1ISM 50 - Business Information SystemsLecture 9Instructor: John MusacchioUC Santa CruzOctober 21, 20102Class announcementsAssignment 3 due ThursdayReading for next classMesserschmitt Ch 5, Sun Case Suggestion: Read Messerschmitt Ch5 first.MIDTERM NEXT WEEK!!!10/283Student Presentations4E-CommerceMajor CategoriesConsumer (B2C)Inter-consumer (C2C)Inter-enterprise (B2B)5Consumer e-commerce (B2C)What have you bought on the Internet, or what do you buy most often?What are the advantages and disadvantages compared to a retail store or direct mail catalog?6Some AdvantagesFor the ConsumerCheck prices at many vendors with minimal effortPrice many optionsAnonymityOrder trackingFor the BusinessGlobal reachAutomate order taking (cost savings)Price Discrimination7Inter-Consumer (E-commerce)Prime ExampleE-BayOther examples?What value does something like E-bay add over a simple classifieds listing like craigslist?8Inter-Enterprise E-Commerce (B2B)ProcurementOne enterprise purchases goods or services from anotherDirect ProcurementOngoing, consistent, and scheduled procurementThe relationship between firms involved in direct procurement often called a Supply ChainThe set of problems associated with managing a supply chain is called Supply Chain Management (SCM)9SCMMemoryManufacturerHard DriveManufacturerCase ManufacturerPower SupplyManufacturerCPU ManufacturerMotherboard ManufacturerFinal AssemblyManufacturerThousands of orders per day, each with different requirements!Adjusting orders from suppliers constantly according to demandMinimal inventories Cut costsMuch more sensitive to errors or disruptionsmass customization requires sophisticated SCM10Networked Computing in direct ProcurementHistory predates InternetElectronic Data Interchange (EDI) Exchange order information between firms involved in direct procurementUsually large firms who could who afford proprietary communication linksInitially order and invoiceExisted since 70sFinancial EDI (FEDI) later added EFT payment capability11Networked Computing in direct ProcurementXML (Extensible Markup Language) is another data interchange format making an impact on inter-enterprise commerceWe will talk more about this later in the quarter.12Indirect ProcurementSporadic purchase of goods and services to support organizational objectivesExample: Office Furniture13AlibrisWhy did Interloc succeed so early on?14AlibrisIf Interloc is so successful, why change it?What will change as Interloc becomes Alibris?15AlibrisWhy did Manley feel they needed the Sparks facility?How does the Sparks facility keep them from becoming disintermediated?16AlibrisShould Alibris actually buy books and fill up the Sparks facility?17AlibrisWhat problems is Alibris having with its e-commerce capabilities?Why is Alibris having so much trouble setting up simple e-commerce capabilities?Is this really that hard??Is it rare for a new-software product from an established, reputable vendor not to work properly?18AlibrisShould Alibris stick with Oracle? Or switch back to Thunderstone?19AlibrisShould Manley take the white knights offer and fire the whole IT staff??!20AlibrisRejects white knight offerManley secures another bridge loanGoes Live 1998Thunderstones software works ok1 million books at Sparks warehouse by 2000Originally all on consignment from dealersLater, purchases books2002 Revenue $31 million, loss $7.2 million2003 Revenue $45.5 million, loss $4.8 millionMarch 2004 files for auction based IPOMay 2004, withdraws IPO after price too lowStill Relying on Private Financing21Data and informationbyDavid G. Messerschmitt22Copyright notice©Copyright David G. Messerschmitt, 2000. This material may be used, copied, and distributed freely for educational purposes as long as this copyright notice remains attached. It cannot be used for any commercial purpose without the written permission of the author.23Key conceptThe key commodity manipulated by information technology is informationTo be manipulated in a computing/networking environment, information must be represented by dataWhat is information?24InformationFrom a user (human) perspective.recognizable patterns that influence you in some way (perspective, understanding, behavior)In the computing infrastructure, information has a somewhat different connotation as structure and interpretation added to data25DataA bit is 0 or 1 the atom of the information economyData is a collection of bits, like01011101110101100000011111011101011010110101111011011010Note: the terms data and information are not always used consistently!26RepresentationTake the place of the originalEquivalent to, in the sense that the original can be reconstructed from its representationOften the original can only be approximately reconstructed, although it may be indistinguishable to the usere.g. audio or video27ASCII Alphabet Hex Binary<7> /x37 00110111<8> /x38 00111000<9> /x39 00111001<:> /x3A 00111010<;> /x3B 00111011<<> /x3C 00111100<=> /x3D 00111101</>> /x3E 00111110<?> /x3F 00111111<At> /x40 01000000<A> /x41 01000001<B> /x42 01000010<C> /x43 01000011<D> /x44 01000100Note that this representation isnot unique.this one happens to be a standard (ANSI X3.110-1983)StructureInterpretation28A pictureThis picture conveysinformationThis information is represented in this computer, but how?29Representation of picture: imageExpanding a small portion of thepicture, we see that it is representedby square pixels..300 tall by 200 wide...with a range of 256 intensities per pixel300 200 8 bits = 480,000 bits (but it can be compressed)Anapproximation!StructureInterpretation30Color pictureA color picture can berepresented by threemonochrome imagesAt the expense of threetimes as many bits31TerminologyInformationDataInformationDataCommunicate data toanother user or organizationRepresentationDataprocessingSlide adapted from slides for Understanding
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