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The Web-Enabled Enterprise

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Management Information Systems, Sixth Edition Chapter 8: The Web-Enabled Enterprise * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * Management ... – PowerPoint PPT presentation

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Title: The Web-Enabled Enterprise


1
Management Information Systems, Sixth Edition
  • Chapter 8
  • The Web-Enabled Enterprise

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
  • DLA Piper LLP is the second largest law firm in
    the world
  • 3200 lawyers in 24 countries and 63 offices
    around the world
  • Uses eRoom, a Web-based collaboration and
    document-sharing tool from EMC Corp.
  • Saves 15,000 labor hours annually, uses and mails
    significantly fewer paper documents, and reduces
    redundant work

5
Web Technologies A Review
  • Several standards and technologies enable the Web
    to deliver rich information, including
  • HTTP, HTML, XML
  • File Transfer
  • RSS
  • Blogs
  • Wikis
  • Podcasting
  • IM
  • Cookies

6
HTTP
  • Hypertext Transfer Protocol (HTTP) transfer and
    download Web information
  • HTTPS HTTP secure for confidential data exchange
  • Uniform Resource Locator (URL) unique address
    given to each Web site
  • IP address a special numeric address
  • Domain name unique name for a Web site,
    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
  • Conveys the meaning or content of the data
  • XHTML combination of XML and HTML
  • Uses opening and closing tags to control format

8
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9
File Transfer
  • File Transfer Protocol (FTP) used to transmit
    whole files
  • Used in all downloads from Web sites
  • Any type of file can be transferred
  • Can place files on a server for shared use
  • Often used to deliver purchased software products
    on Web sites

10
RSS
  • Really Simple Syndication (RSS) family of XML
    file formats that allow automatic downloads of
    content on a subscription basis
  • Helps users check for updates
  • Communicates short descriptions of content
  • Allows transmittal of new information
  • Useful on news Web sites
  • Also called Rich Site Summary

11
Blogs
  • Blog contraction of Web log
  • Invites surfers to post opinions and art
  • Focuses on a topic or set of topics
  • Trackback a tool that notifies bloggers when
    their posts have been mentioned elsewhere on the
    Web
  • Blogs are often used by businesses
  • Importance of blogs to commercial organizations
    is to find out what blog participants think and
    say about the organization

12
Wikis
  • Wiki (from Hawaiian, meaning quick) Web
    application that enables users to add to and edit
    the contents of Web pages
  • All the software required to edit the Web pages
    is embedded in the pages themselves
  • Wikipedia a popular online encyclopedia
  • Wiki technology is a popular ingredient in
    groupware (software used for collaboration)

13
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14
Podcasting
  • Podcast publishing sound and video on the Web
    for download
  • Usually on a subscription basis
  • Uses include
  • Time-shifted broadcast of radio station
    programs for later listening
  • Audio tours in museums
  • Lectures in distance learning courses
  • Garageband.com
  • Allows aspiring musicians to post music tracks

15
Instant Messaging
  • Instant messaging (IM) real-time chat
  • Form of synchronized e-mail
  • Chat room communicate with a group
  • Free applications for IM include
  • AIM AOL instant Messenger
  • Yahoo Messenger
  • MSN Messenger
  • ICQ
  • Trillian
  • Business uses
  • Customers can chat with sales or support reps

16
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17
Cookies
  • Cookie small file that stores information about
    a Web site visitor, stored on the visitors
    computer
  • Usually records the surfers ID
  • Often stores the surfers preferences
  • Provides convenience to consumers
  • Can be temporary (single session) or permanent
  • Potential for intrusion into surfer privacy
  • Clickstream tracking tracks a surfers clicking
    activities
  • Spyware traces and reports online behavior

18
Proprietary Technologies
  • Proprietary technology intellectual property of
    developer, not free for all to use
  • Examples
  • Local search engine
  • Shopping cart applications
  • Wish lists
  • Video streaming tools
  • Tools to analyze and predict Web visitor
    behavior, especially shopper behavior

19
Web-Enabled Business
  • Web-enabled business are classified according to
    the interacting parties
  • Business-to-business (B2B)
  • Business-to-consumer (B2C)
  • Government-to-business
  • Government-to-consumer

20
B2B Trading
  • Business-to-business (B2B) trading between
    businesses only
  • B2B forms include advertising through
  • Search advertising advertisements placed on a
    search site result page
  • Banners images placed on Web sites that link to
    a company site selling a product or service
  • Impression occurs when a page with a banner is
    downloaded
  • Reach percentage the percentage of Web users who
    visited a site in the past month

21
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22
B2B Trading (continued)
  • Exchanges and auctions act as online marketplaces
  • Intranet network used only by employees of an
    organization
  • Extranet network shared by employees of
    different organizations, usually business
    partners
  • Exchange extranet for organizations that deal in
    products and services of a particular type
  • Exchange operator profits from transaction fees
  • Auction sells a great variety of items

23
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24
B2B Trading (continued)
  • Online business alliances collaboration between
    businesses in establishing a Web site
  • Site operator works for the allied companies
  • Suppliers are invited to sell through the site
    and compete among themselves, driving prices down

25
B2C Trading
  • Business-to-consumer (B2C) trading with the
    general public
  • E-Tailing online retailing to consumers
  • Fulfillment activities picking, packing,
    shipping
  • Consumer profiling know customers better by
    gathering information about their online
    activities
  • Some consider this a violation of privacy
  • Conversion rate the proportion of site visitors
    who make a purchase

26
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27
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28
B2C Trading (continued)
  • Auction sites serve as a hub for consumers to buy
    and sell
  • Reverse auction customers name their own price
    for desired goods and services
  • Content providers offer information, artistic
    work, classified ads, and video
  • Electronic bill presentment and payment (EBBP)
    provides online bills and payment options for
    customers
  • Phishing type of fraud involving a fake Web site

29
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30
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31
B2C Trading (continued)
  • Extra-organizational workforce
  • Companies purchase labor from a larger pool
  • Mobile commerce, or M-commerce
  • Business conducted on mobile devices
  • Many experts believe that information delivery is
    the main mobile application, not commerce
  • Exceptions are Japan and South Korea
  • Japans DoCoMos i-mode service allows users of
    smart cell phones to purchase canned soda from
    vending machines, fast food

32
B2C Trading (continued)
  • M-commerce also raises privacy concerns
  • GPS provides location tracking
  • New top-level domain names with .mobi available
    for mobile applications
  • Sites should use special technologies to optimize
    content for easy viewing on mobile devices
  • Virtual world a combination of images, video,
    sound, and avatars that resemble the real world
  • Accessible for interaction by subscribers
  • Avatar 3D graphical character that represents a
    user in a virtual world

33
Supply Chains on the Web
  • Supply chain management (SCM) systems may be
    connected to the Web to allow suppliers to
    participate directly
  • Use of XML allows companies to set standards for
    data exchange
  • Electronic Data Interchange (EDI) a system used
    prior to the Web to exchange documents
    electronically
  • Set standards for data formats
  • EDI networks are owned and managed by value-added
    network (VAN) companies

34
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35
Options in Establishing a Web Site
  • Web site Web pages that make up information and
    links
  • Internet server a computer connected to the
    Internet backbone
  • Businesses have two choices for a Web site
  • Installing and maintaining their own Web servers
  • Contracting with a Web hosting service

36
Owning and Maintaining a Server
  • Owning and maintaining Web servers is costly
  • Provides the greatest degree of control, but
    requires expertise to set up and maintain
  • Must obtain a high-speed link to the Web
  • Load balancing transfer data requests from a
    busy server to a less busy server
  • Mirror servers servers with duplicated content
  • Pure-play company whose entire business is
    online
  • Brick-and-mortar company that owns physical
    stores and a Web site

37
Using a Hosting Service
  • Web hosting Web server managing service
  • Several types of Web hosting
  • Shared hosting stores the clients Web site on
    the same physical server as other clients
  • Virtual private hosting simulates a single
    server, allowing a client to have its own domain
    name
  • Dedicated hosting client has exclusive use of an
    entire physical Web server
  • Co-location server owned and managed by a client
    is co-located with other clients servers in a
    secure physical location

38
Considerations in Selecting a Web Host
  • Compare host vendors using a point system
  • Dynamic Web pages enable communication between
    browser and database
  • Factors to consider when selecting Web host
  • Allows use of database management system
  • Storage space capacity
  • Technical and Web site design support
  • Scalability
  • Security physical and virtual

39
Considerations in Selecting a Web Host
(continued)
  • Factors to consider when selecting Web host
    (continued)
  • Availability minimize downtime
  • Costs, including
  • Setup fees
  • Traffic-based fees
  • Monthly fees

40
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41
More Than Meets the Eye
  • Several elements are essential to conducting
    business on the Web
  • Inquiry interface connects to database to allow
    user to search a catalog of products or services
  • Order processing application, including
  • Credit-card verification application
  • Order-fulfillment system picks, packs, and ships

42
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43
Rules for Successful Web-Based Business
  • Business success depends on availability and use
    of software
  • Elements needed to support B2C commerce
  • Targeting customers
  • Capturing the customers complete experience
  • Personalizing the service
  • Shortening the business cycle
  • Let customers help themselves
  • Be proactive and de-commoditize

44
Target the Right Customers
  • Target customers needing your products and
    services
  • Most important effort of marketing
  • Involves identifying the sites that your audience
    frequently visits
  • Consider blogs and podcasting sites for
    advertisement placement

45
Capture the Customers Total Experience
  • Use cookies to record shoppers movements within
    the site
  • Use CRM software to create consumer profiles
  • Shopper experience becomes an asset of business,
    allowing
  • Fine-tuning of the product portfolio
  • Tailoring of Web pages to individual customers
  • Individual e-mails to shopper offering products
    of interest

46
Personalize the Service
  • CRM software and Web page customization software
    can be combined to
  • Personalize Web pages shown to a customer
  • Allow the customer to select the type of e-mail
    content desired
  • Respect visitor privacy by offering opt-in rather
    than opt-out
  • Allow the customer to tailor products to be
    purchased

47
Shorten the Business Cycle
  • Business on the Web saves time for customers
  • Fulfillment is a major challenge for businesses
  • Activities after customer places order
  • Fast shipping is desired because
  • It produces higher customer satisfaction
  • Business collects payments faster
  • Can outsource the entire fulfillment task to
    fulfillment organizations such as
  • UPSs e-Logistics
  • FedExs Supply Chain Services

48
Let Customers Help Themselves
  • Customers need information from organization
  • Status of order
  • Status of shipped item
  • Installation instructions
  • Troubleshooting
  • E-mail messages sent to customers with
    information about orders and how to track them
  • FAQs online allow customers to find answers to
    common questions

49
Be Proactive and De-Commoditize
  • Prompt e-mail replies expected
  • Proactive alerts expected for changes in orders
    or services, or product recalls
  • Automatic reordering features are desirable
  • Must take initiatives to de-commoditize products
  • Commodity a product sold at roughly the same
    price by many vendors (no differentiation)
  • Addition of features or services prevents a
    product from becoming a commodity by creating
    differentiation

50
E-Commerce is Every Commerce
  • Web technologies have been highly integrated into
    the business world
  • Difficult to identify which business activities
    are on the Internet and which are not
  • Web has been highly integrated into daily
    activities of customers also
  • Commerce and e-commerce generally have the same
    meaning today

51
Summary
  • Some industries have changed drastically because
    of the Web
  • HTTP is an Internet standard controlling Web
    server addresses
  • HTTPS is a security version of HTTP
  • XML is a standard for description of data
  • Blogs enable people to create discussion Web pages

52
Summary (continued)
  • Cookies help Web sites personalize the visitors
    experience
  • Many Web technologies are proprietary
  • A business can maintain its own Web server or use
    a Web hosting service
  • Organizations should consider several factors
    when selecting a Web host
  • Web-enabled commerce is classified into B2B and
    B2C

53
Summary (continued)
  • B2B trading relies on electronic data interchange
    (EDI) and XML
  • Wireless handheld computers allow mobile
    commerce, called m-commerce
  • Online businesses must adhere to several factors
    to be successful
  • Virtual worlds provide a means to meet and
    conduct business and social activities on the Web
  • Spam and spyware are online annoyances
  • Phishing is a pervasive fraud crime
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