MIS 301 Test 3

Legal and Ethical Issues Specific to E-Commerce

-Fraud on the Internet -Domain Names -Cybersquatting -Taxes and Other Fees -Copyright

Limitations of E-Commerce

-Lack of universally accepted security standards -In less-developed countries telecommunications bandwidth is often insufficient, and Web access is expensive -Perceptions that e-commerce is insecure and unresolved legal issues -Lacks a critical mass of buyers and sellers

Benefits of E-Commerce

-National and International markets are more Accessible -Lowers costs of processing, distributing, and retrieving information -Provides access to a vast number of products and services 24/7 -Deliver information, services, and products to people in cities, rural areas, and developing countries

Production Process

A cross-functional business process in which a company produces physical goods.

Procurement Process

A cross-functional business process that originates when a company needs to acquire goods or services from external sources, and it concludes when the company receives and pays for them.

Order Fulfillment Process

A cross-functional business process that originates when the company receives a customer order, and it concludes when it receives a payment from the customer.

Reverse

A major method of procuring goods and services in the buy-side model is the _________ auction.

Cyberbanking

Also known as electronic banking, involves conducting banking activities from home, a place of business, or on the road instead of at a physical bank location

Marketplace

An electronic _________ is a central, virtual market space on the web where many buyers and many sellers can conduct e-commerce and e-business activities.

Leading Online Service Industries

Banking, Trading of Securities, Job Matching, Travel Services, and Advertising

Virtual Close

Companies traditionally closed their books (accounting records) quarterly, usually to meet regulatory requirements.

Clicks-and-Mortar Organizations

Conduct some e-commerce activities, yet their primary business is carried out in the physical world

Horizontal Exchanges

Connect buyers and sellers across many industries

Vertical Exchanges

Connect buyers and sellers in a given industry

Long Tail

Describing the retailing strategy of selling a large number of unique items with relatively small quantities sold of each

Public Exchange

Electronic marketplaces in which there are many sellers and many buyers, and entry is open to all; frequently owned and operated by a third party.

Managing Multiple Currencies

Financial and accounting systems utilize financial data from different countries to convert currencies (with conversion ratios that constantly flux) in seconds.

Global Stock Exchange

Financial markets operate in global, 24/7/365, distributed electronic stock exchanges that use the Internet both to buy and sell stocks and to broadcast real-time stock prices

Stored-Value Money

Gift cards are _________ cards.

Viral Marketing

In ________, recipients of your marketing notices send information about your product to their friends.

Affiliate Marketing

In ________, vendors ask partners to place logo on the partner's website and then pay that partner a commission.

Forward;Higher

In _________ auctions, sellers solicit bids from many potential buyers; these auctions result in _________ prices over time.

Financial and Economic Forecasting

Knowledge about the availability and cost of money a key ingredient for successful financial planning including flow projections which inform organizations what funds they need, when they need them, and how they will acquire them.

Major Disadvantages of Using Cloud-Based ERP Systems

Not clear whether cloud-based ERP systems are more secure than on-premise systems Companies that adopt cloud based ERP systems sacrifice control over a strategic IT resource. Some ERP functions are temporarily slow or are not available.

Benefits of ERP Systems

Organizational flexibility and agility Decision support Quality and efficiency

IT support is particularly valuable in 3 areas

Payroll and Employee's records Benefits Administration Employee Relationship Management

Two Major Ethical Issues in E-Business

Privacy and Job Loss

Three Examples of Cross-Departmental Process

Procurement Process Fulfillment Process Production Process

E-procurement

Purchasing by using electronic support

Brick-and-Mortar

Purely physical organizations

Materials Requirement Planning (MRP)

The planning process that integrates production, purchasing, and inventory management of interdependent items

Electronic Commerce

The process of buying, selling, transferring, or exchanging products, services, or information via computer networks, including the Internet.

Business-to-consumer commerce (B2C)

The sellers are organizations, and the buyers are individuals.

On-Premise ERP Implementation

Vanilla approach Custom approach Best of breed approach

Bartering Online

With ________, an intermediary administers online exchange of surplus products or the company receives "points" for its contribution, which it can use to purchase other needed items.

B2E

You adopt a child and need to update your healthcare benefits to include that new child. This is an example of _________ e-commerce.

Brick-And-Mortar

You own a restaurant in New York City. This is an example of a _________ organization.

Click and Mortar

You sell popcorn in downtown Chicago. It became so popular that you started a website so people all over the country can get your popcorn delivered to their doorstep. This is an example of a _________ business.

Pop-Under Ads

_________ appear(s) underneath the active windows.

Electronic Exchanges

_________ are independently owned by a third party and connect many sellers with many buyers.

Banners

_________ are/is electronic billboards that promote a product or a vendor.

Smart

_________ cards contain a chip that can store a large amount of information as well as on a magnetic stripe for backward compatibility.

B2B

_________ comprises the vast majority of e-commerce by volume.

Direct

_________ materials are inputs to the manufacturing process.

Product Life Cycle Management

a business strategy that enables manufacturers to share product-related data that support product design and development and supply chain operations

Custom Approach

a company implements a more customized ERP system by developing new ERP functions designed specifically for that firm.

Vanilla Approach

a company implements a standard ERP package, using the package's built-in configuration options.

Auction

a competitive buying and selling process in which prices are determined dynamically by competitive bidding

Buy-Side Marketplace

a model in which organizations attempt to procure needed products or services from other organizations electronically

Multichanneling

a process in which a company integrates its online and offline channels

Disintermediation

a process whereby intermediaries are eliminated

Electronic Business

a somewhat broader concept. In addition to the buying and selling of goods and services, e-business refers to servicing customers, collaborating with business partners, and performing electronic transactions within an organization.

Bitcoin

a type of digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank.

Budgeting

allocates the organization's financial resources among participants and activities allowing management to distribute resources in the way that best supports the organization's mission and goals.

Vendor Managed Inventory

allow suppliers to monitor their inventory levels and ship products as they are needed.

Stored-Value Money Cards

allow you to store a fixed amount of prepaid money and then spend it as necessary and each time you use the card, the amount is reduced by the amount you spent.

Intermediaries

also known as middlemen, have two functions: (1) they provide information, and (2) they perform value-added services such as consulting.

Computer-Integrated Manufacturing

an approach that integrates various automated factory systems

Consumer-to-consumer Electronic Commerce (C2C)

an individual sells products or services to other individuals (Also called customer to customer)

Business-to-Employee (B2E)

an organization uses EC internally to provide information and services to its employees.

Purchasing Cards

are the B2B equivalent of electronic credit cards and in some countries, purchasing cards are the primary form of payment between companies.

Indirect Materials

are those items, such as office supplies, that are needed for maintenance, operations, and repairs (MRO)

Permission Marketing

asks consumers to give their permission to voluntarily accept online advertising and e-mail

Business-to-Business Electronic Commerce (B2B)

both the sellers and the buyers are business organizations

Online Transaction Processing (OLTP)

business transactions are processed online as soon as they occur. For example, when you pay for an item at a store, the system records the sale by reducing the inventory on hand by one unit, increasing sales figures for the item by one unit, and increasing the store's cash position by the amount you paid.

Issues in E-Tailing

channel conflict, multichanneling, order fulfillment

Best-of-Breed Approach

combines the benefits of the vanilla and customized systems while avoiding the extensive costs and risks associated with complete customization

Virtual (or pure play) organizations

companies engaged only in Electronic Commerce

Comparative Reports

compare, for example, the performances of different business units or of a single unit during different times

EMV Smart Cards

contain a chip that can store a large amount of information as well as on a magnetic stripe for backward compatibility. Stands for Euro Card, MasterCard, and Visa.

Drill-Down Reports

display a greater level of detail

Electronic Payment Mechanisms

enable buyers to pay for goods and services electronically, rather than writing a check or using cash.

Exception Reports

include only information that falls outside certain threshold standards

Electronic Marketplaces

independently owned by a third party, and they connect many sellers with many buyers.

Enterprise Resource Planning (ERP)

information systems that take a business process view of the overall organization to integrate the planning, management, and use of all of an organization's resources, employing a common software platform and database

Direct Materials

inputs to the manufacturing process, such as safety glass used in automobile windshields and windows.

Manufacturing Resource Planning (MRP II)

integrates a firm's production, inventory management, purchasing, financing, and labor activities

Enterprise Application Integration (EAI)

integrates existing systems by providing software, called middleware, that connects multiple applications

ERP II systems

interorganizational ERP systems that provide Web-enabled links between a company's key business systems (such as inventory and production) and its customers, suppliers, distributors, and others

Electronic Retailing

is the direct sale of products and services through electronic storefronts or electronic malls

Electronic Mall

known as a cybermall, or an e-mall, is a collection of individual shops grouped under a single internet address.

Budgetary Control

managers at various levels monitor departmental expenditures and compare them against the budget and the operational progress of corporate plans.

Financial Ratio Analysis

monitoring the company's financial health by assessing a set of financial ratios including liquidity ratios (the availability of cash to pay debt), activity ratios (how quickly a firm converts non-cash assets to cash assets), debt ratios (measure the firm's ability to repay long-term debt), and profitability ratios (measure the fi rm's use of its assets and control of its expenses to generate an acceptable rate of return).

Group Purchasing

multiple buyers combine their orders so that they constitute a large volume and therefore attract more seller attention

Functional Exchanges

needed services such as temporary help or extra office space are traded on an "as-needed" basis

Reverse Auctions

one buyer, usually an organization, wants to purchase a product or a service and buyer posts a request for quotation (RFQ) on its Web site or on a third party site. Prices tend to decrease over time.

Cross-Departmental Process

one that (1) originates in one department and ends in a different department or (2) originates and ends in the same department but involves other departments

Sell-Side Marketplace Model

organizations sell their products or services to other organizations electronically from their own private e-marketplace website or from a third-party website.

Ad hoc reports

out-of-the routine reports

Routine Reports

produced at scheduled intervals

Mobile Commerce (m-commerce)

refers to e-commerce that is conducted entirely in a wireless environment

Conversational Commerce

refers to electronic commerce using messaging and chat apps to offer a daily choice, often personalized, of a meal, product, or service.

Viral Marketing

refers to online word-of-mouth marketing and is closely related to using social media for marketing purposes.

Social Commerce

refers to the delivery of electronic commerce activities and transactions through social computing

Cybersquatting

refers to the practice of registering or using domain names for the purpose of profiting from the goodwill or the trademark that belongs to someone else

Key-indicator reports

reports that summarize the performance of critical activities

Forward Auctions

sellers solicit bids from many potential buyers

Functional Area Information Systems

supports a particular functional area in the organization by increasing each area's internal efficiency and effectiveness

Transaction Processing System

supports the monitoring, collection, storage, and processing of data from the organization's basic business transactions, each of which generates data

Expense Management Automation

systems that automate the data entry and processing of travel and entertainment expenses

Channel Conflict

the alienation of existing distributors when a company decides to sell to customers directly online

Batch Processing

the firm collects data from transactions as they occur, placing them in groups or batches then prepares and processes the batches periodically.

Business Model

the method by which a company generates revenue to sustain itself

Organization's reach

the number of potential customers to whom the company can market its products.

Advertising

the practice of disseminating information in an attempt to influence a buyer-seller transaction.

E-government

the use of Internet technology in general and e-commerce in particular to deliver information and public services to citizens

Auditing

two basic purposes: (1) to monitor how the organization's monies are being spent and (2) to assess the organization's financial health.

Electronic Storefront

website that represents a single store. Each one has a unique uniform resource locator (URL), or internet address, at which buyers can place orders.