The document discusses how the web and internet technologies are changing business operations. It covers topics like HTTP, HTML, XML, blogs, wikis, cookies and how they enable web technologies. It also compares options for web servers and hosting. Different models of business-to-business and business-to-consumer practices on the web are explained. The relationship between web technologies and supply chain management is discussed. Examples of features successful business websites offer and considerations for online security are provided. [/SUMMARY]

1. Management Information Systems,
Sixth Edition
Chapter 8:
The Web-Enabled Enterprise

2. Objectives
• Describe how the Web and high-speed Internet
connections are changing business operations
• Explain the functionality of various Web
technologies
• Compare and contrast options for Web servers
• Explain basic business-to-business and
business-to-consumer practices on the Web
• Explain the relationship between Web
technologies and supply chain management
Management Information Systems, Sixth Edition 2

3. Objectives (continued)
• Give examples of features and services that
successful business Web sites offer
• Learn about online annoyances such as spam
and adware, and how to protect against online
identity theft
Management Information Systems, Sixth Edition 3

4. Web Business: Growing and Changing
• DLA Piper LLP is the second largest law firm in
the world
– 3200 lawyers in 24 countries and 63 offices
around the world
– Uses eRoom, a Web-based collaboration and
document-sharing tool from EMC Corp.
– Saves 15,000 labor hours annually, uses and
mails significantly fewer paper documents, and
reduces redundant work
Management Information Systems, Sixth Edition 4

5. Web Technologies: A Review
• Several standards and technologies enable the
Web to deliver rich information, including:
– HTTP, HTML, XML
– File Transfer
– RSS
– Blogs
– Wikis
– Podcasting
– IM
– Cookies
Management Information Systems, Sixth Edition 5

6. HTTP
• Hypertext Transfer Protocol (HTTP): transfer
and download Web information
• HTTPS: HTTP secure for confidential data
exchange
• Uniform Resource Locator (URL): unique
address given to each Web site
– IP address: a special numeric address
• Domain name: unique name for a Web site,
constructed with letters
– URL also refers to the domain name
Management Information Systems, Sixth Edition 6

7. HTML and XML
• Hypertext Markup Language (HTML): helps
developer create Web pages
– Determines look and location of content
• Extensible Markup Language (XML): enables
creation of various data types
– Conveys the meaning or content of the data
• XHTML: combination of XML and HTML
– Uses opening and closing tags to control format
Management Information Systems, Sixth Edition 7

8. Management Information Systems, Sixth Edition 8

9. File Transfer
• File Transfer Protocol (FTP): used to transmit
whole files
– Used in all downloads from Web sites
– Any type of file can be transferred
– Can place files on a server for shared use
– Often used to deliver purchased software
products on Web sites
Management Information Systems, Sixth Edition 9

10. RSS
• Really Simple Syndication (RSS): family of
XML file formats that allow automatic downloads
of content on a subscription basis
– Helps users check for updates
– Communicates short descriptions of content
– Allows transmittal of new information
– Useful on news Web sites
– Also called Rich Site Summary
Management Information Systems, Sixth Edition 10

11. Blogs
• Blog: contraction of “Web log”
– Invites surfers to post opinions and art
– Focuses on a topic or set of topics
– Trackback: a tool that notifies bloggers when
their posts have been mentioned elsewhere on
the Web
• Blogs are often used by businesses
• Importance of blogs to commercial organizations
is to find out what blog participants think and say
about the organization
Management Information Systems, Sixth Edition 11

12. Wikis
• Wiki (from Hawaiian, meaning “quick”): Web
application that enables users to add to and edit
the contents of Web pages
– All the software required to edit the Web pages is
embedded in the pages themselves
• Wikipedia: a popular online encyclopedia
• Wiki technology is a popular ingredient in
groupware (software used for collaboration)
Management Information Systems, Sixth Edition 12

13. Management Information Systems, Sixth Edition 13

14. Podcasting
• Podcast: publishing sound and video on the
Web for download
– Usually on a subscription basis
• Uses include:
– “Time-shifted” broadcast of radio station
programs for later listening
– Audio tours in museums
– Lectures in distance learning courses
– Garageband.com
• Allows aspiring musicians to post music tracks
Management Information Systems, Sixth Edition 14

15. Instant Messaging
• Instant messaging (IM): real-time chat
– Form of synchronized e-mail
– Chat room: communicate with a group
– Free applications for IM include:
• AIM: AOL instant Messenger
• Yahoo Messenger
• MSN Messenger
• ICQ
• Trillian
– Business uses
• Customers can chat with sales or support reps
Management Information Systems, Sixth Edition 15

16. Management Information Systems, Sixth Edition 16

17. Cookies
• Cookie: small file that stores information about a
Web site visitor, stored on the visitor’s computer
– Usually records the surfer’s ID
– Often stores the surfer’s preferences
– Provides convenience to consumers
– Can be temporary (single session) or permanent
– Potential for intrusion into surfer privacy
• Clickstream tracking: tracks a surfer’s clicking
activities
• Spyware: traces and reports online behavior
Management Information Systems, Sixth Edition 17

18. Proprietary Technologies
• Proprietary technology: intellectual property of
developer, not free for all to use
• Examples:
– Local search engine
– Shopping cart applications
– Wish lists
– Video streaming tools
– Tools to analyze and predict Web visitor
behavior, especially shopper behavior
Management Information Systems, Sixth Edition 18

19. Web-Enabled Business
• Web-enabled business are classified according
to the interacting parties:
– Business-to-business (B2B)
– Business-to-consumer (B2C)
– Government-to-business
– Government-to-consumer
Management Information Systems, Sixth Edition 19

20. B2B Trading
• Business-to-business (B2B): trading between
businesses only
• B2B forms include advertising through:
– Search advertising: advertisements placed on a
search site result page
– Banners: images placed on Web sites that link to
a company site selling a product or service
• Impression: occurs when a page with a banner
is downloaded
• Reach percentage: the percentage of Web
users who visited a site in the past month
Management Information Systems, Sixth Edition 20

21. Management Information Systems, Sixth Edition 21

22. B2B Trading (continued)
• Exchanges and auctions act as online
marketplaces
• Intranet: network used only by employees of an
organization
• Extranet: network shared by employees of
different organizations, usually business partners
• Exchange: extranet for organizations that deal in
products and services of a particular type
– Exchange operator profits from transaction fees
• Auction: sells a great variety of items
Management Information Systems, Sixth Edition 22

23. Management Information Systems, Sixth Edition 23

24. B2B Trading (continued)
• Online business alliances: collaboration
between businesses in establishing a Web site
– Site operator works for the allied companies
– Suppliers are invited to sell through the site and
compete among themselves, driving prices down
Management Information Systems, Sixth Edition 24

25. B2C Trading
• Business-to-consumer (B2C): trading with the
general public
• E-Tailing: online retailing to consumers
• Fulfillment activities: picking, packing, shipping
• Consumer profiling: know customers better by
gathering information about their online activities
– Some consider this a violation of privacy
• Conversion rate: the proportion of site visitors
who make a purchase
Management Information Systems, Sixth Edition 25

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28. B2C Trading (continued)
• Auction sites serve as a hub for consumers to
buy and sell
• Reverse auction: customers name their own
price for desired goods and services
• Content providers: offer information, artistic
work, classified ads, and video
• Electronic bill presentment and payment
(EBBP): provides online bills and payment
options for customers
• Phishing: type of fraud involving a fake Web
site
Management Information Systems, Sixth Edition 28

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31. B2C Trading (continued)
• Extra-organizational workforce:
– Companies purchase labor from a larger pool
• Mobile commerce, or M-commerce:
– Business conducted on mobile devices
• Many experts believe that information delivery is
the main mobile application, not commerce
– Exceptions are Japan and South Korea
– Japan’s DoCoMo’s i-mode service allows users
of smart cell phones to purchase canned soda
from vending machines, fast food
Management Information Systems, Sixth Edition 31

32. B2C Trading (continued)
• M-commerce also raises privacy concerns
– GPS provides location tracking
• New top-level domain names with .mobi
available for mobile applications
– Sites should use special technologies to optimize
content for easy viewing on mobile devices
• Virtual world: a combination of images, video,
sound, and avatars that resemble the real world
– Accessible for interaction by subscribers
• Avatar: 3D graphical character that represents a
user in a virtual world
Management Information Systems, Sixth Edition 32

33. Supply Chains on the Web
• Supply chain management (SCM) systems may
be connected to the Web to allow suppliers to
participate directly
– Use of XML allows companies to set standards
for data exchange
• Electronic Data Interchange (EDI): a system
used prior to the Web to exchange documents
electronically
– Set standards for data formats
– EDI networks are owned and managed by value-
added network (VAN) companies
Management Information Systems, Sixth Edition 33

34. Management Information Systems, Sixth Edition 34

35. Options in Establishing a Web Site
• Web site: Web pages that make up information
and links
• Internet server: a computer connected to the
Internet backbone
• Businesses have two choices for a Web site:
– Installing and maintaining their own Web servers
– Contracting with a Web hosting service
Management Information Systems, Sixth Edition 35

36. Owning and Maintaining a Server
• Owning and maintaining Web servers is costly
– Provides the greatest degree of control, but
requires expertise to set up and maintain
– Must obtain a high-speed link to the Web
• Load balancing: transfer data requests from a
busy server to a less busy server
• Mirror servers: servers with duplicated content
• Pure-play: company whose entire business is
online
• Brick-and-mortar: company that owns physical
stores and a Web site
Management Information Systems, Sixth Edition 36

37. Using a Hosting Service
• Web hosting: Web server managing service
• Several types of Web hosting:
– Shared hosting: stores the client’s Web site on
the same physical server as other clients
– Virtual private hosting: simulates a single server,
allowing a client to have its own domain name
– Dedicated hosting: client has exclusive use of an
entire physical Web server
– Co-location: server owned and managed by a
client is co-located with other clients’ servers in a
secure physical location
Management Information Systems, Sixth Edition 37

38. Considerations in Selecting
a Web Host
• Compare host vendors using a point system
• Dynamic Web pages: enable communication
between browser and database
• Factors to consider when selecting Web host:
– Allows use of database management system
– Storage space capacity
– Technical and Web site design support
– Scalability
– Security: physical and virtual
Management Information Systems, Sixth Edition 38

39. Considerations in Selecting
a Web Host (continued)
• Factors to consider when selecting Web host
(continued):
– Availability: minimize downtime
– Costs, including:
• Setup fees
• Traffic-based fees
• Monthly fees
Management Information Systems, Sixth Edition 39

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41. More Than Meets the Eye
• Several elements are essential to conducting
business on the Web:
– Inquiry interface: connects to database to allow
user to search a catalog of products or services
– Order processing application, including:
• Credit-card verification application
– Order-fulfillment system: picks, packs, and ships
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43. Rules for Successful
Web-Based Business
• Business success depends on availability and
use of software
• Elements needed to support B2C commerce:
– Targeting customers
– Capturing the customer’s complete experience
– Personalizing the service
– Shortening the business cycle
– Let customers help themselves
– Be proactive and de-commoditize
Management Information Systems, Sixth Edition 43

44. Target the Right Customers
• Target customers needing your products and
services
– Most important effort of marketing
• Involves identifying the sites that your audience
frequently visits
• Consider blogs and podcasting sites for
advertisement placement
Management Information Systems, Sixth Edition 44

45. Capture the Customer’s Total
Experience
• Use cookies to record shopper’s movements
within the site
• Use CRM software to create consumer profiles
• Shopper experience becomes an asset of
business, allowing:
– Fine-tuning of the product portfolio
– Tailoring of Web pages to individual customers
– Individual e-mails to shopper offering products of
interest
Management Information Systems, Sixth Edition 45

46. Personalize the Service
• CRM software and Web page customization
software can be combined to:
– Personalize Web pages shown to a customer
– Allow the customer to select the type of e-mail
content desired
– Respect visitor privacy by offering opt-in rather
than opt-out
– Allow the customer to tailor products to be
purchased
Management Information Systems, Sixth Edition 46

47. Shorten the Business Cycle
• Business on the Web saves time for customers
• Fulfillment is a major challenge for businesses
– Activities after customer places order
• Fast shipping is desired because:
– It produces higher customer satisfaction
– Business collects payments faster
• Can outsource the entire fulfillment task to
fulfillment organizations such as:
– UPS’s e-Logistics
– FedEx’s Supply Chain Services
Management Information Systems, Sixth Edition 47

48. Let Customers Help Themselves
• Customers need information from organization:
– Status of order
– Status of shipped item
– Installation instructions
– Troubleshooting
• E-mail messages sent to customers with
information about orders and how to track them
• FAQs online allow customers to find answers to
common questions
Management Information Systems, Sixth Edition 48

49. Be Proactive and De-Commoditize
• Prompt e-mail replies expected
• Proactive alerts expected for changes in orders
or services, or product recalls
• Automatic reordering features are desirable
• Must take initiatives to de-commoditize products
– Commodity: a product sold at roughly the same
price by many vendors (no differentiation)
– Addition of features or services prevents a
product from becoming a commodity by creating
differentiation
Management Information Systems, Sixth Edition 49

50. E-Commerce is Every Commerce
• Web technologies have been highly integrated
into the business world
– Difficult to identify which business activities are
on the Internet and which are not
• Web has been highly integrated into daily
activities of customers also
• Commerce and e-commerce generally have the
same meaning today
Management Information Systems, Sixth Edition 50

51. Summary
• Some industries have changed drastically
because of the Web
• HTTP is an Internet standard controlling Web
server addresses
• HTTPS is a security version of HTTP
• XML is a standard for description of data
• Blogs enable people to create discussion Web
pages
Management Information Systems, Sixth Edition 51

52. Summary (continued)
• Cookies help Web sites personalize the visitor’s
experience
• Many Web technologies are proprietary
• A business can maintain its own Web server or
use a Web hosting service
• Organizations should consider several factors
when selecting a Web host
• Web-enabled commerce is classified into B2B
and B2C
Management Information Systems, Sixth Edition 52

53. Summary (continued)
• B2B trading relies on electronic data interchange
(EDI) and XML
• Wireless handheld computers allow mobile
commerce, called m-commerce
• Online businesses must adhere to several factors
to be successful
• Virtual worlds provide a means to meet and
conduct business and social activities on the Web
• Spam and spyware are online annoyances
• Phishing is a pervasive fraud crime
Management Information Systems, Sixth Edition 53