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