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CIS 429 Fall 2007 Review for Comprehensive Final E-BUSINESS MODELS Business-to-Business (B2B) • Electronic marketplace (emarketplace) – interactive business communities providing a central market where multiple buyers and sellers can engage in e-business activities Marketing/Sales • Generating revenue on the Internet (cont.) – Search engine optimization (SEO) - a set of methods aimed at improving the ranking of a Web site in search engine listings, such as Google or Yahoo – Spamdexing - uses a variety of deceptive techniques in an attempt to manipulate search engine rankings, whereas legitimate SEO focuses on building better sites and using honest methods of promotion ENTERPRISE RESOURCE PLANNING • Enterprise resource planning (ERP) – integrates all departments and functions throughout an organization into a single IT system so that employees can make decisions by viewing enterprisewide information on all business operations • ERP collects data from various key business processes and stores the data in a single, comprehensive data repository, usable by other parts of the business SUPPLY CHAIN MANAGEMENT • Supply Chain Management (SCM) – involves the management of information flows between and among stages in a supply chain to maximize total supply chain effectiveness and profitability • SCM integrates supplier, manufacturer, distributor, and logistics processes. BUSINESS PROCESS REENGINEERING • Reengineering the Corporation – by Michael Hammer and James Champy - recommends seven BPR principles Value Creation Value Chain Artificial Intelligence (AI) • Intelligent system – various commercial applications of artificial intelligence • Artificial intelligence (AI) – simulates human intelligence such as the ability to reason and learn E-BUSINESS BASICS • How do e-commerce and e-business differ? – E-commerce – the buying and selling of goods and services over the Internet – E-business – the conducting of business on the Internet including, not only buying and selling, but also serving customers and collaborating with business partners Association Detection • Association detection – reveals the degree to which variables are related and the nature and frequency of these relationships in the information – Market basket analysis – analyzes such items as Web sites and checkout scanner information to detect customers’ buying behavior and predict future behavior by identifying affinities among customers’ choices of products and services Association Detection • Association detection – reveals the degree to which variables are related and the nature and frequency of these relationships in the information – Market basket analysis – analyzes such items as Web sites and checkout scanner information to detect customers’ buying behavior and predict future behavior by identifying affinities among customers’ choices of products and services DATA WAREHOUSE FUNDAMENTALS • Data warehouse – a logical collection of information – gathered from many different operational databases – that supports business analysis activities and decision-making tasks • The primary purpose of a data warehouse is to aggregate information throughout an organization into a single repository for decisionmaking purposes Multidimensional Analysis • Databases contain information in a series of two-dimensional tables • In a data warehouse and data mart, information is multidimensional, it contains layers of columns and rows – Dimension – a particular attribute of information DATA MINING • Common forms of data-mining analysis capabilities include: – Cluster analysis – Association detection – Statistical analysis Application Software • Most common types of application software – Browser: surfing the Internet – Database management system: directly access large numbers of data records – E-mail: communication – Presentation graphics: slide shows – Spreadsheet: performing complex calculations – Word processing: creating documents RELATIONAL DATABASE FUNDAMENTALS • Primary keys and foreign keys identify the various entities (rows) in a table – Primary key – a field (or group of fields) that uniquely identifies a given row in a table – Foreign key – a field or fields in a table that is a primary key of some other table and acts to form a logical relationship between the two tables The Interrelationships of Efficiency and Effectiveness IT Metrics • Efficiency IT metrics focus on technology and include: – Throughput – Transaction speed – System availability – Information accuracy – Web traffic – Response time The Interrelationships of Efficiency and Effectiveness IT Metrics • Effectiveness IT metrics focus on an organization’s goals, strategies, and objectives and include: –Usability –Customer satisfaction –Conversion rates –Financial MEASURING E-BUSINESS SUCCESS • Web site traffic analysis can include: – Cookie • A text file placed by a web site on the user’s hard drive to track user information and activities – Click-through • A count of users who click on a web site ad – Banner ad • A small ad on a web site – Interactivity • Visitor interactions with a target ad ETHICS • Ethics – the principles and standards that guide our behavior toward other people • Issues affected by technology advances – Intellectual property: intangible creative work – Copyright: legal protection afforded intellectual property – Fair use doctrine: legal use of copyrighted material – Pirated software: unauthorized use of software – Counterfeit software: Software manufactured to look real and sold as such Detection and Response • Virus - software written with malicious intent to cause annoyance or damage – Worm: spreads itself among files & computers – Denial-of-service attack (DoS): flooding web sites – Distributed denial-of-service attack (DDoS): attacks from multiple computers – Trojan-horse: hides inside other software – Backdoor program: open a way for future attack – Polymorphic virus and worm: change their form as they propagate