1 N.Karami, MIS-Spring 2012
Management Information Systems
Enterprise E-business & E-Commerce Systems
Graduate School of
Management & Economics
Enterprise E-Business
& E-Commerce
Systems
2 N.Karami, MIS-Spring 2012
Management Information Systems
Enterprise E-business & E-Commerce Systems
Graduate School of
Management & Economics
Learning Objectives
• Describe E-business & E-commerce, including its
scope, benefits, limitations, and types.
• Distinguish between pure and partial electronic
commerce.
• Differentiate among business-to-consumer,
business-to-business, consumer-to-consumer,
business-to-employee and government-to-citizen
electronic commerce.
• Describe the major e-commerce support services.
• Discuss some ethical and legal issues relating to e-
commerce.
3 N.Karami, MIS-Spring 2012
Management Information Systems
Enterprise E-business & E-Commerce Systems
Graduate School of
Management & Economics
Opening Case
4 N.Karami, MIS-Spring 2012
Management Information Systems
Enterprise E-business & E-Commerce Systems
Graduate School of
Management & Economics
E-Business & E-Commerce:
Overview
• E-business
• Use of digital technology and Internet to drive
major business processes
• E-commerce
• Subset of e-business
• Buying and selling goods and services
through Internet
5 N.Karami, MIS-Spring 2012
Management Information Systems
Enterprise E-business & E-Commerce Systems
Graduate School of
Management & Economics
Every business, regardless of
its size, must perform four
functions to succeed. It must
produce the product or
service; market and sell the
product; keep track of
accounting and financial
transactions; and perform
basic human resources tasks,
such as hiring and retaining
employees.
The Four Major Functions of a
Business
6 N.Karami, MIS-Spring 2012
Management Information Systems
Enterprise E-business & E-Commerce Systems
Graduate School of
Management & Economics
Accounting information systems include features that reflect up-to-date performance of
the organization in financial terms.
Accounting Systems
7 N.Karami, MIS-Spring 2012
Management Information Systems
Enterprise E-business & E-Commerce Systems
Graduate School of
Management & Economics
Financial information systems help manage cash and investment portfolios.
Finance Systems
8 N.Karami, MIS-Spring 2012
Management Information Systems
Enterprise E-business & E-Commerce Systems
Graduate School of
Management & Economics
Marketing and sales information systems help target potential buyers and serve clients.
Sales and Marketing Systems
9 N.Karami, MIS-Spring 2012
Management Information Systems
Enterprise E-business & E-Commerce Systems
Graduate School of
Management & Economics
Manufacturing, Production and inventory control information systems help reduce cycle
times and the cost of maintaining inventory.
Manufacturing and Production
Systems
10 N.Karami, MIS-Spring 2012
Management Information Systems
Enterprise E-business & E-Commerce Systems
Graduate School of
Management & Economics
Engineering Systems
Engineering information systems aid engineers in designing new products and
simulating operations.
11 N.Karami, MIS-Spring 2012
Management Information Systems
Enterprise E-business & E-Commerce Systems
Graduate School of
Management & Economics
Human resource management information systems help managers optimize the assignment of
employees and provide payroll, benefits, and other employee-related services.
Human Resources Systems
12 N.Karami, MIS-Spring 2012
Management Information Systems
Enterprise E-business & E-Commerce Systems
Graduate School of
Management & Economics
E-Commerce Definition
”The online process of developing, marketing, selling,
delivering, servicing, and paying for products &
services transacted on internetworked, global
marketplaces of customers, with the support of a
worldwide network of business partners.“
– Use of the Internet and Web to transact business; digitally enabled
transactions
13 N.Karami, MIS-Spring 2012
Management Information Systems
Enterprise E-business & E-Commerce Systems
Graduate School of
Management & Economics
Retail e-commerce revenues have grown exponentially since 1995 and have only recently
“slowed” to a very rapid 25 percent annual increase, which is projected to remain the
same until 2010.
The Growth of E-Commerce
14 N.Karami, MIS-Spring 2012
Management Information Systems
Enterprise E-business & E-Commerce Systems
Graduate School of
Management & Economics
EC: Overview
• Pure versus Partial Electronic Commerce
depends on the degree of digitization involved.
– Brick-and-mortar organizations
– Virtual organizations
– Click-and-mortar organizations
15 N.Karami, MIS-Spring 2012
Management Information Systems
Enterprise E-business & E-Commerce Systems
Graduate School of
Management & Economics
16 N.Karami, MIS-Spring 2012
Management Information Systems
Enterprise E-business & E-Commerce Systems
Graduate School of
Management & Economics
17 N.Karami, MIS-Spring 2012
Management Information Systems
Enterprise E-business & E-Commerce Systems
Graduate School of
Management & Economics
Types of E-Commerce
• Business-to-Consumer (B2C)
• Business-to-Business (B2B)
• Consumer-to-Consumer (C2C)
• Business-to-Employee (B2E)
• E-Government
• Mobile Commerce (m-commerce)
18 N.Karami, MIS-Spring 2012
Management Information Systems
Enterprise E-business & E-Commerce Systems
Graduate School of
Management & Economics
E-Commerce Categories (1)
BUSINESS
GOVERNMENT
CONSUMER
B2B C2C
G2G
B2C
B2GG2C
19 N.Karami, MIS-Spring 2012
Management Information Systems
Enterprise E-business & E-Commerce Systems
Graduate School of
Management & Economics
Elements of E-Commerce
20 N.Karami, MIS-Spring 2012
Management Information Systems
Enterprise E-business & E-Commerce Systems
Graduate School of
Management & Economics
E-Commerce Business Models
Online direct marketing
Electronic tendering system
Name-your-own-price
Find-the-best-price
21 N.Karami, MIS-Spring 2012
Management Information Systems
Enterprise E-business & E-Commerce Systems
Graduate School of
Management & Economics
E-Commerce Business Models (continued)
Affiliate
marketing
Note the
Sony logo
at the top
of this Web
page
www.howstuffworks.com
22 N.Karami, MIS-Spring 2012
Management Information Systems
Enterprise E-business & E-Commerce Systems
Graduate School of
Management & Economics
E-Commerce Business Models (continued)
Viral marketing
Group purchasing
Online auctions
Product customization
23 N.Karami, MIS-Spring 2012
Management Information Systems
Enterprise E-business & E-Commerce Systems
Graduate School of
Management & Economics
E-Commerce Business Models (continued)
Deep discounters
Membership
Bartering online
24 N.Karami, MIS-Spring 2012
Management Information Systems
Enterprise E-business & E-Commerce Systems
Graduate School of
Management & Economics
Major E-Commerce Mechanisms
• E-marketplaces
• E-catalogs
• E-auctions
• E-bartering
• E-storefronts
• E-malls
• E-tailing
25 N.Karami, MIS-Spring 2012
Management Information Systems
Enterprise E-business & E-Commerce Systems
Graduate School of
Management & Economics
Major E-Commerce Mechanisms
Auctions
Forward Auctions
Reverse Auctions
26 N.Karami, MIS-Spring 2012
Management Information Systems
Enterprise E-business & E-Commerce Systems
Graduate School of
Management & Economics
Forward and Reverse Auctions
Bid
priceBid
pric
e
Time Time
Forward Auction Reverse Auction
27 N.Karami, MIS-Spring 2012
Management Information Systems
Enterprise E-business & E-Commerce Systems
Graduate School of
Management & Economics
Business-to-Consumer (B2C)
Electronic Commerce
Electronic storefronts
Electronic malls
28 N.Karami, MIS-Spring 2012
Management Information Systems
Enterprise E-business & E-Commerce Systems
Graduate School of
Management & Economics
Leading E-Tailing Websites
B2C electronic commerce is also known
as e-tailing. Examples of e-tailing
Websites include:
29 N.Karami, MIS-Spring 2012
Management Information Systems
Enterprise E-business & E-Commerce Systems
Graduate School of
Management & Economics
Online Service Industries
Cyberbanking
Online securities trading
Online job market
Travel services
30 N.Karami, MIS-Spring 2012
Management Information Systems
Enterprise E-business & E-Commerce Systems
Graduate School of
Management & Economics
Business-to-Business (B2B)
Sell-Side Marketplace
Key mechanisms:
electronic catalogs and
forward auctions
31 N.Karami, MIS-Spring 2012
Management Information Systems
Enterprise E-business & E-Commerce Systems
Graduate School of
Management & Economics
Business-to-Business (B2B)
Buy-Side Marketplace
Key mechanism:
reverse auctions
32 N.Karami, MIS-Spring 2012
Management Information Systems
Enterprise E-business & E-Commerce Systems
Graduate School of
Management & Economics
Business-to-Business (B2B)
Electronic Exchanges
33 N.Karami, MIS-Spring 2012
Management Information Systems
Enterprise E-business & E-Commerce Systems
Graduate School of
Management & Economics
Electronic Payments
Electronic payment systems enable you to pay
for goods and services electronically.
– Electronic checks (e-checks)
– Electronic credit cards
– Purchasing cards
– Electronic cash
• Stored-value money cards
• Smart cards
• Person-to-person payments
– Electronic bill presentment and payments
– Digital wallet
34 N.Karami, MIS-Spring 2012
Management Information Systems
Enterprise E-business & E-Commerce Systems
Graduate School of
Management & Economics
Purchasing cards
Smart
cards
Visa
Cash
cards
E-Checks
E-Payments: Examples
35 N.Karami, MIS-Spring 2012
Management Information Systems
Enterprise E-business & E-Commerce Systems
Graduate School of
Management & Economics
Benefits of E-Commerce
• Benefits to organizations
– Makes national and international markets more
accessible
– Lowering costs of processing, distributing, and
retrieving information
• Benefits to customers
– Access a vast number of products and services around
the clock (24/7/365)
• Benefits to Society
– Ability to easily and conveniently deliver information,
services and products to people in cities, rural areas
and developing countries.
36 N.Karami, MIS-Spring 2012
Management Information Systems
Enterprise E-business & E-Commerce Systems
Graduate School of
Management & Economics
Limitations of E-Commerce
• Technological Limitations
– Lack of universally accepted security standards
– Insufficient telecommunications bandwidth
– Expensive accessibility
• Non-technological Limitations
– Perception that EC is unsecure
– Unresolved legal issues
– Lacks a critical mass of sellers and buyers
37 N.Karami, MIS-Spring 2012
Management Information Systems
Enterprise E-business & E-Commerce Systems
Graduate School of
Management & Economics
Legal Issues Specific to EC
• Privacy
• Fraud on the Internet
• Domain Names
• Cybersquatting
• Taxes and other Fees
• Copyright
38 N.Karami, MIS-Spring 2012
Management Information Systems
Enterprise E-business & E-Commerce Systems
Graduate School of
Management & Economics
The Next Step for E-commerce• Mobile commerce (m-commerce) is the use of cell phones
and personal digital assistants (PDAs) to engage in wireless
e-commerce.• Location-based services; Banking and financial services; Wireless
Advertising; Games and entertainment
• Third generation (3G) telecommunications is data-capable
wireless technologies.– Japan is 1st country to have a 3G carrier (almost all Japanese have a
cell phone).
– Europe purchased 3G licenses in 2000; United States in 2004
– The United States have 4G: A comprehensive and secure IP-based
mobile broadband solution to laptop computer wireless modems,
smartphones, and other mobile devices.
39 N.Karami, MIS-Spring 2012
Management Information Systems
Enterprise E-business & E-Commerce Systems
Graduate School of
Management & Economics
M-commerce sales represent a small fraction of total e-commerce sales, but that
percentage is steadily growing. (Totals for 2007–2008 are estimated.)
Global M-commerce Revenue
2000-2009