meljun cortes - using information technology engage ecommerce

8/9/2019 MELJUN CORTES - Using Information Technology Engage Ecommerce

1/38


2/38

Electronic Commerce

Electronic commerce is the use of computers to facilitate the firms operations

internal (finance, marketing,manufacturing, ...)

external (customers, suppliers,

government, ...)

3-2


3/38


4/38

Electronic Commerce Benefits

Improved service, especially tocustomers

Improved relationships to suppliers andthe financial communityIncreased return on stockholder and

owner investments

3-4


5/38

Electronic Commerce

ConstraintsHigh costs

Security concernsImmature or unavailable software

3-5


6/38

New Electronic Commerce Era

Instead of specialized software, firmsare designing systems to use InternetBrowsersMaking a common interface for

customers and electronic commercepartners

3-6


7/38

Selection of Electronic CommerceStrategy, Methodology, and Technology

BusinessIntelligence

CompetitiveAdvantage

Strategic Business Plan

Enabling

strategy

Interorganiza-tional

Electronicdatainterchange

Enabling

methodology

System lifecycle

Businessprocessredesign

Enabling

technology

Directconnectivity

Value-addednetworks

The Internet

3-7


8/38

Business Intelligence (BI)

Evolved from simply gathering data

about competitors to data gatheringabout all environmental elements

3-8


9/38

Data

Collectdata

2Evaluate

dataAnalyze

data

4Storeintelligence Intelligence

5Disseminateintelligence

Intelligence

The Five Basic Intelligence Tasks

Data

31

3-9


10/38

External Databases

Important commercial databases thatprovide information on virtually any subject

LEXIS-NEXIS, DIALOG, DOWJONES.COM Over 1,000 data service sites listed by

YAHOO.COM

Less expensive to use database servicesthan to perform research

3-10


11/38

Search Engines

Special computer programs that ask usersfor a word or group of words to be found at

Internet sitesYahoo, Excite, AltaVista, HotBot, Lycos,and Webcrawler are examples

Government databases

3-11


12/38

Extranets

Allow sharing of sensitive computer-basedinformation using Internet technology

Limited to trusted suppliers and largecustomersSecurity and privacy issues

Firewalls

3-12


13/38

Interorganizational System (IOS)

These link two or more firms so that theyfunction as a single system to accomplish a

common goalGenerate internal efficiency in addition tointerorganizational efficiency

Provides customers with unique productfeatures, reduced search-related costs, andraises the customers switching costs

3-13


14/38

Electronic Data Interchange (EDI)

Consists of direct computer-to-computertransmissions among multiple firms of datain a machine-readable, structured format

Typical linkages Supply side Customer side

Transaction setVendor stock replenishment (VSR)Electronic Funds Transfer (EFT)

3-14


15/38

Electronic Data Interchange (EDI) Adheres to Standard Formats

Suppliers TheFirm

Purchase order

ANSI ASC X12 - North America EDIFACT - International

3-15


16/38

Selected EDI Transaction Setsand Sample Invoice Data

104 Air Shipment Information 130 Student Educational Record (Transcript)152 Statistical Government Information 300 (Booking Request) (Ocean)311 Canadian Customs Information 810 Invoice

NameAddress Information

Marking, Packaging, LoadingIndustry CodeQuantityCurrencyTax InformationPricing InformationItem Physical DetailsTerms of Sale / Deferred Terms of SaleCarrier DetailProduct / Item DescriptionInvoice Shipment SummaryTransaction Totals

3-16


17/38

Mapping Software Translates Data toand from Standard Formats

Sendingfirms

computer

Applicationsoftware

Mappingsoftware

Standard EDI format

Receivingfirmscomputer

Applicationsoftware

Mappingsoftware

3-17


18/38

Degree of EDI Implementation

Level-one users One or two transmission sets sent to limited

trading partners

Level-two users Many transaction sets transmitted to large

number of trading partners

Level-three users Many transaction sets transmitted to large

number of trading partners and firms computer applications are tailored to EDI approach

3-18


19/38

Adoption Influences

Competitive pressure, this is reactiveExercised power, this is proactive

Internal need, this is proactiveTop management support, this is both

proactive and reactive

3-19


20/38

Internal and EnvironmentalInfluences on EDI Adoption

Environmental Influences

PressureExercised

Power

Internal Influences

InternalNeed

TopManagement

Support

Competitors TradingPartners

EDI3-20


21/38

EDI Benefits

Direct Reduced errors Reduced costs

Increased operational efficiencyIndirect Increased ability to compete

Improved relationships with trading partners Improved customer service

3-21


22/38

EDI Direct and Indirect BenefitsIndirect Benefits

Direct Benefits

ReducedErrors

IncreasedOperationalEfficiency

Reduced

Costs

Competitors Trade Partners

Competitors

Increased Abilityto Compete

Improved Service

ImprovedRelationships

3-22


23/38

A Challenge to EDI

Extensible markup language (XML) Extension of HTML

Provides file formatting structure and means fordescribing data

Allows Web pages to perform many EDIfunctions

3-23


24/38

Electronic CommerceTechnology

Direct Connectivity Uses dial-up or private lines to connect

Value-Added Networks (VANs) Circuit provided by vendor Vendor provides additional services

The Internet Global communications network

3-24


25/38

Internet Evolution

Derived from the Advanced ResearchProjects Agency network (ARPANET)Designed to let computer-to-computercommunications continue even duringmilitary attacksARPANET joined with Computer ScienceNetwork (CSNET) and National ScienceFoundation Network (NSFNET) to formtodays Internet

3-25


26/38


27/38

Internet Evolution (cont.)

In 1989, Tim Berners-Lee of CERN cameup with the hypertext concept

World-Wide Web is really the applicationof hypertext documents and other materialsHypertext is conceptually a speed dial

feature in that a user points to and pressesthe hypertext link and the systemautomatically goes to that location

3-27


28/38

Key Web TerminologyWebsiteHypertext link Web page

Home pageUniversal resource locator (URL) Protocol

Domain name Path

Browser

FTP (File Transfer Protocol) 3-28


29/38

Parts of a URL

http://aisvm1.ais.com/abra7883/index.html

hypertexttransmission

protocol

domain name path(directory and file nameon the web server )

hypertext markuplanguage

3-29


30/38

Internet Client/ServerInformation Retrieval Systems

Gopher

Wide Area Information Servers (WAIS)

USENET

Each of these predates the WWW andrepresents a major step forward in Internet Use 3-30


31/38

Terminal Emulator PC or Macintosh Unix X11 NextStep

Addressing schema, Protocols, Format negotiation

FTP

News

Gopher

WAIS

HTTPGateway is

HTTP serverplus otherapplication.

Database, info

system, etc.

Internet Client/Server Architecture

3-31


32/38

Internet Security

Any resources linked to datacommunications have risk

Security by physically separating the Website from the firms computer resourcesSecurity by using passwords that allow

access to computing resourcesFirewalls using routers, intermediarycomputers or application-level methods

3-32


33/38

An Application-Level Firewall

ExternalServices

Border Router

IP ChokeProtocol Filter

Internal/ExternalService Gateway

Internal Router

Router

Isolation Mechanism

Internet ConnectivitySuppliers Network

Internet

Internal Network

Incoming packets from the Internet passthrough the connectivity suppliers network to a router and to the organization

The packet goes to a router box that duplicatesthe function of the external router

Rather than routing the packet directly to its destination, therouter redirects traffic through an external services host andan IP choke host

The external services host runs desired apps such as E-mailinterface

The IP choke performs actual protocol filtering

Traffic is sent through a gateway to a separate router boxon the internal network, configured according to internalsecurity policy

3-33


34/38

Intranet

Internet technology used for internalcommunications and applications

Used for many business applicationsrequiring communication

3-34


35/38

Business Applicationsfor the Internet

Marketing researchCompetitive intelligence

Retailing applicationsThe future impact of the Internet onbusiness is enhanced as the National

Information Infrastructure programsbecome established

3-35


36/38


37/38

Summary

E-Commerce begins with businessintelligence

Primary and secondary data comprisebusiness intelligenceReasons for IOS

Comparative efficiency Bargaining power

Three levels of EDI3-37


38/38

Summary [cont.]

Internet Network of networks

Security concerns Firewalls

Intranets

National information infrastructure

3-38

meljun cortes - using information technology engage ecommerce

Documents