Electronic Commerce and Transaction Processing Systems Fundamentals of Information Systems, Second Edition 1 Principles and Learning Objectives • E-commerce is a new way of conducting business, and as with any other new application of technology, it presents both opportunities for improvement and potential problems. Fundamentals of Information Systems, Second Edition 2 Principles and Learning Objectives • E-commerce requires the careful planning and integration of a number of technology infrastructure components. Fundamentals of Information Systems, Second Edition 3 Principles and Learning Objectives • An organization’s transaction processing system (TPS) must support the routine, day-to-day activities that occur in the normal course of business and help a company add value to its products and services. Fundamentals of Information Systems, Second Edition 4 Principles and Learning Objectives • Implementation of an enterprise resource planning (ERP) system enables a company to achieve numerous business benefits through the creation of a highly integrated set of systems. Fundamentals of Information Systems, Second Edition 5 Introduction to Electronic Commerce Fundamentals of Information Systems, Second Edition 6 Electronic Commerce • Business-to-consumer (B2C) e-commerce • Business-to-business (B2B) e-commerce • Consumer-to-consumer (C2C) e-commerce Fundamentals of Information Systems, Second Edition 7 Supply Chain Management Fundamentals of Information Systems, Second Edition 8 Value Chains in E-Commerce • Conversion to e-commerce supply chain management provides businesses with an opportunity to: – increase revenues or decrease costs by eliminating time-consuming and labor-intensive steps throughout the order and delivery process – improve customer satisfaction by enabling customers to view detailed information about delivery dates and order status – reduce inventory including raw materials, safety stocks, and finished goods Fundamentals of Information Systems, Second Edition 9 Product and Information Flow for HP Printers Ordered Over the Web Fundamentals of Information Systems, Second Edition 10 E-Commerce Applications Fundamentals of Information Systems, Second Edition 11 E-Commerce Applications • • • • • Retail and Wholesale Manufacturing Marketing Investment and Finance Auctions Fundamentals of Information Systems, Second Edition 12 Retail and Wholesale • Electronic retailing - the direct sale from business to consumer through electronic storefronts • Cybermall - a single Web site that offers many products and services at one Internet location Fundamentals of Information Systems, Second Edition 13 Model of an Electronic Exchange Fundamentals of Information Systems, Second Edition 14 Technology, Infrastructure, and Development Fundamentals of Information Systems, Second Edition 15 Key E-Commerce Technical Components Fundamentals of Information Systems, Second Edition 16 Hardware • The amount of storage capacity and computing power required of the Web server depends primarily on two things: – the software that must run on the server – the volume of e-commerce transactions that must be processed Fundamentals of Information Systems, Second Edition 17 Software • • • • • • Web site development tools Web page construction software E-commerce software Catalog software Product configuration software Electronic shopping cart Fundamentals of Information Systems, Second Edition 18 Electronic Shopping Cart Fundamentals of Information Systems, Second Edition 19 Electronic Payment Systems • Electronic cash • Electronic wallets • Credit, charge, debit, and smart cards Fundamentals of Information Systems, Second Edition 20 An Overview of Transaction Processing Systems Fundamentals of Information Systems, Second Edition 21 TPS, MIS/DSS, and Special-Purpose Information Systems Fundamentals of Information Systems, Second Edition 22 Traditional Transaction Processing Methods • Batch processing – method of computerized processing in which business transactions are accumulated over a period of time and prepared for processing as a single unit • On-line transaction processing (OLTP) method of computerized processing in which each transaction is processed immediately and the affected records are updated Fundamentals of Information Systems, Second Edition 23 Batch versus On-Line Processing Fundamentals of Information Systems, Second Edition 24 Integration of a Firm’s TPSs Fundamentals of Information Systems, Second Edition 25 Transaction Processing Activities • • • • • • Data collection Data editing Data correction Data manipulation Data storage Document production and reports Fundamentals of Information Systems, Second Edition 26 Data Processing Activities Common in Transaction Processing Systems Fundamentals of Information Systems, Second Edition 27 Point-of-Sale Transaction System Fundamentals of Information Systems, Second Edition 28 Systems that Support Order Processing Fundamentals of Information Systems, Second Edition 29 Order Processing Systems Fundamentals of Information Systems, Second Edition 30 Business Resumption Planning The process of anticipating and minimizing the effects of disasters. • Focuses primarily on two issues: – maintaining the integrity of corporate information – keeping key information systems running until normal operations can be resumed • Disaster recovery – implementation of the business resumption plan Fundamentals of Information Systems, Second Edition 31 Enterprise Resource Planning Fundamentals of Information Systems, Second Edition 32 Some ERP Software Vendors Fundamentals of Information Systems, Second Edition 33 Commonalities Among ERP Systems • • • • Integrate data Operate in Client/Server Environment Based on Objects Employ Control Tables Fundamentals of Information Systems, Second Edition 34 Advantages of ERP • Elimination of costly, inflexible legacy systems • Improvement of work processes • Increase in access to data for operational decision making • Upgrade of technology infrastructure Fundamentals of Information Systems, Second Edition 35 Disadvantages of ERP • Expense and time in implementation • Difficulty integrating with other systems • Risks in using one vendor Fundamentals of Information Systems, Second Edition 36