The Web-Enabled Enterprise

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Management Information Systems, Sixth Edition

• Chapter 8
• The Web-Enabled Enterprise

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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 (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

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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

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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

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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

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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
• Conveys the meaning or content of the data
• XHTML combination of XML and HTML
• Uses opening and closing tags to control format

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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

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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

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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

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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)

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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