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					              E-Business:1




Informatics
E-Business
                                                                                                             E-Business:2

               Intermediation



Dis-intermediation                                                             Inter-Organisational
                                Electronic Markets      Environment                     IS
     Portals

                     Re-intermediation                     E-
                                                        business

                                                           Forms

          B2C                                                                                          B2B
                                                        Intra-business
                          Supply
                          Chain                                                             Customer
                                                          Internal
                                                                                             Chain
                                   Support              Value-Chain
                                                                                      Support
                                                          Supports
                                      Customer-facing
                                            IS                           Supplier-facing
                                                                               IS
                                                         Informatics
                                                        Infrastructure


                                                         E-commerce




                                                         I-commerce
                                                                     E-Business:3


                               Markets

                                   Company A



Business to Customer   Customer                Customer   Customer
Commerce (B2C)         Invoice                 Shipping   Chain
                                     Sales
                                               Note
                                     Order


                                   Company B


Business to Business    Supplier               Supplier   Supply
                                    Purchase   Shipping
Commerce (B2B)          Invoice     Order                 Chain
                                               Note



                                   Company C


                                     Market
                                                                                                  E-Business:4


                                         E-Markets

                                                                                          Company B’s
                                                Company A                                    Bank



                                    Customer                Customer
                                    Invoice                 Shipping
                                                  Sales
                                                            Note
                                                  Order                                      Electronic
       Electronic                                                                            Funds
       Funds                                                                                 Transfer
       Transfer                       E-Market
                                      (Transaction Handler)                         Electronic
        Payment                                                                     Funds
        Approval                                                                    Transfer
                                     Supplier               Supplier
                    Payment                      Purchase   Shipping
                    Authorisation    Invoice     Order      Note       Payment
                    Request
Company A’s                                                            Remittance
                                                                       Notice          Transaction Handler’s
   Bank                                                                                        Bank
                                                Company B
                                                                                  E-Business:5


       Intermediation/Dis-intermediation/
               Re-intermediation
         Producer                    Producer                  Producer

Data                  Goods                             Data              Goods

        Wholesaler

 Data                 Goods
                                                         Electronic
        Distributor                                      Intermediarie
                              Data              Goods    s
 Data                 Goods

         Retailer
                                                        Data              Goods

 Data                 Goods

          Retailer                   Retailer                  Retailer

Traditional Intermediation      Disintermediation          Reintermediation
                                                 E-Business:6


             Portals


           Internet Portals
                              Vertical Portals




Horizontal Portals
                                   E-Business:7


E-business/E-commerce/I-commerce


            Electronic Business

           Electronic Commerce


            Internet Commerce
                                                            E-Business:8


Perspectives on E-commerce

                                   Human Activity System
         Business Perspective

          Service Perspective

                                       Information System



          On-line Perspective

                            Information Technology System



      Communications Perspective
                                                                          E-Business:9


Generic Patterns of Commerce
  Pre-Sale              Search                Search



                    Negotiate             Negotiate



 Execution               Order                 Order



                        Deliver               Deliver




 Settlement             Invoice               Invoice



                        Payment               Payment

        Cash Commerce       Credit Commerce             Repeat Commerce

 After-Sale         After-Sale            After-Sale
                                                        E-Business:10


           Forms of E-Business

                 Electronic Business

                 Electronic Commerce

           B2B                         B2C

Supplier             Organisation            Customer




                    Intra-Business
                                   E-Business:11


B2B E-Commerce

                  B2B E-Commerce
     Invoicing

     Inventory

    Procurement
                                   E-Business:12


B2C E-Commerce

                  B2C E-Commerce
    Advertising

    Marketing

       Sales
                                                             E-Business:13


Intra-Business E-Business

                                 Intra-business E-Business
          Standard Interfaces

          Share Knowledge

     Integrate Information Systems
                                                                         E-Business:14


                     IOS and Strategic IS
Information
Economy
                            Competitor            Inter-Organisational
                                                  Information
                                                  System



          Supplier         Organisation              Customer




                          Strategic Information
                          Systems
                                                                      E-Business:15


               B2C/B2B IOS

                                      Organisation
Organisation
               B2C IOS


                 IOS




  Customer                            Customer
                                                                 Organisation
                       Organisation
                                                       B2B IOS


                                                     IOS




                       Organisation                              Organisation
                                          E-Business:16


Benefits of E-Commerce

                               Benefits
          Cost Savings

          Time Savings

     Connection Improvements

      Quality Improvements

      Strategic Improvements
                                                  E-Business:17


Problems of E-Commerce

                                       Problems
          Security and Privacy

           Re-intermediation

       Information Rich and Poor

        Technological Standards

    Computer-related mistakes/errors
                                                      E-Business:18


E-Business Models

                                  E-business Models
      Separate Organisation

  Semi-autonomous Organisation

  Fully Integrated Organisation

    Within Informatics Service

      Parallel Organisation
                                                    E-Business:19


E-Business Environment

                           E-business Environment
       Commodity Type

      Dis-Intermediation

        Globalisation
                                                         E-Business:20


E-Business Planning

                                   E-business Planning
      Organisational Analysis

   Strategic Information Systems

        E-business Strategy
                                                          E-Business:21


E-Business Management

                                  E-business Management
     Informatics Infrastructure

           Maintenance

       Content Management
                                                       E-Business:22


E-Business Development

                              E-business Development
      Iterative Development

        User Involvement

         Graphic Design

       Systems Integration
                                                                              E-Business:23


                                  Summary

•E-business and e-commerce are features of e-markets. An e-market is one in which
economic exchanges are conducted using information technology and computer networks
•E-markets are subject to the processes of dis-intermediation and re-intermediation
•Re-intermediation is evident in the rise of Internet portals
•Inter-organisational IS are distinct from economic markets and enable collaboration
between organisations in key areas
•Three generic forms of commerce can be identified: cash commerce, credit commerce and
repeat commerce
•E-business is a superset of E-commerce. E-commerce is a superset of I-commerce
•There are three major forms of E-business: B2C, B2B and intra-business
•The benefits of e-commerce include cost-savings and time-savings
•The costs of e-commerce include issues of security and technological standards
•Planning, management and development are still critical activities for E-business
                                                                                                                        E-Business:24


                                                 Catalogue       Product
                                                  Search        Comparison
                                   Product
                                Identification                          Purchase

                                                     Customer-                                                     Privacy
                                                      Chain
                                                                                               Conditions          Authentication


                                                                                                             Non-repudiability
                                                      B2C                          Security

                                                                                                                        SSL

              Information Seeking                                                             Technologies
                       &                                                                                             Digital
                Communication                                                                                      Certificates
                                                     Stages of
                                                      Growth
                     Presence
                                                                                Customer
E-Marketing                                                                    Relationship
                           On-line                                 On-line     Management
                                            On-line
                          Catalogue                                Payment
                                            Ordering


                       Extranets

                                                      E-Sales
                                                E-Business:25


        B2C E-Commerce


               Electronic Commerce

                      B2C

Organisation                         Customer
                                                                       E-Business:26


                          Customer Chain


Organisation                                                     Customer


                             Sale         Sale
               Pre-Sale                             After-Sale
                           Execution   Settlement
                                                E-Business:27


              B2C Growth
                                  Information
   Pre-Sale                         Seeking
                    Search
                                  Marketing
                                  Presence
                   Negotiate
                                   On-Line
                                  Catalogue

                     Order

  Execution                        On-line
                    Deliver        Ordering



                    Invoice
  Settlement
                                   On-line
                                   Payment
                   Payment



  After-Sale       After-Sale        CRM

Cash Commerce   Credit Commerce   B2C Growth
                            E-Business:28

Information Seeking and
    Communication

           WWW




     Information
                   E-Mail
       Seeking

           Organisation
                     E-Business:29


Marketing Presence



      Customer




      Marketing

       Home
       Page
                        E-Business:30


On-Line Catalogue


      Customer




     Marketing

       Home
       Page

      On-Line
     Catalogue


              Product
              Data


      Products
                                                                   E-Business:31


          On-Line Ordering

        Customer                           Customer
                                           Invoice
                    Goods
                                                         Payment
                                      Shipping
                                      Note
Marketing & Sales

          Home                                    Accounting
                            Distribution
          Page                                     System

         On-Line                             Payment
        Catalogue                            Details
                                                       Customers
                     Order        Sales
          Sales                   Order
                                Processing
                                                         Stock
                                                                   E-Business:32


      On-Line Payment

        Customer
                    Goods             Shipping
                                      Note

Marketing & Sales

          Home
                            Distribution
          Page

         On-Line                             Payment
        Catalogue                            Details
                                                       Customers
                     Order        Sales
          Sales                   Order
                                Processing
                                                         Stock
        Payment
                                Accounting
                                 System
                                                                                 E-Business:33


Customer Relationship Management

                      Customer
                                                                      Customer
                                  Goods             Shipping          Invoice
                                                    Note

     Marketing/Sales/CRM

                       Home                                     Accounting
                                          Distribution
                       Page                                      System

                       On-Line                             Payment
                      Catalogue                            Details

 Customer Profiling                Order        Sales
        &               Sales                   Order                 Stock
   Preferencing                               Processing




                      Customers
                                         E-Business:34


Secure Commerce Sites

                              Security
            Privacy

        Authentication

       Non-Repudiation



                             Solutions
      Secure Socket Layer

      Digital Certificates
                                                         E-Business:35


       Digital Certification


                Customer’s Public Key
                + Identity Information



Customer                                 Certification
                                          Authority
                       Digital
                       Certificate



      Transaction +
      Digital Certificate




                        Organisation
                                      E-Business:36


B2C Information Systems

                             Issues
           Strategic IS

      Knowledge Management

           Evaluation
                                                                                   E-Business:37


                                     Summary
•B2C e-commerce focuses on the IT-enablement of the key processes in the customer chain
•Customer chain processes include product identification, catalogue search, product
comparison and purchase
•We may think of an organisation’s experience of the B2C e-commerce as moving through a
number of distinct stages of increasing complexity including information seeking and
communication, marketing presence, on-line catalogue, on-line ordering, on-line payment
and customer relationship management
•Effective B2C e-commerce will involve the re-orientation of the informatics infrastructure
around a customer focus
•A secure environment for B2C e-commerce should ensure privacy, authentication and non-
repudiability
•B2C systems demand the same disciplines as conventional information systems
                                                                                                                        E-Business:38


                                                           Intra-
                                                          Business




                                                              Intranet                       Extranet
                            Internet
                                                                              Applications



                                                                                                                  IS Portal
                     Components                       Vertical
                                                                  Knowledge
                                                                   Sharing
                                                                                                  Document Management
                                                                              Workflow
       Horizontal                  Email                                              Software Distribution

                                       Internal Web

Hardware                                               Chat


     Software               Data                        Mail Lists                       FTP
                                                                         Newsgroups
           Communications
E-Business:39




                                    Manufacturing




                                                    Production Scheduling
                Stovepipe Systems




                                                       Stock Control
                                                    Accounts Receivable
                                    Finance




                                                     Accounts Payable
                                                       Invoicing
                                    Sales
                                                      Order Entry
                      E-Business:40


Value-Chain Systems
                                                                          E-Business:41


     Internet, Intranet and Extranet
                              Internet




                              Extranet
 Suppliers     Firewall                    Firewall   Business Partners


Intranet                                                 Intranet
                           Organisation


                           Intranet                   Remote Employees
Distributors

                                                         Intranet
Intranet

                Firewall                  Firewall
                                  E-Business:42


    Components of an Intranet

Web
Server
              Domain
              Server




     Web        Web      Web
     Client     Client   Client
                                    E-Business:43


Intranet Applications

                     Applications
         E-mail

      Internal Web

       Mail Lists

       Newsgroups

          Chat

          FTP
                                               E-Business:44


Benefits of Intranets

                                    Benefits
       Better Communication

   Access to Accurate Information

        Better Coordination

       Easy to implement/use

      Cheap to implement/use

             Scalable

              Flexible
                                            E-Business:45


Organisational Activities

                               Activities
       Knowledge Sharing

      Group decision-making

       Software Distribution

      Document Management

             IS Portal
                                                                                  E-Business:46


                                   Summary

•Intra-business e-business involves re-focusing the information systems architecture
around a process model of the organisation
•The distinction between the Internet, an Intranet and an Extranet can be made in terms
of type of user, the level of access and the type of information supplied
•Intranets are used by authorised internal users for specific organisational tasks and to
access specific organisational information
•An Extranet uses Internet technology to connect together a series of dispersed intranets.
Extranets are particularly used to establish links between an organisation and key
stakeholders such as suppliers
•On a horizontal level an Intranet comprises a network of client and server machines
running client and web server software and storing HTML documents
•Intranets are used for knowledge sharing, document management, distributing software
and as organisational portals to key systems
                                                                                      E-Business:47



                                      Execution

                                                                         Settlement


                                                   Delivery
                                      Order                    Invoice
Supplier-oriented
      B2B                                                                Payment
                               Negotiate
                                                   Supply-
                    Pre-Sale                        Chain                After-Sale
Buyer-oriented
                                 Search
    B2B


    Intermediary-oriented
            B2B
                                                    B2B


                                                  Supporting
                                                  Technology



                                Extranets          XML         EDI
                                                E-Business:48


   B2B E-Commerce

           Electronic Commerce
                   B2B

Supplier                         Organisation
                                                                                     E-Business:49


                                Supply Chain




Supplier                                                                           Organisation
           Search                                                     After-Sale
                    Negotiate                               Payment
                                Order   Deliver   Invoice
                                                                                     E-Business:50


                               B2B Systems

                                 Supplier
                                                                          Supplier
                                                                          Invoice
                                                         Purchase
                                 Supplier                Order
Shipping                        Relationship
               Request
Note                            Management
               For                                                                      Payment
               Quote
                                                   Purchase
                                 Suppliers          Order
                                                  Processing


      Stock
                                Procurement                                     Accounting
     Control                                                        Purchase
               Replenishment                   Requisition
                                                                    Details
               Order
                                         E-Business:51


Pre-Sale Activity Models

                                Models
          Supplier-Oriented

           Buyer-Oriented

        Intermediary-Oriented

       E-Malls/Stores

      Internet Auctions

      Vertical Portals
                                           E-Business:52


Benefits of B2B E-commerce

                                Benefits
       Lower Purchasing Costs

         Reduced Inventory

         Lower Cycle Times
                                  E-Business:53


Enabling Technologies

                   Technologies
       Extranets

         EDI

        XML
                                                                                 E-Business:54


                                   Summary

•Most discussion of B2B e-commerce is directed at supporting the repeat commerce
model. Here a company sets up an arrangement with a trusted supplier to deliver goods of
a certain specification at regular intervals
•Pre-sale activity can be conducted using vertical portals, internet auctions or e-malls
•An extranet is a series of connected intranets between the organisation and important
stakeholders such as suppliers, distributors, business partners and remote employees
•The benefits of B2B e-commerce include lower purchase costs, lower cycle times and
reduced inventory
•EDI or XML can be used as standards for the electronic transmission of documentation
such as orders, invoices and payments

				
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