Lu_emis3_ppt_ch08

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

8-2Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

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

8-4Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Q1: What Types of Interorganizational Systems Exist?

8-5Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

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

8-6

Interorganizational Systems

8-7Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Q2: How Do Companies Use E-Commerce?

8-8Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

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

8-9Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

• 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

8-10Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Disintermediation

Companies learn how customers internalize competitors’ pricing, advertising, and messaging

Q2: How Does E-Commerce Improve Market Efficiency?

8-11Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

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?

8-12Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Q3: Why is Web 2.0 Important to Business?

8-13Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Figure 8-6

Software as a (Free) Service (SaaS)

8-14Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Software as a (Free) Service

8-15

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

8-16Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

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

8-17Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

• 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?

8-18Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

• 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

8-19Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

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?

8-20

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?

8-23

Fan Connections and Endorsements

8-24Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

What Are the Characteristics of Web 2.0: SLATES

8-29

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

8-30Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

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

8-31Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

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

8-41Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

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

8-42Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

Case Study 8: Tourism Holdings Limited (cont’d)

8-43Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

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)

8-44Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

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)

8-45Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall