2. Principles and Learning Objectives
E-commerce is a new way of conducting business, and as with any other new application of technology, it presents both opportunities for improvement and potential problems.
E-commerce requires the careful planning and integration of a number of technology infrastructure components.
An organization’s transaction processing system (TPS) must support the routine, day-to-day activities that occur in the normal course of business and help a company add value to its products and services.
Implementation of an enterprise resource planning (ERP) system enables a company to achieve many benefits by creating a highly integrated set of systems.

3. Ebake.com

4. Revenue Paradigm

5. Business advantages of B2B include:
Managing __________ more efficiently
Adjusting more quickly to customer demand
Getting products to market faster
Obtaining __________ prices on supplies
Sales
- Cost of goods sold
Gross margin
- Expenses
Net income

6. Business advantages of B2C include:
Access to a wider __________ of products and services
Access to products at lower costs
__________ for transactions or for obtaining information
Sales
- Cost of goods sold
Gross margin
- Expenses
Net income
Ebake.com

7. The E-Commerce Supply Chain
__________
Figure 5.1: Supply Chain Management

8. The E-Commerce Supply Chain (continued)
E-commerce supply chain management allows businesses an opportunity to achieve:
Increased __________ and decreased costs
Improved customer satisfaction
Inventory reduction across the supply chain
Amazon Distribution

9. Mobile Commerce
Mobile commerce (m-commerce) relies on the use of wireless devices, such as personal digital assistants, cell phones, and smart phones, to place orders and __________ business
Issues confronting m-commerce
User-friendliness of the wireless device
Network speed
Security
__________

10. Mobile Commerce (continued)
Handheld devices used for m-commerce have limitations that complicate their use
Wireless application protocol (WAP): a standard set of specifications for Internet __________ that run on handheld, wireless devices

11. E-Commerce Applications
Retail and Wholesale
Manufacturing
Marketing
Investment and Finance
Auctions
__________

12. E-commerce Technology, Infrastructure, and Development
__________
Figure 5.4: Key E-Commerce Technical Components

13. Hardware
Storage capacity and computing power required of the Web server depends on:
Software that will run on the server
Volume of e-commerce transactions
Web __________ hosting
__________

14. Software Security and identification
Retrieving and __________ Web pages
Web page construction
Static Web page
Dynamic Web page
E-commerce software must support:
Catalog __________
Product configuration
Shopping-cart facilities

15. Electronic Payment Systems
Electronic cash
Electronic wallets
Smart cards
Credit cards
Debit cards
Charge cards
__________

16. An Overview of Transaction Processing Systems
Provide data for other __________ processes:
Management information system/decision support system (MIS/DSS)
Special-purpose information systems
Process the detailed data necessary to update records about the fundamental business operations
Include order entry, inventory control, payroll, accounts __________ , accounts receivable, and the general ledger.

17. An Overview of Transaction Processing Systems (continued)
Figure 5.6: TPS, MIS/DSS, and Special Information Systems in Perspective

18. Traditional Transaction Processing Methods and Objectives (continued)
__________
Figure 5.7: Batch Versus Online Transaction Processing

19. Transaction Processing Activities
TPSs
Capture and process data that describes fundamental business transactions
Update databases
Produce a variety of reports

20. Transaction Processing Activities (continued)
__________
Figure 5.8: Data Processing Activities Common to TPSs

21. Basic TPS Applications
Table 5.4: Systems That Support Order Processing

22. Order Processing Systems
Order entry
Sales configuration
Shipment planning
Shipment execution
Inventory control
Invoicing
Customer relationship management
Routing and scheduling

23. Order Processing Systems (continued)
Figure 5.10: Order Processing Systems APL Fulfillment

24. Purchasing and Accounting Systems
Purchasing transaction processing systems include:
Inventory control
Purchase-order processing
Receiving
Accounts payable

25. Purchasing and Accounting Systems (continued)
Accounting transaction processing systems include:
Budget
Accounts receivable
Payroll
Asset management
General ledger

26. Purchasing and Accounting Systems (continued)
Figure 5.11: Integration of a Firm’s TPSs

27. TPS Control and Management Issues
Business continuity planning
Transaction Processing System Audit
International Issues ( GLOBAL LOGISTICS )
Different languages and cultures
Disparities in IS infrastructure
Varying laws and customs rules
Multiple currencies
__________

28. An Overview of Enterprise Resource Planning
Enterprise resource __________ (ERP) systems are used in large, midsized, and small companies
Real-time monitoring of business functions
Timely analysis of key __________ , such as quality, availability, customer satisfaction, performance, and profitability
IN Tech We trust

29. An Overview of Enterprise Resource Planning
Steps in running a manufacturing organization using an ERP system:
Develop demand forecast
Deduct demand forecast from inventory
Determine what is needed for production
Check inventory for needed raw materials
Schedule production
Assess need for additional production resources
Financial forecasting
__________

30. Advantages of ERP __________ of costly, inflexible legacy systems
Improvement of work processes
Increase in access to data for operational decision making
__________ of technology infrastructure
Advantages and Disadvantages of ERP
The primary benefits of implementing ERP include elimination of inefficient systems, easing adoption of improved work processes, improving access to data for operational decision making, and technology standardization. Note, however, that although ERP offers many strategic advantages by streamlining a company’s transaction processing system, it is time consuming, difficult, and expensive to implement.

31. Disadvantages of ERP Expense and time in implementation
__________ implementing change
Difficulty integrating with other systems
Risks in using one __________ Risk of implementation failure