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Using Information Technology To Engage in Electronic Commerce
Using Information Technology To Engage in Electronic Commerce
Chapter 3
Using Information Technology to
Engage in Electronic
Commerce
3-1
Copyright 2001, Prentice-Hall, Inc.
Electronic Commerce
3-2
Environmental Responsibilities
of Functional Areas
Human Information
Finance Resources Services Manufacturing Marketing
Customers
X X
Suppliers
X X
Stockholders X
Labor Unions X X
Government X X X X X
Financial Community X
Global Community
Competitors X X
3-3
Electronic Commerce Benefits
Improved service, especially to
customers
Improved relationships to suppliers and
the financial community
Increased return on stockholder and
owner investments
3-4
Electronic Commerce
Constraints
High costs
Security concerns
Immature or unavailable software
3-5
New Electronic Commerce Era
Instead of specialized software, firms
are designing systems to use Internet
Browsers
Making a common interface for
customers and electronic commerce
partners
3-6
Selection of Electronic Commerce
Strategy, Methodology, and Technology
Strategic Business Plan
3-7
Business Intelligence (BI)
3-8
Data
1 2 3 4 5
Collect Evaluate Analyze Store Disseminate
intelligence
Intelligence intelligence
data data data
Data Intelligence
3-10
Search Engines
3-11
Extranets
3-12
Interorganizational System (IOS)
Purchase order
Suppliers The
Firm
3-15
Sending
Receiving
firms
firms
computer
computer
Application
Application
software
software
Standard EDI format
Mapping
Mapping
software
software
3-17
Degree of EDI Implementation
Level-one users
One or two transmission sets sent to limited
trading partners
Level-two users
Many transaction sets transmitted to large
number of trading partners
Level-three users
Many transaction sets transmitted to large
number of trading partners and firms computer
applications are tailored to EDI approach 3-18
Adoption Influences
3-19
Internal and Environmental
Influences on EDI Adoption
Environmental Influences
Internal Influences
Internal Exercised
Pressure Power
Need Trading
Competitors
Partners
Top
Management
Support
EDI
3-20
EDI Benefits
Direct
Reduced errors
Reduced costs
Increased operational efficiency
Indirect
Increased ability to compete
Improved relationships with trading partners
Improved customer service
3-21
EDI Direct and Indirect Benefits
Indirect Benefits
Direct Benefits
Reduced
Errors
Improved Service
Customers 3-22
A Challenge to EDI
3-23
Electronic Commerce
Technology
Direct Connectivity
Uses dial-up or private lines to connect
Value-Added Networks (VANs)
Circuit provided by vendor
Vendor provides additional services
The Internet
Global communications network
3-24
Internet Evolution
Derived from the Advanced Research
Projects Agency network (ARPANET)
Designed to let computer-to-computer
communications continue even during
military attacks
ARPANET joined with Computer Science
Network (CSNET) and National Science
Foundation Network (NSFNET) to form
todays Internet
3-25
Internet Evolution [cont.)
During the 1970s various other networks
were connected
This led to the 1980s Internet concept
which means each network can seamlessly
interconnect with other networks
Businesses began using the new Internet
with workstations and local area networks
The Internet has become a network of
networks
3-26
Internet Evolution (cont.)
http://aisvm1.ais.com/abra7883/index.html
3-29
Internet Client/Server
Information Retrieval Systems
Gopher
USENET
Gateway is
FTP Gopher HTTP HTTP server
plus other
application.
News WAIS
Database, info
system, etc.
3-31
Internet Security
Internal/External
Service Gateway
Traffic is sent through a gateway to a separate router box
on the internal network, configured according to internal
Internal Router security policy
Internal Network
3-33
Intranet
3-34
Business Applications
for the Internet
Marketing research
Competitive intelligence
Retailing applications
The future impact of the Internet on
business is enhanced as the National
Information Infrastructure programs
become established
3-35
Successful Internet Use
Internet
Network of networks
Security concerns
Firewalls
Intranets
National information infrastructure
3-38