1. Thursday, February 10, 20001 Management of Information Systems: 45-870 Mini-3 Spring 2000

2. Thursday, February 10, 20002 Agenda Announcements Return of IT Exercise #2 Fundamentals of E-Commerce Applications of E-Commerce (Video) IT Diagnosis Case Assignment #1: Sonoco

3. Thursday, February 10, 20003 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

4. Thursday, February 10, 20004 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 e-mail exchanges

5. Thursday, February 10, 20005 Categories of E-commerce Applications Business to Consumer Business to Business Internal Business Processes

6. Thursday, February 10, 20006 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

7. Thursday, February 10, 20007 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?

8. Thursday, February 10, 20008 Example: amazon.com

9. Thursday, February 10, 20009 Business to Business E-Commerce Supply Chain Management Electronic Data Interchange

10. Thursday, February 10, 200010 Supplier Management Inventory Management Distribution Management Channel Management Payment Management Financial Management Sales Force Management Components of Supply Chain Management (SCM) Supply Chain Management

11. Thursday, February 10, 200011 What ITs are used in SCM? E-mail Electronic Business Forms Bulletin Board Systems Electronic Funds Transfer Web product catalogues Interactive order processing Electronic Data Interchange

12. Thursday, February 10, 200012 Example: Marshall Industries See www.ims.avnet.com/welcome.shtml

13. Thursday, February 10, 200013 Examples: UPS, Fedex See: www.ups.com www.fedex.com

14. Thursday, February 10, 200014 Electronic Data Interchange Electronic exchange of business transaction documents over computer networks between trading partners (manufacturers, customers, suppliers)

15. Thursday, February 10, 200015 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

16. Thursday, February 10, 200016 An Example: Singapore Tradenet System Singapore

17. Thursday, February 10, 200017 Application Services Interface Services Secure Messaging Network Infrastructure Brokerage and Data Management Middleware Services EC Technology Services E-Commerce Technologies

18. Thursday, February 10, 200018 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

19. Thursday, February 10, 200019 35% Cost Savings 32% Customer Service 18% Revenue Generation 13% Marketing 2% Other Business Value of E-Commerce

20. Thursday, February 10, 200020 Micropayments Systems Secure Socket Layer (SSL) Digital Wallet Secure Electronic Transaction (SET) Offline Method Examples of Electronic Commerce Security Methods Security for E-Commerce

21. Thursday, February 10, 200021 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?

22. Thursday, February 10, 200022 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?”

23. Thursday, February 10, 200023 IT Diagnosis: The IS Component Matrix IS Activities and Resources HardwareSoftwarePeopleDataInforma- tion Products Input Processing Output Storage Control

24. Thursday, February 10, 200024 IS Component Matrix: Key Definitions Information Systems Activities Input Processing Output Storage Control Information Systems Resources People Procedures Data Software Hardware

25. Thursday, February 10, 200025 Use of the IS Component Matrix: An Example

26. Thursday, February 10, 200026 Case Analysis #1: Sonoco IT Diagnosis Read the Sonoco Case (pp. A8-A13) Also check: www.datamation.com

27. Thursday, February 10, 200027 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