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4Chapter
TheDigitalFirm:ElectronicBusinessandElectronicCommerce4ChapterTheDigitalFirm:EleOBJECTIVESAnalyzehowInternettechnologyhaschangedvaluepropositionsandbusinessmodelsDefineelectroniccommerceanddescribehowithaschangedconsumerretailingandbusiness-to-businesstransactionsManagementInformationSystemsChapter4TheDigitalFirm:ElectronicBusinessandElectronicCommerceOBJECTIVESAnalyzehowInternetComparetheprincipalpaymentsystemsforelectroniccommerceEvaluatetheroleofInternettechnologyinfacilitatingmanagementandcoordinationofinternalandinterorganizationalbusinessprocessesAssessthechallengesposedbyelectronicbusinessandelectroniccommerceandmanagementsolutionsOBJECTIVES(Continued)ManagementInformationSystemsChapter4TheDigitalFirm:ElectronicBusinessandElectronicCommerceComparetheprincipalpaymentChallenge:trillionsofproductconfigurations,shortleadtimes,manycompetitorsSolution:Webextranetfororderentry,customization,inventory,changeorders,andshippingDemonstrateshowITandtheWebcoordinatetheflowofinformationaboutorders,production,inventoryandshipmentIllustrateshowsystemsinthedigitalfirmconnectdemand,supply,andfulfillmenttoachieveoperationalexcellenceManagementInformationSystemsChapter4TheDigitalFirm:ElectronicBusinessandElectronicCommerce
CorrugatedSuppliesCaseChallenge:trillionsofproducELECTRONICBUSINESS,ELECTRONICCOMMERCE,ANDTHEEMERGINGDIGITALFIRMInternetTechnologyandtheDigitalFirmInformationtechnologyinfrastructure:TheInternetprovidesauniversalandeasy-to-usesetoftechnologiesandtechnologystandardsthatcanbeadoptedbyallorganizations.Directcommunicationbetweentradingpartners:Disintermediationremovesintermediatelayersandstreamlinesprocesses.ManagementInformationSystemsChapter4TheDigitalFirm:ElectronicBusinessandElectronicCommerceELECTRONICBUSINESS,ELECTRONIELECTRONICBUSINESS,ELECTRONICCOMMERCE,ANDTHEEMERGINGDIGITALFIRMRoundtheclockservice:Websitesavailabletoconsumers24hours
Extendeddistributionchannels:OutletscreatedforattractingcustomerswhootherwisewouldnotpatronizeafirmReducedtransactioncosts:CostsofsearchingforbuyersdeclinesManagementInformationSystemsChapter4TheDigitalFirm:ElectronicBusinessandElectronicCommerceInternetTechnologyandtheDigitalFirm(Continued)ELECTRONICBUSINESS,ELECTRONIELECTRONICBUSINESS,ELECTRONICCOMMERCE,ANDTHEEMERGINGDIGITALFIRMBusinessModel:DefinesanenterpriseDescribeshowtheenterprisedeliversaproductorserviceShowshowtheenterprisecreateswealthNewBusinessModelsandValuePropositionsManagementInformationSystemsChapter4TheDigitalFirm:ElectronicBusinessandElectronicCommerceELECTRONICBUSINESS,ELECTRONIELECTRONICBUSINESS,ELECTRONICCOMMERCE,ANDTHEEMERGINGDIGITALFIRMInformationasymmetry:Onepartyinatransactionhasmoreinformationthantheother.TheInternetdecreasesinformationasymmetry.Increasesrichness:TheInternetincreasesthedepth,detail,andscopeofinformation.
Increasesreach:TheInternetincreasesthenumberofpeoplewhocanbecontactedefficiently.TheChangingEconomiesofInformationManagementInformationSystemsChapter4TheDigitalFirm:ElectronicBusinessandElectronicCommerceELECTRONICBUSINESS,ELECTRONIELECTRONICBUSINESS,ELECTRONICCOMMERCE,ANDTHEEMERGINGDIGITALFIRMTheChangingEconomicsofInformationFigure4-1ManagementInformationSystemsChapter4TheDigitalFirm:ElectronicBusinessandElectronicCommerceELECTRONICBUSINESS,ELECTRONIELECTRONICBUSINESS,ELECTRONICCOMMERCE,ANDTHEEMERGINGDIGITALFIRMVirtualstorefront:Sellsgoodsorservicesonline(A)Informationbroker:Providesinformationonproductsorservices(E)Transactionbroker:Providesonlinetransactionfacility(eT,E)Onlinemarketplace:Providesatradingplatformforindividualsandfirms(eB)InternetBusinessModelsManagementInformationSystemsChapter4TheDigitalFirm:ElectronicBusinessandElectronicCommerceELECTRONICBUSINESS,ELECTRONIELECTRONICBUSINESS,ELECTRONICCOMMERCE,ANDTHEEMERGINGDIGITALFIRMContentprovider:Createsrevenuebyprovidingcontent(WSJ.com,TheS)Onlineserviceprovider:Providesonlineservices,includingsearchservice.(G,X)Virtualcommunity:Providesanonlinecommunitytofocusedgroups(F,iV)Portal:ProvidesinitialpointofentrytoWeb,specializedcontent,services(Y,MSN.com)ManagementInformationSystemsChapter4TheDigitalFirm:ElectronicBusinessandElectronicCommerceInternetBusinessModels(Continued)ELECTRONICBUSINESS,ELECTRONIELECTRONICCOMMERCECategoriesofElectronicCommerceBusiness-to-customer(B2C):Retailingofproductsandservicesdirectlytoindividualcustomers
(Wal-M)Business-to-business(B2B):Salesofgoodsandservicestootherbusinesses(G,A)Consumer-to-consumer(C2C):IndividualsusingtheWebforprivatesalesorexchange(eB)ManagementInformationSystemsChapter4TheDigitalFirm:ElectronicBusinessandElectronicCommerceELECTRONICCOMMERCECategoriesBusiness-To-ConsumerAdvantagesofE-commerce:Customer-centeredretailing:Closerandmorepersonalizedrelationshipwithcustomersispossible
Websites:Provideacorporate-centeredportalfortheconsumertoquicklyfindinformationonproducts,services,prices,ordersELECTRONICCOMMERCEManagementInformationSystemsChapter4TheDigitalFirm:ElectronicBusinessandElectronicCommerceBusiness-To-ConsumerAdvantageDisintermediation:Theeliminationoforganizationsorbusinessprocesslayersresponsibleforcertainintermediarystepsinavaluechain,reducingcoststotheconsumer
Reintermediation:Theshiftingoftheintermediaryroleinavaluechaintoanewsource,addingadditionalvaluetotheconsumerELECTRONICCOMMERCEManagementInformationSystemsChapter4TheDigitalFirm:ElectronicBusinessandElectronicCommerceBusiness-To-ConsumerAdvantagesofE-Commerce:(Continued)Disintermediation:TheeliminaTheBenefitsofDisintermediationtotheConsumerFigure4-2ELECTRONICCOMMERCEManagementInformationSystemsChapter4TheDigitalFirm:ElectronicBusinessandElectronicCommerceTheBenefitsofDisintermediatClickstreamtrackingtools:
CollectdataoncustomeractivitiesatWebsitesandstoretheminalog
ELECTRONICCOMMERCEInteractiveMarketingandPersonalizationManagementInformationSystemsChapter4TheDigitalFirm:ElectronicBusinessandElectronicCommerceClickstreamtrackingtools:ELWebSiteVisitorTrackingFigure4-3ELECTRONICCOMMERCEManagementInformationSystemsChapter4TheDigitalFirm:ElectronicBusinessandElectronicCommerceWebSiteVisitorTrackingFiguCreateuniquepersonalizedWebpagesforeachcustomerIncreasedclosenesstocustomerincreasesvaluetothecustomer,whilereducingcostsofinteractingwiththecustomer
ELECTRONICCOMMERCEWebPersonalizationManagementInformationSystemsChapter4TheDigitalFirm:ElectronicBusinessandElectronicCommerceCreateuniquepersonalizedWebWebSitePersonalizationFigure4-4ELECTRONICCOMMERCEManagementInformationSystemsChapter4TheDigitalFirm:ElectronicBusinessandElectronicCommerceWebSitePersonalizationFigurComparesinformationgatheredaboutaspecificuser’sbehaviorataWebsitetodataaboutothercustomerswithsimilarintereststopredictwhattheuserwouldliketoseenext.Thesoftwarethenmakesrecommendationstousersbasedontheirassumedinterests.
ELECTRONICCOMMERCECollaborativefiltering:ManagementInformationSystemsChapter4TheDigitalFirm:ElectronicBusinessandElectronicCommerceComparesinformationgatheredTheuseofWebsitestoprovidecustomerswithaccesstoinformationandanswerstoquestionsReplacinghumancallcenteroperatorsandclerksUPS.com:CustomertrackingofpackagesO:Customerself-helpfororganizingandmanagingatripD:“MyOrderStatus”facility
ELECTRONICCOMMERCECustomerself-service:ManagementInformationSystemsChapter4TheDigitalFirm:ElectronicBusinessandElectronicCommerceTheuseofWebsitestoprovidElectronicDataInterchange(EDI):Enablesthecomputer-to-computerexchangebetweentwoorganizationsofstandardtransactions.Currently80%ofB2Be-commerceusesthissystem.EDIisbeingreplacedbymorepowerfulWeb-basedalternatives.Business-to-BusinessElectronicCommerce:NewEfficienciesandRelationshipsELECTRONICCOMMERCEManagementInformationSystemsChapter4TheDigitalFirm:ElectronicBusinessandElectronicCommerceElectronicDataInterchange(EELECTRONICCOMMERCEDistributors:B2Bonlinecatalogsprovidebuyerswithaccesstothousandsofpartsandothergoods(G)Procurementplatforms:Platformsforpurchasinggoodsandmaterialsandalsosourcing,negotiatingwithsuppliers,payingforgoods,andmakingdeliveryarrangements(A)
FourdifferenttypesofNetMarketplaces:NetMarketplacesManagementInformationSystemsChapter4TheDigitalFirm:ElectronicBusinessandElectronicCommerceELECTRONICCOMMERCEDistributoELECTRONICCOMMERCEIndependentexchanges:Third-partyNetmarketplacethatisprimarilytransaction-orientedandthatconnectsmanybuyersandsuppliersforspotpurchasing(F,GEP)Industryconsortia:Industry-ownedNetmarketplacesusedprimarilyforlong-termsourcingofdirectinputstoproduction(ChemC)
ManagementInformationSystemsChapter4TheDigitalFirm:ElectronicBusinessandElectronicCommerceNetMarketplacesFourdifferenttypesofNetMarketplaces:(Continued)ELECTRONICCOMMERCEIndependenELECTRONICCOMMERCEElectronicDataInterchange(EDI)Figure4-5ManagementInformationSystemsChapter4TheDigitalFirm:ElectronicBusinessandElectronicCommerceELECTRONICCOMMERCEElectronicELECTRONICCOMMERCEPrivateIndustrialNetworksThelargestWeb-basedformofB2BcommercePrivateB2Bextranetsthatfocusoncontinuousbusinessprocesscoordinationbetweenasmallgroupofcompaniesforcollaborationandsupplychainmanagement.Wal-Martusesitsownprivatenetworktocoordinatemorethan15,000supplierstoitsstores.ManagementInformationSystemsChapter4TheDigitalFirm:ElectronicBusinessandElectronicCommerceELECTRONICCOMMERCEPrivateInELECTRONICCOMMERCEAPrivateIndustrialNetworkFigure4-6ManagementInformationSystemsChapter4TheDigitalFirm:ElectronicBusinessandElectronicCommerceELECTRONICCOMMERCEAPrivateELECTRONICCOMMERCEANetMarketplaceFigure4-7ManagementInformationSystemsChapter4TheDigitalFirm:ElectronicBusinessandElectronicCommerceELECTRONICCOMMERCEANetMarkELECTRONICCOMMERCEElectronicCommercePaymentSystemsDigitalwalletsElectronicstorageofI.D.anddigitalcash.Notwidelyused.Accumulatedbalance
Usedformicropayments.Similartomonthlytelephonebills.Storedvalue
Usedformicropayments.Pre-paymentoffunds,debitedonuse.SmartCards
I.D.andcreditinformationstoredonachipattachedtoacard.UsedinEurope.
Digitalcash
ElectroniccurrencythatcanbetransferredovertheWeb.Peer-to-Peerpayment
InterpersonaltransferoffundssuchasPayPal.Digitalchecking
Electroniccheckswithdigitalsignatures,usedmostofteninB2Bcommerce.Electronicbillingpresentmentandpayment
Usedbyconsumerstopaybillsonline,providedbymanybanks.CreditcardsThemostcommonformofpayment.$50Limitedcustomerliability.ManagementInformationSystemsChapter4TheDigitalFirm:ElectronicBusinessandElectronicCommerceELECTRONICCOMMERCEElectronicELECTRONICBUSINESSANDTHEDIGITALFIRMBenefits
Functionalapplications
Goodexamples:CAREandMitreCorporationHowIntranetsSupportElectronicBusinessManagementInformationSystemsChapter4TheDigitalFirm:ElectronicBusinessandElectronicCommerceELECTRONICBUSINESSANDTHEDIELECTRONICBUSINESSANDTHEDIGITALFIRMConnectivity:AccessiblefrommostcomputingplatformsCanbetiedtointernalcorporatesystemsandcoretransactiondatabasesPlatformsforinteractiveapplicationsScalabletolargerorsmallercomputingplatformsBenefitsofIntranetsManagementInformationSystemsChapter4TheDigitalFirm:ElectronicBusinessandElectronicCommerceELECTRONICBUSINESSANDTHEDIELECTRONICBUSINESSANDTHEDIGITALFIRMEasytouse,universalstandardWebinterfaceLowstart-upcostsRicher,moreresponsiveinformationenvironmentthancorporatemanualsReducedinformationdistributioncostsManagementInformationSystemsChapter4TheDigitalFirm:ElectronicBusinessandElectronicCommerceBenefitsofIntranets(Continued)ELECTRONICBUSINESSANDTHEDIELECTRONICBUSINESSANDTHEDIGITALFIRMFinanceandaccountingHumanresourcesSalesandmarketingManufacturingandproductionFunctionalApplicationsofIntranetsManagementInformationSystemsChapter4TheDigitalFirm:ElectronicBusinessandElectronicCommerceELECTRONICBUSINESSANDTHEDIELECTRONICBUSINESSANDTHEDIGITALFIRMFunctionalApplicationsofIntranetsFigure4-8ManagementInformationSystemsChapter4TheDigitalFirm:ElectronicBusinessandElectronicCommerceELECTRONICBUSINESSANDTHEDIELECTRONICBUSINESSANDTHEDIGITALFIRMGeneralledgerreportingProjectcostingAnnualreportsBudgetingFinance&AccountingManagementInformationSystemsChapter4TheDigitalFirm:ElectronicBusinessandElectronicCommerceELECTRONICBUSINESSANDTHEDIELECTRONICBUSINESSANDTHEDIGITALFIRMCompany:OnlinepublishingofcorporatepolicyJobpostingsandinternaljobtransfersCompanytelephonedirectories,trainingHumanResourcesManagementInformationSystemsChapter4TheDigitalFirm:ElectronicBusinessandElectronicCommerceELECTRONICBUSINESSANDTHEDIELECTRONICBUSINESSANDTHEDIGITALFIRMHealthcareEmployeesavingsCompetencytestsManagementInformationSystemsChapter4TheDigitalFirm:ElectronicBusinessandElectronicCommerceEmployees:HumanResources(Continued)ELECTRONICBUSINESSANDTHEDIELECTRONICBUSINESSANDTHEDIGITALFIRMCompetitoranalysisPriceupdatesPromotionalcampaignsSalespresentationsSalescontractsManagementInformationSystemsChapter4TheDigitalFirm:ElectronicBusinessandElectronicCommerce
SalesandMarketingELECTRONICBUSINESSANDTHEDIELECTRONICBUSINESSANDTHEDIGITALFIRMQualitymeasurementsMaintenanceschedulesDesignspecificationsMachineoutputsOrdertrackingManagementInformationSystemsChapter4TheDigitalFirm:ElectronicBusinessandElectronicCommerceManufacturingandProductionELECTRONICBUSINESSANDTHEDITheInternetandcollaborativecommerce:
Collaborativecommerce:WhenfirmsusetheInternettocooperatecloselyinthedevelopment,production,anddistributionofproductsandservicesGEPlasticsmaintainsanIntranetwhereitscustomers(selectedfabricators)canfindinformationonproductdesignandnewdevelopments.BusinessProcessIntegrationELECTRONICBUSINESSANDTHEDIGITALFIRMManagementInformationSystemsChapter4TheDigitalFirm:ElectronicBusinessandElectronicCommerceTheInternetandcollaborativeELECTRONICBUSINESSANDTHEDIGITALFIRMCollaborativeCommerceFigure4-9ManagementInformationSystemsChapter4TheDigitalFirm:ElectronicBusinessandElectronicCommerceELECTRONICBUSINESSANDTHEDIMANGEMENTOPPORTUNITIES,CHALLENGES,ANDSOLUTIONSTheInternetprovidesfirmswithextraordinaryopportunitiestodevelopnewproductsandservices,newdistributionchannels,newavenuesformarketingandsales,andevenentirelynewbusinessmodels.ManagementInformationSystemsChapter4TheDigitalFirm:ElectronicBusinessandElectronicCommerceManagementOpportunities:MANGEMENTOPPORTUNITIES,CHALLFindingasuccessfulInternetbusinessmodelOrganizationalchangechallengesTrust,Security,andPrivacyManagementInformationSystemsChapter4TheDigitalFirm:ElectronicBusinessandElectronicCommerceMANGEMENTOPPORTUNITIES,CHALLENGES,ANDSOLUTIONSManagementChallenges:FindingasuccessfulInternetDetermininghowInternettechnologycanprovidevalueforthebusinessManagingbusinessprocesschangesSafeguardingsecurityandprivacy
SolutionGuidelines:ManagementInformationSystemsChapter4TheDigitalFirm:ElectronicBusinessandElectronicCommerceMANGEMENTOPPORTUNITIES,CHALLENGES,ANDSOLUTIONSDetermininghowInternettechn4Chapter
TheDigitalFirm:ElectronicBusinessandElectronicCommerce4ChapterTheDigitalFirm:EleOBJECTIVESAnalyzehowInternettechnologyhaschangedvaluepropositionsandbusinessmodelsDefineelectroniccommerceanddescribehowithaschangedconsumerretailingandbusiness-to-businesstransactionsManagementInformationSystemsChapter4TheDigitalFirm:ElectronicBusinessandElectronicCommerceOBJECTIVESAnalyzehowInternetComparetheprincipalpaymentsystemsforelectroniccommerceEvaluatetheroleofInternettechnologyinfacilitatingmanagementandcoordinationofinternalandinterorganizationalbusinessprocessesAssessthechallengesposedbyelectronicbusinessandelectroniccommerceandmanagementsolutionsOBJECTIVES(Continued)ManagementInformationSystemsChapter4TheDigitalFirm:ElectronicBusinessandElectronicCommerceComparetheprincipalpaymentChallenge:trillionsofproductconfigurations,shortleadtimes,manycompetitorsSolution:Webextranetfororderentry,customization,inventory,changeorders,andshippingDemonstrateshowITandtheWebcoordinatetheflowofinformationaboutorders,production,inventoryandshipmentIllustrateshowsystemsinthedigitalfirmconnectdemand,supply,andfulfillmenttoachieveoperationalexcellenceManagementInformationSystemsChapter4TheDigitalFirm:ElectronicBusinessandElectronicCommerce
CorrugatedSuppliesCaseChallenge:trillionsofproducELECTRONICBUSINESS,ELECTRONICCOMMERCE,ANDTHEEMERGINGDIGITALFIRMInternetTechnologyandtheDigitalFirmInformationtechnologyinfrastructure:TheInternetprovidesauniversalandeasy-to-usesetoftechnologiesandtechnologystandardsthatcanbeadoptedbyallorganizations.Directcommunicationbetweentradingpartners:Disintermediationremovesintermediatelayersandstreamlinesprocesses.ManagementInformationSystemsChapter4TheDigitalFirm:ElectronicBusinessandElectronicCommerceELECTRONICBUSINESS,ELECTRONIELECTRONICBUSINESS,ELECTRONICCOMMERCE,ANDTHEEMERGINGDIGITALFIRMRoundtheclockservice:Websitesavailabletoconsumers24hours
Extendeddistributionchannels:OutletscreatedforattractingcustomerswhootherwisewouldnotpatronizeafirmReducedtransactioncosts:CostsofsearchingforbuyersdeclinesManagementInformationSystemsChapter4TheDigitalFirm:ElectronicBusinessandElectronicCommerceInternetTechnologyandtheDigitalFirm(Continued)ELECTRONICBUSINESS,ELECTRONIELECTRONICBUSINESS,ELECTRONICCOMMERCE,ANDTHEEMERGINGDIGITALFIRMBusinessModel:DefinesanenterpriseDescribeshowtheenterprisedeliversaproductorserviceShowshowtheenterprisecreateswealthNewBusinessModelsandValuePropositionsManagementInformationSystemsChapter4TheDigitalFirm:ElectronicBusinessandElectronicCommerceELECTRONICBUSINESS,ELECTRONIELECTRONICBUSINESS,ELECTRONICCOMMERCE,ANDTHEEMERGINGDIGITALFIRMInformationasymmetry:Onepartyinatransactionhasmoreinformationthantheother.TheInternetdecreasesinformationasymmetry.Increasesrichness:TheInternetincreasesthedepth,detail,andscopeofinformation.
Increasesreach:TheInternetincreasesthenumberofpeoplewhocanbecontactedefficiently.TheChangingEconomiesofInformationManagementInformationSystemsChapter4TheDigitalFirm:ElectronicBusinessandElectronicCommerceELECTRONICBUSINESS,ELECTRONIELECTRONICBUSINESS,ELECTRONICCOMMERCE,ANDTHEEMERGINGDIGITALFIRMTheChangingEconomicsofInformationFigure4-1ManagementInformationSystemsChapter4TheDigitalFirm:ElectronicBusinessandElectronicCommerceELECTRONICBUSINESS,ELECTRONIELECTRONICBUSINESS,ELECTRONICCOMMERCE,ANDTHEEMERGINGDIGITALFIRMVirtualstorefront:Sellsgoodsorservicesonline(A)Informationbroker:Providesinformationonproductsorservices(E)Transactionbroker:Providesonlinetransactionfacility(eT,E)Onlinemarketplace:Providesatradingplatformforindividualsandfirms(eB)InternetBusinessModelsManagementInformationSystemsChapter4TheDigitalFirm:ElectronicBusinessandElectronicCommerceELECTRONICBUSINESS,ELECTRONIELECTRONICBUSINESS,ELECTRONICCOMMERCE,ANDTHEEMERGINGDIGITALFIRMContentprovider:Createsrevenuebyprovidingcontent(WSJ.com,TheS)Onlineserviceprovider:Providesonlineservices,includingsearchservice.(G,X)Virtualcommunity:Providesanonlinecommunitytofocusedgroups(F,iV)Portal:ProvidesinitialpointofentrytoWeb,specializedcontent,services(Y,MSN.com)ManagementInformationSystemsChapter4TheDigitalFirm:ElectronicBusinessandElectronicCommerceInternetBusinessModels(Continued)ELECTRONICBUSINESS,ELECTRONIELECTRONICCOMMERCECategoriesofElectronicCommerceBusiness-to-customer(B2C):Retailingofproductsandservicesdirectlytoindividualcustomers
(Wal-M)Business-to-business(B2B):Salesofgoodsandservicestootherbusinesses(G,A)Consumer-to-consumer(C2C):IndividualsusingtheWebforprivatesalesorexchange(eB)ManagementInformationSystemsChapter4TheDigitalFirm:ElectronicBusinessandElectronicCommerceELECTRONICCOMMERCECategoriesBusiness-To-ConsumerAdvantagesofE-commerce:Customer-centeredretailing:Closerandmorepersonalizedrelationshipwithcustomersispossible
Websites:Provideacorporate-centeredportalfortheconsumertoquicklyfindinformationonproducts,services,prices,ordersELECTRONICCOMMERCEManagementInformationSystemsChapter4TheDigitalFirm:ElectronicBusinessandElectronicCommerceBusiness-To-ConsumerAdvantageDisintermediation:Theeliminationoforganizationsorbusinessprocesslayersresponsibleforcertainintermediarystepsinavaluechain,reducingcoststotheconsumer
Reintermediation:Theshiftingoftheintermediaryroleinavaluechaintoanewsource,addingadditionalvaluetotheconsumerELECTRONICCOMMERCEManagementInformationSystemsChapter4TheDigitalFirm:ElectronicBusinessandElectronicCommerceBusiness-To-ConsumerAdvantagesofE-Commerce:(Continued)Disintermediation:TheeliminaTheBenefitsofDisintermediationtotheConsumerFigure4-2ELECTRONICCOMMERCEManagementInformationSystemsChapter4TheDigitalFirm:ElectronicBusinessandElectronicCommerceTheBenefitsofDisintermediatClickstreamtrackingtools:
CollectdataoncustomeractivitiesatWebsitesandstoretheminalog
ELECTRONICCOMMERCEInteractiveMarketingandPersonalizationManagementInformationSystemsChapter4TheDigitalFirm:ElectronicBusinessandElectronicCommerceClickstreamtrackingtools:ELWebSiteVisitorTrackingFigure4-3ELECTRONICCOMMERCEManagementInformationSystemsChapter4TheDigitalFirm:ElectronicBusinessandElectronicCommerceWebSiteVisitorTrackingFiguCreateuniquepersonalizedWebpagesforeachcustomerIncreasedclosenesstocustomerincreasesvaluetothecustomer,whilereducingcostsofinteractingwiththecustomer
ELECTRONICCOMMERCEWebPersonalizationManagementInformationSystemsChapter4TheDigitalFirm:ElectronicBusinessandElectronicCommerceCreateuniquepersonalizedWebWebSitePersonalizationFigure4-4ELECTRONICCOMMERCEManagementInformationSystemsChapter4TheDigitalFirm:ElectronicBusinessandElectronicCommerceWebSitePersonalizationFigurComparesinformationgatheredaboutaspecificuser’sbehaviorataWebsitetodataaboutothercustomerswithsimilarintereststopredictwhattheuserwouldliketoseenext.Thesoftwarethenmakesrecommendationstousersbasedontheirassumedinterests.
ELECTRONICCOMMERCECollaborativefiltering:ManagementInformationSystemsChapter4TheDigitalFirm:ElectronicBusinessandElectronicCommerceComparesinformationgatheredTheuseofWebsitestoprovidecustomerswithaccesstoinformationandanswerstoquestionsReplacinghumancallcenteroperatorsandclerksUPS.com:CustomertrackingofpackagesO:Customerself-helpfororganizingandmanagingatripD:“MyOrderStatus”facility
ELECTRONICCOMMERCECustomerself-service:ManagementInformationSystemsChapter4TheDigitalFirm:ElectronicBusinessandElectronicCommerceTheuseofWebsitestoprovidElectronicDataInterchange(EDI):Enablesthecomputer-to-computerexchangebetweentwoorganizationsofstandardtransactions.Currently80%ofB2Be-commerceusesthissystem.EDIisbeingreplacedbymorepowerfulWeb-basedalternatives.Business-to-BusinessElectronicCommerce:NewEfficienciesandRelationshipsELECTRONICCOMMERCEManagementInformationSystemsChapter4TheDigitalFirm:ElectronicBusinessandElectronicCommerceElectronicDataInterchange(EELECTRONICCOMMERCEDistributors:B2Bonlinecatalogsprovidebuyerswithaccesstothousandsofpartsandothergoods(G)Procurementplatforms:Platformsforpurchasinggoodsandmaterialsandalsosourcing,negotiatingwithsuppliers,payingforgoods,andmakingdeliveryarrangements(A)
FourdifferenttypesofNetMarketplaces:NetMarketplacesManagementInformationSystemsChapter4TheDigitalFirm:ElectronicBusinessandElectronicCommerceELECTRONICCOMMERCEDistributoELECTRONICCOMMERCEIndependentexchanges:Third-partyNetmarketplacethatisprimarilytransaction-orientedandthatconnectsmanybuyersandsuppliersforspotpurchasing(F,GEP)Industryconsortia:Industry-ownedNetmarketplacesusedprimarilyforlong-termsourcingofdirectinputstoproduction(ChemC)
ManagementInformationSystemsChapter4TheDigitalFirm:ElectronicBusinessandElectronicCommerceNetMarketplacesFourdifferenttypesofNetMarketplaces:(Continued)ELECTRONICCOMMERCEIndependenELECTRONICCOMMERCEElectronicDataInterchange(EDI)Figure4-5M
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