1. 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

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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%

9. Thank you!!!
Q&A