E-Commerce - Management Information Systems - Lecture Slides, Slides of Management Information Systems

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E-Commerce, Web 2.0, and Social

Networking

Important Terms

• ICT = Information Technology +

Communication Technology

• Convergence of computer-based information

technology and telecommunication

technology

• Strategic information systems – any

information system used for strategic

purpose(s)

Q1: What types of inter-organizational systems exist?

Q2: How do companies use e-commerce?

Q3: Why is Web 2.0 important to business?

Q4: How does social capital benefit you and organizations?

Q5: How does social CRM empower customers?

How does the knowledge in this chapter help Fox Lake and you?

Study Questions

Q1: What Types of Interorganizational

Systems Exist?

Inter- organizational Systems

Pre-Internet Systems E-Commerce

Web 2.0 Enterprise

Postal mail, telephone, fax

Web Storefronts

Google, Facebook, Wikipedia, YouTube

Social CRM, SOA

Web 2.

• Web applications that facilitate participatory information

sharing, interoperability, user-centered design, and collaboration on the World Wide Web.

• Web 1.0: Web applications limiting users (consumers) to the

passive viewing of content that was created for them.

• Examples - Social networking sites, blogs, wikis, video

sharing sites, hosted services (ASP and ISP), mashups and folksonomies (collaborative tagging, social bookmarking).

• 43 Things (http://www.43things.com/home/)
• Web 3.0: the Semantic Web and personalization – the

computer is generating information rather than humans.

Interorganizational Systems

Q2: How Do Companies Use E-

Commerce?

Merchant companies—take title to goods they sell

Nonmerchant companies—arrange for purchase and sale of

goods without owning or taking title to those goods

Example of Use of B2B, B2G, and B2C

• E-commerce application enables auction company to offer goods for sale and to support a competitive-bidding process Ebay

Online auctions

• Provide goods and services at stated price, arrange delivery, but do not take title
• Amazon.com sells books and other merchandise for other businesses

Clearinghouses

• Match buyers and sellers
• Priceline.com

Electronic

exchanges

Nonmerchant E-Commerce Companies

Disintermediation

Companies learn how customers internalize competitors’ pricing, advertising, and messaging

Q2: How Does E-Commerce Improve

Market Efficiency?

Retail

Store X

Idealistic

• Channel conflict
• Price conflict with traditional

channels

• Logistics expenses increase for

manufacturer

• Customer-service expenses

increase for manufacturer

Economic Factors

in

Disintermediation

What Economic Factors Disfavor E-Commerce?

Q3: Why is Web 2.0 Important to

Business?

Software as a (Free) Service (SaaS)

Figure 8-

Software as a (Free) Service

SaaS—thin-client applications run in Internet cloud

• License-free software
• Does not require an installation on the users’ computers
• Web servers download Web 2.0 programs as code within HTML, as Flash (Adobe Flash), or as Silverlight (Microsoft) code.
• Readily (and frequently) updated. New features added with little notice or fanfare.

Google Docs & Spreadsheets

Google Groups

Google Earth

Google Maps

Combines social networking, viral marketing, and open-source design, saving considerable cost while cultivating customers.

Crowd performs classic in-house market research and development. Sets up customers to buy.

User-Generated Content

Crowdsourcing examples

Mashups

• M ashup —a web application that combines data from

other websites and types of media

• Example—map data from Google Maps to add location

information to real-estate data, thus creating a new and

distinct web service

• See www.programmableweb.com/mashups

Organic User Interfaces and

Mashups

• AdWords
  • Vendors pay for specific words, phrases
  • Placement on search results list depends on how much you pay for search word
  • Vendor pays when someone clicks on their link
  • Amount can vary day to day, hour to hour
• Ad Sense
  • Google inserts ads that match web page content
  • Google pays web page owner by DoubleClicks
  • Website owners enroll in this program to enable text, image, and video advertisements on their websites

Advertising

How Can Businesses Benefit from

Web 2.0?

• Information systems that deal with assets, whether financial or material, requires control, rather than flexibility and organic growth.

Don’t get

carried

away

• Credit card transaction processing
• Accounts payable or general ledger system interface

Examples

Web 2.0 Not for All Applications

Social Capital—investment in social relations with

expectation of returns in the marketplace

Adds value in four ways:

1. Information about opportunities, alternatives, problems and other factors
2. Influence decision makers in your organization or others
3. Social credentials from linking to network of highly regarded contacts
4. Personal re-enforcement of professional image and position

Q4: How Does Social Capital Benefit

You and Organizations?

Progressive organizations maintain a presence on Facebook, LinkedIn, Twitter, and other sites

• Sales people, customer support, public relations, and endorsements by high profile people

How Do Social Networks Add Value to

Business?

Fan Connections and Endorsements

What Are the Characteristics of Web

2.0: SLATES

Social CRM done in style of Enterprise 2.0.

Relationships between organizations and customers emerge as both parties create and process content.

Employees create wikis, blogs, discussion lists, frequently- asked-questions, sites for user reviews and commentary, and other dynamic content.

Customers search content, contribute reviews and commentary, ask more questions, create user groups, etc. Each customer crafts own relationship with company.

Social CRM is Enterprise 2.0 CRM

Employees sharing personal information socially Technology leads to blurring lines between work life and home life

Work is portable and always on

You need to be more careful about what you say

Work networks are not social networks

Guide: Blending the Personal and

the Professional

Classical

CRM

Centered on customer lifetime value

Control what customer reads, sees, hears about company and its products

Social CRM

Effective reviewer, commentator, or blogger can have significant influence

Classical CRM vs. Social CRM