1. CHAPTER E-BUSINESS AND COLLABORATION

2. 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.

3. 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

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

5. Business Process Example (Fulfillment)

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

7. 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)

8. 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

9. Transaction Processing Systems (3)

10. 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

11. 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

12. 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

13. 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

14. 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)

15. 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

16. 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

17. 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

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

19. View of IT

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

21. 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

22. E-Business Issues Issues Disruptive technology
Evolution of the Internet

23. 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

24. Collaboration Systems (Illustration)

25. 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

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

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

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

29. 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

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

31. 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

32. 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

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

34. 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

35. 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?

36. 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

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

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

39. 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

40. Ebusiness (Social Media)
LinkedIn for business contacts
Here is a non-canonical list

41. 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

42. 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?

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

44. 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

45. The IS Department
Programmers
Help desk
Analysists
CIO
CFO
CKO