Download Chapter02 - College of Business, UNR

CHAPTER E-BUSINESS AND
COLLABORATION
EBUSINESS
Lecture Introduction




The basics of business processes
Develop a taxonomy of Information
Systems
Understand the role of IT in Ebusiness
Significance of collaboration
systems in the world of social
systems.
Business Processes (Introduction)

It’s how we organize work (By the
way it’s what we do in IS 365)




How do we make a PBJ
How do we make a 747
How do we repair a copier
We improve processes by
operationalizing, automating,
optimizing tasks
How do we Improve Processes


Make processes more stable by
reducing variation
Make a process more capable by
reducing variation from a defined
specification
Business Process Example
(Fulfillment)
Taxonomy of Systems

Transactional
MIS / Reporting
Decision support systems

Business intelligence


Transaction Processing Systems (1)




POS transactions
All of those Amazon sales
Routine banking debit and credits
Every credit card swipe

VISA processes roughly
12,000,000,000 transactions / year
(growing at 14% / year)
http://investor.visa.com/phoenix.zhtml?c=2
15693&p=quarterlyearnings
Transaction Processing Systems
(2)

System runtime functions


System administration functions


Ensures data integrity, availability,
security
Configuration and monitoring
Development functions

Development of custom business
applications
Transaction Processing Systems
(3)
Management Information Systems


The core role of IT in the 1970’s
and early 1980’s
Aggregate transaction and produce
summary reports




Accounting (AR / AP / Payroll / GL)
Inventory control
Financial statements
These are analytical systems
MIS Critical Success Factors

Timeliness


Accuracy


Users get information when they need
it
Automated and manual internal
controls must ensure accuracy
Consistency

In data collection and processing
Decision Support Systems (1)




Decision Support Systems (DSS)
provide quantitative tools to help
managers make better decisions
Executive Information Systems
(EIS) are a specialized form of DSS
DSS and EIS systems often use
data warehousing and data mining
to find interesting nuggets
DSS and EIS systems often use
artificial intelligence
Decision Support Systems (2)

Quote from Frito-Lay President


Ten years ago, I could have told you
how Doritos were selling west of the
Mississippi
Today, I can tell you how well they are
selling in California, in Orange County,
in the town of Irvine, in the local Vons
supermarket, in the special promotion,
at the end of Aisle 4, on Thursdays
Decision Support Systems (3)


What-If analysis
Sensitivity analysis



Goal-seeking
Optimization analysis


(Elasticity)
Excel’s Solver is a good example
Data mining may play a part

Market basket analysis (AM/PM
example)
Who Uses a DSS?

Insurance (Florida hurricanes)



Telecommunications



Assess regions most prone to disaster and the
probable risk
Predict types of structures most prone to
hurricanes
Examine call patterns of delinquent customers
to predict which will become bad debts
Use neural networks to detect fraudulent calls
and charges
Make sure to watch the FedEx
custom critical video
Who Uses a DSS?

Credit cards



Examine transactions and compare
against known spending patterns
Use known customers to predict credit
worthiness of new accounts
Airlines

Fares change every hour or so


Maximize revenue per seat mile
Think of the scheduling problem during
a snowstorm
Executive Information Systems


These are a specialized form of DSS
Goals




Consolidation of information
Drill-down
Slice and dice
Many EIS systems rely on digital
dashboards
Business Intelligence

New term but not a new idea

Analytical tools to help managers make
better decisions
View of IT
Linking the Enterprise



Enterprise applications (ERPs) span
functional areas
Most enterprise systems were
derived from SCM systems
CRM for customers
Introduction to E-Business

E-business is the conducting of
business on the Internet using
digital technologies

E-business and Ecommerce are not the
same


E-commerce is a subset of e-business
Social business

Using social platforms as part of an ebusiness strategy
E-Business Issues

Issues


Disruptive technology
Evolution of the Internet
Collaboration (Introduction)



Anyone can now reach anyone
Because of that the nature of work has
changed across different dimensions
 From manufacturing to knowledge
workers
 From firms with employees to firms with
project-based consultants
 From a physical place to anywhere any
time
I categorize these a bit differently than
your text
Collaboration Systems
(Illustration)
Collaboration Systems (Types)





Groupware to collaborate
Content management systems are
used as an information repository
Knowledge management
Workflow management
Much of the software performs
many of these tasks
Collaboration Systems
(Groupware)


Groupware allows us to work
together
Functions



Calendaring, scheduling, and
conferencing
File sharing and change tracking
Providers


Lotus Notes
SharePoint
Collaboration Systems
(Content Management)

Manage




Information creating
Information storage
Changes to information
Information publishing and acquisition
Collaboration Systems
(Knowledge Management)




Closely related to content
management
Capture, classify, retrieve, and
share information
It preserves organizational memory
SharePoint
Collaboration Systems (Workflow)

Workflow describes how work gets
done


You don’t have the prerequisites for a
class you want to take
You fill out the College of Business
automated add slip form
It’s routed to the department or
advisement center
 An advisor approves or disapproves the
request
 You are notified

Ebusiness Strategies






Sales and marketing
Communication
Financial services
Procurement of goods and services
Customer service
Intermediaries
Electronic Data Interchange (EDI)


Your book does not really talk about
this much
EDI automates nearly all common
transactions


Purchase orders / invoices / payments
/ etc…
Very complex to implement creating
a barrier to entry
Electronic Data Interchange
(Implementation)

There are transaction sets for
finance, government,
transportation, health care, supply
chain

A transaction set defines the rules for a
common business transaction
Electronic Data Interchange
(Implementation)

Made up of data elements, segments and
envelopes
Ebusiness Stratigies (Sales)


It began with direct selling
Pure-play retailing


Multichannel retailing


Dell / Gateway / Amazon
JC Penney moves catalog sales to the
Internet
Expanding reach

That little bed and breakfast in Napa
Ebusiness Strategies (Marketing)




Popup and other ads
RSS – You don’t ask for the data,
you just get it
How does Google make money?
How does Facebook make money?
Ebusiness Stratigies (Financial)

Online financial services has seen
explosive growth



New industries have emerged


Banking / stocks
Online exchanges
PayPal
The U.S is quite behind in
micropayments
Ebusiness Stratigies
(Procurement)

It’s now much easier to buy
common business items


Office supplies / etc
B to B exchanges

www.alibaba.com
Ebusiness Strategies
(Customer Service)

Self-service customer service tools




Get current interest rates online
Get product information online
Repair manuals
Electronic funds transfer
Ebusiness (Intermediaries)





Match buyers (consumers) and
sellers (producers) in new ways
Create new markets (Ebay)
(Match.com) (AliBaba.com)
Aggregate and disseminate content
(wsj.com, CNBC)
Infomediaries (Web MD)
The distinction gets blurry and the
roles are not mutually exclusive
Ebusiness (Social Media)




LinkedIn for business contacts
Here is a non-canonical list
http://en.wikipedia.org/wiki/List_of
_social_networking_websites#A
Ebusiness Metrics (1)

Click-through tracking


Web site pattern usage



Users clicked on a Web site ad for
further information
How users navigate from page to page
Per page view times
Completed shopping cart
transactions
Tracking Web Site Visitors

Unidentified


Tracked with cookie


We know what you do but not who
your are
We know what you do and verify
uniqueness but not identity
Identified / Authenticated

We know who you are and everything
you do?
Ebusiness Challanges




International ecommerce laws don’t
exist or are not enforceable
Security and trust
Taxation
Monetization of services
Government Trends in Ebusiness

Even the government has gotten on
the Ebusiness bandwagon




IRS electronic tax filings
Edgar
Common DMV transactions are
online along with common forms
We have done a terrible job with
medical healthcare
The IS Department






Programmers
Help desk
Analysists
CIO
CFO
CKO