Success and failures in IT
Reasons for Success
User involvement
Executive management support
Clear statement of requirement
Proper planning
Realistic expectations
3/9/01
Reasons for Failure
Lack of user input
Incomplete requirement and
specification
Changing requirement and
specifications
Lack of executive support
Technological incompetence
EMTM 553 1
 Electronic Commerce and
Electronic Business

3/9/01 EMTM 553 2

Electronic Commerce (E-Commerce)
• Commerce refers to all the activities the purchase
and sales of goods or services.
– Marketing, sales, payment, fulfillment, customer service

• Electronic commerce is doing commerce with the

use of computers, networks and commerce-
enabled software (more than just online shopping)
to conduct commercial transactions between
businesses or with consumers.

3/9/01 EMTM 553 3

 E-commerce applications
• Supply chain management
• Video on demand
• Remote banking
• Procurement and purchasing
• Online marketing and advertisement
• Home shopping
• Auctions

3/9/01 EMTM 553 4

 The Main Elements of E-commerce
Types of Electronic Commerce
• Consumer shopping on the Web, called B2C
(business to consumer)
• Transactions conducted between businesses on
the Web, call B2B (business to business)
• Transactions and business processes that support
selling and purchasing activities on the Web
– Supplier, inventory, distribution, payment management
– Financial management, purchasing products and
information

3/9/01 EMTM 553 5

 Types of Electronic Commerce (Continued)

6
 Types of Electronic Commerce (Continued)

7
 What is Electronic Commerce?
Benefits of E-Commerce
• Geographic Reach
• Speed
• Productivity
• Information Sharing
• New Features
• Lower Costs
• Competitive Advantage

8
 Business-to-Consumer E-
Commerce Applications
1) Electronic Markets
• Online Retailing: Shoppers visit a store over the
Internet and check out the products.
• Electronic Storefront: Home page of an online
retailing business.
• Brick and Mortar: Any physical store or building,
regardless of how it is constructed or where it is
located.
• Electronic Markets (e-markets): A collection of
individual shops accessible through the World Wide
Web.
• Auctions: Shoppers make bids rather than relying on
predetermined fixed prices.

10
 Business-to-Consumer E-
Commerce Applications
Electronic Markets (Continued)
• Forward Auction: Shoppers bid. Highest bid wins
the products
• Reverse Auction: Service providers bid. Lowest
price wins the business
• Dutch Auctions: High opening price for an item
and asks for buyers willing to pay the price. At
specified intervals, the price is lowered until a
bidder is willing to pay the displayed price.

11
 Business-to-Consumer E-
Commerce Applications
Portal
• Portal: A gateway or hub site, such as Yahoo!, that provides
chat rooms.

• Content Aggregator: An e-commerce portal that assembles

information (that is, content) from a variety of sources,
organizing the information into a form that is useful to
visitors to the Web site.

• Infomediary: A Web site that locates, retrieves, and

organizes specialized information for potential users. The
term is a composite of information and intermediary.

12
 Business-to-Consumer E-
Commerce Applications
Online Services
• Electronic Banking: Customers conduct their banking activities
without going to a physical bank office.
– Virtual Bank: Operates exclusively over the Internet.

• Personal Finance and Bill Payment

– Automatic Transfer of Bank Loan and Mortgage Payments
– Online Bill Payment
– Electronic Bill Presentment

• Securities and Investments

• Travel Services

13
Business To Consumer E-commerce
Broadband Telecommunications Will Enhance The Buying
Experience

• Purchase a full-length feature film and download it in minutes.

• Travel sites will offer full-motion video tours of vacation

destinations.

• Automobile buying sites will be able to offer virtual test drives

to let you narrow down your choices before you take the time
to visit an auto dealership.

8-14
 Business to Business
E-Commerce
B2B Marketplaces
• B2B marketplaces - Internet-based services
that bring together buyers and sellers.

• Reverse auction - the process in which a

buyer posts its interest in buying a certain
quantity of items, and sellers compete for the
business by submitting successively lower bids
until there is only one seller left.
8-15
 Business-to-Business E-
Commerce Applications
Supply Chain Management
• Supply Chain Characteristics
– Supply Chain: The flow of parts, components, materials,
funds, and information between a company’s sources and
its customers.
– Supply Chain Management: The oversight of activities
interconnecting suppliers and buyers.

17
 The Role Of E-Government

• E-Government - describes the application of e-

commerce technologies in governmental agencies.

8-18
 e-commerce market place
Different types of e-commerce market places are.

• One to many-example cisco.com,dell.com

• Many to one-Ge or AT & T
• Some to many-unite major suppliers who combine their
product catalogs to attract a larger audience of buyers ex…
verticalnet and works.com
• Many to some - many-unite major buyers who combine their
product catalogs to attract more suppliers and thus more
competition and lower price ex-auto industry
• Many to many –auction market place used by many buyers
and sellers that can create variety of buyers and sellers
action to dynamically optimize price ex-ebay
 Advantages of Electronic Commerce

• Increased sales
– Reach narrow market segments in geographically
dispersed locations
– Create virtual communities
• Decreased costs
– Handling of sales inquiries
– Providing price quotes
– Determining product availability
• Being in the space

3/9/01 EMTM 553 20

Disadvantages of Electronic Commerce

• Loss of ability to inspect products from remote

locations
• Rapid developing pace of underlying technologies
• Difficult to calculate return on investment
• Cultural and legal impediments

3/9/01 EMTM 553 21

 The process of e-commerce
1. Attract customers
– Advertising, marketing
1. Interact with customers
– Catalog, negotiation
1. Handle and manage orders
– Order capture
– Payment
– Transaction
– Fulfillment (physical good, service good, digital good)
1. React to customer inquiries
– Customer service
– Order tracking

3/9/01 EMTM 553 22

 E-commerce Technologies
• Internet • Access security
• Mobile technologies • Cryptographic security
• Web architecture • Watermarking
• Component programming • Payment systems
• Data exchange
• Multimedia
• Search engines
• Data mining
• Intelligent agents

3/9/01 EMTM 553 23

 Infrastructure for E-commerce
• The Internet
– system of interconnected networks that spans the globe
– routers, TCP/IP, firewalls, network infrastructure, network
protocols
• The World Wide Web (WWW)
– part of the Internet and allows users to share information with
an easy-to-use interface
– Web browsers, web servers, HTTP, HTML
• Web architecture
– Client/server model
– N-tier architecture; e.g., web servers, application servers,
database servers, scalability

3/9/01 EMTM 553 24

 E-Commerce Software
• Content Transport
– pull, push, web-caching, MIME
• Server Components
– CGI, server-side scripting
• Programming Clients
• Sessions and Cookies
• Object Technology
– CORBA, COM, Java Beans/RMI
• Technology of Fulfillment of Digital Goods
– Secure and fail-safe delivery, rights management
3/9/01 EMTM 553 25
Enterprise Resource Planning (ERP):
The Business Backbone
 Enterprise Resource Planning

• Serves as a cross-functional enterprise backbone

that integrates & automates many internal
business processes and information systems
• Helps to link into sales order processing, inventory
management and control ,production and
distribution planning and finance.
• (basic idea is integration of all the departments
together)

• Helps companies gain the efficiency, agility, &

responsiveness needed to succeed today
 Enterprise Resource Planning
(continued)
• Gives a company an integrated real-time view of its core
business processes
• ERP software suites typically consist of integrated modules
of…
– Manufacturing
– Distribution
– Sales
– Accounting
– Human Resource Management
 Enterprise Resource Planning
(continued)
• Benefits
– Quality and efficiency
• Helps improve the quality and efficiency of customer
service, production, & distribution by creating a
framework for integrating and improving internal
business processes
– Decreased Costs
• Reductions in transaction processing costs and
hardware, software, and IT support staff
 Enterprise Resource Planning
(continued)
• Benefits
– Decision support
• Provides cross-functional information on business
performance to assist managers in making better
decisions
– Enterprise agility
• Results in more flexible organizational structures,
managerial responsibilities, and work roles
 Enterprise Resource Planning
(continued)
• Challenges
– Costs of ERP
• The costs and risks of failure in implementing a new
ERP system are substantial.
 Enterprise Resource Planning
(continued)
• Causes of ERP failures

– Underestimating the complexity of the – Trying to do too much, too

planning, development, and training fast
required
– Failure to involve affected employees – Insufficient training
in the planning & development phases
and change management programs
– Believing everything the
software vendors and/or
consultants say
 Enterprise Resource Planning
(continued)
• Trends
– Flexible ERP
– Web-enabled ERP
– Interenterprise ERP
– E-Business Suites
 Types of E-Commerce
• B2C
• B2B
• C2B
• C2C
 Cont…

• B2C- business ORGANISATION TO CUSTOMER

• B2B- business ORGANISATION TO business

ORGANISATION

• C2B -CUSTOMER TO business ORGANISATION

• C2C -CUSTOMER TO CUSTOMER

 B2B
• In B2B model business organization uses website
or portals to offer information about product
through multimedia clipping catalogs, product
configuration guidelines.
• A new customer interacts with the suite and uses
interactive order processing system for order
placement
 B2B
• In b2b model buyer and seller are buiseness
organizations they exchange technical and
commercial information through websites and
portals
• advanced b2b model uses extranet and conducts
business transaction based on the information
status displayed on the buyers application server
• Auto component industry uses this model
 C2B
• IN C2B model customer initiates action after
logging on to sellers website or to a server .
• Entire internet banking process works on C2B
model where account holder of the bank transacts
number of requirement such as seeking account
balance,payment,money transfer..
 C2C
• In this model customer participates in process of
selling and buying through the auction website
• E newspaper is an example of advertising and
selling of goods to the customer
 Testing
• The aim of testing process is to identify all
defects existing in a software product.
• However in some case after carrying out
successful testing phase it is not possible that the
software is error free.
• Testing a program consists of subjecting the
program to set of inputs ( or test cases) and
observing how the program behaves.