| Today, most organizations in all sectors of industry, | | | | - Providing a 360-degree view of the customer |
| commerce and government are fundamentally | | | | relationship, defined as ensuring that all employees, |
| dependent on their information systems. In industries | | | | suppliers, and partners have a complete view, and |
| such as telecommunications, media, entertainment | | | | the same view, of the customer. |
| and financial services, where the product is already or | | | | - Providing an incentive for customers to buy and to |
| is being increasingly digitized, the existence of an | | | | return. Sales promotions to this end can involve |
| organization critically depends on the effective | | | | coupons, special offers, and discounts. Cross-linked |
| application of information technology (IT).Information | | | | websites and advertising affiliate programs can also |
| System | | | | help.Hindrance in Acceptance |
| An information system is comprised of all the | | | | - Concerns about security. Many people will not use |
| components that collect, manipulate, and propagate | | | | credit cards over the Internet due to concerns about |
| data or information. It usually includes hardware, | | | | theft and fraud. |
| software, people, communications systems, and the | | | | - The problem of access to web commerce, |
| data itself. The activities involved include inputting | | | | particularly for poor households and for developing |
| data, processing of data into information, storage of | | | | countries. Low penetration rates of Internet access in |
| data and information, and the production of outputs | | | | some sectors greatly reduce the potential for |
| such as management reports.Support Role: | | | | e-commerce.Applications of IS/IT and Competitive |
| Information systems support business processes | | | | AdvantageDell Computers |
| and operations by: | | | | Some information systems are totally automated by |
| recording and storing sales data, purchase data, | | | | IT. For example, Dell Computers has a system where |
| investment data, payroll data and other accounting | | | | no human intervention is required, from taking |
| records. recording and storing inventory data, work in | | | | customer orders, to delivery of components to the |
| process data, equipment repair and maintenance | | | | Dell factory for assembly, to shipment to customers. |
| data, supply chain data and other production | | | | With this build-to-order model, perfect information |
| operations records. recording and storing market | | | | and tight linkage match supply and demand in real |
| data, customer profiles, customer purchase histories, | | | | time. The company can receive an order for a |
| marketing research data, advertising data, and other | | | | personal computer (PC) directly from a customer via |
| marketing records. to implement, control, and monitor | | | | its own website ( |
| plans, strategies, tactics, new products, new business | | | | Ryanair is one of the world's most successful 'low |
| models or new business ventures.Information | | | | fares' airlines. Its online booking facility was launched |
| systems often support and occasionally constitute | | | | in 1999, migrating customers away from the more |
| competitive advantages. Information systems, like | | | | expensive travel agent and call-centre channels. |
| business environmental scanning systems, support | | | | Customers can now search for flights online and |
| almost all sustainable competitive advantages. | | | | book them with a credit or debit card. As a ticketless |
| Occasionally, the information system itself is the | | | | airline, the customers are supplied with a reference |
| competitive advantage. One example is Wal-Mart. | | | | number which is given to staff at check in. Over |
| They used an extranet to integrate their whole | | | | 90% of ticket sales are now taken on the website, |
| supply chain.Information Technology | | | | which is also available in a number of languages |
| IT refers specifically to technology, basically | | | | including French, German, Swedish and is an Internet |
| hardware, software and telecommunications | | | | venture that was launched in July 1995, and has |
| networks. It is thus both concrete (e.g. with servers, | | | | probably become the most famous site in |
| PCs, routers and network cables) and subtle (e.g. | | | | cyberspace. It initially started out with a mission to |
| with software of all types).IT facilitates the | | | | use the Internet to transform book buying into the |
| attainment, processing, storing, delivery and sharing | | | | fastest, easiest and most enjoyable experience |
| of information and other digital content.Effectiveness | | | | possible.Unlike traditional bookstores, there are no |
| of IS/IT | | | | bookshelves to browse at From the website, |
| A number of important forces affect the pace and | | | | customers can search for a specific book, topic or |
| effectiveness of progress in using IS/IT and in | | | | author, or they can browse their way through the |
| delivering business benefits. The relative weighting of | | | | book catalogue and then complete the sale by |
| each factor varies over time, and will also vary from | | | | entering their credit card information. Orders are |
| one organization to another. These factors include: | | | | processed immediately and books in stock, generally |
| - the capabilities of the technology | | | | bestsellers, are shipped the same day. Customers are |
| - the economics of deploying the technology | | | | contacted by email when their order has been |
| - the applications that are feasible | | | | dispatched. All contact with the company is done |
| - the skills and abilities available, either in-house or | | | | either through their World Wide Website or by email. |
| from external sources, to develop the applications | | | | The company has also branched out into electronic |
| - the skills and abilities within the organization to use | | | | auctions. It has also pioneered technologies such as |
| the applications | | | | customer profiling and '1-click' shopping. The profiling |
| - the pressures on the particular organization or its | | | | technology has enabled Amazon to recommend |
| industry to improve performance.Implementation of | | | | books based on previous purchasing history and what |
| Technology via E-commerce and E- business | | | | other customers who have bought similar books are |
| E-commerce can be viewed as the conduct of | | | | also reading. Even today, the company strives to |
| business commercial communications and | | | | maintain their founding commitment to customer |
| management by using Internet technologies and | | | | satisfaction and the delivery of an educational and |
| through electronic methods, such as electronic data | | | | inspiring shopping experience.Otis Elevators |
| interchange (EDI) and automated data-collection | | | | In the 1980s, Otis Elevators, the US manufacturer of |
| systems. It may also involve the electronic transfer | | | | elevators, identified that one of the aspects of its |
| of information between businesses (EDI). E-business, | | | | service that would give its customers most |
| on the other hand, has come to refer to the | | | | satisfaction was a prompt lift repair service. So, it |
| automation of an organization's internal business | | | | built an automated system, called Otisline, to dispatch |
| processes using Internet and browser technologies.In | | | | repairmen. Where something started to go wrong |
| using the Internet, many organizations have looked | | | | with Otis' lifts, they automatically called in their |
| to add more value to the tangible products they sell | | | | complaint to a computer-without human intervention. |
| by providing additional 'information-based' services. | | | | Otis' rivals suddenly had to compete on quality of |
| These can include online support, order tracking, | | | | service as well as the price and quality of lifts |
| order history, etc. Many of these initiatives focus on | | | | themselves.ATC Bologna |
| deepening the relationship with customers and | | | | HELLOBUS is the Short Message Service (SMS) |
| suppliers. Others have moved their trading platform | | | | created by Omnitel Vodafone in collaboration with |
| either partially or entirely onto the Internet.Success | | | | ATC, Bologna's public transport company. Travelers |
| Factors | | | | can find out the exact time the bus they are waiting |
| Several factors have a role in the success of any | | | | for will arrive at any of ATC's 1,300 stops, 24 hours |
| e-commerce venture. They may include: | | | | a day. All they have to do is send an SMS with the |
| - Providing value to customers. Vendors can achieve | | | | number of the stop and the chosen line. In a few |
| this by offering a product or product-line that | | | | seconds, the reply arrives on their mobile phone |
| attracts potential customers at a competitive price, | | | | indicating the bus's actual time of arrival. |
| as in non-electronic commerce. | | | | |