Chapter 1 - Towards E-Commerce

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    Moving Toward E-Commerce

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    E-Business

    E-Business

    E-Business, the practice of performing and coordinatingbusiness processes such as designing products, obtainingsupplies, manufacturing, selling, fulfilling orders, andproviding services through the extensive use of computerand communication technologies and computerized data

    Work SystemsA system in which human participants use information and

    technology resources to perform business processes toproduce products and/or services for internal or externalcustomers.

    Information SystemA work system whose business process is devoted to

    capturing, transmitting, storing, retrieving, manipulatingand displaying information, thereby supporting other worksystems

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    E-Business

    System

    A group of interactive components that operate together

    to accomplish a common objective.

    Subsystem

    It is a component within a system, even though it can bealso be considered a system its it own.

    Terms related to System

    Purpose / Objective

    Boundary Environment

    Input

    Output

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    E-Business

    Business Process

    A related group of steps or activities in which people

    use information and other resources to create value

    for internal and external customers

    Subprocesses

    Are parts of a process that are processes in their own

    right because they consist of well-defined steps

    related in time and place, have a beginning and end,

    and have inputs and outputs.

    Value Add

    It is the amount of value which a process creates for its

    internal or external customer.

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    E-Business

    Functional Areas of Business

    Processes that cross functional areas. Creating a new product, coordinating business plan

    Processes related to a specific functional area

    Manufacturing, Identifying customers, and paying taxes etc

    Activities and sub-processes occurring

    Communication, analyzing data, planning daily work etc The Value Chain

    The set of processes a firm uses to create value for its customers.

    Supply ChainIt is the transactions, coordination, and movement of goods

    between the firms supplier and the firm.

    Customer ExperienceIt includes every aspect of the customers involvement with the

    firms product, i.e. determining requirements, acquiring theproduct, its usage, maintaining it, and its retirement.

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    The Trend Toward E-Business

    Above Concept Include the Value Chain, supply chain and customerexperience help demonstrate that the trend toward e-business

    involves much more that having only a cool website.

    E-CommerceUsing Internet and other communication technology for marketing, selling

    and serving products. It includes :

    Informing a customer of a products existence.

    Providing in-depth information about the requirements Performing the purchase transaction

    Delivering the product electronically or coordination to make delivery.

    Providing customer service electronically

    Types of E-Commerce B2C

    B2B

    B2G

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    E-Commerce

    E-Commerce Categories / Models

    E-Retailers

    Clicks and bricks

    Financial Services

    E-Auction

    E-Marketplace

    Content Aggregator

    Content Provider.

    Web Hosting, Internet Service providers

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    Phases in Building and MaintainingSystems Initiation

    Defining the need to change an existing worksystem and it is a part of planning as well

    Development Process of acquiring and configuring hardware,

    software, and other resources needed to perform

    both IT-related and other functions Implementation

    Process of making a new work system operational inthe organization. It include Planning, user training,conversion and follow-up

    Operation and Maintenance All the efforts and activities to let the work in working

    condition and even to enhance or debugging theexisting system.

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    Information Technology as driving forcefor innovation Greater Miniaturization, Speed and portability

    ICs, Laptops, PDAs etc Greater Connectivity

    Emails, Faxes, EDI etc

    Continuing convergence of computing and

    communications Through Computers, Telephone, Telegraph, TV

    broadcast, Radio broadcast

    Greater use of digitized information andmultimedia When a data is equivalent or approximately

    equivalent set of numbers.

    Better Software techniques and interfaceswith people

    Ob l h l i I f i

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    Obstacles when applying InformationTechnology in the real World Un-realistic Expectations and Techno-hype

    Difficulty Building and Modifying IT-BasedSystems

    Difficulty in integrating IT-Based Systems Organization inertia and Problems of Change

    The tendency to continue doing things in the sameway, and therefore to resist change If change adds it will subtract as well May raise more problems than it solves

    Goods may times also bring bad as well. May have unforeseeable effects.

    Genuine Difficulty anticipating what willhappen