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Chapter 8 The Web-Enabled Enterp

VIEWS: 10 PAGES: 43

  • pg 1
									 Chapter 8: The Web-Enabled
         Enterprise




Management Information Systems, Fifth
              Edition
                        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

Management Information Systems, Fifth Edition    2
              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




Management Information Systems, Fifth Edition     3
Web Business: Growing and Changing

• Blockbuster faced competition from Netflix and
  Walmart.com
   – Online rentals
   – E-commerce bandwagon
• Digitized movies in the future
   – Download movie to PC




Management Information Systems, Fifth Edition      4
        Web Technologies: A Review

• Several standards standards and technologies
  enable the Web to deliver rich information
   –   HTTP, HTML, XML
   –   File Transfer
   –   RSS
   –   Blogs
   –   Podcasting
   –   IM
   –   Cookies

Management Information Systems, Fifth Edition    5
                            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




Management Information Systems, Fifth Edition    6
                   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




Management Information Systems, Fifth Edition          7
                      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 sold products on Web sites




Management Information Systems, Fifth Edition    8
                             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




Management Information Systems, Fifth Edition       9
                            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




Management Information Systems, Fifth Edition       10
                        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




Management Information Systems, Fifth Edition        11
                 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

Management Information Systems, Fifth Edition   12
                          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 behavior

Management Information Systems, Fifth Edition               13
           Proprietary Technologies

• Proprietary Technology: intellectual property of
  developer
   – Local search engine
   – Shopping cart applications
   – Wish lists




Management Information Systems, Fifth Edition        14
   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



Management Information Systems, Fifth Edition      15
      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



Management Information Systems, Fifth Edition   16
            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




Management Information Systems, Fifth Edition        17
   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



Management Information Systems, Fifth Edition   18
   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



Management Information Systems, Fifth Edition   19
   Considerations in Selecting a Web
           Host (continued)




           Figure 8.1: Factors to consider for each Web hosting company

Management Information Systems, Fifth Edition                             20
           More Than Meets the Eye

• Several elements essential to business
   – Inquiry interface
       • Connected to database
   – Credit-card application
       • Verifies authenticity
   – Order-fulfillment system




Management Information Systems, Fifth Edition   21
More Than Meets the Eye (continued)




          Figure 8.2: The components of a Web-based retailing operation

Management Information Systems, Fifth Edition                             22
             Web-Enabled Business

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




Management Information Systems, Fifth Edition    23
                       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

Management Information Systems, Fifth Edition          24
            B2B Trading (continued)




                Figure 8.3: Spending on search advertising


Management Information Systems, Fifth Edition                25
                      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

Management Information Systems, Fifth Edition           26
             B2C Trading (continued)




      Figure 8.4: Online business-to-consumer sales continue to grow in the United
                                  States and worldwide
Management Information Systems, Fifth Edition                                        27
            B2C Trading (continued)
• Content providers
   – Information
   – Art
   – Classified Ads
• Bill presentment and payment
   – Phishing: type of fraud
• Dispersed workforce
   – Purchase labor from larger pool
• M-commerce
   – Business conducted on mobile devices

Management Information Systems, Fifth Edition   28
            B2C Trading (continued)




                 Figure 8.5: Web-shopping benefits




Management Information Systems, Fifth Edition        29
             B2C Trading (continued)




        Figure 8.6: The top ten U.S. online retailers based on the conversion
                                rates in February 2005


Management Information Systems, Fifth Edition                                   30
          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




Management Information Systems, Fifth Edition     31
Supply Chains on the Web (continued)




                Figure 8.8: Online supply chain management

Management Information Systems, Fifth Edition                32
     Rules for Successful Web-based
                 Business


• Business success depends on availability and
  use of software
• Several elements to consider to support B2C
  commerce




Management Information Systems, Fifth Edition    33
         Target the Right Customers

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




Management Information Systems, Fifth Edition   34
        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




Management Information Systems, Fifth Edition   35
             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




Management Information Systems, Fifth Edition   36
         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



Management Information Systems, Fifth Edition   37
     Let Customers Help Themselves

• Customers need information from organization
   –   Status of order
   –   Status of shipped item
   –   Installation instructions
   –   Troubleshooting
• Email messages sent with information about
  orders
• FAQs


Management Information Systems, Fifth Edition    38
   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




Management Information Systems, Fifth Edition        39
    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




Management Information Systems, Fifth Edition        40
                         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



Management Information Systems, Fifth Edition    41
              Summary (continued)

• Business can maintain its own server or use
  Web hosting services
• Organizations 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


Management Information Systems, Fifth Edition    42
              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, Fifth Edition   43

								
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