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Electronic Commerce and Transaction Processing Systems

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... web-based order processing with traditional systems The E-Commerce Supply Chain Supply chain management is a key value chain ... eCommerce software ... – PowerPoint PPT presentation

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Title: Electronic Commerce and Transaction Processing Systems


1
Chapter 5
  • Electronic Commerce and Transaction Processing
    Systems
  • An Introduction to Electronic Commerce
  • E-Commerce Applications
  • E-Commerce Technology Components
  • Strategies for Successful E-Commerce
  • An Overview of Transaction Processing Systems
  • Enterprise Resource Planning

Topics
2
An Introduction to Electronic Commerce
Chapter 5.1
Key Terms
  • Business-to-consumer
  • (B2C) e-commerce
  • Business-to-business
  • (B2B) e-commerce
  • Consumer-to-consumer
  • (C2C) e-commerce
  • Supply chain management
  • Electronic data
  • interchange (EDI)
  • Mobile commerce
  • (m-commerce)

3
E-commerce
  • Business activities conducted using electronic
    data transmission involving computers,
    telecommunications networks, and streamlined work
    processes.

4
E-commerce History
VAN
Transaction
EDISoftware
Company B
Transaction
EDISoftware
Company A
Electronic Data Interchange (EDI) EDI uses
private network communications networks called
value-added networks (VANs) to transmit
standardized transaction data between business
partners and suppliers.
5
Benefits of E-Commerce?
  • Businesses use E-Commerce to
  • Reduce transaction costs
  • Speed the flow of goods and info
  • Improve customer service
  • Enable close coordination of actions among
    manufacturers, suppliers, and customers
  • Gain access to worldwide markets

6
E-commerce can dramatically extend a businesses
market. Farmyard Nurseries customer base before
and after e-commerce. http//www.farmyardnurseries
.co.uk/mail.htm.
7
Challenges of E-Commerce
  • Change distribution systems work processes
  • Integrate web-based order processing with
    traditional systems

8
The E-Commerce Supply Chain
  • Supply chain management is a key value chain
    composed of
  • Demand planning
  • Supply planning
  • Demand fulfillment

9
The E-Commerce Supply Chain
Figure 5.1 Supply Chain Management
10
E-Commerce Segmentation
  • Business to Business (B2B)
  • Private
  • Consumer to Consumer (C2C)
  • eBay.com
  • Half.com
  • Business to Consumer (B2C)
  • Amazon.com
  • BestBuy.com

11
E-Commerce Segmentation
12
M-commerce
  • M-commerce E-commerce over mobile devices like
    smartphones.
  • digital goods
  • proximity payment systems
  • distance goods

13
E-commerce Applications
Chapter 5.2
Key Terms
  • Electronic retailing
  • Cybermall
  • Electronic exchange
  • Market segmentation
  • Technology-enabled
  • relationship management
  • Electronic bill presentment

14
E-Commerce Applications Retail and Wholesale
  • Electronic retailing (E-tailing) the direct sale
    from business to consumer through electronic
    storefronts, typically designed around an
    electronic catalog and shopping cart model
  • www.sharperimage.com
  • Cybermalls a single Web site that offers many
    products and services at one Internet location
  • http//eshop.msn.com
  • Wholesale e-commerce B2B
  • Electronic Exchanges

15
E-Commerce Applications Manufacturing
  • To raise profitability and improve customer
    service, many manufacturers move their supply
    chain operations onto the Internet
  • Electronic exchange an electronic forum where
    manufacturers, suppliers, and competitors buy and
    sell goods, trade market information, and run
    back-office operations

16
E-Commerce Applications Manufacturing
Figure 5.3 Model of an Electronic Exchange
17
E-Commerce Applications Marketing
  • Market segmentation the identification of
    specific markets to target them with advertising
    messages
  • Technology-enabled relationship management use
    of detailed information about a customers
    behavior, preferences, needs, and buying patterns
    to set prices, negotiate terms, tailor
    promotions, add product features, and otherwise
    customize the entire relationship with that
    customer

18
E-Commerce Applications Marketing
19
Investment Finance
  • Investment and Finance
  • On-line Stock Trading
  • www.sharebuilder.com
  • On-line Banking
  • electronic bill presentment
  • The Motley Fool http//www.fool.com
  • Auctions
  • http//www.ebay.com
  • http//www.whattheheck.com/ebay/

20
E-commerce Technology, Infrastructure, and
Development
Chapter 5.3
Key Terms
  • Web site development
  • tools
  • Web page construction
  • software
  • E-commerce software
  • Catalog management
  • software
  • Product configuration
  • software
  • Electronic shopping cart
  • Digital certificates
  • Electronic cash
  • Electronic wallet
  • Smart card

21
E-commerce Technology, Infrastructure, and
Development
Cost, Availability, Reliability, Security,
Redundency
Catalog, Shopping Cart, Transaction Processing,
Traffic Data Analysis
Security, Encryption, Delivery, Tracking
  • Dedicated machine that can handle a lot of
    traffic.

www.cnet.com Click Internet Services, E-commerce
Hosting
22
Hardware
  • Storage capacity and computing power required of
    the Web server depends on
  • Software that will run on the server
  • Volume of e-commerce transactions
  • Web site hosting
  • www.dreamhost.com

23
Software
  • Web site development tools
  • Tools used to develop a web site, including HTML
    or visual web page editor, software development
    kits, and web page upload support.
  • Retrieving and sending Web pages
  • Web page construction
  • Software that uses web editors and extensions to
    produce both
  • Static Web pages
  • Dynamic Web pages

24
Software
  • E-commerce software must support
  • Catalog management
  • Automates the process of creating a real-time
    interactive catalog and delivering customized
    content to a users screen.
  • Product configuration
  • Software used by buyers to build the product they
    need online E.g. www.dell.com
  • Electronic shopping cart
  • A model used to track the items selected for
    purchase, allow shoppers to view what is in the
    cart, add new items to it, and remove items from
    it.

25
Software
Figure 5.5 Electronic Shopping Cart
26
Electronic Payment Systems
  • Digital certificate an attachment to an e-mail
    message or data embedded in a Web page that
    verifies the identity of a sender or a Web site
  • Electronic cash (e-cash or digital cash)
  • any of several schemes that allow a person to pay
    for goods or services by transmitting a number
    from one computer to another
  • http//www.paypal.com

27
Is it safe to provide your bank information using
this form?
28
Electronic Payment Systems
  • Electronic wallet a computerized stored value
    that holds credit card information, electronic
    cash, owner identification, and address
    information
  • Credit card e.g. VISA, MasterCard
  • Charge card e.g American Express
  • Debit card e.g. Bank Of America
  • Smart card
  • A credit card-sized device with an embedded
    microchip to provide electronic memory and
    processing capability

FSU Card
29
An Overview of Transaction Processing Systems
Chapter 5.4
Key Terms
  • Batch processing system
  • Online transaction
  • processing (OLAP)
  • Transaction processing
  • cycle
  • Data collection
  • Data editing
  • Data correction
  • Data manipulation
  • Data storage
  • Document production
  • Order processing systems

30
An Overview of Transaction Processing Systems
  • Provide data for other business processes
  • Management information system/decision support
    system (MIS/DSS)
  • Special-purpose information systems
  • Process the detailed data necessary to update
    records about the fundamental business operations
  • Include order entry, inventory control, payroll,
    accounts payable, accounts receivable, and the
    general ledger.

31
An Overview of Transaction Processing Systems
Figure 5.6 TPS, MIS/DSS, and Special Information
Systems in Perspective
32
Traditional Transaction Processing Methods and
Objectives
  • Batch processing system method of computerized
    processing in which business transactions are
    accumulated over a period of time and prepared
    for processing as a single unit or batch
  • Online transaction processing (OLTP)
    computerized processing in which each transaction
    is processed immediately, without the delay of
    accumulating transactions into a batch

33
Transaction Processing Activities
  • Transaction processing cycle the process of data
    collection, data editing, data correction, data
    manipulation, data storage, and document
    production
  • Data collection
  • Data editing
  • Data correction
  • Data manipulation
  • Data storage
  • Document production and reports

34
Transaction Processing Cycle
35
Order Processing Systems
  • Systems that process order entry, sales
    configuration, shipment planning, shipment
    execution, inventory control, invoicing, customer
    relationship management, and outing and
    scheduling.

36
Order Processing Systems
The lifeblood of the organization!
Business Resumption Planning Anticipating and
minimizing the effects of disasters.
37
OrderEntry System
Order ProcessIng
Purchasing
AccountsPayableSystem
Customer
Supplier
ShipmentPlanning System
ReceivingSystem
ShipmentExecutionSystem
PurchaseOrder Processing System
Invoicing System
InventoryControl System
Warehouse
38
TPS Control and Management Issues
Chapter 5.5
Key Terms
  • Business continuity
  • planning
  • Transaction processing
  • system audit
  • Audit trail

39
TPS Control and Management Issues
  • Business continuity planning identification of
    the business processes that must be restored
    first in the event of a disaster and
    specification of what actions should be taken and
    who should take them to restore operations
  • Audit trail documentation that allows the
    auditor to trace any output from the computer
    system back to the source documents

40
Transaction Processing System Audit
  • Does the system meet the business need for which
    it was implemented?
  • What procedures and controls have been
    established?
  • Are these procedures and controls being used
    properly?
  • Are the information systems and procedures
    producing accurate and honest reports?

41
Enterprise Resource Planning
Chapter 5.6
Key Terms
  • Best practices

42
Enterprise Resource Planning (ERP)
  • From Webopedia.com a business management system
    that integrates all facets of the business,
    including planning, manufacturing, sales, and
    marketing.
  • Key Real-time monitoring of business functions

http//www.aim.fsu.edu/
43
ERP
  • Benefits
  • Eliminates costly, inflexible legacy systems
  • Improved technology infrastructure
  • Improved work processes
  • Increased data access for decision making
  • Disadvantages
  • Expense time
  • Radical change
  • Integrating with other systems
  • One vendor risks

44
ERP
  • Best practices
  • the most efficient and effective ways to complete
    a business process

45
Review
  • E-commerce supports electronic business
    transactions.
  • Electronic Data Interchange (EDI) uses private
    VANs for e-commerce.
  • B2B is huge compared to B2C and C2C.
  • E-commerce benefits include streamlined business
    process and opportunities for small businesses.
  • M-commerce is e-commerce over mobile devices.

46
Review
  • Encryption and Digital Signatures provide
    security for e-commerce transactions.
  • TPS facilitates and records business
    transactions.
  • There are lots of different kinds of TPSs. Among
    the most important is the Order Processing
    System.
  • ERP provides real time access to business
    processes.

47
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