Review 10/3/16 8:24 PM

Information Systems in Business Chapter 1

Internet of Things Case and Class Discussion
Porters Five Forces Model
Porters Three Generic Strategies Model
Value Chain and Value Chain Analysis
Business Competitive Advantages Using IT Enablers

Decisions and Processes Chapter 2

Operational, Managerial and Strategic Support Systems
Transaction Processing Systems
Decision Support Systems
Executive Information Systems
Artificial Intelligence

HBR: Staple Yourself To An Order

Business Process Definitions
Systems Thinking and Systems Components
Business Process Improvement
Business Process Reengineering
Business Process Management

eBusiness Chapter 3
Pinterest Case and Class Discussion
Disruptive vs. Sustaining Technologies
Internet and the World Wide Web
The Internet of Things
eBusiness Models
B2C eBusiness Types
Online Auctions
eBusiness Measurements
eBusiness Advantages and Challenges
Web 1.0, Web. 2.0 and Web 3.0

Guest Speaker - General Electric

Business Driven MIS 10/3/16 8:24 PM

Case Study Questions: The Internet of Things pp. 3-4

Explain the Internet of Things (IoT) and cite examples.
o IoT refers to how all of the electronics and machines are in
connection with one another through the Internet.
o Examples: Traffic signals and Traffic cameras
Explain why it is important for business leaders to understand
that data collection rates from IoT devices is increasing
exponentially.
o Data increases exponentially because more devices are
connected.
o More electronics are collecting and communicating data to
various sources
o Ex. FitBit can share data with friends
What are the security issues associated with IoT devices?
o Hacking, stolen credit card information, privacy issues
o As data becomes more virtual and mobile, more security
issues will arise and become more prominent
Do you agree with the following statement: The Internet of
Things is just a passing fad and will be gone within a decade.
Why or why not?
o No, it will become more prominent.
o We become more and more reliable on machines and the
Internet
o Analytics, Security and Data Flow problems show need of
IT Expertise

Business Strategy & Competitive Advantages

Business Strategy: A leadership plan that achieves a specific set
of goals or objectives such as:
o Developing new products or services
o Entering new markets
o Increasing customer loyalty
o Attracting new customers
o Increasing sales
o Strategic
o Longer time frames
o Set it and implement it functionally
Updating business strategies is a continuous undertaking as
internal and external environments change rapidly
 Competitive Advantage: a feature of a product or service on
which customers place a greater value than they do on similar
offering from competitors
o Provide the same product or service either at a lower price
or with additional value that can fetch premium prices
o Typically temporary
o First-mover advantage: occurs when a company can
significantly increase its market share by being first with a
new competitive advantage
SWOT Analysis: Understanding Business Strategies
o SWOT Analysis: evaluates an organizations Strengths,
Weaknesses, Opportunities and Threats to identify
significant influences that work for or against business
strategies
Strengths and Weaknesses can be either external or
internal
Opportunities and Threats are external and cant
always be anticipated
o Potential Internal Strengths (Helpful)
Identify all key strengths associated with competitive
advantage
o Potential Internal Weakness (Harmful)
Identify all key areas that require improvement
o Potential External Opportunities (Helpful)
Identify all significant trends along with how the
organization can benefit from each
o Potential External Threats (Harmful)
Identify all threats or risks detrimental to your
organization

Business Strategy: Linkage to Functional Strategies



Identifying Competitive Advantages

Competitive Intelligence: The process of gathering information
about the competitive environment to improve the companys
ability to succeed
o Understanding and learning as much as possible as soon as
possible about what is occurring outside the company to
remain competitive
Competitive intelligence tools
o Porters Five Forces Model
Should we be in this industry?
o Porters Three Generic Strategies
Set the strategy
o Porters Value Chain Analysis
Evaluate the strategy

Porters Five Forces Model: Evaluating Industry Attractiveness

Porters Five Forces Model: analyzes the competitive forces
within the environment in which a company operates to assess
the potential for profitability in an industry
o Purpose: combat competitive forces to identify
opportunities, competitive advantages, and competitive
intelligence
Strong forces increase competition
Weak forces decrease competition

o Threat of Substitute Products or Services
Threat of substitutes have high power when there
are many choices
Can reduce the treat of substitutes by offering
additional value through wider product distribution
Can also offer various add-on services, making the
substitute product less of a threat
o Threat of New Entrants
Threat of entrants have low power when entry
restrictions are high
Entry barrier: a feature of a product or service that
customers have come to expect and entering
competitors must offer the same for survival
o Rivalry among Existing Competitors
High when competition is fierce in a market
Overall trend is toward increased competition in
almost every industry
Product differentiation: occurs when a company
develops unique differences in its products or
services with the intent to influence demand
Can be used to reduce rivalry
o Buyer Power
Buyer power: ability of buyers to affect the price
they must pay for an item
Factors used to asses include:
Number of customers
Sensitivity to price
Size of orders
 Differences between competitor
Availability of substitute products
One way to reduce: switching costs and loyalty
programs
Switching Costs: costs that make customers
reluctant to switch to another product or
service
Can be financial or intangible values
Loyalty programs: reward customers based on
their spending
o Supplier Power
Supply chain: consists of all parties involved, directly
or indirectly in obtaining raw materials or a product
Supplier power: suppliers ability to influence the
prices they charge for supplies
Factors used to asses include:
Number of suppliers
Size of suppliers
Uniqueness of services
Availability of substitute products
Can influence to industry by:
Charging higher prices
Raises prices for customer too
If supplier power is high buyer lose
revenue
Limiting quality or services
Shifting costs to industry participants
Context on Buyer and Seller Relationship

o
Suppliers have high power when there are little
choices
Buyers have high power when there are many
choices
The company is the supplier for the customer,
likewise the company is the suppliers customer
 Examples:
o Customers
Cars there are many car suppliers (many options)
Walmart
o Competitors
Who can do it for:
Lower Cost
Higher Quality
Better Service
o Entrants
How attractive is the market
o Substitute
Cellphones

Generic Strategies Creating a Business Focus

Porters Generic Strategies: are generic business strategies that
are neither organization nor industry specific and can be applied
to any business, product or service
o Strategies are:
Broad cost leadership
Broad differentiation
Focused strategy
Organizations typically follow one of Porters generic strategies
when entering a new market
o Broad market and low cost
o Broad market and high cost
o Narrow market and low cost
o Narrow market and high cost
Generic Strategies Example

o
 o

Apple - Merging Technology, Business and Entertainment

Using Porters Five Force Model, analyze Apples buyer power and
supplier power.
o Buyers had low choices, so prices were high
o Focused on bargaining power of customers was low
Overtime it changed
o Apples power as a supplier was high
Which of Porters Five Forces did Apple address through its initial
introduction of the iPhone?
o Differentiation
Quality and Service
Which of the Generic Strategies is Apple following?
o High Cost, Narrow Market

Porter: Business Strategy Basics

Corporate strategy is all about deciding how your firm will create
economic value added
How the work gets done
Drivers of firm profitability are:
o Industry structure:
Determines profitability of average competitor
Analyze with the Five Forces Model
o Sustainable competitive advantage:
 Determines profitability relative to the average
competitor
Analyze using the Value Chain Model

Value Creation
Once an organization chooses its strategy, it can use tools such
as the value chain to determine the success or failure of its
chosen strategy
o Business process: a standardized set of activities that
accomplish a specific task, such as processing a customers
order
Must determine the industry first
o Value Chain Analysis: views an organization as a series of
processes, each of which adds value to the product or
service for each customer
Useful tool for determining how to create the
greatest possible for the customer
Goal: identify process in which the firm can add
value for the customer and cerate a competitive
advantage for itself with a cost advantage or product
differentiation
2 categories
Primary value activities
Support value activities

Porters Value Chain Analysis

Used to asses our compatibility and our competitors compatibility

 o Primary value activities: acquire raw materials and
manufacture, deliver, market, sell and provide after-sales
services
Inbound logistics
Operations
Outbound logistics
Marketing and sales
Service
o Support value activities: include firm infrastructure, human
resource management, technology development and
procurement
Firm infrastructure
Human resource management
Technology development
Procurement

IT Competitive Strategy Summary

Information technologies can support many competitive
strategies including broad cost leadership, broad differentiation,
and focused strategies
IT can help
o Build customer-focused businesses
o Reengineer business processes
o Businesses become agile companies
o Create virtual companies
o Build knowledge-creating companies
Staple Yourself to an Order 10/3/16 8:24 PM

Questions for HBR: Staple Yourself To An Order

Why do orders fall through the cracks ?
o Not knowing who is responsible for the order, overlapping
and poorly designed process lead to confusion
o No communication between section of the company
What is meant by a functional silo ?
o Disparaging remark
o Not paying attention to whats around you
What four problems emerge in the OMC ?
o Organizations are organized vertically when orders flow
horizontally
Horizontal Gaps
o Incomplete visibility of top management
o 4 problems:
OMC not views as a whole system
Each step requires a mix of overlapping functional
responsibilities
To Top management the details of the OMC are
invisible
The customer remains as remote from the OMC as
top management does
What improvements were recommended ?
o Analyze the OMC:
Graph the gaps from customer perspective rather
than an internal perspective
o System Focus: move across boundaries
Inter-functional programs and investments
Role of it
o Staple yourself to an order
Executive alignment to manage the process
horizontally
What are the Benefits of fixing the OMC ?
o Improved customer satisfaction
o Inter-departmental problems will recede
More cross-functional team work
Productivity improvement
Less conflict more alignment
o Improve financial performance
What is a Process?
A group of business activities undertaken by an organization in
pursuit of a common goal.
Typical business processes include receiving orders, selling
products, delivering services, distributing products, or invoicing
for services received.
A business process usually depends upon several business
functions for support, e.g. IT or personnel.
A business process rarely operates in isolation, i.e. processes are
interdependent

Managing Business Processes

Customer facing process: Results in a product or service that is
received by an organizations external customer

Business facing process: Invisible to the external customer but
essential to the effective management of the business

Business Processes and Roles: Order Management Example

Business Processes: Manual
Business Processes: Technology Enabler Phase 1
Business Processes: Technology Enabler Phase 2
Business Processes: Technology Enabler Phase 3

Examining Business Processes

Business process characteristics:
o The processes have internal and external users
o A process is cross-departmental
o The processes occur across organizations
o The processes are based on how work is done in the
organization
o Every process should be documented and fully understood
by everyone participating in the process
 o Processes should be modeled to promote complete
understanding
The process steps are the activities the customer and store
personnel do to complete the transaction
Business process: a standardized set of activities that accomplish
a specific task, such as processing a customers order
Business processes transform a set of inputs into a set of outputs
(goods or services) for another person or process by using
people and tools

Order Management Cycle

Organizations are organized vertically whereas the orders flow
horizontally!
o Horizontal Gaps
o Incomplete visibility of top management of the Order
Management Cycle
Steps in the OMC
o Order Planning
o Order Generation
o Cost Estimation and Pricing
o Order Receipt and Handling
o Order Selection and Prioritization
o Scheduling
o Fulfillment
o Billing
o Returns and Claims
o Post-sales Service

Efforts to improve OMC

Analyze the OMC: Graph the gaps from a Customer Perspective
rather than an Internal perspective!
System Focus: Move across boundaries
o Interfunctional programs and investments.
o Role of IT
Staple yourself to an order!

Summary
 The same process can be preformed with drastically different
results depending on who does the work and what information
and technology is being used
Managements attention to eliminate unnecessary work and
improve productivity is accomplished through process
improvement or process reengineering
Processes are the vehicles for meeting customer needs and
achieving organization
GE Speakers 10/3/16 8:24 PM

A Company of Innovation
What the World Needs Now
o Cleaner and more efficient energy
o Better and more accessible healthcare
In the cloud and every corner of the globe
o Safer and more efficient transportation
Fuel-efficient planes and locomotives that manage
their own maintenance
What we Do
o Move, cure, build and Power the World
Healthcare
Energy Connections
Power
Oil and Gas
Aviation
Current Powered by GE
Renewables
Transportation
o Bridge the physical and digital worlds as the worlds
premier digital industrial company
As the worlds first and only digital industrial company
o We are connecting 50 billion machines via industrial
Internet
o Weve created the worlds first industrial cloud and
corresponding software platform
o We will be a top 10 software manufacturing company

The Brilliant Factory

GE is a technology business with a high diversity of products
o Over 600
High tech products require a diversity of high tech processes
o Over 200 mfg technologies to build our products
o Not just an assembly business
GEHC MFG landscape: 65 plants 3 Solutions
o System Assembly Plant
40 factories
Single piece flow
Low/High Volume
Test data trending
 Inventory sensitivity
o Component MFG
15 factories
Single and batch flow
Medium Volume
SPC/OEE critical
Quality sensitivity
o Chemical process
10 plants
Batch flow
High Volume
OEE critical
Auto process correction
Brilliant Factory Strategy
o Get Connected
Sensor Enable
o Get Insight
Factory Optimization
Real Time Visualization (RTV)
o Get Optimized
SC Optimization
Data Lake

Cloud Computing
Refers to the use of computing power that is located elsewhere,
in the cloud of remote networks
Really a name for storing and processing data online
Data typically goes to large data centers in the network,
depending on the type of cloud
Different types of clouds
o Private
Resource dedicated to one customer
o Public
Resources shared by multiple customers
o Hybrid
Customized combination of shared and dedicated
resource
o Community
Dedicated resource for a group of customer
 Why are companies shifting to the cloud?
o Cost efficient
o Easy to implement
o Secure and reliable
o Flexible and scalable
o interoperable
Decisions and Processes: Value Driven Business 10/3/16 8:24 PM

Systems Thinking

o Control function works to adjust the input
Systems Thinking: A way of monitoring the entire system by
viewing multiple inputs being processed or transformed to
produce outputs while continuously gathering feedback on each
part
Focuses on how the thing being studied interacts with the other
constituents of the systema set of elements that interact to
produce behaviorof which it is a part.
Works by expanding its view to take into account larger and
larger number of interactions as an issue is being studied or a
problem is being solved.

Visualizing Wholes
Picture the Whole and Engage in Systems Thinking
o Do not visualize individual parts of the organization, e.g.,
separate silos or departments with often opposing interests
or self-directed goals
Rather, visualize the relationships between the different parts
and how they integrate to create value as a whole.
Horizontal Processes (Systems View) produce an Organizations
products and services: How Work Gets Done

Business Processes: Process Flow Diagrams

Illustrates the sequence of accomplishments of the business
process
Used to make the steps and tasks of the work process visible for
subsequent analysis and improvement
Steps and tasks are performed by more than one individual or
function (cross-functional)
Analysis and simulation techniques used to compare current IS
Process versus improved SHOULD Process
Business Process Design
Business process modeling (or mapping): the activity of creating
a detailed flow chart or process map of a work process showing
its inputs, tasks, and activities, in a structured sequence
Business process model: a graphic description of a process,
showing the sequence of process tasks, which is developed for a
specific
o As-Is process model
o To-Be process model
Arena Process Modeling
o Assignment #1

Business Process Improvement

Continuous process improvement model: attempts to understand
and measure the current process, and make performance
improvements accordingly

Process Improvement
Process Improvement is used to eliminate unnecessary work and
improve productivity
Involves identifying, analyzing and improving the process
Process Improvement involves taking action to ensure process is
controlled vs. re-building the structural costs we eliminated
Improvement in processes is critical to seizing and maintaining a
competitive advantage

Business Process Reengineering

Definition: Fundamental rethinking and radical redesign of
business processes to achieve dramatic improvements in cost,
quality, speed, and service.
The purpose of BPR is to
 o make all business processes
o best-in-class
Business process reengineering (BPR): analysis and redesign of
workflow within and between enterprises

Finding Opportunity Using BPR

A company can improve the way it travels the road by moving
from foot to horse and then horse to car
BPR looks at taking a different path, such as an airplane which
ignore the road completely

Selecting a Process to Reengineer

Criteria to determine the importance of the process
o Is the process broken?
o Is it feasible that reengineering of this process will
succeed?
o Does it have a high impact on the agencys strategic
direction?
o Does it significantly impact customer satisfaction?
o Is it antiquated?
o Does it fall far below best-in-class?
o Is it crucial for productivity improvement?
o Will savings from automation be clearly visible?
o Is the return on investment from implementation high and
preferably immediate?

Business Process Management

Business process management (BPM): Focuses on evaluating and
improving processes that include both person-to-person
workflow and system-to-system communications
 BPM allows business process to be executed more efficiently and
measures performance and identifies opportunities for
improvement, BPM benefits include:
o Update processes in real-time
o Reduce overhead expenses
o Automate key decisions
o Reduce process maintenance cost
o Reduce operating cost
o Improve productivity
o Improve process cycle time
o Improve forecasting
o Improve customer service
Categories: Economic, Service, Sustainability, Productivity

Drivers For Business Process Management

Modeling For Understanding and Documentation
o I want to have a culture that everyone knows the game
o Know the Business process
Modeling For Redesign
o Have a current state and a future state
o Finding ways to challenge and improve the process
Modeling For Execution and Compliance
o Understanding how the new process will work
o Taking them through the simulation and transition

Decision Makers
Reasons for the growth of decision-making information systems
o People need to analyze large amounts of information
o People must make decisions quickly
o People must apply sophisticated analysis techniques, such
as modeling and forecasting, to make good decisions
o People must protect the corporate asset of organizational
information

Making Business Decisions

Managerial decision-making challenges
o Analyze large amounts of information
90% of the worlds data was created in the last two
years
 Exponential data growth
o Apply sophisticated analysis techniques
1 of 2 business leaders dont have access to the data
they need
o Make decisions quickly

The Decision-Making Process

The six-step decision-making process
o Problem identification
o Data collection
o Solution generation
o Solution test
o Solution selection
o Solution implementation

Decision-Making Essentials
Decision-making and problem-solving occur at each level in an
organization

o Dimensions
Time
Operational: days and weeks
Short time frame
Managerial: months
Strategic: Years
Longer time frame
Data
Operational: detailed and accurate
 Managerial:
Strategic: Aggregated and at times non
existent
Decisions
Operational: Structured
Repetitive
Managerial: Semistructured
Strategic: Unstructured
Make them only once

Decision-Making Essentials
Operational Decision Making: Employees develop, control, and
maintain core business activities required to run the day-to-day
operations
o Structured Decisions: Situations where established
processes offer potential solutions
o Ex. Order taking
Managerial Decision Making: Employees evaluate company
operations to identify, adapt to, and leverage change
o Semi-Structured Decisions: Occur in situations in which a
few established processes help to evaluate potential
solutions, but not enough to lead to a definite
recommended decision
o Ex. Forecast for demand, sale analysis,
o Cross-functional ad hoc function
Strategic Decision Making: Managers develop overall strategies,
goals, and objectives
o Unstructured Decisions: Occurs in situations in which no
procedures or rules exist to guide decision makers toward
the correct choice
o Decisions have bigger pay off, bottom line impact is
greater
Information Levels Throughout An Organization
 o

Using Models to Make Business Decisions

Model: A simplified representation or abstraction of reality
Models help managers to
o Calculate risks
o Understand uncertainty
o Change variables
o Manipulate time to make decisions

Support: Enhancing Decision Making with MIS

Types of Decision Making MIS Systems

o
Shows classification of Model through different
domains

Managerial Support Systems

 Analytical information: encompasses all organizational
information and its primary purpose is to support the
performance of managerial analysis or semi-structured decisions
DSSs: decision support systems; model using OLAP which
provides assistance in evaluating and choosing among different
courses of actions
o OLAP: online analytical processing; is the manipulation of
information to create business intelligence in support of
strategic decision making
o Enable high level managers to examine and manipulate
large amounts of detailed data from different internal and
external sources
o Summarizes and aggregates the information from different
TPS, which assist managers in making semi-structured
decisions
Four quantitative models used by DSSs include
o What-if analysis
What if we move one of the inputs what happens to
the output
Show impact of change on one of the inputs on the
proposed analysis
o Sensitivity analysis
How sensitive is it
Changing the range and seeing a lack of out put
movement = low sensitivity
The output is extremely sensitive to the range of the
input = high sensitivity
The impact of one or more parts on the outcome of
the model
o Goal-seeking analysis
What is the configuration of the input to achieve a
set goal
o Optimization analysis
What is the max profit I can get with this
configuration
Or min cost
You give it the output it gives you the configuration

Strategic Support Systems

 Executive information system (EIS): A specialized DSS that
supports senior level executives within the organization
o Granularity
Level of detail
Greater the granularity, deeper level of detail
o Visualization
Use of graphics
Color coding
o Digital dashboard
Summary
o Do not have a correct or wrong answer
o Requires data from external sources to support
unstructured decisions
Most EISs offering the following capabilities
o Consolidation
o Drill-down
o Slice-and-dice
o Pivot

Digital Dashboards
Digital dashboard: integrates information from multiple
components and presents it in a unified display
Deliver results quickly
Easier to use, more employees can perform their own analyses
without inundating MIS staff with questions and request for
reports

Artificial Intelligence
Artificial intelligence (AI): Simulates human intelligence such as
the ability to reason and learn
Intelligent system: Various commercial applications of artificial
intelligence
A field of science and technology based on disciplines such as
computer science, biology, psychology, linguistics, mathematics,
& engineering
Goal is to develop computers that can think, see, hear, walk,
talk, and feel
 Major thrust development of computer functions normally
associated with human intelligence reasoning, learning,
problem solving
Five most common categories of AI
o Expert system
Expert System: computerized advisory programs
that imitate the reasoning processes of experts in
solving difficult problems
Most common
o Neural Network
Neural Network: attempts to emulate the way the
human brain works
Analyze large quantities of information to
establish patterns and characteristics when the
logic and rules are unknown
Fuzzy Logic: a mathematical method of handling
imprecise or subjective information
o Genetic algorithm
Genetic Algorithm: mimics the evolutionary, survival
of the fittest process to generate increasingly better
solutions to a problem
Essentially an optimizing system
Mutation: process within a genetic algorithm of
randomly trying combinations and evaluating the
success of the outcome
o Intelligent agent
Intelligent Agent: a special-purpose, knowledge
based information system that accomplishes specific
tasks on behalf of its users
Shopping bots
o Virtual reality
Virtual Reality: a computer simulated environment
that can be simulated of the real world or an
imaginary world
Not the same as Augmented reality
Augmented Reality: viewing of the physical
world with computer-generated layers of
information added to it
Data Mining
Data-mining systems sift instantly through information to
uncover patterns, trends, correlations and relationships
Data-mining systems include many forms of AI such as neural
networks and expert systems
Predictive Analytics offers insights and improved decision
making, especially in big data domains
E-Business 10/3/16 8:24 PM

Closing Case: Pinterest

Do you consider Pinterest a form of disruptive or sustaining
technology?
o Either one is fine
Is Pinterest an example of Web 1.0, Web 2.0 or Web 3.0 and
why?
o Web 2.0 because its user contributed content;
collaboration drives it
What is Pinterests e-business model(s)?
o B2C
Explain the e-business challenges facing Pinterest and identify
ways Pinterest can prepare to face these challenges
o Violation of copyright; Copyright Infringement
o Information Vandalism: damage destroy or vandalism
website content
o Peer play: exclusive dependent on technology
If technology fails the whole thing fails

Disruptive Versus Sustaining Technology

How can a company like Polaroid go bankrupt?
o Did not think ahead to digital cameras
What do steamboats, transistor radios and Intels 8088 processor
all have in common?
o Disruptive Technology: a new way of doing things that
initially does not meet the needs of existing customers
Open new markets and destroy old ones
Typically enter the low end of the marketplace and
eventually evolve to displace high-end competitors
and their reigning technologies
o Sustaining Technology: Produces an improved product
customers are eager to buy
Tend to provide us with better, faster, cheaper
products in established markets


Internet and World Wide Web: Ultimate Business Disruptors

One of the biggest forces changing business is the Internet
o Internet: Massive network that connects computers all
over the world and allows them to communicate with one
another
Organizations must be able to transform as markets, economic
environments, and technologies change
Focusing on the unexpected allows an organization to capitalize
on the opportunity for new business growth from a disruptive
technology
The Internet began as an emergency military communications
system operated by the Department of Defense
Gradually the Internet moved from a military pipeline to a
communication tool for scientists to businesses
Reasons for growth of the WWW
o Microcomputer revolution
o Advancements in networking
o Easy browser software
o Speed, convenience, and low cost of email
o Web pages easy to create and flexible

Different Types of Webs

Web 1.0
o First years of operation 1991-2003
 o Ecommerce: the buying and selling of goods and services
over the Internet
o E-business: ecommerce along with all activities related to
internal and external business operation
o Created first forms of e-business
Web 2.0
o Encourages user participation and the formation of
communities
o Technical skills no longer required
o Provide virtual environment
o 4 characteristics
Content sharing through open sourcing
User-contributed content
Collaboration inside the organization
Collaboration outside the organization
Web 3.0
o Based on intelligent web applications using natural
language processing, machine-based learning and
reasoning and intelligent applications
o Brings machines closer together by using information

The Internet of Things

The Internet of Things (IoT): the interconnection of uniquely
identifiable embedded computing devices within the existing
Internet infrastructure.
Things can refer to a wide variety of devices such as heart
monitoring implants, biochip transponders on farm animals,
electric clams in coastal waters, automobiles with built-in
sensors, or devices that assist fire-fighters in search and rescue.
Examples: smart thermostat systems and washer/dryers that
utilize wifi for remote monitoring.
Expected to generate large amounts of data from diverse
locations.


E-Business
Use of the Internet and other networks and information
technologies to support electronic commerce, enterprise
communications and collaboration, and web-enabled business
processes both within an internetworked enterprise, and with its
customers and business partners.

Disadvantages:
o Identifying limited market segments
o Managing consumer trust
o Ensuring consumer protection
o Adhering to taxation rules
The Four Business Models
Business model: plant that details how a company creates,
delivers and generates revenues
E-business model: a plan that details how a company creates,
delivers, and generates revenues on the Internet
Business-to-Business (B2B)
o Applies to businesses buying from and selling to each other
over the Internet
Business-to-Consumer (B2C)
o Applies to any business that sells its products or services
to consumers over the Internet
3 forms
Brick and Mortar Business
A business that operates in a physical
store without an Internet presence
Click-and-Mortar Business
A business that operates in a physical
store and on the Internet
Pure-Play (Virtual) Business
A business that operates on the Internet
only without a physical store
Consumer-to-Business (C2B)
o Applies to any consumer that sells a product or service to a
business over the Internet
Consumer-to-Consumer (C2C)
o Applies to sites primarily offering goods and services to
assist consumers interacting with each other over the
Internet

E-business forms
Content Providers
o Generate revenues by providing digital content such as
news, music, photos or videos
Infomediaries
o Provide specialized information on behalf of producers of
goods and services and their potential customers
Online Marketplaces
o Bring together buyers and sellers of products and services
Portals
 o Operate a central website for users to access specialized
content and other services
Service Providers
o Provide services such as photo sharing, video sharing,
online backup, and storage
Transaction Brokers
o Process online sales transactions
Generating Revenue
o Pay-per-click
Generates revenue each time a user clicks a link to a
retailers website
o Pay-per-call
Generates revenue each time a user clicks a link that
takes the user directly to an online agent waiting for
a call
o Pay-per-conversion
Generates revenue each time a website visitor is
converted to a customer