MIS 301
Information Systems in Organizations
Dave Salisbury
salisbury@udayton.edu (email)
http://www.davesalisbury.com/ (web site)
Business and Commerce –
Here, there and everywhere
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Describe electronic commerce, its scope, benefits, limitations,
and types
Describe B2B, B2C, C2C C2B and (what I’ll call) E2E
(everyone to everyone)
Describe e-government activities
Describe the back-office aspects of e-commerce
Discuss some ethical and legal EC issues.
Understand the technologies and conditions that drive mobile
computing
Discuss m-commerce applications and how they work for
individuals and business organizations
Discuss pervasive computing
Electronic Business
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E-commerce & E-Business
Electronic commerce can take several forms
depending on the degree of digitization (the
transformation from physical to digital).
The degree of digitization relates to:
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the product (service) sold
the process
the delivery agent (or intermediary)
E-Commerce – How and Where
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Brick-and-mortar (or old-economy) refer to
pure physical organizations (corporations)
Virtual (or pure-play) organizations are
companies that are engaged only in EC
Click-and-mortar (or click-and-brick)
organizations are those that conduct some ecommerce activities, yet their primary
business is done in the physical world
E-Business – Transaction Types
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Business-to-business (B2B)-Sellers and
buyers are business organizations
Collaborative commerce (c-commerce)Business partners collaborate electronically
Business-to-consumers (B2C)-Sellers are
organizations, buyers are individuals
Consumers-to-businesses (C2B)-Consumers
advertise an interest in a product or service
and suppliers compete
E-Business – Transaction Types
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Consumer-to-consumer (C2C): Individuals sell
products or services to other individuals.
Intrabusiness (intraorganizational) commerce: An
organization uses EC internally to improve its
operations. A special case is known as B2E (business
to its employees)
Government-to-citizens (G2C): A government
provides services to its citizens via EC technologies.
Mobile commerce (m-commerce): When ecommerce is done in a wireless environment.
Now it seems it’s pretty much E2E (everyone to
everyone, everywhere)
Components of EC
Business-To-Consumer – B2C
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Electronic retailing (e-tailing) - the direct sale of
products through electronic storefronts or electronic
malls
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Electronic Storefronts.
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solo online storefronts
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Home Depot
The Sharper Image
Wal-Mart
Electronic mall (a.k.a. cybermall, e-mall)
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collection of individual shops under one address
Idea is same as a regular shopping mall - a one-stop shopping
place
Amazon looks a lot like this today…
E-tailing Issues – B2C
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Resolving channel conflict (why pay retail when I can
buy wholesale? – at least until the retailer gets mad)
Resolving conflicts within click-and-mortar
organizations (Barnes & Noble had this problem)
Organizing order fulfillment and logistics (small loads,
lots of buyers)
Determining viability and risk of online e-tailers
Identifying appropriate revenue models (No, clickthroughs and page hits aren’t the same as sales)
Service Industries – B2C
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Electronic banking
International and Multiple-Currency Banking
Online Securities Trading
Online Job Market
Travel Services
Real Estate
Don’t all of these appear to have high
information intensity?
Customer Resource Life Cycle
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Phase
Phase
Phase
Phase
1:
2:
3:
4:
Requirements
Acquisition
Ownership
Retirement
Market Research - Asking & Deriving
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Asking Customers What They Want: The Internet provides easy,
fast, and relatively inexpensive ways for vendors to find out
what customers want by interacting directly with them. The
simplest way is to ask potential customers to fill in electronic
questionnaires.
Observing Customer Behavior on the Web: The Web is a rich
source of business intelligence captured from a company’s Web
sites. By analyzing the user behavior patterns contained in the
clickstream data inference about behavior can be made.
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Brand- and Vendor-Finding Agents and Price Comparisons
Search Agents
Collaborative Filtering Agents
Other Agents
Online Advertising
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Banners are electronic billboards and is the most
commonly used form of advertising on the Internet
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Pop-Up, Pop-Under, and Similar Ads.
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Keyword banners appear when a predetermined word is
queried from a search engine.
Random banners appear randomly
A pop-up ad appears in front of the current browser window.
A pop-under ad appears underneath the active window.
E-Mail Advertising.
Electronic Catalogs and Brochures.
Other Forms of Internet Advertising
Advertising Issues and Approaches
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Unsolicited Advertising
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Spamming
Permission Marketing
Viral Marketing
Interactive Advertising and Marketing
On-line Promotions
On-line Coupons
Business-To-Business – B2B
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Sell-Side Marketplaces: sell products or
services to other organizations
electronically
Buy-Side Marketplaces: buy needed
products or services from other
organizations electronically, perhaps
with a request for quotation (RFQ)
E-procurement
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Group purchasing
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requirements of many buyers are aggregated so that they
total a large volume
buyers’ orders are aggregated and placed on a reverse
auction
Desktop purchasing
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suppliers’ catalogs are aggregated into an internal master
catalog
Company purchasing agents can shop more conveniently
Most suitable for maintenance, replacement, and operations
indirect items (e.g. office supplies)
Electronic Exchanges
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Vertical distributors for direct materials
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Vertical exchanges for indirect materials
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indirect materials purchased on an “as-needed” basis
spot sourcing - prices are dynamic
Horizontal distributors
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direct materials (materials that are inputs to manufacturing)
long-term relationship - systematic sourcing
“many-to-many” e-marketplaces for indirect (MRO) materials
Prices are fixed or negotiated in this systematic sourcing exchange.
Functional exchanges
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temporary help or extra resources traded on an “as-needed” basis
(spot sourcing)
Prices are dynamic, vary depending on supply and demand
Business-To-Employees – B2E
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Companies do business electronically with their own
employees
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They disseminate information to employees over the intranet
Fringe benefit management
Training classes
Electronic corporate stores
Sales force automation
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Automate sales tasks
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order processing
contact management
information sharing
inventory control
order tracking
customer management
sales forecast analysis
E-Government
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The use of Internet technology and
e-commerce to deliver information
and public services to citizens,
business partners and suppliers,
the public sector. :
government-to-citizens (G2C)
government-to-business (G2B)
government-to-government (G2G)
Consumer-To-Consumer – C2C
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C2C Auctions
Classified Ads
Personal Services
Support Services to C2C
Electronic Payment & Security
Merchant’s
Web Server
Client
Browser
•Verify merchant
•Receive order
•Receive payment
•Confirm order
Payment
Server
Credit cards Bank accounts Online buying
VISA
Debit Cards
CyberCash
MasterCard Online Banking 1 ClickCharge
•Verify customer
•Review payment
•Authorize or deny payment
E-Bill Payment Electronic Cash
CheckFree
Cybergold
BillerXpert
Qpass
Ethical & Legal Issues in E(&M)Business
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Privacy
Web Tracking
Loss of Jobs
Disintermediation
Reintermediation
Fraud
Security
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Domain Names &
Cybersquatting
Taxes & Fees
Copyright
Buyer Protection
Seller Protection
Mobile & Ubiquitous Computing
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Computers small enough to be truly mobile
Replace wires with wireless communication
Combine mobile devices and a wireless
environment
Ubiquitous Computing – computing
anytime anywhere
Mobile Commerce
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E-commerce or e-business activities
performed in a wireless environment
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Financial applications
Inventory management
Field Service management
Product locating
Real Estate
Mobile Computing Basic Terminology
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Personal digital assistant (PDA)
Short Message Service (SMS)
Enhanced Messaging Service (EMS)
Multimedia Messaging Service (MMS)
More Mobile Computing Basic Terms
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Wireless Application Protocol (WAP). Internet
browsing from wireless devices.
Smartphones. Internet-enabled cell phones that
support mobile applications.
Wi-Fi (Wireless Fidelity). 802.11b standard which
means most of the wireless local area networks.
Global positioning system (GPS) . A satellite based
tracking system determines a GPS device’s location.
WLAN. Wireless local area network.
Mobile Computing – Characteristics
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Mobility implies portability - users carry
a mobile device everywhere
Users can initiate real-time contact with
other systems anywhere, any time
Broad reach – everybody can be
reached any time
Mobile Computing – Attributes
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Ubiquity
Convenience
Instant connectivity
Personalization
Localization of products and services
Mobile Computing – Drivers
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Widespread availability of mobile
devices
No need for a PC – not tied down
The handset culture
Vendors are pushing m-commerce
Declining prices and increased
functionality
Improvement of bandwidth
Mobile Computing Infrastructure
Hardware
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Internet Enabled Cellular
Phones
Attachable keyboard (nice to
have)
Personal digital assistants
(PDAs) with Internet access
Interactive pagers (with
limited mobile computing
capability)
E-mail handhelds – email
without having to dial up.
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WAN modem
Wireless LAN or MAN
adapter
Web server w/ wireless
support
WAP gateway
Communications server
Application and/or database
server
Enterprise application server
GPS locator
Wireless LAN’s
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Wireless access point (a.k.a. “hot spot”) - a
transmitter with an antenna, connected to a wired
LAN that provides an Internet connection
Wireless network card
WLAN’s employ the Wi-Fi (wireless fidelity) standard
developed by the IEEE
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802.11b Speeds up to 11Mbps
802.11a and 802.11g Speeds up to 54 Mbps
Wireless Encryption Protocol (WEP)
Shows up at some bookstores and other places
(Panera)
Mobile Computing Financial Services
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Banking: mobile access to financial & account data
Wireless payment
Micropayments
Wireless wallets store an online shopper’s credit card
numbers and other personal information
Bill payment services directly from a mobile device
Brokerage services enable stock trades and quotes
Mobile Money transfers
Mobile Computing Shopping
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Restaurant chains enabling consumers
to place an order for pick up or delivery
virtually any time, anywhere.
eBay offers “anywhere wireless”
services as does Amazon.com
Purchasing movie tickets by wireless
device
Mobile Computing Advertising
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This location-sensitive advertising, will
informing a user about:
sales at a specific shop or mall
today’s specials at a restaurant
loyalty programs
and much more
all when a potential buyer is within
close proximity.
Mobile Intrabusiness and Enterprise
Applications
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Support Of Mobile Workers
Wearable Devices
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Camera
Screen
Keyboard/Touch-panel display
Speech translator
Job Dispatch. To assign jobs to mobile employees, along with
info about the task.
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transportation (delivery of food, oil, newspapers, cargo, courier
services)
Utilities measurement (gas, electricity, phone, water)
Field service (computer, office equipment, home repair)
Health care (visiting nurses, doctors, social services)
Security (patrols, alarm installation).
Mobile Computing – Intrabusiness
Applications
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Wireless networking, used to pick items
out of storage via PCs mounted on
forklifts
Delivery-status updates, entered on PCs
inside distribution trucks
Collection of data such as competitors’
inventories and prices
Taking physical inventories
Mobile Computing – Mobile B2B
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By integrating the mobile device into
the supply chain, it is possible to
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make mobile reservations of goods
check availability of a particular item in the
warehouse
order a particular product
provide security access to confidential
financial data
reduce clerical mistakes and improve
operations
Mobile Computing – Location-based
Commerce
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Location: determining the basic position of a
person or a thing (e.g., car or boat).
Navigation: plotting a route from one location
to another.
Tracking: monitoring the movement of a
person or a thing (e.g., a package or vehicle).
Mapping: creating maps of specific
geographical locations.
Timing: determining the precise time at a
specific location
Mobile Computing – L-Commerce
Technologies
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Position Determining Equipment like GPS
Location-based technology – servers that
combine the position information with
geographic- and location-specific content to
provide an l-commerce service
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Geographic content (streets, maps, addresses,
etc.).
Location-specific content - used in conjunction
with the geographic content to provide the
location of particular services
Mobile Computing – L-Commerce
Applications
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Location-based advertising.
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The wireless device is detected and ads are directed to it
Dynamic billboard ads personalized specifically for the
occupant of an approaching car
Ads on vehicles (taxicabs, trucks, buses) will change based
on the vehicles location
E-911 emergency cell phone calls
Telematics and telemetry applications – use of
computers and wireless communications in order to
improve information flow (OnStar system by GM)
Mobile Computing – Pervasive
Computing
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RFID (radio frequency identification) tag
attached to items for sale.
Active badges worn as ID cards by
employees.
Memory buttons are nickel-sized devices
that store information relating to
whatever it is attached to.
Contextual computing
Mobile Computing – Pervasive
Computing (continued)
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Smart homes
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Smart Cars with microprocessors…
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local Intranet where appliances within the home communicate with
each other
television, lighting, heating controls and home security are
programmed and monitored by the system.
controlling the radio, transmission, active suspension
Remembering your seat position and temperature
Providing HUDs
Diagnostics (e.g. low tire pressure, sensors accessed by mechanics)
Smart “Things”
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Barcodes
Auto Identification (Auto-ID)
RFID: It is used in wireless tollbooth systems, such as E-Z Pass.
Success in E (&M)-Commerce
Selection & Value
Performance & Service
Look & Feel
Advertising & Incentives
Some Key
Factors
for Success
in E (&M)
-commerce
Personal Attention
Community Relationships
Security & Reliability
E (&M)-Business Managerial Issues
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Managing resistance to
change.
Integration of e-commerce
into the business
environment.
Lack of qualified personnel
and outsourcing.
Alliances.
Implementation plan
Choosing the company’s
strategy toward e(&m)commerce.
Justifying e(&m)-commerce
Order fulfillment
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Comparing wireless to
synchronized mobile devices
Timetable
Setting applications priorities
Just buzzwords (or buy a
letter)?
Choosing a system
Privacy/Security
Managing the impacts