Information Systems for Competitive Advantage

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file time: 2008-02-16

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Electronic Business, Intranets & Extranets

 

5-2 

Electronic Commerce 

The ________ exchange of goods, services, and money among firms, and between ________ and their customers

 

5-3 

Types of Electronic Commerce 

________  

________  

________  

________

 

4 

Revenue Paradigms 

________  

-  Cost of goods sold 

Gross margin 

-  Expenses 

________  

How do we make a buck?  
 
Margin * ________  

(SP 00cost) * ________

 

5 

Business advantages of B2B include: 

Sales 

-  Cost of goods sold 

Gross margin 

-  Expenses 

Net income 

Managing ________ more efficiently Adjusting more quickly to customer demand Getting ________ to market faster Obtaining ________ prices on supplies  

6 

Business advantages of B2C include: 

Access to a ________ selection of products and services Access to ________ at lower costs Convenience for transactions or for obtaining information Access to a wider selection of products and services Access to ________ at lower costs Convenience for transactions or for obtaining information  

Sales 

-  Cost of goods sold 

Gross margin 

-  Expenses 

Net income 

Ebake.com

 

5-7 

Internet &World Wide Web Capabilities 

World Wide Web 

________  

Interactive

Communication 

________  

Transaction

Support 

Mass

Customization 

Information

Dissemination

 

5-8 

Impact of the Web: ________  

Manufacturer

or

Service

Provider 

Intermediary

(Middleman) 

Customer

(Consumer

or

Business) 

________

Removal of the ________  ________ in a sale.

Companies can sell directly to customers (retail or wholesale) without assistance using the Internet  

6%

 

6% 

Are there any downsides to disintermediation for  a manufacturer or primary creator of services?  
If yes , what are the disadvantages?  
If no, why don00 all 00anufacturers disintermediate their distribution channel?  

Electronic Commerce Business Strategies 

Business Strategies come in one of the following three types. All require a sound business model to be successful 

chapters 

Amazon

 

5-11 

Key Ingredients of a Business Model

 

5-12 

Click-Only Strategy

 

5-13 

Stages of Business-to-Consumer Transactions 

(e.g. Electronic _________)  

(e.g. displaying a _______balance)  

(e.g. ______ a book)

 

14 

__________ Commerce 

__________ commerce (m-commerce) relies on the use of wireless devices, such as personal digital assistants, cell phones, and smart phones, to place orders and conduct business Issues confronting m-commerce User-friendliness of the wireless device __________ speed Security __________ of life  

Working 24//7

 

5-15 

M-Commerce and the Key Drivers for Growth 

Driver One: __________ in the Internet 

Any electronic transaction or information interaction conducted using a wireless, mobile device, and mobile networks, that leads to transfer of real or perceived value in exchange for information, service, or goods 

Driver Two: __________ of High Speed Networks 

Driver Three: __________ in Mobile Devices

 

5-16 

How M-Commerce differs from general EB

 

5-17 

Intranets 

Intranets

An________, private network using Web technologies to securely transmit information within the organization. This ________ internal Web limits viewing access to authorized users within the organization  

Intranet Benefits

Improved ________access to authorized user Improved ________and accuracy of information Global reach allowing employees access from anywhere Cross-________integration Low ________deployment Positive________on investment  

5-18 

Intranet Applications 

Intranet Hub 

Online Entry of

Information 

Application

Integration 

________ 

________ 

Real-time Access

To Information

 

5-19 

Extranets 00Business to Business Ecommerce  

Extranets enable two or more firms to use the Internet to do business together  

5-20 

Electronic Data Interchange (EDI) 

Electronic Data Interchange

The ________ of electronic business forms between business partners (e.g. purchase order) Typically used by large organizations00b>very expensive The internet has opened this technology to smaller firms  

How it works

EDI transactions are system generated by the sender and then transmitted to the receiver by a ________ VAN (Value Added Network) providers are private network operators that provide guaranteed delivery  

Standards

Document types and formats are universally standardized Two standards exist: ANSI X.12 and UN/EDIFACT  

5-21 

Electronic Data Interchange (EDI) Example

 

5-22 

Extranets 

________

secure networks that provide customers, suppliers, and employees with access to internal systems

replaced ________for smaller firms  

Extranet Benefits

timeliness &accuracy of communications, reducing errors & misunderstandings Allows ________management of documents allowing single updates Uses standard web protocols Easy to use, requires little training Used to automate transactions, reducing cost and cycle time  

23 

Virtual private network (VPN): a secure connection between two points across the Internet 

________: the process by which VPNs transfer information by encapsulating traffic in IP packets over the Internet  

5-24 

Extranet Applications  

Exchanges 

________

Portals 

________ 

Real-Time

Info Access 

Procurement

Portals 

________Portals 

Supply Chain

Management

 

5-25 

Extranet Applications: Exchanges and Portals 

e.g. SciQuest.com 

e.g. Premier.Dell.com 

e.g. Ford Supplier Portal)

 

5-26 

New Technologies for B2B Electronic Commerce 

XML - Extensible Markup Language 

EBRL - Extensible Business Reporting Language

 

5-27 

New Technologies for B2B Electronic Commerce 

_____________ - Radio Frequency Identification

Used for tagging and tracking physical items _____________ system uses a transceiver and antenna to transfer information to a processing device from an RFID tag  

_____________ Benefits

RFID is more powerful than bar-code technology because it does not require visual line-of-sight reading _____________ tags can be placed anywhere (e.g. clothes, pets, cars, parts, store items, etc.)  

_____________ Issues

Deployment is growing rapidly but it is still expensive There is no clear set of data standards Global radio frequencies differ between countries  

RFID Library example

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