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Taxonomy of Organizational Applications: Commerce, Enterprise, and Consumer

This chapter explores the taxonomy of organizational applications, including commerce, inter-enterprise, consumer, and inter-consumer applications. It covers various categories of enterprise resource planning (ERP) and their types, as well as the impact of software on propagating best practices and productivity. The chapter also discusses electronic commerce, electronic marketplace, opportunities in consumer electronic commerce, and the advantages of matching buyers and sellers.

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Taxonomy of Organizational Applications: Commerce, Enterprise, and Consumer

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  1. Chapter 3 by David G. Messerschmitt

  2. Taxonomy of organizational applications • Commerce: • Inter-enterprise • Consumer • Inter-consumer Enterprise Department Economy

  3. Buzzwords • Business process reengineering (BPR) • Enterprise resource planning (ERP) • Outgrowth of manufacturing resource planning (MRP) • Supply chain management

  4. Some types of applications • Worker collaboration • Operations and logistics • Decision support • Information and knowledge management • Customer/supplier commerce • Consumer commerce

  5. Some ERP categories • Sales force management • Document management • Customer service and support • Manufacturing logistics • Accounting • Human resources • Supply-chain management

  6. Questions • Do you have experience with any of these options? • In terms of: • Effectiveness • Pain • Time/budget

  7. Fundamental options • Custom application molded to existing organization • Custom application molded to re-engineered organization • Mold organization to off-the-shelf application • Common off-the-shelf (COTS) technology • Highly configurable

  8. Questions • How standardized are organizational processes? • Customer service • Finance • Manufacturing • Is software a good way to propagate best practices?

  9. Productivity quandary • Economists have difficulty identifying major productivity improvements due to investment in information technology • Questions: • How does one separate quality from productivity? • In what ways can computing harm productivity?

  10. Electronic commerce • Two varieties: • Supply chain management: extension of ongoing business processes to suppliers and customers • Marketplace: dynamic, opportunistic transactions conducted over the network • Question: • What are some characteristics of these options, in terms similar to social applications?

  11. Electronic marketplace • Matching buyers and sellers • Deferred-publication style • Recommender systems • Negotiating terms • Task or work group • Electronic auctions • Consummation • Electronic payments and fullfillment • Customer service

  12. Questions • For both buyer and seller: • How does an auction differ from standard pricing/discounting? • What impact might recommender systems have? • Electronic payments? Bank account transfer authorizations?

  13. Opportunities in consumer electronic commerce • Equivalent of sales by direct-mail catalog • How is it different different? • More ways to match buyer and seller • More payment options • Recommender systems • What uses? • Mass customization • Superstore: consolidation of suppliers

  14. Advantages over direct-mail catalog • Customers find you • But gaining attention remains an issue • Multimedia • Fewer human agents -- labor savings • Escalation to remote conferencing

  15. Matching buyer and seller • Fixed price • Price based on buyer characteristics • History • Demographics • Behavior • Sequential versioning • Auctions

  16. Intermediation • What intermediaries will be eliminated? • What are legitimate roles for intermediaries in the networked age? • What are some innovative roles for intermediaries?

  17. Payment options • (Topic of Chapter 14) • Account transfer authorization • Credit/debit card • Digital cash • Privacy • Micropayments • Low transaction costs • Consolidation

  18. Recommender systems • Extend and systematize the “reference” • Suggest coupled sales • Customer service: • discussion forums • knowledge bases

  19. Mass customization • Requires supply chain management • Just-in-time production • Supplier component integration (e.g. Dell)

  20. Superstore • Dynamic consolidation of multiple suppliers • Major application of XML (discussed in Chapter 15) • Consistent presentation

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