 | Management Information Systems 4/e - James A. O'Brien | |||||
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Chapter 8: The Internet and Electronic Commerce
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Business Uses of the Internet
Categories of ways in which companies are using the Internet for business include: communications and collaboration electronic commerce interactive marketing and strategic alliances. Business Value of the Internet Internet using organizations are deriving business value from their Internet applications in areas such as: cost savings customer service marketing and revenue generation. Customer Value of the Internet Customers want and expect companies to communicate with them and service their needs over the Internet. The continual interaction with customers encourages cross-functional collaboration with customers in product development marketing delivery service and technical support. Electronic Commerce Business-to-Business In this form of electronic commerce businesses must develop attractive electronic marketplaces to entice and sell products and services to customers. Electronic Commerce Business-to-Consumer This category of electronic commerce involves both electronic business marketplaces and direct market links between businesses. Electronic Commerce Economic Model The Internet presents businesses entrepreneurs and investors with a wide-open economic model on which to base electronic commerce. Electronic Commerce Technology Architecture Electronic commerce can be viewed as depending on six layers of technology: application services brokerage and data management interface services secure messaging middleware services and network infrastructure. Electronic Data Interchange The electronic transmission of source documents between the computers of different organizations. Electronic Funds Transfer The development of banking and payment systems that transfer funds electronically instead of using cash or paper documents such as checks. Electronic Payment Systems Alternative cash or credit payment methods using various electronic technologies to pay for products and services in electronic commerce. Interactive Marketing A dynamic collaborative process of creating purchasing and improving products and services that builds close relationships between a business and its customers using a variety of services on the Internet Intranets and extranets. Pull Marketing Marketing methods that rely on the use of web browsers by end users to access marketing materials and resources at Internet intranet and extranet web sites. Push Marketing Marketing methods that rely on web broadcasting software to push marketing information and other marketing materials to end users' computers. Retailing on the Web The key goal of retailing on the Web is to optimize factors such as performance and service efficiency personalization socialization the look and feel of the site offering incentives to purchase and security. Security of Electronic Commerce Several basic security measures are being used to solve security problems: (1) encrypt (code and scramble) the data passing between the customer and merchant (2) encrypt the data passing between the customer and the company authorizing the credit card transaction or (3) take sensitive information offline. Supply Chain The network of business processes and interrelationships among businesses that are needed to build sell and deliver a product to its final customer. Supply Chain Management Integrating management practices and information technology to optimize information and product flows among the processes and business partners within a supply chain. Virtual Communities Groups of people with similar interests who meet and share ideas on the Internet and online services and develop a feeling of belonging to a community. Virtual Companies A form of organization that uses information technology to link the people assets and ideas of a variety of business partners no matter where they may be located in order to exploit a business opportunity. Virtual Shopping Malls An online multimedia simulation of a shopping mall with many different interlinked retail web sites. Virtual Storefronts An online multimedia simulation of a retail store shopping experience on the Web. Virtual Teams A team whose members use the Internet Intranets extranets and other networks to communicate coordinate and collaborate with each other on tasks and projects even though they may work in different geographic locations and for different organizations. Wholesaling on the Web Wholesaling on the Web involves information technologies such as E-mail electronic business forms bulletin board systems electronic data interchange electronic funds transfers web sites with multimedia marketing information and product catalogues interactive order processing systems and so on. |
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