1. Electronic Commerce and Transaction Processing Systems
Chapter 5
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.
Identify several advantages of e-commerce.
Identify some of the major challenges companies must overcome to succeed in e-commerce.
Identify several e-commerce applications.
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.
Outline the key components of technology infrastructure that must be in place for e-commerce to succeed.
Discuss the key features of the electronic payments systems needed to support e-commerce.
Identify the major issues that represent significant threats to the continued growth of e-commerce.
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.
Identify the basic activities and business objectives common to all transaction processing systems.
Discuss the importance of business resumption planning and disaster recovery for key transaction processing systems.
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.
Define the term enterprise resource planning system and discuss the advantages and disadvantages associated with the implementation of such a system.
Fundamentals of Information Systems, Second Edition

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

7. Fundamentals of Information Systems, Second Edition
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. Fundamentals of Information Systems, Second Edition
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. Web Sites Useful to Investors
Fundamentals of Information Systems, Second Edition

16. Popular Stock Tracker Web Sites
Fundamentals of Information Systems, Second Edition

17. Technology, Infrastructure, and Development
Fundamentals of Information Systems, Second Edition

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

19. Fundamentals of Information Systems, Second Edition
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

20. Fundamentals of Information Systems, Second Edition
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

21. Electronic Shopping Cart
Fundamentals of Information Systems, Second Edition

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

23. An Overview of Transaction Processing Systems
Fundamentals of Information Systems, Second Edition

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

25. 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

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

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

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

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

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

31. Systems that Support Order Processing
Fundamentals of Information Systems, Second Edition

32. Order Processing Systems
Fundamentals of Information Systems, Second Edition

33. 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

34. Enterprise Resource Planning
Fundamentals of Information Systems, Second Edition

35. Some ERP Software Vendors
Fundamentals of Information Systems, Second Edition

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

37. Fundamentals of Information Systems, Second Edition
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

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

39. Fundamentals of Information Systems, Second Edition
Summary
E-commerce – includes business-to-business (B2B), business-to-consumer (B2C), consumer-to-consumer (C2C).
Transaction Processing Systems (TPSs) - consist of all the components of a CBIS, including databases, telecommunications, people, procedures, software, and hardware devices to process transactions.
Business resumption plan – anticipates and minimizes the effects of disasters.
Disaster recovery – implements disaster resumption plan.
Fundamentals of Information Systems, Second Edition