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Perceived Risk - E-Commerce - Lecture Slides, Slides of Fundamentals of E-Commerce

E-Commerce is taking over the traditional commerce practices. It is of special concern for the IT students. Following are the key points of these Lecture Slides : Perceived Risk, Reluctant, Transaction Sets, Large Amounts, Internet Security, Interest Income, Reliability, Solutions, Transmits Document, Translated Back

Typology: Slides

2012/2013

Uploaded on 07/30/2013

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Perceived risk
• Many companies are reluctant to send over the
Internet FEDI transaction sets that contain
transfer instructions for large amounts of money
(in some cases millions of dollars) because of
the perceived low level of Internet security.
• Reliability of FEDI transaction sets is also an issue
since a delay in delivery of $10 million can result
in a large loss of interest income.
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Perceived risk

  • Many companies are reluctant to send over the

Internet FEDI transaction sets that containtransfer instructions for large amounts of money(in some cases millions of dollars) because ofthe perceived low level of Internet security.

  • Reliability of FEDI transaction sets is also an issue

since a delay in delivery of $10 million can resultin a large loss of interest income.

Hybrid solutions

  • Hybrid EDI solutions use the Internet for part of

the transaction.

  • For example, EDI-HTML translation services

allow EDI-enabled firms to communicate withfirms that are non-EDI-enabled.– EDI-enabled firm transmits document to the

service

  • The service translates this into HTML for the

non-EDI-enabled partner

  • The partner’s response is translated back

Supply chain management • In recent years businesses have realized that they

can save money and increase product quality bynegotiating more actively with suppliers.

  • Companies can work together with suppliers to

identify new ways to serve customers morequickly and cheaply.

  • The process of taking an active role with suppliers

to improve products and processes is called supply chain management

Levels in the supply chain • Business develop long-term relationships with a

small number of very capable suppliers, calledthe

tier one suppliers

  • Tier one suppliers work with a select group of

their suppliers in the same way. This secondlevel is called the

tier two suppliers

  • Tier two suppliers work with

tier three suppliers

  • The long term relationships created are called

supply alliances

Technology in the supply chain

  • Clear communications and quick responses to

those communications are a key element ofsuccessful supply chain management.

  • The Internet and the Web can be very effective

communication enhancers.

  • Software can help all members of the supply

chain review past performance, monitorcurrent performance, and predict when andhow much of certain products need to beproduced.