E-Commerce Applications Flashcards
CRM customer relationship management
Technologies for managing client relationships; the CRM provides tools to analyze the information and develop personalized marketing plans for individual customers
EDI electronic data interchange
Computer-to-comuter exchange of business data
Structured data & processing protocols reduce cost & speed processing
Facilitates JIT inventory use (Walmart direct EDI)
Often, direct links been trading partners through intermediaries (service bureaus or VANs) - value added networks
vast majority of EDI transactions are still processed through value-added networks
The well-established audit trails, controls, and security provided for EDI transactions by VAN are the principal reasons for their continued popularity.
EDI alternatives
Translation software converts between standardized EDI format & internal company
EDI costs
a.
Costs of change – Costs associated with locating new business partners who support EDI processing; legal costs associated with modifying and negotiating trading contracts with new and existing business partners and with the communications provider; costs of changing internal policies and procedures to support the new processing model (process reengineering) and employee training.
b.
Hardware costs – Often additional hardware such as communications equipment, improved servers, etc., is required.
c. Costs of translation software
d. Cost of data transmission
e. Costs of security, audit, and control procedures
e-banking
Demanded by customers; management requires senior management and B of Directors oversight, technology under Senior IT, Operational management monitoring & measuring risk
EFT
Technology for electronically transferring funds - increases speed and reduces cost
Usually third-party vendor is intermediary between company and banking system
EFT security
Most important - Data encryption for transmission
Electronic wallers - not payment systems, programs for managing credit cards, usernames, passwords, addresses
