Management Information Systems Management Information System Lecture 15 (Chap ) After Mid Lecture 8 BBA 8TH (MORNING) Last and Final Semester Management Information Systems Islamia University of Bahawalpur Delivered by: Tasawar Javed Lecture 11 O\/\/@!$ $}{@f!Qu3

Using Information Technology to Engage in Electronic Commerce Today’s talk Electronic Commerce Anticipated benefits of E-commerce E-commerce Constraints The Inter-organizational System Strategies for E-Commerce The Next Step for E-Commerce Suggestions for Successful Internet Use Future impact of the Internet on Business

Using Information Technology to Engage in Electronic Commerce Few definitions are very narrow of Electronic Commerce also know as E-Commerce This only includes business transactions that deal with customers & Suppliers, connecting their respective computers via the Internet. Broad view of E-Commerce It facilitates the internal as well as external operation of the firm The term electronic business & electronic commerce are synonyms Many of the firm’s operations are internal (finance, HR, IS, manufacturing, marketing) External suppliers and customers comes under this broad definition A business transaction that uses network access, CB system, and a web browser interface qualifies as E-Commerce

E-Commerce beyond the Boundary of the Firm 2 types of E-commerce B2C B2B E-Commerce B2B involve few people, generally those in the Information Systems groups of the companies affected B2C transactions require fundamental design differences. Customer may not have expertise with IT, so the Website must offer instructions and help

Anticipated benefits from E-Commerce Firms engage in e-commerce in order to achieve improvement throughout the organization Improved customer services before, during, and After Sale Improved relationship with suppliers and financial community Increased economic return on stock holder and owner investment E-commerce is powerful supporting tool that can help an organization accomplish its goals

E-Commerce Constraints Primarily firms implemented systems for transactions with customers and suppliers (purchase order, transfer of payments, invoices) High costs Security concerns Immature or unavailable software

Scope of E-commerce E-commerce accounted for almost $1.7 trillion of economic activity in the US Annual growth rate of over 15% each year Amount of economic impact varies from industry to industry 94% of e-commerce is B2B, leaving 6% for B2C

Scope of E-commerce Percentage of e-commerce sales versus total sales in selected industry segments Industry segment E-com% of total sale Apparel manufacturing 20% 24% Transport equipment 46% 50% Motor vehicle wholesaling 20% 25% Drug wholesaling 40% 49% Travel % reservation retail 24% 25%

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