badm 2301 quiz 4

e business

in addition to the buying and selling of goods and services, e business refers to servicing customer, collaborating with business partners and performing electronic transaction with in an organization

virtual (pure play) organizations

companies engaged only in e commerce

degree of digitization

the extent to which the commerce has been transformed from physical to digital
concept can relate to both the product or service being sold and the delivery agent or intermediary

brick and mortar orgs

purely physical orgspa

partial EC companies

organizations that are a combo of digital and physical dimensions
book from amazon

click and mortar orgs/clicks and bricks

conduct some e commerce activites, yet their primary business is carried out in the physical world

example of partial ec

e commerce

process of buying selling, transferring, exchanging products, services, or info through computer networks, including the internet

7 common types of e commerce

b2b (business to business); b2c (business to consumer); c2c (consumer to consumer); b2e (business to employee); egov (e government, refers to gov to citizen and gov to business); mobile commerce; social commerce; conversational commerce

C2C

consumer to consumer (etsy, ebay)

gig job

org contracts with independent workers for short-term engagements where the worker is paid for each engagement

B2E

business to employee; an org using electronic commerce internally to provide info and services to its employees

benefits and training classes, insurance, travel, etc.

e government

to deliver info and public services to citizens (gov to citizen) and business partners/suppliers (gov to business)

gov is regulating; efficient way of conducting business transactions with citizens and businesses and within the gov themselves. e gov makes gov more efficient and effective, esp in delivery of public services

mobile commerce

e commerce that is conducted entirely in a wireless environment. cell phones to shop

social commerce

delivery of electronic commerce activities and transactions through social computing

conversational commerce

conversational commerce (chat commerce) refers to e commerce using messaging and chat apps to offer a daily choice, often personalized, of a meal, product, or serviceb

business model

method by which a company generates revenue to sustain itself (each type of EC is a business model)

electronic catalogs

consist of a product database, a directory, and search capabilities, and a presentation function. backbone of most e commerce sites

auction

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

e auction

generally increase revenues for sellers by broadening the customer base and shortening the cycle time of the auction

buyers generally benefit because they can bargain for lower prices. they also do not have to travel to a physical location

internet provides efficient infrastructure for conduction auctions at lower admin costs and with more involved sellers and buyers. both individual consumers and corporations can participate in auctions

2 types of auctions

forward and reverse

forward auctions

auctions that sellers use as a selling channel to many potential buyers, the highest bidder wins (eBay)

reverse auctions

auctions in which 1 buyer, usually an organization, seeks to buy a product or service, and supplier submit bids, lowest bidder wins

gov and large corps use this approach, can provide large savings for buyer

electronic storefront

website that represents a single store

electronic mall (cybermall/emall)

collection of individual shops consolidated under 1 internet address

e marketplacd

virtual market space on web where many buyers and seller conduct e business

electronic payments

what ECs accept for money

electronic payment machanisms

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

online direct market

manufacturers or retailers selling directly to consumers

electronic tendering system

business requests quotes from suppliers, uses B2B with a reverse auction mechanism

name your own pricd

customer decides how much they want to pay, intermediary tries to match a provider

find the best price

customers specify a need and intermediary compares providers and shows lowest price

customer must accept offer in short time or they may lose the deal

affiliate marketing

vendors ask partners to place logos or banners on site; if customers click on logo, go to vendor site, and buy, then vendor pays commission to partners

viral marketing

recipients of your marketing notices/info send info about your product to friends

group purchasing

small buyers aggregate demand to get a large volume, then the group conducts tendering or negotiates a lower price

product customization

customers use internet to self configure products or services, sellers then price them and fulfill them quickly

electronic marketplaces and exchanges

transactions are conducted efficiently (more info to buyers and seller, lower transaction costs) in electronic marketplaces (private or public)

bartering online

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

deep discounters

company offers steep price discounts

e credit cards

1: purchase book from amazon, your credit card info and purchase amount are encrypted in browser. this ensures the information is safe while it is "travelling" to the internet to amazon

2: info arrives at amazon, it is not opened. it is automatically transferred (in encrypted form) to clearinghouse, where it is decrypted for verification and authorization

3: clearinghouse asks bank that issued credit card (BofA, Chase, etc.) to verify CC info

4: card issuer bank verifies CC info and reports this to the clearinghouse

5: clearinghouse reports result of verification of CC to amazon

6: amazon reports successful purchase and amount to you

7: card issuer sends bank funds of purchase amount to amazon's bank

8: card issuer bank notifies me of debit on CC

9: amazon's bank notifies them of funds credited to its acct

stored value money cards

form of e cash on which a fixed amount of prepaid money is stored, amount is reduced each time card is used (visa gift card)

EMV smart cards

contain a chip that can store a large amount of info as well as on a magnetic strip for backwards compatibility

payment gateway

e commerce application that facilitates online shopping by mediating the interconnections to the merchant's bank, card issuer bank, then back to original website to approve/decline purchase

e commerce benefits

good customer service, more options, more convenient

e commerce limits

lack of universally accepted security measures, insufficient telecommunications bandwidth in some regions, accessing web can be expensive.

EC is perceived as nonsecure

b2b is larger than b2c by volume, but b2c is more complex

slay

electronic retailing

direct sale of products and services through storefronts or electronic malls, usually designed around an electronic catalog format and auctions

long tail

retailing strategy of selling a large number of unique items in small quantities

e mall

collection of individual shops group under 1 url (amazon)

disintermediation

2 function: provide info (can be fully automated) & perform value added services (such as consulting) (requires expertise, can only be partially automated)

fintech (fuck this)

industry composed of companies that use tech to compete in the marketplace with traditional financial institutions and intermediaries in the delivery of financial services, which include banking, insurance, real estate, and investment

native advertising

ads disguised as content (those tiktok fuckwads)

ad blockers

my beloved

e tailing issues

1) channel conflict
2) order fulfillment
3) personalized pricing

multichanneling

process in which a company integrates its online and offlilne channels

showrooming

occurs when shoppers visit brick and mortar store to examine product in person. then conduct online research. often purchase product from website, for lower price

order fulfillment

Any time a company sells directly to customers, it is involved in various order-fulfillment activities; makes it harder to be effective and efficient in B2C

standardized pricing

when a product is sold through multiple channels, the cost should not vary by more than the difference in shipping, taxation, and distribution costs. If the price is higher for a product at a certain retailer, then customers can easily use the Internet to compare prices and features among a huge number of retailers to purchase that product from another retailer, a process known as showrooming.

personalized pricing

practice of pricing items at a point determined by a particular customer's perceived ability to pay

reservation price

max price a consumer is willing to pay for a product or service based on total perceived consumer benefits

spamming

indiscriminate distribution of email without receiver's permission

sell side marketplace

B2B model in which organizations sell their products or services to other organizations electronically from their own private e-marketplace website or from a third-party website

- This model is similar to the B2C model in which the buyer is expected to come to the seller’s site, view catalogs, and place an order. In the B2B sell-side marketplace, however, the buyer is an organization.

- suitable for customization

- seller can be a manufacturers, distributor or a retailer

-key mechanisms in the sell-side model are forward auctions and electronic catalogs that can be customized for each large buyer

kinda like a bidding war

procurement

Procurement is the overarching function that describes the activities and processes to acquire goods and services. Distinct from purchasing, procurement involves the activities necessary to establish requirements, sourcing activities such as market research and vendor evaluation, and negotiation of contracts.

buy side marketplace

a model in which organizations attempt to procure needed products or services from other organizations electronically. A major method of procuring goods and services in the buy-side model is the reverse auction.

- uses EC technology to streamline the procurement process. The goal is to reduce both the costs of items procured and the administrative expenses involved in procuring them. EC technology can also shorten the procurement cycle time.

e procurement

uses reverse auctions, particularly group purchasing

group purchasing

multiple buyers combine their orders so that they constitute a large volume and therefore attract more seller attention. When buyers place their combined orders on a reverse auction, they can also negotiate a volume discount

public exchanges

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

-buyers and sellers merely have to “plug in” to trade. B2B public exchanges are often the initial points of contact between business partners. Once the partners make contact, they may move to a private exchange or to private trading rooms provided by many public exchanges to conduct their subsequent trading activities (etsy, amazon for b2c)

direct materials

inputs to the manufacturing process, such as safety glass used in car windshields

indirect materials

girl you know what this is

3 types of public exchanges (vertical, horizontal, and functional)

1) Vertical exchanges connect buyers and sellers in a given industry; offer services that are particularly suited to the community they serve. Vertical exchanges are frequently owned and managed by a consortium, a term for a group of major players in an industry. For example, Marriott and Hyatt own a procurement consortium for the hotel industry, and Chevron owns an energy e-marketplace

2) horizontal exchanges: connect buyers and sellers across many industries. They are used primarily for MRO (maintenance, repair, operations) materials

3) functional exchanges, needed services such as temporary help or extra office space are traded on an “as-needed” basis. For example, Employease (www.employeaseinc.com)s can find temporary labor by searching employers in its Employease Network.

cloud computing

technology in which tasks are performed by computers physically removed from the user and accessed over a network, in particular the internet

IT infrastructure evolved

1) stand alone mainframes
2) mainframe and dumb terminals
3) stand alone PCs
4) local area networks (client/servier computing)
5) enterprise computing
6) cloud computing

stand along mainframes

Organizations initially used mainframe computers in their engineering and accounting departments. The mainframe was typically housed in a secure area, and only MIS personnel had access to it. (like mad men)

mainframes and dumb terminals

Forcing users to go to wherever the mainframe was located was time consuming and inefficient. As a result, firms began placing so-called "dumb terminals"—essentially electronic typewriters with limited processing power—in user departments. This arrangement enabled users to input computer programs into the mainframe from their departments, a process called remote job entry.

stand alone PCs

In the late 1970s, the first personal computers appeared. The IBM PC's debut in 1981 legitimized the entire personal computer market. Users began bringing personal computers to the workplace to improve their productivity—for example, by using spreadsheet and word processing applications. These computers were not initially supported by the firm's MIS department. However, as the number of personal computers increased dramatically, organizations decided to support these devices, and they established policies as to which PCs and soft ware they would support.

local area networks

organizations began to connect personal computers to local area networks and then those LANs to the mainframe

enterprise computing

In the early 1990s, organizations began to use networking standards to integrate different kinds of networks throughout the firm, thereby creating enterprise computing. As the Internet became widespread after 1995, organizations began using the TCP/IP networking protocol to integrate different types of networks. All types of hardware were networked, including mainframes, personal computers, smartphones, printers, and many others. Software applications and data now flow seamlessly throughout the enterprise and among organizations.

on premise computing

A model of IT management where companies own their IT infrastructure (their software, hardware, networks, and data management) and maintain it in their data centers.

- incurs expenses for IT infrastructure; orgz usually do not use their infrastructure to its full capacity

- on-premise system meant that its technology group spent too much time managing its information technology infrastructure and not enough time developing innovative projects that could enhance the firm’s future growth. Furthermore, Photobox had difficulty keeping up with the large amount of new digital photos from its customers.

cloud computing characteristics

1. provides on demand self service
2. considers retailers
3. encompasses the characteristics of grid computing
4. encompasses the characteristics of utility computing
5. utilizes broad network access
6. pools computing resources
7. often occurs on virtualized servers

provides ono demand self service

A customer can access needed computing resources automatically. This characteristic gives customers elasticity and flexibility—that is, customers can increase (scale up) or decrease (scale down) the amount of computing they need.

consider retailers

During the Christmas buying season, these firms need much more computational capacity than at other times of the year. Therefore, if they use cloud computing, they can scale up during peak periods of business activity and scale down at other times.

encompasses the characteristics of grid computing

Grid computing enables organizations to use their computing resources more efficiently.

Grid computing provides fault tolerance and redundancy, meaning that there is no single point of failure, so the failure of one computer will not stop an application from executing.

Grid computing makes it easy to scale up—that is, to access increased computing resources (add more servers)—to meet the processing demands of complex applications.

Grid computing makes it easy to scale down (remove computers) if extensive processing is not needed.

grid computing

A technology that applies the unused processing resources of many geographically dispersed computers in a network to form a virtual supercomputer.

cloud computing encompasses the characteristics of utility computing

A technology whereby a service provider makes computing resources and infrastructure management available to a customer as needed. The provider then charges the customer for its specific usage rather than a flat rate.

cloud computing uses broad network access

cloud provider's computing resources are available over a network, accessed with a web browser, and they are configured so that they can be used with any computing device

cloud computing pools computing resources

provider's computing resources are available to serve multiple customers. These resources are dynamically assigned and reassigned according to customer demand

cloud computing often occurs on virtualized servers

server virtualization --> A technology that uses software-based partitions to create multiple virtual servers (called virtual machines) on a single physical server.

-each server no longer has to be dedicated to a particular task. Multiple applications can run instead on a single physical server, with each application running within its own software environment. As a result, virtualization enables companies to increase server usage. Companies can also realize cost savings in two areas. First, they do not have to buy additional servers to meet peak demand. Second, they reduce their utility costs because they are using less energy

cloud computing

eases the difficult tasks of procuring, configuring, and maintaining hardware and software environments. It also allows enterprises to get their applications up and running faster, with easier manageability and less maintenance. It also enables IT to adjust IT resources (e.g., servers, storage, and networking) more rapidly to meet fluctuating and unpredictable business demand.

public clouds are...

shared, easily accessible, multi-customer IT infrastructures that are available non exclusively to any entity in the general public (individuals, groups, orgs), over the internet

private cloud/internal/corporate

IT infrastructures that are accessible only by a single entity or by an exclusive group of related entities that share the same purpose and requirements, such as all the business units within a single organization.

- Private clouds provide IT activities and applications as a service over an intranet within an enterprise. Enterprises adopt private clouds to ensure system and data security. For this reason, these systems are implemented behind the corporate firewall.

hybrid clouds

clouds composed of public and private clouds that remain unique entities but are bound together, offering the benefits of multiple deployment models.

customers may need to maintain some of their data in a private cloud for security and privacy reasons while storing other, less-sensitive data in a public cloud because it is less expensive.

vertical clouds

building cloud infrastructure and applications for different businesses - construction, finance, or insurance businesses

cloud computing services are based ono three models:

infrastructure as a service (IaaS)
platform as a service (PaaS)
software as a service (SaaS)

3 types of computing generally required by consumers

infrastructure to run software and store data (IaaS), platforms to develop applications (PaaS), and software applications to process their data (SaaS).

infrastructure as a service

model with which cloud computing providers offer remotely accessible servers, networks, and storage capacity

bills on a utility computing basis

platform as a service

A model in which customers rent servers, operating systems, storage, a database, software development technologies such as Java and .NET, and network capacity over the Internet.

PaaS model allows the customer to both run existing applications and to develop and test new applications. PaaS offers customers several advantages, which include the following:

Application developers can develop and run their software solutions on a cloud platform without the cost and complexity of buying and managing the underlying hardware and software layers.

Underlying computing and storage resources automatically scale to match application demand.

Operating system features can be upgraded frequently.

Geographically distributed development teams can work together on software development projects.

PaaS services can be provided by diverse sources located throughout the world.

Initial and ongoing costs can be reduced by the use of infrastructure services from a single vendor rather than maintaining multiple hardware facilities that often perform duplicate functions or suffer from incompatibility problems.

software as a service

A delivery model in which cloud computing vendors provide software that is specific to their customers’ requirements.

- typically charge their customers a monthly or yearly subscription fee.

SaaS applications reside in the cloud instead of on a user’s hard drive

- What differentiates SaaS applications from other applications is their ability to scale. As a result, applications can run on as many servers as is necessary to meet changing demands. This process is transparent to the user; back up their customer's data

3 benefits of cloud computing

1) positive impact on employees

- enables companies to provide their employees with access to all the information they need no matter where they are, what device they are using, or with whom they are working

2) can save money

- cost of building and operating an on-premise IT infrastructure will typically be more expensive than adopting the cloud computing model. Cloud providers purchase massive amounts of IT infrastructure (e.g., hardware and bandwidth) and gain cost savings by buying in large quantity; cloud computing can reduce or eliminate the need to purchase hardware, build and install software, and pay software licensing fees. The organization pays only for the computing resources it needs, and then only when it needs them

3) Can improve organizational flexibility and competitiveness

- allows organizations to use only the amount of computing resources they need at a given time; companies can efficiently scale their operations up or down as needed to meet rapidly changing business conditions. Cloud computing is also able to deliver computing services faster than the on-premise computing can

risks with cloud computing

legacy IT systems, reliability, privacy, security, legal and regulatory environment, and criminal use of cloud computing

Legacy IT systems (in reference to cloud computing)

IT systems that have been in use for an extended time period; can not be transferred to the cloud easily; organizational IT systems have accumulated a diversity of hardware, operating systems, and applications. When bundled together, these systems are called “legacy spaghetti"

reliability (in reference to cloud computing)

not as reliable as well managed IT infrastructure