Download The Web Enabled Enterprise

Management
Information Systems
By Effy Oz & Andy Jones
Chapter 7: The Web Enabled
Enterprise
www.cengage.co.uk/oz
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
Objectives
• Describe how the Web and high-speed Internet
connections are changing business operations
• Explain the functionality of various Web technologies
• Compare and contrast options for Web servers
• Explain basic business-to-business and business-toconsumer practices on the Web
• Explain the relationship between Web technologies
and supply chain management
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
Objectives (continued)
• Give examples of features and services that
successful business Web sites offer
• Learn about online annoyances such as
spam and adware, and how to protect
against online identity theft
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
Web Business: Growing and
Changing
• Blockbuster faced competition from Netflix,
LOVEFiLM and Walmart.com
– Online rentals
– E-commerce bandwagon
• Digitized movies in the future
– Download movie to PC
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
Web Technologies: A Review
• Several standards standards and technologies
enable the Web to deliver rich information
–
–
–
–
–
–
–
HTTP, HTML, XML
File Transfer
RSS (Really Simple Syndication)
Blogs
Podcasting
IM (Instant Messaging)
Cookies
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
HTTP
• Hypertext Transfer Protocol (HTTP):
transfer and download Web information
• HTTPS: HTTP secure
• Uniform Resource Locator (URL): unique
address given to each Web server
– IP address
• Domain name: constructed with letters
– URL also refers to the domain name
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
HTML and XML
• Hypertext Markup Language (HTML):
helps developer create Web pages
– Determines look and location of content
• Extensible Markup Language (XML):
enables creation of various data types
• XHTML: combination of XML and HTML
– Uses opening and closing tags to control format
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
File Transfer
• File Transfer Protocol (FTP): transmit
whole files
–
–
–
–
Used in all downloads
Any type of file
Place file on server for shared use
Post files on Web sites for download sales
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
RSS
• Really Simple Syndication (RSS): family of
XML file formats
–
–
–
–
Helps users check updates
Communicates short descriptions of content
Allows transmittal of new info
Useful on news Websites
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
Blogs
• Blog: contraction of Web log
– Invites surfers to post opinions and art
– Focuses on topic or set of topics
– Trackback notifies bloggers about updates to post
usage on Web
– Used by business
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
Podcasting
• Podcast: publishing sound
–
–
–
–
Usually voice
Post digital audio file on site
Listen to radio show anytime
Garageband.com
• Allows aspiring musicians to post tracks
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
Instant Messaging
• Instant messaging (IM): real-time chat
–
–
–
–
Synchronized e-mail
Chat with group is known as chat room
Free applications
AOL instant Messenger
• Yahoo Messenger
• MSN Messenger
– In business
• Chat with sales representative
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
Cookies
• Cookie: file that remembers information about
surfer
– Record surfer ID
– Figures out preferences
– Provides convenience to consumers
– Temporary cookies installed for single session
– Allows for intrusion into privacy
• Clickstream tracking: track clicking activities
• Spyware: trace and report online behaviour
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
Proprietary Technologies
• Proprietary Technology: intellectual property
of developer
– Local search engine
– Shopping cart applications
– Wish lists
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
Options in Establishing a Web
Site
• Web site: Web pages that make up
information and links
– Needs Internet server
• Computer connected to Internet backbone
– Business can
• Install own server
• Contract server
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
Owning and Maintaining a Server
• Maintaining server is costly option
– Greatest degree of control
– Requires expertise to set up
• Load balancing: transfer data from busy
server to less busy server
• Mirrors: servers with duplicated content
• Pure-play: entire business online
• Brick-and-mortar: owns physical stores
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
Using a Hosting Service
• Web hosting: Web server managing service
– Shared hosting: store client Web site on same
physical server as other clients
– Virtual private hosting: simulate single server
– Dedicated hosting: own entire physical server
– Co-location: server co-located with other
clients and host
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
Considerations in Selecting a
Web Host
• Hosts compared using point system
– Host should allow DBMS
– Dynamic Web pages: enable communication
between browser and database
– Storage space factor
– Technical support
– Fees for Web traffic
– Scalability
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
Considerations in Selecting a
Web Host (continued)
• Factors to consider when selecting Web host
– Help with page design
– Security
– Availability
• Minimize downtime
– Cost
• Setup fee
• Monthly fee
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
Considerations in Selecting a
Web Host (continued)
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
More Than Meets the Eye
• Several elements essential to business
– Inquiry interface
• Connected to database
– Credit-card application
• Verifies authenticity
– Order-fulfillment system
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
More Than Meets the Eye
(continued)
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
Web-Enabled Business
• Web-enabled business classified according to
interacting parties
–
–
–
–
Business-to-business
Business-to-consumer
Government-to-business
Government-to-consumer
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
B2B Trading
• B2B forms
– Advertising
•
•
•
•
Search engines: advertise through search site
Banners: images placed on Web site
Impression: page with banner downloaded
Reach percentage: percentage of Web users who
visited site
– Exchanges and auctions
• Act as online marketplace
– Online business alliances: collaboration between
businesses
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
B2B Trading (continued)
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
B2C Trading
• E-Tailing
– Shopping on the Web
– Fulfillment activities
• Picking
• Packing
• Shipping
– Consumer profiling: know customers better
– Conversion rate: proportion of site visitors who make
purchase
• Auctions and reverse auctions
– Site serves as auction hub
– Name your own price at reverse auction
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
B2C Trading (continued)
• Content providers
– Information
– Art
– Classified Ads
• Bill presentment and payment
– Phishing: type of fraud
• Dispersed workforce
– Purchase labour from larger pool
• M-commerce
– Business conducted on mobile devices
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
B2C Trading (continued)
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
Supply Chains on the Web
• Supply chain management on Web
– Extensive use of XML
– Set standards for data formats
• Electronic Data Interchange (EDI) system
used prior to Web
• Suppliers can join company extranets
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
Supply Chains on the Web
(continued)
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
Rules for Successful Web-based
Business
• Business success depends on availability and
use of software
• Several elements to consider to support B2C
commerce
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
Target the Right Customers
• Target customers needing products and
services
– Most important effort of marketing
– Affects blogs and podcasting
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
Capture the Customer’s Total
Experience
• Use cookies
– Record shopper movements
• CRM software creates profiles
• Shopper experience becomes asset of
business
• Tailor Web page to individual customers
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
Personalize the Service
• CRM software and Web page customization
software combined
–
–
–
–
Personalize Web pages
Select type of e-mail content
Respect of privacy issue
Allow customer to tailor products
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
Shorten the Business Cycle
• Business on Web saves time
• Fulfillment is major challenge for business
– Activities after customer places order
• Fast shipping desired
• Gets results
– Customer satisfaction
– Faster collection of money
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
Let Customers Help Themselves
• Customers need information from
organisation
–
–
–
–
Status of order
Status of shipped item
Installation instructions
Troubleshooting
• Email messages sent with information about
orders
• FAQs
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
Be Proactive and DeCommoditize
• Prompt e-mail replies expected
• Proactive alerts expected
• Must take initiatives to de-commoditize
products
– Commodity: product sold at roughly same price
by many vendors
– Addition of features prevents product from
becoming commodity
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
E-Commerce is Every Commerce
• Difficult to identify business activities on
Internet
• Web has been integrated into daily activities
• Commerce and E-commerce generally the
same thing
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
Summary
• Some industries changed drastically
because of Web
• HTTP is Internet standard controlling Web
server addresses
• HTTPS has security features
• Cookies help store state information about
surfer
• Many Web technologies are proprietary
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
Summary (continued)
• Business can maintain its own server or use
Web hosting services
• organisations should consider several
factors when selecting Web host
• Web-enabled commerce classified into B2B
and B2C
• B2B trading relies on electronic data
interchange (EDI) and XML
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
Summary (continued)
• Wireless handheld computers allow mobile
commerce
• Online businesses must adhere to several
factors to be successful
• Spam and spyware are online annoyances
• Phishing is a pervasive fraud crime
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning