Review for Exam 3
• Chapters 7 & 8
What is e-commerce?
• Exchange or buying and selling of
products and services by electronic
means.
What are the electronic
payment systems?
• EFT (Electronic Funds Transfer)
• Electronic checks
• Electronic credit cards
• Electronic wallets
What is EFT?
• Electronic transfer of money to and
from financial institutions using
telecommunications networks.
What is an electronic wallet?
• An e-wallet is a software that is
downloaded to a user’s PC and in
which the user stores credit card
numbers and other personal
information.
What are the categories of
Electronic Commerce?
• business-to-consumer,
• business-to-business, and
• consumer-to-consumer
• M-commerce
What is Business-to-consumer
(B2C)
e-commerce?
• Retailing products and services to
individual shoppers
What is Business-to-business
(B2B)
e-commerce?
• Involves sales of goods and services
among businesses.
What is Consumer-to-consumer
(C2C)
e-commerce?
• Involves consumers selling directly to
consumers.
What is m-commerce?
• Conduct of e-commerce via wireless
devices.
What are the Benefits of Ecommerce to organizations?
Expands a company’s marketplace to
national and international markets.
Enables companies to procure material
and services from other companies,
rapidly and at less cost.
Lower telecommunications costs
Helps small businesses compete against
large companies.
Allows lower inventories.
What are the Benefits of Ecommerce to customers?
 Provides less expensive products and services by
allowing the consumers to conduct quick online
comparisons.
 Give consumers more choices than they could
easily locate otherwise.
 Enables customers to shop or make other
transactions 24 hours a day, from almost any
location.
 Delivers relevant and detailed information in
seconds.
 Enables consumers to get customized products,
from PCs to cars, at competitive prices.
 Makes possible electronic auctions.
What are the technical
limitations of e-commerce?
Insufficient telecommunications
bandwidth.
Need for special Web servers in
addition to the network servers.
Expensive and/or inconvenient
Internet accessibility for many
would-be users.
What are the non-technical
limitations of e-commerce?
Unsolved legal issues
Lack of national and international
government regulations and industry
standards
Customer resistance to changing from a
real to a virtual store.
Perception that EC is expensive and
unsecured.
An insufficient number of sellers and
buyers exists for profitable EC operations.
What are the major categories
of B2C applications?
• Major categories of B2C applications
are electronic retailing, electronic
storefronts, and electronic malls
What is e-tailing?
• Electronic retailing (e-tailing) is the
direct sale of products through
electronic storefronts or electronic
malls.
What is an electronic mall?
• An electronic mall, also known as a
cybermall or e-mall, is a collection of
individual shops under one internet
address.
What are the examples of
service industries online?
• cyberbanking,
• trading of securities (stocks, bonds),
• job matching,
• auctions
• travel ,and
• real estate.
What are the major categories
of B2B Applications?
• sell-side marketplace,
• buy-side marketplace, and
• electronic exchanges.
What is Sell-side
marketplace?
• The sell-side marketplace is a model
in which there are many buyers but
one seller.
What is a buy-side
marketplace?
• The buy-side marketplace is a model
in which there are many sellers but
one buyer.
What is an electronic
exchange model?
• The electronic exchanges refer a
model in which there are many
sellers and many buyers.
CHAPTER 8
What are the three levels of
management activity?
• Operational
• Tactical
• Strategic
Operational management
level?
• Composed of supervisory managers
that develop short-range plans such
as weekly production schedules.
Tactical management level?
• Composed of middle managers that
develop short- and medium-range
plans
Strategic management level
• Composed of a board of directors
and an executive committee of the
CEO who develop overall
organizational goals, strategies,
policies as a part of a strategic
planning process.
What is a Structured
decision?
• Repetitive and routine problems for
which standard solution exist.
• The procedures to follow can be
specified in advance.
What is a Semi-structured
decision?
• Some decision procedures can be
pre-specified, but not enough to lead
to a definite recommended decision.
What is an Unstructured
Decision?
• The procedures cannot be specified
in advance.
• Unstructured problems are novel and
non-routine, complex.
• Ex: new business planning
Decisions made at the
operational management level
tend to be more
• Structured
Decisions made at the tactical
management level tend to be
more
• Semi-structured
Decisions made at the
strategic management level
tend to be more
• Unstructured
What are the management
support systems?
• Management Information systems
• Decision support systems
• Executive information systems
What is an exception
report?
• Exception reports, highlighting only
exceptional conditions, such as when
a customer exceeds their credit limit,
a manager would probably get an
exception report.
What are the characteristics of
the Decision Support
Systems?
• Interactive
• Supports semi-structured and
unstructured decisions
What is a What-if analysis?
• What-if analysis attempts to check
the impact of a change in the
assumptions on the proposed
solution.
• What if we cut advertising by 10
percent?
What is a Sensitivity
Analysis?
• When the value of one variable is
changed repeatedly and the resulting
changes in other variables are
observed.
What is a goal-seeking
model?
• Attempts to find the value of the
inputs necessary to achieve a desired
level of outputs.
What is Data Visualization?
• Data visualization refers to
presentation of data in graphical
form instead of traditional form of
text and table.
What is Geographical
Information System (GIS)?
• A GIS is a data visualization
technology that captures, stores,
checks, integrates, manipulates, and
displays data using digitized maps.
What are the characteristics of
Executive Information Systems
(EIS)?
• Provide management with immediate
and easy access to information about
the firm’s critical success factors.
• Are most useful to managers at the
strategic level of management.
• Support unstructured decisionmaking process.
What is drill down?
• provides details behind any given
information.
What is Data mining?
• organizing valuable business
information in a large database
What is Artificial
Intelligence?
• AI is the effort to develop computer
based systems that behave as
humans.
What are the major areas of
AI?
• Cognitive science
• Robotics
• Natural interfaces
What are the major areas
of Cognitive science?
• intelligent agents,
• neural networks,
• fuzzy logic.
What is an Intelligent
agent?
• It is a software surrogate for end
user or process that fulfills a stated
need or activity.
Systems that use massively
parallel processors whose
architecture is based on the
human brain’s neuron
structure are called
• Artificial Neural Networks
What is a Fuzzy Logic
system?
• system that can process ambiguous
data and quickly provides
approximate, but acceptable
solutions to problems.
What are the characteristics
of an Expert system?
• They are designed to replicate and
then to replace a human advisor.
• They transfer expertise from an
expert and documented sources to a
computer and then to the user.