Transcript
E-Commerce, Web 2.0, and Social Networking
Chapter 8
• ICT = Information Technology + Communication Technology
• Convergence of computer-based information technology and telecommunication technology
• Strategic information systems – any information system used for strategic purpose(s)
New Terms
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Q1: What types of inter-organizational systems exist?
Q2: How do companies use e-commerce?
Q3: Why is Web 2.0 important to business?
Q4: How does social capital benefit you and organizations?
Q5: How does social CRM empower customers?
How does the knowledge in this chapter help Fox Lake and you?
Study Questions
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Q1: What Types of Interorganizational Systems Exist?
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Inter-organizatio
nal Systems
Pre-Internet Systems
E-Commerce
Web 2.0 Enterprise 2.0
Postal mail, telephone,
fax
Web Storefronts
Google, eBay,
Amazon, CNet
Social CRM, SOA
• Web applications that facilitate participatory information sharing, interoperability, user-centered design,
and collaboration on the World Wide Web.
• Vs. Web applications limiting users (consumers) to the passive viewing of content that was created for them.
• Examples - Social networking sites, blogs, wikis, video sharing sites, hosted services (ASP and ISP), mashups and folksonomies (collaborative tagging).
Web 2.0
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Interorganizational Systems
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Q2: How Do Companies Use E-Commerce?
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Merchant companies—take title to goods they sell
Nonmerchant companies—arrange for purchase and sale of goods without owning or taking title to those goods
Example of Use of B2B, B2G, and B2C
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• E-commerce application enables auction company to offer goods for sale and to support a competitive-bidding process
Online auctions
• Provide goods and services at stated price, arrange delivery, but do not take title
• Amazon.com sells books and other merchandise for other businesses
Clearinghouses
• Match buyers and sellers• Priceline.com
Electronic exchanges
Nonmerchant E-Commerce Companies
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Disintermediation
Companies learn how customers internalize competitors’ pricing, advertising, and messaging
Q2: How Does E-Commerce Improve Market Efficiency?
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Retail StoreX
• Channel conflict• Price conflict with
traditional channels• Logistics expenses
increase for manufacturer
• Customer-service expenses increase for manufacturer
Economic Factors in
Disintermediation
What Economic Factors Disfavor E-Commerce?
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Q3: Why is Web 2.0 Important to Business?
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Figure 8-6
Software as a (Free) Service (SaaS)
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Software as a (Free) Service
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SaaS—thin-client applications run in Internet cloud
• License-free software• Does not require an installation on the users’
computers • Web servers download Web 2.0 programs as code within HTML, as Flash (Adobe Flash), or as Silverlight (Microsoft) code.
• Readily (and frequently) updated. New features added with little notice or fanfare.
Google Docs & Spreadsheets
Google GroupsGoogle Earth
Google Maps
Combines social networking, viral marketing, and open-source design, saving considerable cost while cultivating customers.
Crowd performs classic in-house market research and development. Sets up customers to buy.
User-Generated Content
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Crowdsourcing examples
Mashups• Mashup —a web application that combines
data from other websites• Example—map data from Google Maps to
add location information to real-estate data, thus creating a new and distinct web service
• See www.programmableweb.com/mashups
Organic User Interfaces and Mashups
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• AdWords• Vendors pay for specific words, phrases• Placement on search results list
depends on how much you pay for search word
• Vendor pays when someone clicks on their link
• Amount can vary day to day, hour to hour
• Ad Sense• Google inserts ads that match web
page content• Google pays web page owner for every
click• Website owners enroll in this program
to enable text, image, and video advertisements on their websites
Advertising
How Can Businesses Benefit from Web 2.0?
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• Information systems that deal with assets, whether financial or material, requires control, rather than flexibility and organic growth.
Don’t get carried away
• Credit card transaction processing
• Accounts payable or general ledger system interface
Examples
Web 2.0 Not for All Applications
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Social Capital—investment in social relations with expectation of returns in the marketplaceAdds value in four ways:
1. Information about opportunities, alternatives, problems and other factors
2. Influence decision makers in your organization or others
3. Social credentials from linking to network of highly regarded contacts
4. Personal re-enforcement of professional image and position
Q4: How Does Social Capital Benefit You and Organizations?
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Progressive organizations maintain a presence on Facebook, LinkedIn,Twitter, and other sites• Sales people,
customer support, public relations, and endorsements by high profile people
How Do Social Networks Add Value to Business?
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Fan Connections and Endorsements
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What Are the Characteristics of Web 2.0: SLATES
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Social CRM done in style of Enterprise 2.0.
Relationships between organizations and customers emerge as both parties create and process content.Employees create wikis, blogs, discussion lists, frequently-asked-questions, sites for user reviews and commentary, and other dynamic content. Customers search content, contribute reviews and commentary, ask more questions, create user groups, etc. Each customer crafts own relationship with company.
Social CRM is Enterprise 2.0 CRM
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Classical CRM
Centered on customer lifetime valueControl what customer reads, sees, hears about company and its products
Social CRM
Effective reviewer, commentator, or blogger can have significant influence
Classical CRM vs. Social CRM
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Employees sharing personal information at sociallyTechnology leads to blurring lines between work life and home life
Work is portable and always on
You need to be more careful about what you sayWork networks are not social networks
Guide: Blending the Personal and the Professional
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Publicly listed New Zealand corporation that owns multiple brands and businesses in tourism industry.
$5 million (2009) in EBIT on $170 million in revenue
Operates in New Zealand, Australia, and Fiji, and has sales offices in Germany and United Kingdom
Current list of businesses, visit www.thlonline.com/THLBusinesses
Case Study 8: Tourism Holdings Limited
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Case Study 8: Tourism Holdings Limited (cont’d)
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CEO considers information systems and technology a core component of its business value and invested in a variety of innovative information systems and Web 2.0 technologies CEO speaks knowledgeably about information technologies, including SharePoint, Microsoft Office SharePoint Services (MOSS), Microsoft Report Server, OLAP, and data mining
Case Study 8: Tourism Holdings Limited (cont’d)
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Acquisition of multiple brands and companies created a disparate set of information systems using a variety of different technologies
Result: Excessive software maintenance and costs
Single development platform reduces maintenance expenses and focuses management attention, development, and personnel training on single set of technologies
Converted customer-facing websites to use Microsoft SharePoint and MOSS to reduce costs and simplify IS management
Sells directly to consumer
Actively uses Google AdWords and Google Analytics to understand how their sites are processed Experimenting with online chat, both voice and video
www.KiwiExperience.com. Click on “Plan Your NZ Trip”This case implies frequent acquisition and disposition of tourism brands poses problems for information systems
Case Study 8: Tourism Holdings Limited (cont’d)
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