MIS 301 Information Systems in Organizations Dave Salisbury

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 n n n n Describe electronic commerce, its scope, benefits, limitations, and types Describe B 2 B, B 2 C, C 2 C C 2 B and (what I’ll call) E 2 E (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 n n n 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: n n n the product (service) sold the process the delivery agent (or intermediary)

E-Commerce – How and Where n n n 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 n n Business-to-business (B 2 B)-Sellers and buyers are business organizations Collaborative commerce (c-commerce)Business partners collaborate electronically Business-to-consumers (B 2 C)-Sellers are organizations, buyers are individuals Consumers-to-businesses (C 2 B)-Consumers advertise an interest in a product or service and suppliers compete

E-Business – Transaction Types n n n Consumer-to-consumer (C 2 C): 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 B 2 E (business to its employees) Government-to-citizens (G 2 C): A government provides services to its citizens via EC technologies. Mobile commerce (m-commerce): When e-commerce is done in a wireless environment. Now it seems it’s pretty much E 2 E (everyone to everyone, everywhere)

Components of EC

Business-To-Consumer – B 2 C n Electronic retailing (e-tailing) - the direct sale of products through electronic storefronts or electronic malls n Electronic Storefronts. n solo online storefronts n n Home Depot The Sharper Image Wal-Mart Electronic mall (a. k. a. cybermall, e-mall) n n n 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 – B 2 C n n n 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 – B 2 C n n n n 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 n n Phase 1: Requirements Phase 2: Acquisition Phase 3: Ownership Phase 4: Retirement

Market Research - Asking & Deriving n n 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. n n Brand- and Vendor-Finding Agents and Price Comparisons Search Agents Collaborative Filtering Agents Other Agents

Online Advertising n Banners are electronic billboards and is the most commonly used form of advertising on the Internet n n n Pop-Up, Pop-Under, and Similar Ads. n n n 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 n Unsolicited Advertising n n n Spamming Permission Marketing Viral Marketing Interactive Advertising and Marketing On-line Promotions On-line Coupons

Business-To-Business – B 2 B n n 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 n Group purchasing n n n 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 n n n 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 n Vertical distributors for direct materials n n n Vertical exchanges for indirect materials n n n indirect materials purchased on an “as-needed” basis spot sourcing - prices are dynamic Horizontal distributors n n n 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 n n 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 – B 2 E n Companies do business electronically with their own employees n n n They disseminate information to employees over the intranet Fringe benefit management Training classes Electronic corporate stores Sales force automation n Automate sales tasks n n n n order processing contact management information sharing inventory control order tracking customer management sales forecast analysis

E-Government The use of Internet technology and e-commerce to deliver information and public services to citizens, business partners and suppliers, the public sector. : n government-to-citizens (G 2 C) n government-to-business (G 2 B) n government-to-government (G 2 G) n

Consumer-To-Consumer – C 2 C n n C 2 C Auctions Classified Ads Personal Services Support Services to C 2 C

Electronic Payment & Security Client Browser • Verify merchant • Receive order • Receive payment • Confirm order Merchant’s Web Server Payment Server Credit cards Bank accounts Online buying VISA Debit Cards Cyber. Cash Master. Card Online Banking 1 Click. Charge • Verify customer • Review payment • Authorize or deny payment E-Bill Payment Electronic Cash Check. Free Cybergold Biller. Xpert Qpass

Ethical & Legal Issues in E(&M)Business n n n n Privacy Web Tracking Loss of Jobs Disintermediation Reintermediation Fraud Security n n n Domain Names & Cybersquatting Taxes & Fees Copyright Buyer Protection Seller Protection

Mobile & Ubiquitous Computing n n 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 n E-commerce or e-business activities performed in a wireless environment n n n Financial applications Inventory management Field Service management Product locating Real Estate

Mobile Computing Basic Terminology n n Personal digital assistant (PDA) Short Message Service (SMS) Enhanced Messaging Service (EMS) Multimedia Messaging Service (MMS)

More Mobile Computing Basic Terms n n n Wireless Application Protocol (WAP). Internet browsing from wireless devices. Smartphones. Internet-enabled cell phones that support mobile applications. Wi-Fi (Wireless Fidelity). 802. 11 b 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 n n n 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 n n n Ubiquity Convenience Instant connectivity Personalization Localization of products and services

Mobile Computing – Drivers n n n 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 n n n 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. n n n n 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 n n n 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 n n 802. 11 b Speeds up to 11 Mbps 802. 11 a and 802. 11 g Speeds up to 54 Mbps Wireless Encryption Protocol (WEP) Shows up at some bookstores and other places (Panera)

Mobile Computing Financial Services n n n n 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 n n n Restaurant chains enabling consumers to place an order for pick up or delivery virtually any time, anywhere. e. Bay offers “anywhere wireless” services as does Amazon. com Purchasing movie tickets by wireless device

Mobile Computing Advertising n n n 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 n n Support Of Mobile Workers Wearable Devices n n n Camera Screen Keyboard/Touch-panel display Speech translator Job Dispatch. To assign jobs to mobile employees, along with info about the task. n n n 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 n n 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 B 2 B n By integrating the mobile device into the supply chain, it is possible to n n n 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 n n n 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 n n 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 n n 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 n Location-based advertising. n n n 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 (On. Star system by GM)

Mobile Computing – Pervasive Computing n n 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) n Smart homes n n n Smart Cars with microprocessors… n n n 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” n n n 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 n n n n 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 n n n n Comparing wireless to synchronized mobile devices Timetable Setting applications priorities Just buzzwords (or buy a letter)? Choosing a system Privacy/Security Managing the impacts