Electronic Commerce and Transaction Processing Systems

1
Electronic Commerce and Transaction Processing
Systems

• Chapter 5

2
Principles and Learning Objectives

• E-commerce is a new way of conducting business,
  and as with any other new application of
  technology, it presents both opportunities for
  improvement and potential problems.
• Identify several advantages of e-commerce.
• Identify some of the major challenges companies
  must overcome to succeed in e-commerce.
• Identify several e-commerce applications.

3
Principles and Learning Objectives

• E-commerce requires the careful planning and
  integration of a number of technology
  infrastructure components.
• Outline the key components of technology
  infrastructure that must be in place for
  e-commerce to succeed.
• Discuss the key features of the electronic
  payments systems needed to support e-commerce.
• Identify the major issues that represent
  significant threats to the continued growth of
  e-commerce.

4
Principles and Learning Objectives

• An organizations transaction processing system
  (TPS) must support the routine, day-to-day
  activities that occur in the normal course of
  business and help a company add value to its
  products and services.
• Identify the basic activities and business
  objectives common to all transaction processing
  systems.
• Discuss the importance of business resumption
  planning and disaster recovery for key
  transaction processing systems.

5
Principles and Learning Objectives

• Implementation of an enterprise resource planning
  (ERP) system enables a company to achieve
  numerous business benefits through the creation
  of a highly integrated set of systems.
• Define the term enterprise resource planning
  system and discuss the advantages and
  disadvantages associated with the implementation
  of such a system.

6
Introduction to Electronic Commerce
7
Electronic Commerce

• Business-to-consumer (B2C) e-commerce
• Business-to-business (B2B) e-commerce
• Consumer-to-consumer (C2C) e-commerce

8
Supply Chain Management
9
Value Chains in E-Commerce

• Conversion to e-commerce supply chain management
  provides businesses with an opportunity to
• increase revenues or decrease costs by
  eliminating time-consuming and labor-intensive
  steps throughout the order and delivery process
• improve customer satisfaction by enabling
  customers to view detailed information about
  delivery dates and order status
• reduce inventory including raw materials, safety
  stocks, and finished goods

10
Product and Information Flow for HP Printers
Ordered Over the Web
11
E-Commerce Applications
12
E-Commerce Applications

• Retail and Wholesale
• Manufacturing
• Marketing
• Investment and Finance
• Auctions

13
Retail and Wholesale

• Electronic retailing - the direct sale from
  business to consumer through electronic
  storefronts
• Cybermall - a single Web site that offers many
  products and services at one Internet location

14
Model of an Electronic Exchange
15
Web Sites Useful to Investors
16
Popular Stock Tracker Web Sites
17
Technology, Infrastructure, and Development
18
Key E-Commerce Technical Components
19
Hardware

• The amount of storage capacity and computing
  power required of the Web server depends
  primarily on two things
• the software that must run on the server
• the volume of e-commerce transactions that must
  be processed

20
Software

• Web site development tools
• Web page construction software
• E-commerce software
• Catalog software
• Product configuration software
• Electronic shopping cart

21
Electronic Shopping Cart
22
Electronic Payment Systems

• Electronic cash
• Electronic wallets
• Credit, charge, debit, and smart cards

23
An Overview of Transaction Processing Systems
24
TPS, MIS/DSS, and Special-Purpose Information
Systems
25
Traditional Transaction Processing Methods

• Batch processing method of computerized
  processing in which business transactions are
  accumulated over a period of time and prepared
  for processing as a single unit
• On-line transaction processing (OLTP) - method of
  computerized processing in which each transaction
  is processed immediately and the affected records
  are updated

26
Batch versus On-Line Processing
27
Integration of a Firms TPSs
28
Transaction Processing Activities

• Data collection
• Data editing
• Data correction
• Data manipulation
• Data storage
• Document production and reports

29
Data Processing Activities Common in Transaction
Processing Systems
30
Point-of-Sale Transaction System
31
Systems that Support Order Processing
32
Order Processing Systems
33
Business Resumption Planning

• The process of anticipating and minimizing the
  effects of disasters.
• Focuses primarily on two issues
• maintaining the integrity of corporate
  information
• keeping key information systems running until
  normal operations can be resumed
• Disaster recovery implementation of the
  business resumption plan

34
Enterprise Resource Planning
35
Some ERP Software Vendors
36
Commonalities Among ERP Systems

• Integrate data
• Operate in Client/Server Environment
• Based on Objects
• Employ Tables

37
Advantages of ERP

• Elimination of costly, inflexible legacy systems
• Improvement of work processes
• Increase in access to data for operational
  decision making
• Upgrade of technology infrastructure

38
Disadvantages of ERP

• Expense and time in implementation
• Difficulty integrating with other systems
• Risks in using one vendor

39
Summary

• E-commerce includes business-to-business (B2B),
  business-to-consumer (B2C), consumer-to-consumer
  (C2C).
• Transaction Processing Systems (TPSs) - consist
  of all the components of a CBIS, including
  databases, telecommunications, people,
  procedures, software, and hardware devices to
  process transactions.
• Business resumption plan anticipates and
  minimizes the effects of disasters.
• Disaster recovery implements disaster
  resumption plan.