E-commerce&Global Infor Mation Systam

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    EE--COMMERCECOMMERCE

    &&INTERORGANIZATIOINTERORGANIZATIO

    AND GLOBALAND GLOBALINFORMATIONINFORMATION

    SYSTEMSYSTEM

    . N BAL

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    EE--COMMERCECOMMERCE

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    IntroductionIntroduction IntInt

    EE--commercecommerceEE--commerce providesmanynewcommerce providesmanynew

    businessesandconsumers tobusinessesandconsumers tocommunicateandconduct busincommunicateandconduct busin

    this businessstartedin (1987this businessstartedin (1987--11

    worldwidewebworldwideweb

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    WHATWHAT ISIS EE--COMMECOMMEELECTRONICCOMMERCE(EC)

    Is the buyingandsellingofgoodserviceson theinternetespecially

    wideweb .

    Itis paperlessexchangeof businessiusingelectronicdatainterchange (EDI)related.

    sellingofgoodsandservicesacrossiinternet

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    EE--COMMERCE PROCESSCOMMERCE PROCESS

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    BENEFITSBENEFITS OFOF EE--commcomm

    Theglobalnatureof technoloTheglobalnatureof technolocostcost

    Reach hundredsofmillionsofReach hundredsofmillionsof

    Resultinmany possible benefResultinmany possible beneforganizationsorganizations

    Individualsociety.Individualsociety.

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    Individual SocietyIndividual Society

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    TYPESTYPES OFOF EE--COMMECOMME

    B 2 BB 2 B (BUSINESS TO BUSINE(BUSINESS TO BUSINE

    B 2 CB 2 C (BUSINESS TOCONSUM(BUSINESS TOCONSUM

    C 2 CC 2 C (CONSUMERS TOCONS(CONSUMERS TOCONS

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    BUSINESSTO BUSINES

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    BUSINESSBUSINESS TOTO CONSUMCONSUM

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    CONSUMER TOCONSUMCONSUMER TOCONSUM

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    BENEFITSBENEFITS TOTO ORGANIZAORGANIZA

    EE--COMMERCEmarket placenatioCOMMERCEmarket placenatiointernationalmarkets .internationalmarkets .

    ECallowsreducedinventoriesanECallowsreducedinventoriesan

    overhand by facilitating pull typoverhand by facilitating pull typchainmanagement.chainmanagement.

    Thecostofcreating, processingThecostofcreating, processingdistributing,storing & retrieving pdistributing,storing & retrieving pbasedinformationbasedinformation..

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    BENEFITSBENEFITS TOTO CONSUMCONSUM

    EE--COMMERCE customershoppinCOMMERCE customershoppintransactions areallowedtransactions areallowed24 hoursallyeararoundanyloca24 hoursallyeararoundanyloca

    customerMorechoice theycanscustomerMorechoice theycansmore products.more products.

    Insomecase EC allows quickdeInsomecase EC allows quickde

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    BENEFITSBENEFITS TOTO SOCITSOCITBENEFITSBENEFITS TOTO SOCITSOCIT

    EE--COMMERCE enablesmoreCOMMERCE enablesmoreindividuals toworkat homeaindividuals toworkat homealess traveling forshopping,reless traveling forshopping,re

    inless trafficon therodsandinless trafficon therodsandairlitter.airlitter.

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    LIMITATIONSLIMITATIONS OFOF EE--COMMCOMM

    ThereisalackofsystemsecurityThereisalackofsystemsecurityreliability,standards,andsomereliability,standards,andsomecommunication protocols.communication protocols.

    Thereissufficient telecommunicaThereissufficient telecommunicabandwidth .bandwidth .

    ThecostofdevelopingECinThecostofdevelopingECin--houhou

    Very high.Very high. Thereislackofmistakes.Thereislackofmistakes.

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    EE--COMMERCECOMMERCE ONLONL

    PAYMENTSPAYMENTSCreditcardsCreditcards

    DebitcardsDebitcards

    StoredvaluecardsStoredvaluecardsEE--cashcash

    Delayed paymentsDelayed payments

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    EE--COMMERCEDEVELOPICOMMERCEDEVELOPI

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    INTER ORGANIZATIOINTER ORGANIZATIOAND GLOBAL INFORMAAND GLOBAL INFORMA

    SYSTEM.SYSTEM.

    By PG08042 toBy PG08042 toPG08046PG08046

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    INTRODUCTIONINTRODUCTION communicationsnetworks, hardware, IT appcommunicationsnetworks, hardware, IT app

    standards fordata transmission,and humanstandards fordata transmission,and human

    experiences.experiences.

    It providesa framework forelectronic help bIt providesa framework forelectronic help b

    businesses byallowing the processing,sharibusinesses byallowing the processing,shariandcommunicationofinformation.andcommunicationofinformation.

    Theyallowelectronic processingof businessTheyallowelectronic processingof businesstransactionsanddocuments,aswellas the ttransactionsanddocuments,aswellas the tInformationwith nominaleffortandmakesiInformationwith nominaleffortandmakesiavailable.available.

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    HISTORICAL DEVELOPDEVELOP

    ManualsystemsManualsystems

    EDI systemsEDI systems ERP systemsERP systems

    InternetInternet--enabledsystemenabledsystem

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    MANUAL SYSTAMMANUAL SYSTAM

    papercopiesofdocumentssuch apapercopiesofdocumentssuch a

    purchaseorders, billsandinvoicepurchaseorders, billsandinvoice

    processedmanuallyand thereforeprocessedmanuallyand therefore

    informationinformation

    technologyand telecommunicatiotechnologyand telecommunicatiocontribute tocontribute to

    thissystem.thissystem.

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    EDI SYSTM (Electronic Data Interchange Syst(Electronic Data Interchange Syst thedevelopmentofEDI technologyinthedevelopmentofEDI technologyin the 1980sand this hadadramaticeffethe 1980sand this hadadramaticeffe

    automationofautomationof heavydata flowsand theeliminationoheavydata flowsand theeliminationo

    laborintensivelaborintensive key business processes. Paperdocumekey business processes. Paperdocume

    as purchaseas purchase orders,invoices, billsofladingandshiorders,invoices, billsofladingandshi

    werereplaced byelectronic transmissiowerereplaced byelectronic transmissio

    information betweencomputersinformation betweencomputers

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    WhatisEDI?WhatisEDI?

    & SYSTEMS& SYSTEMS ..EDI:EDI:-- Exchangeofelectronicdata using IExchangeofelectronicdata using I

    organizationalinformationorganizationalinformation

    SYSTEMS.SYSTEMS. Setof hardware,software,andstanSetof hardware,software,andstan

    thataccommodate thethataccommodate the

    EDI processEDI process

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    ERP SYSTEMSERP SYSTEMS ( Enterprise Resource Planning Sy( Enterprise Resource Planning Sy A moreintegratedinformationsystemA moreintegratedinformationsystem

    approach.approach. Thisapproach is being taken bycompThisapproach is being taken bycomp

    viewview theintegrationofsystemsandinformatheintegrationofsystemsandinforma

    as beingas being necessaryin providingimprovedcustonecessaryin providingimprovedcusto

    satisfactionsatisfaction

    operationalcostsinanincreasinglycooperationalcostsinanincreasinglycomarketmarket--placeplace

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    Sharing ofinformat

    systemsVerticalmarket:-A marketinwhic

    goodsofone businessare usedasrmaterialsorcomponentsin the prodsale processofanother business

    Horizontalmarket:-All playersin tmarket buyorsell thesame product

    areincompetition

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    EDI BENEFITS ANDEDI BENEFITS AND

    PROCESPROCES Costsavings

    Speed & accuracy

    Security

    Systemintegration

    Justin timesupport

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    Internet Inter-organizatiInformation Systems and P

    Relations

    The Internetcan be used to providea plapartnershipsinallareasof thesupplychwhetheritis procurement, purchasing,ncoordinationor justinformationexchang

    The Internetallows two-waycommunicaunlikeEDI

    technology,and therefore hasmuch moron partnerrelationsand partnerships..

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    SIGNIFICANTSIGNIFICANT BARRIERSBARRIERSADVANCEDADVANCED IOSIOS MODEMODE

    DEVELOPMENTDEVELOPMENT(informationorganizationsystem)

    Lackof System Standards

    . Resistance fromother business

    . Resistance fromcustomer

    . FinancialCosts

    . Technicaldevelopmentofcomp

    . Technicaldevelopmentof tradin

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    GLOBAL INFORMATION SGLOBAL INFORMATION S

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    GLOBAL INFORMATION SY(GIS)

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    INTERODUCTIOINTERODUCTIO

    AN ORGANIZEDCOLLECTION OFCOMHARDWARE,COMMUNICATION EQUIP

    SOFTWARE,DATA, AND PERSONNELTOCAPTURE, STORE, UPDATE,MANI

    ANALYZE.

    IMMEDIATELYDISPLAY INFORMATIOWORLDWIDE BUSINESS ACTIVITIES.

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    INTERNETINTERNET ASAS GLOBALGLOBALINFORMATIONINFORMATION SYSTAMSYSTAM

    A global information system inwhich allkindinformationcan be accessed from almost an

    The increase in Internetuse has been influe

    thecommercialization ofthe Internet. The level of mediacoverage,the lowcostof

    easier interfaces.

    The Internet isconsideredto be atthe leaditechnology.

    There is a growing acceptancethatbusinessjointhe Internetvery soon, itmay be outof

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    Increasedrevenues:-

    IncreasedinternationalWeb part PotentialWeb participation

    Costsavings:-

    Printingandshippingcosts Customerservicecosts

    INTERNATIONALINTERNATIONAL WW

    COMMERCECOMMERCE BENEFIBENEFI

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    USINGUSING THETHE WEBWEB FOFO

    INTERNATIONALINTERNATIONAL COMMCOMM TheWeb isimportant for both B2

    B2Ccommerce

    Opportunities for businessesalloworld

    Organizationsmust besensitive t

    audiences (globalization)

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    IMPLEMENTATIONIMPLEMENTATION OFOF

    Global Information System (GIS) :- aglobal-coverage,corecurrentstrategicintellig

    for useonly bygovernments.

    Itisnotavailable tonongovernmentalsubscrib 150,000 pagesofdataandimageson 246 coun

    territories,updateddaily,alongwith aconstantly-growing

    GIS includes theDefense & Foreign Affairs

    intelligence briefing,which isissued fivedaysacoverscurrentstrategicintelligenceissues

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