Fundamentals of Information Systems, Fifth Edition Chapter 5 Electronic and Mobile Commerce and Enterprise SystemsPrinciples and Learning Objectives • Electronic commerce and mobile commerce are evolving, providing new ways of conducting business that present both opportunities for improvement and potential problems – Describe the current status of various forms of e-commerce, including B2B, B2C, C2C, and m-commerce – Identify several e-commerce and m-commerce applications – Identify several advantages associated with the use of e-commerce and m-commerce Fundamentals of Information Systems, Fifth Edition 2Principles and Learning Objectives (continued) • E-commerce and m-commerce require the careful planning and integration of a number of technology infrastructure components – Identify the key components of technology infrastructure that must be in place for e-commerce and m-commerce to work – Discuss the key features of the electronic payment systems needed to support e-commerce and m-commerce. Fundamentals of Information Systems, Fifth Edition 3Principles and Learning Objectives (continued) • An organization must have information systems that support the routine, day-today activities that occur in the normal course of business and help a company add value to its products and services – Identify the basic activities and business objectives common to all transaction processing systems – Identify key control and management issues associated with transaction processing systems Fundamentals of Information Systems, Fifth Edition 4Principles and Learning Objectives (continued) • A company that implements an enterprise resource planning system is creating a highly integrated set of systems, which can lead to many business benefits – Discuss the advantages and disadvantages associated with the implementation of an enterprise resource planning system – Identify the challenges multinational corporations must face in planning, building, and operating their TPSs Fundamentals of Information Systems, Fifth Edition 5An Introduction to Electronic Commerce • Electronic commerce – Conducting business activities electronically over computer networks such as the Internet, extranets, and corporate networks • Business activities that are strong candidates for conversion to e-commerce: – Paper-based – Time-consuming – Inconvenient for customers Fundamentals of Information Systems, Fifth Edition 6Business-to-Business (B2B) E-Commerce • A subset of e-commerce where all the participants are organizations • Useful tool for connecting business partners in a virtual supply chain to cut resupply times and reduce costs Fundamentals of Information Systems, Fifth Edition 7Business-to-Consumer (B2C) E-Commerce • Business-to-consumer (B2C) e-commerce – Businesses sell their products directly to consumers • Elimination of intermediaries – Squeezes costs and inefficiencies out of supply chain – Can lead to higher profits for companies and lower prices for consumers Fundamentals of Information Systems, Fifth Edition 8Consumer-to-Consumer (C2C) E-Commerce • Consumer-to-consumer (C2C) e-commerce – Consumers sell directly to other consumers – Example: eBay Fundamentals of Information Systems, Fifth Edition 9eGovernment • Use of information and communications technology to: – Simplify the sharing of information – Speed formerly paper-based processes – Improve the relationship between citizen and government • Forms of eGovernment – Government-to-consumer (G2C) – Government-to-business (G2B) – Government-to-government (G2G) Fundamentals of Information Systems, Fifth Edition 10Mobile Commerce • Relies on the use of wireless devices, such as personal digital assistants, cell phones, and smart phones, to place orders and conduct business Fundamentals of Information Systems, Fifth Edition 11Mobile Commerce in Perspective • Market for m-commerce in North America is maturing much later than in Western Europe and Japan • Japanese consumers – Generally enthusiastic about new technology – Much more likely to use mobile technologies for making purchases Fundamentals of Information Systems, Fifth Edition 12Electronic and Mobile Commerce Applications • Retail and wholesale – Electronic retailing (e-tailing) • Direct sale from business to consumer through electronic storefronts – Cybermall • Single Web site that offers many products and services at one Internet location Fundamentals of Information Systems, Fifth Edition 13Manufacturing • Electronic exchange – Electronic forum where manufacturers, suppliers, and competitors buy and sell goods, trade market information, and run back-office operations • Private exchanges – Owned and operated by a single company • Public exchanges – Owned and operated by industry groups Fundamentals of Information Systems, Fifth Edition 14Fundamentals of Information Systems, Fifth Edition 15 Manufacturing (continued)Marketing • Market segmentation – The identification of specific markets to target them with advertising messages • Technology-enabled relationship management – Use of detailed information about a customer’s behavior, preferences, needs, and buying patterns to set prices, negotiate terms, tailor promotions, and add product features Fundamentals of Information Systems, Fifth Edition 16Investment and Finance • The brokerage business – Adapted to the Internet faster than any other arm of finance • Electronic bill presentment – Vendor posts an image of your statement on the Internet and alerts you by e-mail that your bill has arrived Fundamentals of Information Systems, Fifth Edition 17Fundamentals of Information Systems, Fifth Edition 18 Online Real Estate Services • Redfin – Online real estate company that provides both online real estate search capabilities and access to live agents – Pays bonuses to agents when they receive high customer satisfaction ratingsAuctions • Popular online auction Web sites – eBay, Craigslist, uBid, Auctions, Onsale • English auction – Initial price starts low and is bid up by successive bidders • Reverse auction – Sellers compete to obtain business by
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