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Chapter-5 - Information Systems Today Managing in the...

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Unformatted text preview: Information Systems Today: Managing in the Digital World 5-1 5 Chapter Enabling Commerce Using the Internet “There is no physical analog for what Amazon.com is becoming.” Jeff Bezos Cofounder and long-time CEO of Amazon.com Information Systems Today: Managing in the Digital World 5-2 Learning Objectives Information Systems Today: Managing in the Digital World 5-3 Learning Objectives Information Systems Today: Managing in the Digital World 5-4 Electronic Commerce • Online exchange of goods, services and money • Second quarter of 2006 o 2.7% of total retail revenue o $24.8 billion in revenue Information Systems Today: Managing in the Digital World 5-5 Most Common Types of E-Commerce • Business-to-consumer (B2C) o A person buys a book from Amazon.com • Business-to-business (B2B) o Retailer like Wal-Mart ordering from distributors • Business-to-employee (B2E) o Employee uses the Web to change employee benefits • Consumer-to-consumer (C2C) o One person purchases from another on eBay Information Systems Today: Managing in the Digital World 5-6 Other Types of E-Commerce • Government-to-citizen (G2C) o A person filing income taxes online • Government-to-business (G2B) o Government purchases supplies using Internet-enabled procurement system • Government-to-government (G2G) o Foreign government accessing U.S. federal regulations Information Systems Today: Managing in the Digital World 5-7 Key Capabilities of the Web Information Systems Today: Managing in the Digital World 5-8 Information Dissemination • Firms across the world have access to customers • Economical medium for marketing products and services • Increased geographical reach Information Systems Today: Managing in the Digital World 5-9 Integration • Integration of information via Web sites • Real-time access to personalized information • No time lag between company decisions and customers’ ability to access these Information Systems Today: Managing in the Digital World 5-10 Example: Integration • Alaska Airlines customers can access their mileage program any time o Real-time link between company database and customer Information Systems Today: Managing in the Digital World 5-11 Mass Customization • Meeting particular customers’ needs on a large scale • Timbuk2.com o Custom Messenger Bag Builder • Customers create a virtual bag • Preference-tracking helps Timbuk2 in marketing efforts Information Systems Today: Managing in the Digital World 5-12 Interactive Communication • Immediate feedback between company and customers o E-mail notifications o Customer service online chat • Best Buy o Geek Squad o 24-hour computer support Information Systems Today: Managing in the Digital World 5-13 Collaboration • Virgin Entertainment Group o Microsoft SharePoint o Managers: spend more time selling products o Head office: more time for strategic planning Information Systems Today: Managing in the Digital World 5-14 Transaction Support • Internet and the Web:...
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