Digital Technology for Business
E-Commerce & Supply Chain
Systems
Study Questions
◼ Q1 – How do companies use e-commerce?
◼ Q2 – What technology is needed for e-commerce?
◼ Q3 – Why is Web 2.0 important to business?
◼ Q4 – How can information systems enhance supply chain performance?
◼ Q5 – How can information systems support supplier relationship management?
◼ Q6 – How do organizations exchange data?
◼ Essential e-commerce process architecture
◼ E-Commerce Trends 2
◼ Q1 – How do companies use e-
commerce?
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Electronic Commerce
◼ More than just buying and selling products
online
◼ Includes the entire online process of
◼ Developing, marketing, selling, delivering,
servicing and paying for products and services
◼ Transacted on the internetworked global
marketplaces of customers
◼ With the support of a worldwide network of
business partners
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Processes involved in E-commerce
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Categories of e-Commerce
◼ Business-to-Consumer (B2C) – businesses develop
attractive electronic marketplaces to sell products
and services to consumers
◼ Business-to-Business (B2B) – involves both electronic
business marketplaces and direct market links
between businesses
◼ Consumer-to-Consumer (C2C) – online auctions
where consumers can buy and sell with each other
◼ Also Business-to-Government (B2G)
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Relationships
C2C
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e-Commerce Success Factors
◼ Selection and Value
◼ Attractive product selections, competitive prices, satisfaction
guarantees, and customer support after the sale
◼ Performance and Service
◼ Fast, easy navigation, shopping, and purchasing, and
prompt shipping and delivery
◼ Look and Feel
◼ Attractive web storefront, website shipping areas,
multimedia product catalog pages, and shopping features
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e-Commerce Success Factors
◼ Advertising and Incentives
◼ Targeted web page advertising and e-mail promotions,
discounts and special offers, including advertising at affiliate
sites
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e-Commerce Success Factors
◼ Personal Attention
◼ Personal web pages, personalized product
recommendations, Web advertising and e-mail notices, and
interactive support for all customers
◼ Community Relationships
◼ Virtual communities of customers, suppliers, company
representatives, and others via newsgroups, chat rooms,
and links to related sites
◼ Security and Reliability
◼ Security of customer information and website transactions,
trustworthy product information, and reliable order
fulfillment
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Business model types
◼ Manufacturer (ex. Ford, 3M, General Electric)
◼ Distributor (ex. Auto Dealerships)
◼ Retailer (ex. Amazon)
◼ Franchise (ex. McDonald’s, Pizza Hut)
◼ Brick-and-motar (ex. Deal with the customers
face-to-face in a shop, or a store)
◼ eCommerce (ex. Web-store on the internet)
◼ Freemium (ex. Dropbox, Youtube)
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Business model types
◼ Subscription (ex. Netflix)
◼ Aggregator (ex. Uber, Airbnb)
◼ Online Marketplace (ex. Amazon, Alibaba)
◼ Advertisement (ex. YouTube, Forbes)
◼ Crowdsourcing (ex. Wikipedia, Duolingo)
◼ Blockchain (ex. BitConnect)
◼ … and more…
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◼ Q2 – What technology is needed
for e-commerce?
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Basic Technology
◼ E-commerce technology uses a three-tier architecture. Each tier
relates to a particular class of computers.
◼ The user tier uses personal computers and browser software that
requests and processes Web pages. Web page documents are
coded in HTML and are transmitted using HTTP protocols.
◼ The server tier uses Web server computers and processes
application programs that help manage HTTP traffic between Web
servers and users.
◼ The database tier uses computers that run a DBMS to process SQL
requests for retrieving and storing data.
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Three-Tier Architecture
◼ This figure shows how the three-tier architecture operates.
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◼ Q3 – Why is Web 2.0 important to
business?
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Web 1.0, Web 2.0, and Web
3.0?
Web 1.0 Web 2.0 Web 3.0
▪ “readable” phrase of the ▪ “writable” phrase of the ▪ “executable” phrase of
World Wide Web with flat World Wide Web with Word Wide Web with
data interactive data dynamic applications,
▪ limited interaction ▪ facilitates interaction interactive services, and
between sites and web between web users and “machine-to-machine”
users sites interaction
▪ Encourages ▪ Computers can interpret
participation, information like humans
collaboration, and and intelligently generate
information sharing. and distribute useful
content tailored to the
▪Ex: Youtube, Facebook, needs of user
Wiki
Source: https://wittycookie.wordpress.com/2012/06/04/what-are-the-major-differences-among-web-1-0-2-0-and-3-0/
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Web 1.0 Web 2.0 Web 3.0
Mostly Read-Only Wildly Read-Write Portable and Personal
Company Focus Community Focus Individual Focus
Home Pages Blogs / Wikis Live-streams / Waves
Owning Content Sharing Content Consolidating Content
WebForms Web Applications Smart Applications
Directories Tagging User Behaviour
Page Views Cost Per Click User Engagement
Banner Advertising Interactive Advertising Behavioural Advertising
Britannica Online Wikipedia The Semantic Web
HTML/Portals XML / RSS RDF / RDFS / OWL
https://www.geeksforgeeks.org/web-1-0-web-2-0-and-web-3-0-with-their-difference/
Web 4.0 ? Web 5.0 ?
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Study Questions
◼ Q1 – How do companies use e-commerce?
◼ Q2 – What technology is needed for e-commerce?
◼ Q3 – Why is Web 2.0 important to business?
◼ Q4 – How can information systems enhance supply chain performance?
◼ Q5 – How can information systems support supplier relationship management?
◼ Q6 – How do organizations exchange data?
◼ Essential e-commerce process architecture
◼ E-Commerce Trends 19
◼ Q4 – How can information
systems enhance supply chain
performance?
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Supply Chain Relationships
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Drivers of Supply Chain Performance
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◼ Q5 – How can information
systems support supplier
relationship management?
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B2B in One Section of the Supply Chain
◼ Three information systems are involved in supply chain management:
◼ supplier relationship management
◼ inventory
◼ customer relationship management
MRP: Material Resource Planning system
ERP: Enterprise Resource Planning system 25
SRM Processes
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SRM & CRM integration
◼ Connect the CRM to the customer’s SRM to automate recurring
purchases.
◼ SRM examines inventory, determines required items, and creates an
order.
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◼ Q6 – How do organizations
exchange data?
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Interorganizational Message Exchange
◼ Companies must communicate with other companies in order to
purchase supplies, sell products, or generally do business.
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E-COMMERCE TRENDS
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e-Commerce Trends Social network
Mobile network
Virtual world
Source: Adapted from Jonathan Rosenoer, Douglas Armstrong, and J. Russell Gates, The Clickable Corporation:
Successful Strategies for Capturing the Internet Advantage (New York: The Free Press, 1999), p. 24. 31
Top 5 trends driving e-com
◼ Social media continues to be a huge driver of online purchasing
decisions.
◼ The increasingly crowded and competitive ad market has driven
up costs
◼ Direct-to-consumer brands have become market leaders
through social media and scaling word of mouth.
◼ Video and rich media content provide unique ways for
consumers to discover new products and engage with brand
advocates.
◼ E-commerce sales and Mobile shopping app usage is starting to
accelerate
Source: https://www.forbes.com/sites/kylewong/2018/06/07/top-5-e-commerce-takeaways-
from-the-most-influential-report-of-the-year/#2866b2435696
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(Further reading for students)
ESSENTIAL E-COMMERCE
PROCESS ARCHITECTURE
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Access Control and Security
◼ E-commerce processes must establish mutual
trust and secure access
◼ Between the parties in an e-commerce
transaction
◼ By authenticating users, authorizing access,
and enforcing security features
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Profiling and Personalizing
◼ Gather data on you and your website behavior and
choices
◼ Build electronic profiles of your characteristics and
preferences
◼ Profiles are used to recognize you and provide you
with a personalized view of the contents of the site
with product recommendations and personalized
advertising
◼ One-to-one marketing strategy
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Search Management
◼ Search processes that helps customers
find the specific product or service they
want to evaluate or buy
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Content and Catalog
Management
◼ Content Management – software that helps e-
commerce companies develop, generate, deliver,
update, and archive text data and multimedia
information at e-commerce websites
◼ Catalog Management – software that helps generate
and manage catalog content
◼ May support customer self-service and mass-
customization of products, e.g., Dell Computer
configuration management
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Workflow Management
◼ Software that helps employees electronically
collaborate to accomplish structured work
tasks within knowledge-based business
processes
◼ Ensure proper transactions, decisions, and
work activities are performed and the correct
data and documents are delivered to the right
employee, customer, or supplier
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Catalog/content management and
workflow example
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Event Notification
◼ Most e-commerce applications are event-driven
◼ Respond to events such as customer’s first website
access, payment, delivery
◼ Event notification software monitors e-commerce
processes
◼ Records all relevant events including problem
situations
◼ Notifies all involved stakeholders
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Collaboration and Trading
◼ Processes that support the vital collaboration
arrangements and trading services
◼ Needed by customers, suppliers, and other
stakeholders
◼ Online communities of interest
◼ E-mail, chat, and discussion groups
◼ Enhance customer service and build customer
loyalty
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Electronic Payment Processes
◼ Web Payment Processes
◼ Shopping cart process
◼ Credit card payment process
◼ Other more complex payment processes
◼ Electronic Funds Transfer (EFT)
◼ Capture and process money and credit transfers
between banks and businesses and their
customers
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