Chapter 8: The WebEnabled Enterprise

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Chapter 8 The Web-Enabled Enterprise
Management Information Systems, Fifth Edition
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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

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Objectives

• 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

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Web Business Growing and Changing

• Blockbuster faced competition from Netflix and
  Walmart.com
• Online rentals
• E-commerce bandwagon
• Digitized movies in the future
• Download movie to PC

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Web Technologies A Review

• Several standards standards and technologies
  enable the Web to deliver rich information
• HTTP, HTML, XML
• File Transfer
• RSS
• Blogs
• Podcasting
• IM
• Cookies

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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

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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

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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 sold products on Web sites

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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

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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

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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

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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

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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 behavior

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Proprietary Technologies

• Proprietary Technology intellectual property of
  developer
• Local search engine
• Shopping cart applications
• Wish lists

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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

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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

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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

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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

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Considerations in Selecting a Web Host

• Factors to consider when selecting Web host
• Help with page design
• Security
• Availability
• Minimize downtime
• Cost
• Setup fee
• Monthly fee

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Considerations in Selecting a Web Host
Figure 8.1 Factors to consider for each Web
hosting company
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More Than Meets the Eye

• Several elements essential to business
• Inquiry interface
• Connected to database
• Credit-card application
• Verifies authenticity
• Order-fulfillment system

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More Than Meets the Eye
Figure 8.2 The components of a Web-based
retailing operation
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Web-Enabled Business

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

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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

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B2B Trading
Figure 8.3 Spending on search advertising
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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

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B2C Trading
Figure 8.4 Online business-to-consumer sales
continue to grow in the United States and
worldwide
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B2C Trading

• Content providers
• Information
• Art
• Classified Ads
• Bill presentment and payment
• Phishing type of fraud
• Dispersed workforce
• Purchase labor from larger pool
• M-commerce
• Business conducted on mobile devices

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B2C Trading
Figure 8.5 Web-shopping benefits
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B2C Trading
Figure 8.6 The top ten U.S. online retailers
based on the conversion rates in February 2005
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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

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Supply Chains on the Web
Figure 8.8 Online supply chain management
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Rules for Successful Web-based Business

• Business success depends on availability and use
  of software
• Several elements to consider to support B2C
  commerce

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Target the Right Customers

• Target customers needing products and services
• Most important effort of marketing
• Affects blogs and podcasting

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Capture the Customers Total Experience

• Use cookies
• Record shopper movements
• CRM software creates profiles
• Shopper experience becomes asset of business
• Tailor Web page to individual customers

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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

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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

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Let Customers Help Themselves

• Customers need information from organization
• Status of order
• Status of shipped item
• Installation instructions
• Troubleshooting
• Email messages sent with information about orders
• FAQs

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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

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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

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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

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Summary

• Business can maintain its own server or use Web
  hosting services
• Organizations 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

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Summary

• 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

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Ethical Considerations

• Spam
• Pop Up Windows
• Adware
• Malware
• Spyware
• Phishing

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It Fits Outfits

• Use of Internet
• On-Line Retailer
• Virtual Fitting Room
• Connecting With Customers
• Information
• Customer Support
• Customer Relations

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Case Studies

• Sovereign Bank
• Customer Relations
• PayPal
• E-Bay
• Purchased PayPal in 2002
• Expansion of Customer Base
• Secure
• Customer Related

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Video Best Deals Online

• Advantages
• Costs
• Ability to Compare
• Disadvantages
• Reputation
• Who are you buying from?
• What are you buying?

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Outside Investigation

• International Use of Internet
• http//www.glreach.com/globstats
• InternetWeek
• http//www.internetweek.cmp.com
• Major Geeks
• http//www.majorgeeks.com/
• Spyware Info
• http//www.spywareinfo.com/
• My Simon
• http//www.mysimon.com

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Access / Lab Assignments

• For Next Week
• Student Access Tutorial 3 Review Assignment
• Computer Lab
• Access Queries
• Access Tutorial 3 Case 3 Redwood Zoo