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Principles and Learning Objectives

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Presentation on theme: "Principles and Learning Objectives"— Presentation transcript:


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.


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

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

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