Management Information Systems By Effy Oz & Andy Jones

1. Management Information SystemsByEffy Oz & Andy Jones Chapter 7: The Web Enabled Enterprise www.cengage.co.uk/oz

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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

12. 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

13. 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

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

15. 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

16. 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

17. 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

18. 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

19. 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

20. Considerations in Selecting a Web Host (continued)

21. More Than Meets the Eye • Several elements essential to business • Inquiry interface • Connected to database • Credit-card application • Verifies authenticity • Order-fulfillment system

22. More Than Meets the Eye (continued)

23. Web-Enabled Business • Web-enabled business classified according to interacting parties • Business-to-business • Business-to-consumer • Government-to-business • Government-to-consumer

24. 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

25. B2B Trading (continued)

26. 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

27. 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

28. B2C Trading (continued)

29. 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

30. Supply Chains on the Web (continued)

31. Rules for Successful Web-based Business • Business success depends on availability and use of software • Several elements to consider to support B2C commerce

32. Target the Right Customers • Target customers needing products and services • Most important effort of marketing • Affects blogs and podcasting

33. 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

34. 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

35. 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

36. 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

37. 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

38. 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

39. 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

40. 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

41. 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