The Internet Flashcards
Electronic Commerce
the electronic buying and selling transactions
Electronic Business
any use of IT to perform business processes in electronic form
Electronic Data Interchange (EDI)
computer to computer exchange of business transaction documents in structure formats that allow the direct processing of the data by the receiving system
All transactions must be in a standard data format
Mapping
process of determining the correspondence between data elements in an organization’s terminology and data elements in standard EDI terminology
Features of EDI
- allows transmission of electronic documents between computer systems in different organizations
- reduces handling costs and speeds transaction processing
- requires all transactions to be in a standard format
- can be implemented using direct links between the trading partners
Costs of EDI
- legal costs
- hardware costs
- costs of translation software
- costs of data transmission
Audit trails in EDI systems should include:
activity logs of failed transactions
network and sender/recipient acknowledgments
EDI risk
use of EDI for unauthorized access to the organization’s systems
EDI vs. Ecommerce
Cost
Security
Speed
Network
EDI more expensive
EDI more secure
EDI is slower
EDI is private (vlan)
Business Process Reengineering (BPR)
The analysis and redesign of business processes and information systems to achieve significant performance improvements
Simplifies the system, makes it more effective, and improves a company’s quality and service
Involves the efficient and effective use of the latest IT
Obstacles faced with BPR
- Tradition
- Resistance
- Time and Cost Requirements
- Lack of Management Support
- Skepticism
- Retraining
- Controls
Advantages of B2B e-commerce
- Speed
- Timing
- Personalization
- Security
- Reliability
Enterprise Resource Planning System (ERP)
Cross functional enterprise system that integrates and automates the many business processes and systems that must work together in the manufacturing, logistics, distribution, accounting, finance, and human resources functions of a business.
Considered a back office system. From customer order to fulfillment of that order.
ERP Functions
- store info in a central repository so that data may be entered once and then accessed by other departments
- act as the framework for integrating and improving an organization’s ability to monitor and track sales, expenses, customer service, distribution, and may other business functions
- cross-functional information
B2C
Business sells its products or services to the public
