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3.1 Business and employment. International commerce - Systems. International commerce - Systems. International commerce - Systems. International commerce – Systems. International commerce – Information Systems for Business Transactions. Management Information System (MIS).
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International commerce – Information Systems for Business Transactions
Management Information Systems When a newshipmentarrives, a clerk records itusing a terminal; inventoryandaccounting files are updatedautomatically
Management Information Systems When a clerkenters a productsbarcode, salesandinventory files are updated.
The MIS uses a varietyof inputs to producereports for managersatalllevels
Management Information Systems To developnewbusinessstrategies, top-levelmanagersneedreportsthat show long-termtrends
Management Information Systems Middle-levelmanagers use summaryandexeptionreports to spot trendsandunusualcircumstances.
Management Information Systems Lowlevelmanagers use detailedreports to keeptabsonday to dayoperations.
Decision Support Systems • What if? Analysis • Goal-seeking analysis • Sensitivity analysis • Optimisation analysis
Decision Support Systems • Improves personal efficiency • Speed up the process of decision making • Increases organizational control • Encourages exploration and discovery on the part of the decision maker • Speeds up problem solving in an organization • Facilitates interpersonal communication • Promotes learning or training • Generates new evidence in support of a decision • Creates a competitive advantage over competition • Reveals new approaches to thinking about the problem space • Helps automate managerial processes
Expert Systems Expert Systems provide support decision making by providing managers with access to computerised expert knowledge.
Executive Information Systems Combines features of a MIS and DSS to support unstructured decision making by top level managers.
Strategic Information Systems • Entry Barrier • Creating a product that is hard to emulate • Switching Costs • Amount of time, effort and money to switch to a new system • Adding value to product • Differentiates the product from others with innovation eg iPod/iTunes/online store
E-commerce - Teleshopping Videotex was being researched since much earlier for supplying the end users with textual information. Much work was done in UK on videotext, it was a two way message service and developed basically for information sending where “many companies” were interested in, but on the backdrop of all that Michael Aldrich in 1979 gave the “concept of teleshopping” (today online shopping) which revolutionized the way businesses happen. Same happened in the US around that year with services like The Source and CompuServe.
E-commerce - Teleshopping Minitel succeeded Videotext as online service making online purchases, check share market, search telephone directory and could even chat. This is one of the most successful services before WWW using telephone lines, It was launched in France successfully but in UK as well but to less success.
E-commerce - Teleshopping With Swreg (offshoot of CompuServe) the community of software developers and shareware authors got an online market where they could sell their product using “Merchant account”. Thus online shopping started for then software industry people.
E-commerce - Teleshopping Tim Berners-Lee wrote the WorldWideWeb and gave the first browser to view the web which changed most of things; a whole new revolution started, which till date is ON.
E-commerce - Teleshopping 1994 Netscape released Navigator browser, later introduced Secure Sockets Layer (SSL) encryption for secure transaction. Pizza Hut started online ordering on their webpage, cars, bikes and adult content as well started selling on the internet.
E-commerce - Teleshopping 1995 Amazon.com started selling each and everything online, and along with that Jeff Bezos starts first commercial-free 24 hour, internet-only radio stations. Then Radio HK and NetRadio start broadcasting. Companies like Dell and Cisco started using internet in all their transactions. Online auction started by eBay.
E-commerce - Teleshopping 1998 United States started selling Electronic postal stamps online wherein they could be purchased and downloaded for print. 1999 Acquisition of Business.com by eCompanies in US $7.5 million. Napster the peer-to-peer file sharing software launches. Home decorative items started selling on ATG Stores. 2000 The dot-com bust as we know it today wasn’t something that happened in a day, over speculation for a period of time (approx. 1995-2000) where just the prefix “e-” or “.com” in names could make stock prices rise at great rates. This saw a great many companies rise and fall.
E-commerce - Teleshopping 2002 PayPal the company which offered an alternative (through internet) to cash or check payment was acquired by eBay for $1.5 billion. CSN Stores and NetShops were founded with the concept of domain specific commodity and sprung with many online stores, going for one item on each website.
E-commerce - Teleshopping 2003 Online shopping matures showing to the world their confidence Amazon.com posted first yearly profit and thus again making presence on the stock market. 2007 Acquisition of Business.com by R.H. Donnelley for $345 million, making way for bigger players in technology domain. 2008 Tremendous growth in US in Ecommerce with sales figures touching $204 billion, a decent 17% rise from the previous year. 2009 Online Retailer – Amazon.com has an estimated turnover on a daily basis is over US $2.5 trillion with growth rate of 14% annually. Ebayhaving sales of US $1.89 billion, these numbers alone speak.
E-commerce - Teleshopping • Customers like Internet shopping because... • The convenience of being able to browse goods from your home • Stores are open 24 hours a day, every day of the year • The wider range of choice - can access stores all over the world • Easy if you have limited mobility (due to a disability, or old age) • Goods are often cheaper than in stores • Payment is simple using credit cards or services such as PayPal • Businesses like Internet shopping because... • Lower costs since no expensive retail stores and less staff • Lower costs = lower selling prices = higher sales = bigger profits • Many more potential customers
E-commerce - Teleshopping However there are some problems too... • You cannot try items before purchasing (e.g. clothes) • You may have to wait several days before receiving your goods • Returning goods or getting help can be difficult • There is a security risk using credit cards online. The card details may be stolen and used to commit fraud
E-commerce - Online marketing • Worldwide there are now over a billion Internet users, representing one large global consumer base or marketplace. The total amount of goods sold online has been steadily increasing each year as the Internet gains in both popularity and familiarity. Studies have shown people shop online because of lower prices, a wider selection of products, easier comparison shopping, and many just prefer not having to travel to stores to make a purchase. • Handling all this online e-commerce is a whole sector of companies, hosting providers, web designers, advertising agencies... and so on. All this online commerce has also given rise to a relatively new creature --- the professional Internet marketer. Someone who makes a lucrative living helping facilitate, in one form or another, all this online activity.
E-commerce - Online marketing The Brick and Mortar Store Online Most major companies and retail stores have created online versions of their brick and mortar businesses. Even if consumers don't buy online, many use these sites for gathering product information before buying in the real world. A factor many savvy businesses are exploiting in their overall marketing strategies.
E-commerce - Online marketing SearchEngineOptimisation • GettingIndexed • PreventCrawling • IncreasingProminance • Paying for “top search”
E-commerce - Online marketing Pay Per Click Marketing • Pay per click (PPC) is an Internet advertising model used primarily by search engines but also by advertising networks and content websites. The way the model works is that advertisers only pay when a user actually clicks on an advertisement to visit the advertisers' website. • With search engines, an advertiser will bid on his chosen key phrases that are relevant to his particular target market. If a user types a key phrase into a search engine that matches the advertiser's keyword list, or views a webpage with relevant content, the advertisements may be displayed. • These advertisements are called sponsored links or sponsored ads, and appear above, below or adjacent to the "natural" or organic results on search engine results pages, or anywhere a webmaster or blogger chooses on a content page. • Currently Google AdWords, Yahoo! Search Marketing, and Microsoft adCenter are the largest PPC networks. • The PPC advertising model is open to abuse through click fraud, although Google and other search engines have implemented automated systems to guard against abusive clicks by competitors or corrupt webmasters.
E-commerce - Online marketing Affiliate Marketing • Merchants sign up to an affiliate network which acts as a intermediary between merchant and affiliate, allowing them to have the potential to display their products on many web sites, thus spreading their product or service to many more outlets. • Affiliates sign up to an affiliate network to display products & services or to promote merchants, in return they receive commission either as a percentage or a fixed amount per sale or lead.
E-commerce - Spyware Spyware is a type of malware that can be installed on computers It collects small pieces of information about users without their knowledge. The presence of spyware is typically hidden from the user, and can be difficult to detect. Typically, spyware is secretly installed on the user's personal computer. Sometimes, however, spywares such as keyloggers are installed by the owner of a shared, corporate, or public computer on purpose in order to secretly monitor other users.
E-commerce - Spyware • While the term spyware suggests software that secretly monitors the user's computing, the functions of spyware extend well beyond simple monitoring. • Spyware programs can collect various types of personal information, such as Internet surfing habits and sites that have been visited, but can also interfere with user control of the computer in other ways, such as installing additional software and redirecting Web browser activity. • Spyware is known to change computer settings, resulting in slow connection speeds, different home pages, and/or loss of Internet connection or functionality of other programs. In an attempt to increase the understanding of spyware, a more formal classification of its included software types is provided by the term privacy-invasive software.
E-commerce – Data Mining Data mining, a branch of computer science, is the process of extracting patterns from large data sets by combining methods from statistics and artificial intelligence with database management. Data mining is seen as an increasingly important tool by modern business to transform data into business intelligence giving an informational advantage. It is currently used in a wide range of profiling practices, such as marketing, surveillance, fraud detection, and scientific discovery.
Data Mining - Example What do thesehaveincommon?
