Electronic Commerce Systems Lecture Notes

Chapter 1 ➢ Electronic commerce systems ■ Ex: Amazon ➢ Transaction Processing System ■ Ex: checkout at the grocery store (day to day events) ➢ Decision Support System ■ Ex: Forecasting (product demand) ➢ Office Automation system (day to day applications) ■ Ex: Word processor: Word ➢ Business Intelligence System (analyze big data) ■ Ex: ERP - integrate all areas of business ■ Online analytical processing systems ➢ Enterprise Resource Planning System ■ Ex: query system ➢ Customer Relationship Management Systems ■ Ex: Sales Force ■ Interacting between businesses ➢ Management Info systems ■ Ex: U A Connect - info to manage the firm ❖ Go over categories of information systems  ➢ Intelligence system ■ Enhance capabilities ■ Ex: self-driving car ➢ Social software ■ knowledge sharing on social networks ■ Looking at hashtags ➢ Geographic information sytems (GPS) ■ Geographic data ➢ Functional area information systems ■ Ex: Human resources system ➢ Supply chain management system ■ Getting goods where they need to be ❖ Information Systems Defined raw symbols, words, and numbers ■ Little value until processed ■ Data translates into information ■ Knowledge workers work with data ➢ People: builders, managers, and users of information systems ❖ System’s consultant- look at information for external parties ❖ System’s ananlyst ❖ CIO- chief information officer ➢ Highest ranking information systems personnel ➢ Responsible for strategic planning throughout a firm ❖ Why are IS personnel valuable? ➢ Technical, business, and system skills ❖ Information systems increase profitability ❖ System integration- connecting ❖ Collaboration systems-  supports coordination of suppliers, product or service production, and distribution ➢ ERP important collaboration and knowledge sharing ➢ Ex: Twitter, Instagram, etc ❖ How to achieve competitive advantage: ➢ Usage of globalization ■ integration of economies throughout the world enabled by innovation and technology ● Outsourcing and increasing travel and tourism as well as culture change ■ Evolution of technology- how technology has changed over time managing the cloud, advanced cloud applications, green computing ■ A way to allocate resources much like utility sells power: ● On-demand ● Resources can be rapidly allocated and reallocated ◆ Consumption becomes an operating expense ● Utilization and efficiency increase dramatically ■ Cloud is much cheaper than buying all seperate elements of data storage ■ Involves: ● Processing ● Transmitting ● Storing ❖ Cloud computing characteristics ➢ On demand  ➢ Rapid elasticity ➢ Broad network access - have internet, can use it ❖ ❖ ❖ ❖ ❖ ➢ Resource pooling - shared across customers ➢ Measured service- balance out across users Cloud Computing Service models: ➢ Infrastructure - virtual machine (IaaS) ➢ Platform- Programs executed (PaaS) ➢ Software- buy access to software (SaaS) Private cloud- internal use, secured Public cloud- external, lots of users, security concerns Managing the Cloud ➢ Availability - does it always work ➢ Scalability - does size fit your company ➢ Viability - Is it beneficial to your company ➢ Security, Privacy, compliance - protect your data ➢ Diversity of offerings- what services are offered ➢ Openness- Who can access ➢ Costs - is it expensive or not 5 Megatrends that shape digital future ➢ Social Media- power of the crowd ➢ Mobile- can use smartphones to steal company data ➢ Internet of Things - physical things that are automaticaly collecting data ■ Alexa, AC systems ➢ Cloud Computing ■ Back up and have reliable data ■ Need constant connectivity to use ➢ Big Data  Chapter 2 - Gaining competitive advantage through information systems  professionals who are relatively well educated, and who create, modify and or synthesize knowledge as fundamental parts of their job ❖ Decision Making Levels: (important) ■ Upper management ■ Help to improve strategy and planning by providing summaries of past data and projections of the future ■ Middle management ■ Make strategic goals (semi-structured decisions) (creative thinking) ■ Monitor operational level  ■ Operational employees, supervisors, foremen ■ Structured decisions Efficient vs effective ■ Effective- goals accomplished well ■ Efficient- goals accomplished quickly at low cost & low effort ❖ Porter’s Five Forces Model: ➢ Using it to analyze competitive forces ■ Rivalry among existing firms (category in all categories of business) ● Competition ■ Bargaining power of suppliers ● Increased cost, reduced quality ■ Bargaining power of buyers ● Better quality, Decrease prices ■ Threat of new entrants ● Have to lower prices ■ Threat of substitute products or services ● Decrease in market share ❖ Low cost strategy - Walmart ❖ Differentiation strategy - Nordstrom reflect the organization’s ability to leverage their resources in the marketplace securing of business financing from individuals in the marketplace to fund an initiative creating new processes, products, or services to return value ❖ Innovative choices: (See chart) ➢ Choosing ➢ Matching ➢ Executing ➢ Assessing ❖ Freemium- offer something to free and then pay later for better version ❖ Disruptive innovation cycle (steps?) enhances person’s perception of reality ➢ Use of special glasses or devices  No questions on new sources of revenue 2 years > every 18 months (Gordan Moore)  ❖ Human networking ➢ Sharing information and messages between senders and receivers ❖ Computer networking ➢ Shares data or services ■ Requires: sender and receiver, transmission pathway, and rules for networking large worldwide collection of networks that use a common protocol to communicate with one another ➢ Combining networks to form larger networks system of interlinked documents on the internet ➢ Html - hypertext markup language ■ Used by web pages ➢ Http- hypertext transfer protocol ■ Information the websites are sharing ❖ Web domain names and addresses ➢ Uniform Resource Locator (URL)- used to identify and locate a particular web page ➢ Domain name- term that helps people recognize the company or person ■ .edu = education ■ .org = non-profit ■ .gov = government agencies or departments ➢ IP address identifies computers or devices on the internet ❖ Extranet and Intranet ➢ Companies have confidential data ➢ These data still need to be shared on a limited basis ■ sharing with the company ● Password protected ■ sharing with selected partners ● Password protected ● Both networks protected by fire-wall ● virtual private networks (VPN) allows people to work from home or on the road (telecommuting) ➢ Firewall stores and secures information in a local area network so info can only be used by authorized users ❖ Big Data ➢ Huge amount of data needed for business intelligence ■ Demand fluctuations ● Mainframes sometimes don’t have enough resources to analyze data, sometimes have too much ■ Increasing energy needs ● Create a lot of heat ◆ Special cooling systems ◆ Special buildings to store computers ■ Scalability ● Ability to rapidly adapt to increase or decrease demand for processing data storage ● Part of public cloud ● Used by an “interested party” who wants to process their data ● Can do Pay Per Use ❖ Cloud Computing ➢ On demand/self-service you access on the internet ➢ Rapid elasticity - can have access immediately (when you buy) ➢ Measured service - only pay for what you use ➢ Service oriented architecture of the cloud: ■ Reusability- can use service in many different applications ■ Interoperability- service that works with any other service ■ Componentization - service that simple to use and modular ➢ Advanced Cloud Applications: ■ Grid Computing ● Extremely complex problems that need heavy computing ● Traditionally handled by supercomputers ◆ Supercomputers expensive ◆ Can’t handle all of demand ● Combines many small, networked computers ◆ Allows us to decompose and distribute large complex problems ◆ Computers have to be on the same network to work together ❖ Trends ➢ Content delivery networks- far from a geographical location, add servers to increase speed ➢ Voice over IP - uses internet to place phone calls ➢ Utility computing - rent computer resources ➢ Video Conferencing over IP ➢ Green computing - use computing resources to reduce environmental impact ■ Don’t use printing as much, computers to sleep when not in use, recycling computer parts