1. Chapter 8: The Web-Enabled Enterprise
Management Information Systems, Sixth Edition
Chapter 8:
The Web-Enabled Enterprise

2. Objectives
Describe how the Web and high-speed Internet connections are changing business operations
Explain the functionality of various Web technologies
Compare and contrast options for Web servers
Explain basic business-to-business and business-to-consumer practices on the Web
Explain the relationship between Web technologies and supply chain management
Management Information Systems, Sixth Edition

3. Objectives (continued)
Give examples of features and services that successful business Web sites offer
Learn about online annoyances such as spam and adware, and how to protect against online identity theft
Management Information Systems, Sixth Edition

4. Web Business: Growing and Changing
DLA Piper LLP is the second largest law firm in the world
3200 lawyers in 24 countries and 63 offices around the world
Uses eRoom, a Web-based collaboration and document-sharing tool from EMC Corp.
Saves 15,000 labor hours annually, uses and mails significantly fewer paper documents, and reduces redundant work
Management Information Systems, Sixth Edition

5. Web Technologies: A Review
Several standards and technologies enable the Web to deliver rich information, including:
HTTP, HTML, XML
File Transfer
RSS
Blogs
Wikis
Podcasting IM
Cookies
Management Information Systems, Sixth Edition

6. HTTP
Hypertext Transfer Protocol (HTTP): transfer and download Web information
HTTPS: HTTP secure for confidential data exchange
Uniform Resource Locator (URL): unique address given to each Web site
IP address: a special numeric address
Domain name: unique name for a Web site, constructed with letters
URL also refers to the domain name
Management Information Systems, Sixth Edition

7. HTML and XML
Hypertext Markup Language (HTML): helps developer create Web pages
Determines look and location of content
Extensible Markup Language (XML): enables creation of various data types
Conveys the meaning or content of the data
XHTML: combination of XML and HTML
Uses opening and closing tags to control format
Management Information Systems, Sixth Edition

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9. File Transfer
File Transfer Protocol (FTP): used to transmit whole files
Used in all downloads from Web sites
Any type of file can be transferred
Can place files on a server for shared use
Often used to deliver purchased software products on Web sites
Management Information Systems, Sixth Edition

10. RSS
Really Simple Syndication (RSS): family of XML file formats that allow automatic downloads of content on a subscription basis
Helps users check for updates
Communicates short descriptions of content
Allows transmittal of new information
Useful on news Web sites
Also called Rich Site Summary
Management Information Systems, Sixth Edition

11. Blogs Blog: contraction of “Web log”
Invites surfers to post opinions and art
Focuses on a topic or set of topics
Trackback: a tool that notifies bloggers when their posts have been mentioned elsewhere on the Web
Blogs are often used by businesses
Importance of blogs to commercial organizations is to find out what blog participants think and say about the organization
Management Information Systems, Sixth Edition

12. Wikis
Wiki (from Hawaiian, meaning “quick”): Web application that enables users to add to and edit the contents of Web pages
All the software required to edit the Web pages is embedded in the pages themselves
Wikipedia: a popular online encyclopedia
Wiki technology is a popular ingredient in groupware (software used for collaboration)
Management Information Systems, Sixth Edition

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14. Podcasting Podcast: publishing sound and video on the Web for download
Usually on a subscription basis
Uses include:
“Time-shifted” broadcast of radio station programs for later listening
Audio tours in museums
Lectures in distance learning courses
Garageband.com
Allows aspiring musicians to post music tracks
Management Information Systems, Sixth Edition

15. Instant Messaging Instant messaging (IM): real-time chat
Form of synchronized
Chat room: communicate with a group
Free applications for IM include:
AIM: AOL instant Messenger
Yahoo Messenger
MSN Messenger
ICQ
Trillian
Business uses
Customers can chat with sales or support reps
Management Information Systems, Sixth Edition

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17. Cookies
Cookie: small file that stores information about a Web site visitor, stored on the visitor’s computer
Usually records the surfer’s ID
Often stores the surfer’s preferences
Provides convenience to consumers
Can be temporary (single session) or permanent
Potential for intrusion into surfer privacy
Clickstream tracking: tracks a surfer’s clicking activities
Spyware: traces and reports online behavior
Management Information Systems, Sixth Edition

18. Proprietary Technologies
Proprietary technology: intellectual property of developer, not free for all to use
Examples:
Local search engine
Shopping cart applications
Wish lists
Video streaming tools
Tools to analyze and predict Web visitor behavior, especially shopper behavior
Management Information Systems, Sixth Edition

19. Web-Enabled Business
Web-enabled business are classified according to the interacting parties:
Business-to-business (B2B)
Business-to-consumer (B2C)
Government-to-business
Government-to-consumer
Management Information Systems, Sixth Edition

20. B2B Trading
Business-to-business (B2B): trading between businesses only
B2B forms include advertising through:
Search advertising: advertisements placed on a search site result page
Banners: images placed on Web sites that link to a company site selling a product or service
Impression: occurs when a page with a banner is downloaded
Reach percentage: the percentage of Web users who visited a site in the past month
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22. B2B Trading (continued)
Exchanges and auctions act as online marketplaces
Intranet: network used only by employees of an organization
Extranet: network shared by employees of different organizations, usually business partners
Exchange: extranet for organizations that deal in products and services of a particular type
Exchange operator profits from transaction fees
Auction: sells a great variety of items
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24. B2B Trading (continued)
Online business alliances: collaboration between businesses in establishing a Web site
Site operator works for the allied companies
Suppliers are invited to sell through the site and compete among themselves, driving prices down
Management Information Systems, Sixth Edition

25. B2C Trading
Business-to-consumer (B2C): trading with the general public
E-Tailing: online retailing to consumers
Fulfillment activities: picking, packing, shipping
Consumer profiling: know customers better by gathering information about their online activities
Some consider this a violation of privacy
Conversion rate: the proportion of site visitors who make a purchase
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28. B2C Trading (continued)
Auction sites serve as a hub for consumers to buy and sell
Reverse auction: customers name their own price for desired goods and services
Content providers: offer information, artistic work, classified ads, and video
Electronic bill presentment and payment (EBBP): provides online bills and payment options for customers
Phishing: type of fraud involving a fake Web site
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31. B2C Trading (continued)
Extra-organizational workforce:
Companies purchase labor from a larger pool
Mobile commerce, or M-commerce:
Business conducted on mobile devices
Many experts believe that information delivery is the main mobile application, not commerce
Exceptions are Japan and South Korea
Japan’s DoCoMo’s i-mode service allows users of smart cell phones to purchase canned soda from vending machines, fast food
Management Information Systems, Sixth Edition

32. B2C Trading (continued)
M-commerce also raises privacy concerns
GPS provides location tracking
New top-level domain names with .mobi available for mobile applications
Sites should use special technologies to optimize content for easy viewing on mobile devices
Virtual world: a combination of images, video, sound, and avatars that resemble the real world
Accessible for interaction by subscribers
Avatar: 3D graphical character that represents a user in a virtual world
Management Information Systems, Sixth Edition

33. Supply Chains on the Web
Supply chain management (SCM) systems may be connected to the Web to allow suppliers to participate directly
Use of XML allows companies to set standards for data exchange
Electronic Data Interchange (EDI): a system used prior to the Web to exchange documents electronically
Set standards for data formats
EDI networks are owned and managed by value-added network (VAN) companies
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35. Options in Establishing a Web Site
Web site: Web pages that make up information and links
Internet server: a computer connected to the Internet backbone
Businesses have two choices for a Web site:
Installing and maintaining their own Web servers
Contracting with a Web hosting service
Management Information Systems, Sixth Edition

36. Owning and Maintaining a Server
Owning and maintaining Web servers is costly
Provides the greatest degree of control, but requires expertise to set up and maintain
Must obtain a high-speed link to the Web
Load balancing: transfer data requests from a busy server to a less busy server
Mirror servers: servers with duplicated content
Pure-play: company whose entire business is online
Brick-and-mortar: company that owns physical stores and a Web site
Management Information Systems, Sixth Edition

37. Using a Hosting Service
Web hosting: Web server managing service
Several types of Web hosting:
Shared hosting: stores the client’s Web site on the same physical server as other clients
Virtual private hosting: simulates a single server, allowing a client to have its own domain name
Dedicated hosting: client has exclusive use of an entire physical Web server
Co-location: server owned and managed by a client is co-located with other clients’ servers in a secure physical location
Management Information Systems, Sixth Edition

38. Considerations in Selecting a Web Host
Compare host vendors using a point system
Dynamic Web pages: enable communication between browser and database
Factors to consider when selecting Web host:
Allows use of database management system
Storage space capacity
Technical and Web site design support
Scalability
Security: physical and virtual
Management Information Systems, Sixth Edition

39. Considerations in Selecting a Web Host (continued)
Factors to consider when selecting Web host (continued):
Availability: minimize downtime
Costs, including:
Setup fees
Traffic-based fees
Monthly fees
Management Information Systems, Sixth Edition

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41. More Than Meets the Eye
Several elements are essential to conducting business on the Web:
Inquiry interface: connects to database to allow user to search a catalog of products or services
Order processing application, including:
Credit-card verification application
Order-fulfillment system: picks, packs, and ships
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43. Rules for Successful Web-Based Business
Business success depends on availability and use of software
Elements needed to support B2C commerce:
Targeting customers
Capturing the customer’s complete experience
Personalizing the service
Shortening the business cycle
Let customers help themselves
Be proactive and de-commoditize
Management Information Systems, Sixth Edition

44. Target the Right Customers
Target customers needing your products and services
Most important effort of marketing
Involves identifying the sites that your audience frequently visits
Consider blogs and podcasting sites for advertisement placement
Management Information Systems, Sixth Edition

45. Capture the Customer’s Total Experience
Use cookies to record shopper’s movements within the site
Use CRM software to create consumer profiles
Shopper experience becomes an asset of business, allowing:
Fine-tuning of the product portfolio
Tailoring of Web pages to individual customers
Individual s to shopper offering products of interest
Management Information Systems, Sixth Edition

46. Personalize the Service
CRM software and Web page customization software can be combined to:
Personalize Web pages shown to a customer
Allow the customer to select the type of content desired
Respect visitor privacy by offering opt-in rather than opt-out
Allow the customer to tailor products to be purchased
Management Information Systems, Sixth Edition

47. Shorten the Business Cycle
Business on the Web saves time for customers
Fulfillment is a major challenge for businesses
Activities after customer places order
Fast shipping is desired because:
It produces higher customer satisfaction
Business collects payments faster
Can outsource the entire fulfillment task to fulfillment organizations such as:
UPS’s e-Logistics
FedEx’s Supply Chain Services
Management Information Systems, Sixth Edition

48. Let Customers Help Themselves
Customers need information from organization:
Status of order
Status of shipped item
Installation instructions
Troubleshooting
messages sent to customers with information about orders and how to track them
FAQs online allow customers to find answers to common questions
Management Information Systems, Sixth Edition

49. Be Proactive and De-Commoditize
Prompt replies expected
Proactive alerts expected for changes in orders or services, or product recalls
Automatic reordering features are desirable
Must take initiatives to de-commoditize products
Commodity: a product sold at roughly the same price by many vendors (no differentiation)
Addition of features or services prevents a product from becoming a commodity by creating differentiation
Management Information Systems, Sixth Edition

50. E-Commerce is Every Commerce
Web technologies have been highly integrated into the business world
Difficult to identify which business activities are on the Internet and which are not
Web has been highly integrated into daily activities of customers also
Commerce and e-commerce generally have the same meaning today
Management Information Systems, Sixth Edition

51. Summary Some industries have changed drastically because of the Web
HTTP is an Internet standard controlling Web server addresses
HTTPS is a security version of HTTP
XML is a standard for description of data
Blogs enable people to create discussion Web pages
Management Information Systems, Sixth Edition

52. Summary (continued)
Cookies help Web sites personalize the visitor’s experience
Many Web technologies are proprietary
A business can maintain its own Web server or use a Web hosting service
Organizations should consider several factors when selecting a Web host
Web-enabled commerce is classified into B2B and B2C
Management Information Systems, Sixth Edition

53. Summary (continued)
B2B trading relies on electronic data interchange (EDI) and XML
Wireless handheld computers allow mobile commerce, called m-commerce
Online businesses must adhere to several factors to be successful
Virtual worlds provide a means to meet and conduct business and social activities on the Web
Spam and spyware are online annoyances
Phishing is a pervasive fraud crime
Management Information Systems, Sixth Edition