Use with Management Information Systems 1e

By Effy Oz & Andy Jones ISBN 9781844807581 © 2008 Cengage Learning

Management Information SystemsBy Effy Oz & Andy Jones

www.cengage.co.uk/oz

Chapter 7: The Web Enabled Enterprise

Use with Management Information Systems 1e

By Effy Oz & Andy Jones ISBN 9781844807581 © 2008 Cengage Learning

Objectives• Describe how the Web and high-speed Internet

connections are changing business operations• Explain the functionality of various Web technologies• Compare and contrast options for Web servers• Explain basic business-to-business and business-to-

consumer practices on the Web• Explain the relationship between Web technologies

and supply chain management

Use with Management Information Systems 1e

By Effy Oz & Andy Jones ISBN 9781844807581 © 2008 Cengage Learning

Objectives (continued)

• Give examples of features and services that successful business Web sites offer

• Learn about online annoyances such as spam and adware, and how to protect against online identity theft

Use with Management Information Systems 1e

By Effy Oz & Andy Jones ISBN 9781844807581 © 2008 Cengage Learning

Web Business: Growing and Changing

• Blockbuster faced competition from Netflix, LOVEFiLM and Walmart.com– Online rentals– E-commerce bandwagon

• Digitized movies in the future– Download movie to PC

Use with Management Information Systems 1e

By Effy Oz & Andy Jones ISBN 9781844807581 © 2008 Cengage Learning

Web Technologies: A Review

• Several standards standards and technologies enable the Web to deliver rich information– HTTP, HTML, XML

– File Transfer

– RSS (Really Simple Syndication)

– Blogs

– Podcasting

– IM (Instant Messaging)

– Cookies

Use with Management Information Systems 1e

By Effy Oz & Andy Jones ISBN 9781844807581 © 2008 Cengage Learning

HTTP• Hypertext Transfer Protocol (HTTP):

transfer and download Web information

• HTTPS: HTTP secure

• Uniform Resource Locator (URL): unique address given to each Web server– IP address

• Domain name: constructed with letters– URL also refers to the domain name

Use with Management Information Systems 1e

By Effy Oz & Andy Jones ISBN 9781844807581 © 2008 Cengage Learning

HTML and XML

• Hypertext Markup Language (HTML): helps developer create Web pages– Determines look and location of content

• Extensible Markup Language (XML): enables creation of various data types

• XHTML: combination of XML and HTML– Uses opening and closing tags to control format

Use with Management Information Systems 1e

By Effy Oz & Andy Jones ISBN 9781844807581 © 2008 Cengage Learning

File Transfer

• File Transfer Protocol (FTP): transmit whole files– Used in all downloads– Any type of file– Place file on server for shared use– Post files on Web sites for download sales

Use with Management Information Systems 1e

By Effy Oz & Andy Jones ISBN 9781844807581 © 2008 Cengage Learning

RSS

• Really Simple Syndication (RSS): family of XML file formats– Helps users check updates– Communicates short descriptions of content– Allows transmittal of new info– Useful on news Websites

Use with Management Information Systems 1e

By Effy Oz & Andy Jones ISBN 9781844807581 © 2008 Cengage Learning

Blogs

• Blog: contraction of Web log– Invites surfers to post opinions and art– Focuses on topic or set of topics– Trackback notifies bloggers about updates to post

usage on Web– Used by business

Use with Management Information Systems 1e

By Effy Oz & Andy Jones ISBN 9781844807581 © 2008 Cengage Learning

Podcasting

• Podcast: publishing sound– Usually voice– Post digital audio file on site– Listen to radio show anytime– Garageband.com

• Allows aspiring musicians to post tracks

Use with Management Information Systems 1e

By Effy Oz & Andy Jones ISBN 9781844807581 © 2008 Cengage Learning

Instant Messaging• Instant messaging (IM): real-time chat

– Synchronized e-mail– Chat with group is known as chat room– Free applications– AOL instant Messenger

• Yahoo Messenger

• MSN Messenger

– In business• Chat with sales representative

Use with Management Information Systems 1e

By Effy Oz & Andy Jones ISBN 9781844807581 © 2008 Cengage Learning

Cookies• Cookie: file that remembers information about surfer

– Record surfer ID– Figures out preferences– Provides convenience to consumers– Temporary cookies installed for single session– Allows for intrusion into privacy

• Clickstream tracking: track clicking activities• Spyware: trace and report online behaviour

Use with Management Information Systems 1e

By Effy Oz & Andy Jones ISBN 9781844807581 © 2008 Cengage Learning

Proprietary Technologies• Proprietary Technology: intellectual property

of developer– Local search engine– Shopping cart applications– Wish lists

Use with Management Information Systems 1e

By Effy Oz & Andy Jones ISBN 9781844807581 © 2008 Cengage Learning

Options in Establishing a Web Site

• Web site: Web pages that make up information and links– Needs Internet server

• Computer connected to Internet backbone

– Business can• Install own server

• Contract server

Use with Management Information Systems 1e

By Effy Oz & Andy Jones ISBN 9781844807581 © 2008 Cengage Learning

Owning and Maintaining a Server

• Maintaining server is costly option– Greatest degree of control– Requires expertise to set up

• Load balancing: transfer data from busy server to less busy server

• Mirrors: servers with duplicated content

• Pure-play: entire business online

• Brick-and-mortar: owns physical stores

Use with Management Information Systems 1e

By Effy Oz & Andy Jones ISBN 9781844807581 © 2008 Cengage Learning

Using a Hosting Service

• Web hosting: Web server managing service– Shared hosting: store client Web site on same

physical server as other clients– Virtual private hosting: simulate single server– Dedicated hosting: own entire physical server– Co-location: server co-located with other

clients and host

Use with Management Information Systems 1e

By Effy Oz & Andy Jones ISBN 9781844807581 © 2008 Cengage Learning

Considerations in Selecting a Web Host

• Hosts compared using point system– Host should allow DBMS– Dynamic Web pages: enable communication

between browser and database– Storage space factor– Technical support– Fees for Web traffic– Scalability

Use with Management Information Systems 1e

By Effy Oz & Andy Jones ISBN 9781844807581 © 2008 Cengage Learning

Considerations in Selecting a Web Host (continued)

• Factors to consider when selecting Web host– Help with page design– Security– Availability

• Minimize downtime

– Cost• Setup fee

• Monthly fee

Use with Management Information Systems 1e

By Effy Oz & Andy Jones ISBN 9781844807581 © 2008 Cengage Learning

Considerations in Selecting a Web Host (continued)

Use with Management Information Systems 1e

By Effy Oz & Andy Jones ISBN 9781844807581 © 2008 Cengage Learning

More Than Meets the Eye

• Several elements essential to business– Inquiry interface

• Connected to database

– Credit-card application• Verifies authenticity

– Order-fulfillment system

Use with Management Information Systems 1e

By Effy Oz & Andy Jones ISBN 9781844807581 © 2008 Cengage Learning

More Than Meets the Eye (continued)

Use with Management Information Systems 1e

By Effy Oz & Andy Jones ISBN 9781844807581 © 2008 Cengage Learning

Web-Enabled Business

• Web-enabled business classified according to interacting parties– Business-to-business– Business-to-consumer– Government-to-business– Government-to-consumer

Use with Management Information Systems 1e

By Effy Oz & Andy Jones ISBN 9781844807581 © 2008 Cengage Learning

B2B Trading• B2B forms

– Advertising• Search engines: advertise through search site• Banners: images placed on Web site• Impression: page with banner downloaded• Reach percentage: percentage of Web users who visited site

– Exchanges and auctions• Act as online marketplace

– Online business alliances: collaboration between businesses

Use with Management Information Systems 1e

By Effy Oz & Andy Jones ISBN 9781844807581 © 2008 Cengage Learning

B2B Trading (continued)

Use with Management Information Systems 1e

By Effy Oz & Andy Jones ISBN 9781844807581 © 2008 Cengage Learning

B2C Trading• E-Tailing

– Shopping on the Web– Fulfillment activities

• Picking• Packing• Shipping

– Consumer profiling: know customers better– Conversion rate: proportion of site visitors who make

purchase

• Auctions and reverse auctions– Site serves as auction hub– Name your own price at reverse auction

Use with Management Information Systems 1e

By Effy Oz & Andy Jones ISBN 9781844807581 © 2008 Cengage Learning

B2C Trading (continued)• Content providers

– Information

– Art

– Classified Ads

• Bill presentment and payment– Phishing: type of fraud

• Dispersed workforce– Purchase labour from larger pool

• M-commerce– Business conducted on mobile devices

Use with Management Information Systems 1e

By Effy Oz & Andy Jones ISBN 9781844807581 © 2008 Cengage Learning

B2C Trading (continued)

Use with Management Information Systems 1e

By Effy Oz & Andy Jones ISBN 9781844807581 © 2008 Cengage Learning

Supply Chains on the Web

• Supply chain management on Web– Extensive use of XML– Set standards for data formats

• Electronic Data Interchange (EDI) system used prior to Web

• Suppliers can join company extranets

Use with Management Information Systems 1e

By Effy Oz & Andy Jones ISBN 9781844807581 © 2008 Cengage Learning

Supply Chains on the Web (continued)

Use with Management Information Systems 1e

By Effy Oz & Andy Jones ISBN 9781844807581 © 2008 Cengage Learning

Rules for Successful Web-based Business

• Business success depends on availability and use of software

• Several elements to consider to support B2C commerce

Use with Management Information Systems 1e

By Effy Oz & Andy Jones ISBN 9781844807581 © 2008 Cengage Learning

Target the Right Customers

• Target customers needing products and services– Most important effort of marketing– Affects blogs and podcasting

Use with Management Information Systems 1e

By Effy Oz & Andy Jones ISBN 9781844807581 © 2008 Cengage Learning

Capture the Customer’s Total Experience

• Use cookies– Record shopper movements

• CRM software creates profiles

• Shopper experience becomes asset of business

• Tailor Web page to individual customers

Use with Management Information Systems 1e

By Effy Oz & Andy Jones ISBN 9781844807581 © 2008 Cengage Learning

Personalize the Service

• CRM software and Web page customization software combined– Personalize Web pages– Select type of e-mail content– Respect of privacy issue– Allow customer to tailor products

Use with Management Information Systems 1e

By Effy Oz & Andy Jones ISBN 9781844807581 © 2008 Cengage Learning

Shorten the Business Cycle

• Business on Web saves time

• Fulfillment is major challenge for business– Activities after customer places order

• Fast shipping desired

• Gets results– Customer satisfaction– Faster collection of money

Use with Management Information Systems 1e

By Effy Oz & Andy Jones ISBN 9781844807581 © 2008 Cengage Learning

Let Customers Help Themselves• Customers need information from organisation

– Status of order– Status of shipped item– Installation instructions– Troubleshooting

• Email messages sent with information about orders

• FAQs

Use with Management Information Systems 1e

By Effy Oz & Andy Jones ISBN 9781844807581 © 2008 Cengage Learning

Be Proactive and De-Commoditize

• Prompt e-mail replies expected

• Proactive alerts expected

• Must take initiatives to de-commoditize products– Commodity: product sold at roughly same price

by many vendors– Addition of features prevents product from

becoming commodity

Use with Management Information Systems 1e

By Effy Oz & Andy Jones ISBN 9781844807581 © 2008 Cengage Learning

E-Commerce is Every Commerce

• Difficult to identify business activities on Internet

• Web has been integrated into daily activities

• Commerce and E-commerce generally the same thing

Use with Management Information Systems 1e

By Effy Oz & Andy Jones ISBN 9781844807581 © 2008 Cengage Learning

Summary• Some industries changed drastically because

of Web• HTTP is Internet standard controlling Web

server addresses• HTTPS has security features• Cookies help store state information about

surfer• Many Web technologies are proprietary

Use with Management Information Systems 1e

By Effy Oz & Andy Jones ISBN 9781844807581 © 2008 Cengage Learning

Summary (continued)• Business can maintain its own server or use

Web hosting services

• organisations should consider several factors when selecting Web host

• Web-enabled commerce classified into B2B and B2C

• B2B trading relies on electronic data interchange (EDI) and XML

Use with Management Information Systems 1e

By Effy Oz & Andy Jones ISBN 9781844807581 © 2008 Cengage Learning

Summary (continued)

• Wireless handheld computers allow mobile commerce

• Online businesses must adhere to several factors to be successful

• Spam and spyware are online annoyances

• Phishing is a pervasive fraud crime