Management Information Systems

1
Management Information Systems

• Islamia University of Bahawalpur
• Delivered by
• Tasawar Javed
• Lecture 11

2
Using Information Technology to Engage in
Electronic Commerce

• Todays talk
• Electronic Commerce
• Anticipated benefits of E-commerce
• E-commerce Constraints
• The Inter-organizational System
• Strategies for E-Commerce
• The Next Step for E-Commerce
• Suggestions for Successful Internet Use
• Future impact of the Internet on Business

3
Using Information Technology to Engage in
Electronic Commerce

• Few definitions are very narrow of Electronic
  Commerce also know as E-Commerce
• This only includes business transactions that
  deal with customers Suppliers, connecting their
  respective computers via the Internet.
• Broad view of E-Commerce
• It facilitates the internal as well as external
  operation of the firm
• The term electronic business electronic
  commerce are synonyms
• Many of the firms operations are internal
  (finance, HR, IS, manufacturing, marketing)
• External suppliers and customers comes under this
  broad definition
• A business transaction that uses network access,
  CB system, and a web browser interface qualifies
  as E-Commerce

4
E-Commerce beyond the Boundary of the Firm

• 2 types of E-commerce
• B2C
• B2B E-Commerce
• B2B involve few people, generally those in the
  Information Systems groups of the companies
  affected
• B2C transactions require fundamental design
  differences. Customer may not have expertise with
  IT, so the Website must offer instructions and
  help

5
Anticipated benefits from E-Commerce

• Firms engage in e-commerce in order to achieve
  improvement throughout the organization
• Improved customer services before, during, and
  After Sale
• Improved relationship with suppliers and
  financial community
• Increased economic return on stock holder and
  owner investment
• E-commerce is powerful supporting tool that can
  help an organization accomplish its goals

6
E-Commerce Constraints

• Primarily firms implemented systems for
  transactions with customers and suppliers
  (purchase order, transfer of payments, invoices)
• High costs
• Security concerns
• Immature or unavailable software

7
Scope of E-commerce

• E-commerce accounted for almost 1.7 trillion of
  economic activity in the US
• Annual growth rate of over 15 each year
• Amount of economic impact varies from industry to
  industry
• 94 of e-commerce is B2B, leaving 6 for B2C

8
Scope of E-commerce

• Percentage of e-commerce sales versus total sales
  in selected industry segments
• Industry segment E-com of total sale
• Apparel manufacturing 20 24
• Transport equipment 46 50
• Motor vehicle wholesaling 20 25
• Drug wholesaling 40 49
• Travel reservation retail 24 25

9

• Thank you!!!
• QA