapore Tradenet System Singapore

Thursday, February 10, Application Services Interface Services Secure Messaging Network Infrastructure Brokerage and Data Management Middleware Services EC Technology Services E-Commerce Technologies

Thursday, February 10, Barriers to Entry are Low Market Niches Abound Revenue Sources are Many No One Owns the Market The Same Technology is Available to Everyone The Same Technology is Available to Everyone Access is Becoming Universal Access is Becoming Universal There is Room for Teams of Successful Players There is Room for Teams of Successful Players Key Characteristics of the Economic Model for Electronic Commerce on the Internet Economic Model for E-Commerce

Thursday, February 10, % Cost Savings 32% Customer Service 18% Revenue Generation 13% Marketing 2% Other Business Value of E-Commerce

Thursday, February 10, Micropayments Systems Secure Socket Layer (SSL) Digital Wallet Secure Electronic Transaction (SET) Offline Method Examples of Electronic Commerce Security Methods Security for E-Commerce

Thursday, February 10, Applications of E-Commerce In-Class Exercise Video How are businesses using the Web? How can the Internet improve a company’s customer relationships and service? Are there any differences in how online-only (e.g., “virtual”) companies use the Internet vs. existing (“brick & mortar”) companies? Why?

Thursday, February 10, IT Diagnosis: Assessing Opportunities for E-Commerce IT Diagnosis Describes how IS activities (input, processing, output, storage, control) are accomplished Describes how use of resources (people, hardware, network, software) support the conversion of data resources into information products Answers the question: “what resources are required to accomplish the activities that can produce the information products needed by end users?”

Thursday, February 10, IT Diagnosis: The IS Component Matrix IS Activities and Resources HardwareSoftwarePeopleDataInforma- tion Products Input Processing Output Storage Control

Thursday, February 10, IS Component Matrix: Key Definitions Information Systems Activities Input Processing Output Storage Control Information Systems Resources People Procedures Data Software Hardware

Thursday, February 10, Use of the IS Component Matrix: An Example

Thursday, February 10, Case Analysis #1: Sonoco IT Diagnosis Read the Sonoco Case (pp. A8-A13) Also check:

Thursday, February 10, Case Analysis #1: Sonoco IT Diagnosis Write a short report to briefly address these questions: Create an IS component matrix to: document the IS activities and resources in Sonoco’s order fulfillment and other information systems Using your IS component matrix: identify some opportunities for e-commerce for Sonoco based upon their IS activities describe how Sonoco should adapt or extend its IS resources to realize these opportunities Describe the role of IT in Sonoco: in the late 1980’s and early 1990’s in the new business strategies in an e-commerce marketplace