Management Information Systems By Effy Oz & Andy Jones

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



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



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



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



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



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



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



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



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



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



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



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



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



Proprietary Technologies• Proprietary Technology: intellectual property

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



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



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



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



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



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



Considerations in Selecting a Web Host (continued)



More Than Meets the Eye

• Several elements essential to business– Inquiry interface

• Connected to database

– Credit-card application• Verifies authenticity

– Order-fulfillment system



More Than Meets the Eye (continued)



Web-Enabled Business

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



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



B2B Trading (continued)



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



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



B2C Trading (continued)



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



Supply Chains on the Web (continued)



Rules for Successful Web-based Business

• Business success depends on availability and use of software

• Several elements to consider to support B2C commerce



Target the Right Customers

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



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



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



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



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



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



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



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



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



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

Management Information Systems By Effy Oz & Andy Jones

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