Chapter 8 - MIS8 Flashcards
E-business
All activities a company performs for selling and buying products and services using computers and communication technologies
E-commerce
- Buying and selling goods and services over the Internet
2. Builds on traditional commerce by adding the flexibility that networks offer and the availability of the Internet
Business Applications of E-commerce
- Buying and selling products and services
- Collaborating with other companies
- Communicating with business partners
- Gathering business intelligence on customers and competitors
- Providing customer service
- Making software updates and patches available
- Offering vendor support
- Publishing and disseminating information
Value chain
Series of activities designed to meet business needs by adding value or cost in each phase of the process
Primary activities of Value Chain
- Inbound logistics
- Operations
- Outbound logistics
- Marketing and sales
- Service
E-commerce enhances a ____
value chain
Click-and-brick e-commerce
Mixes traditional commerce and e-commerce
Advantages of E-Commerce
- Enhances relationships with suppliers, customers, and business partners
- Creates price transparency
- Operates around the clock and globe
- Gathers more information on potential customers
- Increases customer involvement
- Improves customer service
- Offers personalized services and product customization
- Reduces administrative and transaction costs
E-Commerce Increases the following:
- Flexibility and ease of shopping
- Number of customers
- Opportunities for collaboration with business partners
- Return on investment because inventory needs are reduced
Disadvantages of E-Commerce
- Bandwidth capacity problems
- Security and privacy issues
- Accessibility
- Acceptance
E-commerce companies focus their ____ in different parts of the value chain to achieve profitability
operations
Merchant
Transfers the old retail model to the e-commerce world by using the medium of the Internet
Brokerage
Brings sellers and buyers together on the Web and collects commissions on transactions between these parties
Advertising
- Extension of traditional advertising media
2. Directories such as Yahoo! provide content to users for free
Mixed
- Generating revenue from more than one source
Infomediary
Sites collect information on consumers and businesses and then sell this information to other companies for marketing purpose
Subscription
E-commerce sites sell digital products or services to customers
Business-to-consumer (B2C)
Companies sell directly to consumers and supplement traditional commerce with e-commerce
Business-to-business (B2B)
Involves electronic transactions between businesses, such as electronic data interchange (EDI) and electronic funds transfer (EFT)
Consumer-to-consumer (C2C)
Involves business transactions between users
Includes the use of online classified ads or online auction sites
Consumer-to-business (C2B(
Involves people selling products or services to businesses
Government-to-citizen (G2C)
Tax filing
Government-to-business (G2B)
Disaster assistance
Government-to-employee (G2E)
E-training
Nonbusiness Organizations That Use E-Commerce Applications
- Universities
- Nonprofit organizations
- Political and social organizations
Technologies used in B2B E-Commerce:
- Intranets and extranets
- Virtual private networks
- Electronic data interchange (EDI)
- Electronic funds transfer (EFT)
Benefits of using E-Commerce for B2B
- Reduces delivery time, inventory requirements, and prices
- Helps business partners share relevant, accurate, and timely information
- Lowers production costs and improves accuracy
- Improves information flow among business partners
B2B E-Commerce Models based on who controls the marketplace
- Seller-side marketplace
- Buyer-side marketplace
- Third-party exchange marketplace
- Trading Partner Agreements
Seller-Side Marketplace
Sellers who cater to specialized markets come together to create a common marketplace for buyers and use E-procurement.
E-procurement
- Enables employees in an organization to order and receive supplies and services directly from suppliers
- Prevents purchases from suppliers that are not on the approved list of sellers
- Eliminates the processing costs of purchases
Buyer-Side Marketplace
- Buyer, or a group of buyers, opens an electronic marketplace and invites sellers to bid
- Helps the buyers:
- Manage the procurement process more efficiently
- Lower administrative costs
- Implement uniform pricing - Involves the goal of establishing new sales channels
Third-Party Exchange Marketplace
- Marketplace generates revenue from the fees charged for matching buyers and sellers
- Offers suppliers a direct channel of communication to buyers
Trading Partner Agreements
- Automate negotiating processes and enforce contracts between participating businesses
- Allow business partners to send and receive bids, contracts, and information needed
- Enable customers to submit documents via the Internet
Mobile Commerce (m-commerce)
- Using handheld devices to conduct business transactions
- Based on the Wireless Application Protocol (WAP)
- Technologies supported
- Wireless wide-area networks and 3G and 4G networks
- Short-range wireless communication technologies
Voice-Based E-Commerce
- Relies on voice recognition and text-to-speech technologies
- Method involves using e-wallets
- Security features
- Call recognition
- Voice recognition
- Shipping to a set address that cannot be changed by voice commands
E-Commerce Supporting Technologies
Electronic payment systems
Web marketing
Mobile marketing
Search engine optimization
Smart cards
- Contain an embedded microprocessor chip
2. Store important financial and personal information
E-cash
- Secure and convenient alternative to bills and coins
- Complements credit, debit, and charge cards
- Adds convenience and control to everyday cash transactions
E-check
Electronic version of a paper check
E-wallets
Available for most handheld devices
Micropayments
Transactions on the Web involving very small amounts of money
Web Marketing
Uses the Web and its supporting technologies to promote goods and services
Examples of web-marketing tools
- Intelligent agents
2. Push technology
Popular mobile marketing strategies
App-based marketing In-game mobile marketing Location-based marketing QR codes Mobile search ads Mobile image ads SMS (Short Message Service) and MMS (Multimedia Messaging Service)
Search Engine Optimization (SEO)
- Method for improving the volume or quality of traffic to a Web site
- Higher ranking in search results generates more revenue for a website - Aims at increasing a website’s performance on search engines naturally
- Includes techniques facilitating search engines to find and index a site for certain keywords
Social commerce
Subset of e-commerce that is influenced by social networks and other online media
Categories of social networks and online media that collectively constitute social commerce:
Social networking sites Group buying platforms Peer-to-peer e-commerce platforms Recommendation Web sites Participatory e-commerce Social advice User-curated shopping
Hyper-Social Organizations
Companies that leverage social media to better connect with customers and increase sales through the social process
Hyper-Social Organizations share information through:
Direct social media interaction
Blogs
Videos on YouTube
Company Web sites
Key elements for a successful online Hyper-Social community:
Members
Content
Member profiles
Transactions
Pillars of Hyper-Sociality
- Tribe versus market segment
- Human-centric versus company-centric
- Information channels versus network channels
- Social messiness versus process hierarchy
Social Media Information Systems (SMISs) include all the components like other information systems:
Hardware, software, people, and procedures that support content sharing among its members or users
Application (app) providers
User communities
Sponsors
Plays a major role in fostering hyper-social organizations
Social Media Information Systems (SMISs)
Facilitate business activities and help the sponsors establish bonds and loyalties with their customers
Social Media Information Systems (SMISs)
An organization’s social media policy should:
- Protect the company’s reputation
- Eliminate legal issues
- Protect the privacy of all the impacted individuals
- Raise brand awareness
