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Transcript of Chapter 6 Intra-Business E-Commerce Copyright © 2003, Addison-Wesley Internal Communication...
![Page 1: Chapter 6 Intra-Business E-Commerce Copyright © 2003, Addison-Wesley Internal Communication Historically, paper Updating a paper procedures manual Outdated.](https://reader035.fdocuments.us/reader035/viewer/2022062408/56649e4e5503460f94b44596/html5/thumbnails/1.jpg)
Chapter 6
Intra-Business E-Commerce
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Internal Communication
Historically, paper Updating a paper procedures manual
Outdated material Numerous misunderstandings Some legal actions
B2E e-commerce Maintain online – Web site
Intra-business e-commerce more general (commonly known as an Intranet)
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Figure 6.1 Miami University’s online publications and policies.
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B2C vs. Intra-business E-commerce
Consumer oriented B2C Revolutionary Aggressive and risky First movers
Intra-business and B2B Evolutionary Methodical In business context
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Figure 6.3 The value chain.
Inboundlogistics
Productionprocesses
Outboundlogistics
Sales andmarketing
Customerservice
Information technology infrastructure
Upstream Downstream
The key to intra-business e-commerce is improving value chain efficiency.
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Efficiency and Effectiveness
Objective: reduce operating costs Efficiency gains
Within individual processes Across the value chain
Efficiency-based competitive advantage Hidden from public view Relatively easy to sustain
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Figure 6.6 The organizational pyramid.
Before computers, companies organized along functional lines.
Functional groups exchanged paperwork.
Early computer applications supported a single function.
CEO
OperationsMarketing &
SalesCFO CIO
Production
Purchasing
Warehouse
Distribution
Productdevelopment
Sales
Advertising
Marketresearch
Accounting
Payroll
Auditing
Finance
Personnel
Operations
Databaseadministrator
Systems &programming
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Figure 6.7 A manual payroll system.
Payroll was done manually until at least the late 1950s.
Collecttimesheets
Recordtimesheets
Compilepayroll
Preparechecks
Deliverchecks
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Figure 6.8 Automating selected processes made payroll more efficient.
Automate expensive processes first Compile payroll Prepare (print) paychecks
Automate remaining manual processes next
Record timesheets Objective—process optimization.
Recordtimesheets
Compilepayroll
Printchecks
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Figure 6.9 Islands of automation.
Other functional groups
Sales Accounting Purchasing Inventory Production
Independent fiefdoms
Office political base Sub-optimization
Island ASales
Island BPayroll
Island CInventory
Island DAccountsrecievable
Island EBilling
Sales report
A/R report
Sales report
Sales report
Bills
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Incompatibilities
Hardware, software, and data Data redundancy was a major
problem Same data stored in multiple files Independently maintained Values differed Data formats differed
Solution – central database
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New Approaches to System Development
Information system planning Elevated to strategic level
Information technology infrastructure Basic blueprint for technology integration Enterprise data model (EDM)
Business process reengineering Process improvements in context
Problem – legacy applications
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Figure 6.13 The three types of web information system logic.
What is the best computer for each logical step? The client The server
Presentation logic
Business logic
Information logic
Format and display dataAccept user input
Enforce business rulesControl application
Store and retrieve data
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Figure 6.14 Options for partitioning client/server application logic.
An application can be partitioned in any of these ways.
Business Business Business
Business Business Business
Presentation
Data Data Data Data Data
Presentation Presentation Presentation Presentation Presentation
Data
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Figure 6.15 The logic necessary to perform two different tasks.
Data/information Retrieve and return desired pageRecord orderRead quantity on handAccess accounts receivable
Business None Error-check form dataValidate product stockCalculate taxes and totalCheck customer credit
Presentation Identify desired pageDisplay page
Display online order formDisplay order acknowledgement
Logic Surf the Web Order Entry
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Partitioning Order Entry
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Partitioning Order Entry
Client Display online
order form Display order
acknowledgement Error-check form
data
Server Record order Read quantity on
hand Access A/R Validate stock Check credit
Either – Calculate taxes and total
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Fat and Thin Clients
Thin client application Server does most of the work Web surfing
Fat client application Client does more of the work
Administrative costs Fat clients mean multiple copies Fat clients mean multiple versions
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Figure 6.16 A comparison of fat and thin clients.
Issue Fat clients Thin clientsClient size Large (to handle
workload).Smaller. Often, browser only.
Server size Small. Limited workload.Must be flexible for two-tier.
Larger. Bulk of workload.Specialized servers in N-tier.
Network traffic Heavy. Pass information to support business logic.
Light. Pass results of business logic.
Application complexity
Light. Canned middleware.
Complex because of additional middleware.
Application maintenance
Heavy. Code installed and maintained on each client.
Limited software on client.Most application code on server.
Ease of use Difficult. Each application has own user interface.
Better. Common user interface.
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Figure 6.17 A two-tier client/server application.
Maintenance problem Multiple copies of
software on multiple clients
Development problem Multiple client platforms
Middleware
ServerData/information logic
Fat clientsPresentation logicBusiness logic
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Figure 6.19 Enterprise application integration.
Objective: coordinate all applications, databases, and info technologies.
Enterprise resource planning (ERP)
Means of implementing the EAI principle
Purchasedapplications
New and oldclient/serverapplications
EAI Web basedapplications
Legacyapplications
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Web Information System Services
Application server software A server for middleware Scalable platform
Application service provider (ASP) Intermediary that supplies applications Including mission-critical applications
Management service provider (MSP) Intermediary that manages IT services
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Corporate Intranets Private corporate network Uses standard Internet protocols
TCP/IP HTML and HTTP Browser and Web server
Internet and intranet differences Intranet is smaller in scope Intranet limited to organization’s
employees
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Figure 6.20 A first generation intranet.
First generation—static content
Policy and procedure manuals
Corporate phone directories Benefits information Corporate newsletters Job postings Product information Corporate expertise Meeting minutes Project status
Content management Centralized
Technical expert Decentralized
Content expert Hybrid approach
Software available
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Figure 6.21 A second generation intranet.
Second generation—interactive applications
Benefits selection Expense reporting Project administration Inventory levels Production scheduling Online training Groupware (collaborative
support) Legacy front ends Database access Customer support Web information systems
Web information systems
Thin client, N-tier applications
Legacy systems linked via middleware
Mission critical apps Intranet is mission critical
Groupware Platform for enterprise
application integration
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Figure 6.22 Encasing a legacy message in a TCP/IP wrapper allows a legacy application to communicate with the intranet.
Legacy message
Legacy application
TCP/IPwrapper
Legacy message
Company intranet
Middleware
Company intranet
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Figure 6.23 Some examples of groupware.
E-mail Scheduling and calendars Whiteboarding Chat rooms and bulletin boards Video conferencing Electronic meetings Document management Workflow management Collaborative writing Group decision support systems
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Security and Recovery Services
Intranet access control essential Mission-critical applications Confidential information Security a necessary element
Disaster recovery Backup Database replication Workload distribution
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Geographically Dispersed Value Chains
Value chain more complex Options
Secure private network Value added network Public network (e.g., Internet) Virtual private network
Security Firewalls User identification Authentication