Lecture 3 - Business information systems

Market Segmentation

the identification of specific markets to target them with advertising messages. This divides the pool of potential customers into subgroups usually defined by demographic characteristics. It can also be personalized based on search history and interests.

What are some challenges with e-commerce?

· Dealing with consumer privacy concerns: about 1/3 of all adult internet users will not buy online due to privacy concerns. · Overcoming consumers´lack of trust in online sellers · Overcoming global issues: cultural, language, time and distance, infrastructure, currency and legal challenges.

A TPS includes ?

· Order processing systems: · Accounting systems · Purchasing systems

What is a Customer Relationship Management system?

A CRM system helps a company manage all aspects of customer encounter, including marketing, sales, distribution, accounting and customer service. The goal of a CRM is to understand and anticipate the needs of current and potential customers.

What is online transaction processing?

A form of data processing in which each transaction is processed immediately.

Explain the multistage model

A successful e-commerce system must address the many stages that consumers experience in the sales life cycle. At the heart of any e-commerce system is the user's ability to search for and identify items for sale; select those items and negotiate prices, terms of payments and delivery date; send an order for the items; pay for it; obtain product delivery; and receive after-sales support

What is a batch processing system?

A system where transactions are accumulated over a period of time and prepared for processing as a single unit or batch.

Business 2 Business (B2B)

B2B e-commerce is a subset of e-commerce where all participants are organizations. This is a useful tool for connecting business partners in a virtual supply chain to cut resupply times and reduce costs

Customer 2 Customer

C2C e-commerce involves electronic transactions between consumer that are facilitated by a third party.

What are some advantages of e- and m-commerce?

Conversion to e- and m-commerce systems enables organizations to reach new customers, reduce the cost of doing business, speed the flow of goods and information, increase the accuracy of order processing and order fulfilment, and improve the level of customer service.

E-government

E-government is the use of information and communications technology to simplify sharing of information, speed formerly paper-based processes and improve relationships between citizens and government.

Explain Enterprise Resource Planning?

Enterprise resource planning is a set of integrated programs that manage a company´s vital business operations for an entire organization.

Business 2 Customer (B2C)

In B2C e-commerce customers deal directly with an organization and avoids intermediaries; this is called disintermediation.

Where is a CRM primarily used?

It is used primarily in sales, marketing and service organizations to capture and view data about customers and to improve communications.

What is Product Lifecycle Management?

PLM is an enterprise business strategy that creates a common repository of product information and processes. It supports the collaborative creation, management, dissemination and use of product packaging definition information.

What is a SCM?

SCM is a system that includes planning, executing and controlling all activities involved in sourcing and procurement of raw materials, converting raw materials to finished products and warehousing and delivering finished product to customers

Social commerce

Social commerce is a subset of electronic commerce that involves social media, online media that supports social interaction, and user contributions to assist online buying and selling of products and services

What is disintermediation?

The process of eliminating steps between a buyer and a seller(intermediaries)

Computer-aided engineering (CAE)

The use of software to analyze the robustness and performance of components and assemblies

Computer-aided design (CAD)

The use of software to assist in the creation, analysis, and modification of the design of a component or product.

Computer-aided manufacturing (CAM)

The use of software to control machine tools and related machinery in the manufacture of components and products.

What does a TPS do?

Transaction processing systems capture and process detailed data necessary to update the organizations records about fundamental business operations. It includes order entry, inventory control, payroll, accounts payable, accounts receivable, general ledger etc.

What is a business process?

a set of coordinated and related activities that takes on one or more kinds of input and creates an output of value to the customer of that process.

What is e-commerce?

conducting business activities electronically over computer networks.

What are some advantages of ERP?

improved access to quality data for operational decision making, elimination of costly, inflexible legacy systems, improvement of work processes and opportunity to upgrade and standardize technology infrastructure.

mobile commerce (m-commerce)

relies on the use of wireless devices and is the use of these devices to place ordes and conduct business.