Lecture Management information systems: Solving business problems with information technology – Chapter 11

Introduction to MIS
Chapter 11
Electronic Business

Copyright © 1998-2002 by Jerry Post

Introduction to MIS

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Electronic Business

Small business/
supplier

Orders,
Auctions,
and EDI

Large business

Sales and
CRM

The Internet

Service,
orders, and
information

Web hosting and
Web-based
services

Salesperson

 

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Customer

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Forms of Electronic Commerce
Production Chain and Disintermediation
Dynamic Pricing
Distributed Services
Marketing Phases
Web Advertising: Advertiser
Web Advertising: Publisher
Web Traffic Analyzer
Web Hosting Options
Mobile Commerce
Entrepreneurship: Creating a Business
Industry Research
Business Plans
Forecasting Financial Data
Forming a Corporation
Financing a Startup
E-Commerce Startup
Cases: Travel Industry
Appendix: Business Plans

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Outline

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Forms of Electronic Commerce

Business

Business

Consumer

B2B
EDI
Commodity auctions

B2C
Consumer-oriented
Sales
Support

Consumer C2B
Minimal examples,
possibly reverse
auctions like PriceLine

 

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C2C
Auction sites (eBay)
But many of these are
dominated by small
business sales.

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parts
supplier

parts
supplier

warehouse
supplier

supplier
tool
manufacturer

Manufacturer

wholesaler

wholesaler
distributor

Production
Chain

warehouse
supplier

workers

retail store

parts
supplier

distributor
retail store

distributor
retail store

retail store

Consumers

 

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Disintermediation

Production Chain
Manufacturer

E-commerce
website

Retailer

Consumer

 

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Dynamic Pricing
P

Price consumer is
willing to pay

S

Perfect competition
price

D
Q
The ultimate goal is to set individual prices for each
consumer to capture the maximum price each is willing
to pay. As opposed to the perfect competition price,
where everyone pays the same price, and some
customers gain because they were willing to pay more.

 

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Distributed Services
Original
document

Company 1

The Internet
Internet Service

Company 2
Translated
document

 

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e.g., automated
document
translation

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XML: Extensible Markup Language
<?xml version="1.0"?>
<!DOCTYPE OrderList SYSTEM "orderlist.dtd">
<OrderList>
<Order>
<OrderID>1</OrderID>
<OrderDate>3/6/2001</OrderDate>
<ShippingCost>$33.54</ShippingCost>
<Comment>Need immediately.</Comment>
<Items>

<ItemID>30</ItemID>
<Description>Flea Collar-Dog-Medium</Description>
<Quantity>208</Quantity>
<Cost>$4.42</Cost>
<ItemID>27</ItemID>
<Description>Aquarium Filter & Pump</Description>
<Quantity>8</Quantity>
<Cost>$24.65</Cost>
</Items>
</Order>
</OrderList>

 

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XML In Internet Explorer

 

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Marketing Phases
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Pre-Purchase


Static data sites.
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Promotion.
Product specifications.
Pictures.
Schematics.
Pricing.
FAQs.

Interactive sites.
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Configuration.
Compatibility.
Complex pricing.

Purchase
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Transmission security.
User identification.
Product selection.
Payment validation.
Order confirmation.

Post-Purchase
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Service.
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Resolve problems.
Answer questions.
Product evaluation.
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Problem tracking.
Sales leads.

Modifications.
Tracking customers.

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Web Advertising: Advertiser Perspective
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Want viewers to see the ad.
Want viewers to click through to the main site.
Need to match site demographics to target audience.
Monitor response rates.
Cost.

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Web Advertising: Publisher Perspective
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Income
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Tasks
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Cost per thousand viewings ($1 - $50)
Need volume (25,000 or 1,000,000 per month)
Need demographics
Ad rotation software
Tracking and monitoring
Ad sales staff
Billing
Third Party: DoubleClick

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Website Log Analyzer

SurfStats pro

 

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Web Hosting Options

 

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Simple Static HTML Website
Main Web Page
Categories
…

Category 1

Category 2

Category 3

Product
…

Product
…

Product
…

Product 1
Description
Price
Photo

 

photo
…

Product 2
Description
Price
Photo

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photo
…
Product 3
Description
Price
Photo

photo
…
Product n
Description
Price
Photo

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Simple Website with Buy Me Button
Merchant Web site
Card Processor Site
Buy Me
Product
Description
Price

Shopping Cart
Item
Price
…
…
Total
Check Out

Credit Card Data
Name
Address
Phone

Card Number
Submit

Notify merchant
Customer
Notification
(Accept/Reject)

 

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/> 

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Web Auctions
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Uncertain price
Can set reserve price
Good for unique items
Efficiency depends on
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Full information
Adequate number of
participants

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Amazon.com zShops
zShop Products
Cameras, Digital, Brand
Vendor 1
Vendor 2
Vendor Transfer
Description
Price
Scanned image
Contact info

 

Introduction to MIS

Vendor 3

Transaction Processing
Amazon.com handles credit
Sends order info to merchant
Merchant ships item to consumer

 

Consumer
Product search
Choose vendor
Pay for item

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Virtual Malls
Directory of Shops
Product category
Vendor 1
Vendor 2

Merchant Site
Products
Sales

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Essentially a marketing agreement
The “mall” provides a directory to merchants
The merchant site runs on a different server

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Web Commerce Servers
Your Web site
Products
Shopping cart
Sales
Customers

Merchants
Commerce Server Shell
Load database
Images

Database

Descriptions
Prices
Customize site

 

Introduction to MIS

Web servers
Web/Commerce Hosting Company

 

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Application Service Provider
Business Application
e.g., Accounting
Store data
Analyze data
Facilitate company
interaction

Businesses that lease the use of the application

 

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Web Hosting Questions

 

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Mobile Commerce

Fujitsu’s tablet computer

Prototype Nokia 3G

Palm VII wireless PDA

As PDAs, cell phones, and tablet computers
converge; people will ultimately be able to connect to
any business every place they go.

 

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Creating a Business
Idea

Plan

Implementation

 

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