WELCOME

To all PGDM Students

Management Information System

from

Ritesh Singhal
Ritesh Singhal

Information is Critical
The information we have is not what we want, The information we want is not the information we need, The information we need is not available.

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Why need Information?

To ensure effective and efficient decision making leading to prosperity of the Organization.

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Why need Information?

Business and business environment have changed dramatically in the last one and half decade. Look at some major trends in modern business environment: Increasing competition Increasing uncertainty in the marketplace Increasing Globalization
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Why need Information?

Increasing Outsourcing Reducing Hierarchy and improved transparency Increasing clout of civil society & media Increasing customer focus Increase investment on information technology
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Why need Information?

These are the few reason why large corporate houses are investing millions of dollars to ensure a proper information technology infrastructure for better information management. Investing in Enterprise Resource Planning (ERP), Customer Relationship management (CRM), Supply Chain Management (SCM), Data Ware housing and data mining (DWDM) helps in faster, accurate, timely & reliable decision making.
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Information and its Value

The human brain works in a way that it prioritize information according to its perceived value. The value of information delivers for business can be of several types. Eg. It may be launch date of a competitors product (usually kept secret)
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Information and its Value

Information can be conceptualize in many ways, like information is a processed data, but all processed data may not be the information for everyone. Same information can have different values for different people at different point of time. The information about drinking water well is more valuable to a person who is lost in a desert than a person lost in the city of Pune.
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Information and its Value

Mathematically, information may be defined as a function of probability of occurrence of an event.
X probability of occurence Y Value of information

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Data, Information & Knowledge

Accuracy Knowledge

Information

Data
Understanding
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Quality of Information
Timeliness Relevant Reliable Accuracy Completeness

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MIS
Management Information System MIS refers broadly to a computerbased system that provides managers with the tools for organizing, evaluating and efficiently running their departments.

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Management Information System

Right Information To the right person At the right place At the right time In the right form At the right cost

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Management Information System

Management, Information and System together bring out the focus clearly & effectively. System is a set of interrelated components with clearly defined boundary working together to achieve a common objective ; Information stressing on processed data in the context in which it is used by end users; Management focusing on the ultimate use of such information systems for managerial decision making.
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Historic Development
The concept of MIS has changed substantially over the years. In the 60s, the management saw the potential of computers to process large amounts of data speedily and accurately. The departments that were involved with such activities were known as Electronic Data Processing (EDP) departments. The focus of EDP was Record Keeping e.g. accounting data Payroll data.

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Historic Development
In the 70s, there was a discernible shift from data to information. The focus was not on data but on the analysis of Organization data. There was a shift in the philosophy. Such a concept came to be widely known as Management Information System.

right information in right time to right people

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Historic Development
In the 70s the top management relied on the staff of EDP & MIS to supply the necessary information. The 80s saw the Personal Computer (PC) revolution. The Personal Computer & the desk-top metaphor changed the picture completely. This led to the emerge of Decision Support Systems (DSS)

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Historic Development
The information and decision hungry managers of 80s saw a huge potential in the expert systems as a result of spectacular growth in the Artificial Intelligence area. Combined with DSS philosophy the expert systems could supply a superior class of managerial information support, known as Knowledge Based Systems (KBS).

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Historic Development
EDP - Focus on Data OAS - Focus on Communication MIS - Focus on Information DSS - Focus on Decision Support EIS (Executive Information System) - Focus on Decision Support for Top Management ES (Expert System) - Focus on Consultation and knowledge AI - Focus on self-learning / thinking systems

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Developing IS
Investigate Analyze

Design
Implement Maintain
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Process of MIS
Government Agency Customers Output Labor Unions Stockholders
Goods and services: Products Services Payments Contributions Information Other Effects

The Community Competitors Management

Information system

Suppliers

Economic Resources: People, Money Material, Machines, Land Facilities Energy Information

Business Process: Market , Develop , Produce and Deliver Products and Services Support Customers Other Processes

Input Financial Institutions

Processing

IS Resource
People Resource Hardware Resource Software Resource Data Resource Network Resource Information resource

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The applications of IS that are implemented in todays business world can be Classified in several different ways. Several types of IS can be classified as Either operations or management information system. Information System
Operations Support System

Types Of Information System

Support of Business Operation

Management Support System

Support of Managerial Decision making

Transaction Processing System

Processing Business transactions

Process Control Systems

Control of Industrial Processes

Office Automation Systems

Team and Workgroup Collaboration

Expert System
Knowledge base

Decision Support System

Interactive Decision Support

Executive Information System

Information Tailored for Executives

Office Automation System (OAS)

This type of system helps in automating office tasks. They have a limited role in decision-making. This system help in creating paperless office and deal with operational data. Office work becomes faster & process driven. Helps in increasing the productivity & efficiency of the office workforce.
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Transaction Processing System (TPS)

TPS helps in smooth functioning of an organization. TPS provides the management with the flexibility of storing data in structured manner and retrieving it later using queries. TPS deals with tactical data from within the organization.
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Decision Support System (DSS)

DSS helps senior management to take strategic decision. DSS help the management to develop what if analysis so that different scenario can be developed for decision making. DSS deals with both internal & external data.
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Executive Information System (EIS)

It provides user-friendly interface so that proactive steps may be taken to beat competition. It provides fast access to all type of data by filtering and tracking. It helps to identify & troubleshoot the problem and take advantage of the opportunities.
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Expert System
It is a knowledge based information system that uses the knowledge about specific & complex area to act as an expert consultant. ES provide answers to the questions by making human-like inferences. These systems are loaded with the knowledge of experts to arrive at decisions.
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Information System Hierarchy

Decision Structure

Information Characteristics
Ad Hoc Un scheduled Summarized Infrequent Forward Looking External Wide Scope

Unstructured
Strategic Management Executives and directors DSS, ES, EIS

Semi structured

Tactical Management Business Unit Managers (TPS) Operational Management (OAS) Prespecified Scheduled Detailed Frequent Historical Internal Narrow Focus

Structured
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Characteristics of MIS
Management Oriented & Management Directed: MIS is for the management by the management. It will connect top to bottom. Integrated: It integrates all operational & functional activities of management. Common data flows (centralization) to avoid duplication & redundancy.

Characteristics of MIS
Strategic planning: MIS requires very high degree of planning which creates effective organization and runs for coming years. Any modern MIS should be built on latest Information & communication technology (ICT).

Benefits of MIS
MIS increase productivity MIS enhances the quality of decisionmaking. MIS improves communication which helps to develop team work. MIS helps organizations to remain competitive.

Limitations & Problems of MIS

MIS is based on data, if data is faulty then results will be faulty (garbage-in-garbageout) When MIS implemented it changes the way people view their work, change in skill requirement of employee, process & entire organization culture. Any major change that changes the functioning of departments drastically is likely to be challenged or resisted by the department as it changes their way of working.

Limitations & Problems of MIS

The employees have to be trained to appreciate the importance of information. In some cases it has been noted that even after implementation employee still resist to change. If employee participation is good the resistance to MIS is less. In some cases employee has a fear to loss of power due to emergence of MIS.

Characteristics of Different levels of management

Characteristics Top Mgt
Planning Activity
Control Activity

Middle Mgt
Moderate
Heavy

Lower Mgt
Low
Heavy

Heavy
Low

Decision Making
Type of Information Required Understanding Competition Understanding the line of business Leading activity

Heavy
Strategic

Moderate
Tactical

Low
Operational

High High

Medium Very High

Low Medium to low

Heavy

Moderate

Low

Functional Business System

MIS is an integrated collection of functional information system like:
Marketing Information System Manufacturing Information System Human Resource Information System Financial Management Information System

Marketing Information System

Sales force Automation Advertising and Promotions Product Management Market Research & Forecasting Customer Relationship Management Pricing Packaging

Manufacturing Information System

Production Management Maintenance QA/QC Total Quality Management Project Management CAD/CAM Material Resource Planning Supply Chain Management

Human Resource Information System

Recruitment Training & Development Compensation Management Performance Management Separation Management Attendance & Leave Management

Financial Management Information System

Working capital Management Investment Management Auditing Budgeting Capital Expenditure Cash Management

Functional Information Systems

Functional Business systems is a variety of types of information systems that support the business functions of accounting ,finance, marketing, operations management and Human resource management

Marketing
Production/Operations

Manufacturing Resource Planning Manufacturing Execution Systems Process Control

Customer Relationship Management Interactive Marketing Sates force automation

Human Resource Management

Functional Business Systems

Compensation Analysis Employee skills inventory Personal requirements forecasting

Order processing Inventory control Accounts receivable Accounts payable Payroll General Ledger

Cash Management Credit Management Investment Management Capital budgeting Financial forecasting

Accounting

Finance

Supply Chain Management

Definition:
Supply Chain Management is a cross-functional enterprise system that uses information technology to help support and mange the links between some of the companys key business processes and those of its suppliers, customers , and business partners.

NOTE:

The Goal of SCM is to create a fast , a efficient and low-cost network of business relationships or supply chain to get a companys products from concept to market.
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Supply Chain Life Cycle

Commit

Schedule

Make

Deliver

SCM Functional Processes

Forecast and Demand Planning Strategic Sourcing and Customer Order Fulfillment/Service Procurement Distribution Network and Warehouse Operations Production Transportation and Shipment Logistics Management

The Internet
Shared Market Data Collaborative Fulfillment

SCM Integration Solution

Supplier

Manufacturer
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Retailer

Customer

Objectives and Outcomes of SCM (Role of SCM)

SCM Objectives What? Establish objectives , policies , and operating footprint How much? Deploy resources to match supply to demand When ? Where? Schedule ,monitor , control and Adjust production Do Build and transport SCM Outcomes Objectives Strategic Supply policies (Service levels) Network design Tactical Demand forecast Production , procurement , logistics plan Inventory targets Work center scheduling Order/inventory tracking Order cycle Material movement

Operational

Execution

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Trends In SCM
Order Management Inventory Management Resource Allocation Systems Use and Integration

Information Sharing Products/Sales Data Sourcing Help Logistics Order Fulfillment

Collaborative Marketing Sales and Service SCM Optimization Collaborative Design and Delivery

SCM Stage 1 Current supply chain improvement Supply chain, e-commerce

SCM Stage 2 Intranet/extranet links to trading partners Supplier network expansion

SCM Stage3 Collaborative planning and fulfillment Extranet and exchangebased collaboration

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Role of Chief Information Officer (CIO)

CIO is the head of MIS department. The key task that CIO performs: Ensuring that MIS is managed properly. Create security policy Limited access to employees Interpersonal skills Technical skills
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Data Base Management System

A database is an organized collection of facts. DBMS is a software package that allows data to be effectively stored, retrieved and manipulated. The data contained in a DBMS package can be accessed by multiple applications programs and users. ORACLE, SQL Server, MS-Access, FoxPro etc.
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Fundamentals of DBMS
Field Record File Database Key Field Data Information Knowledge

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DBMS Users
Naive Users are the end users of the database who work through a menu driven application. Online Users are those who may communicate with the database via an online terminal. Applications Programmers are those who responsible for developing applications programs. Data Base Administrators who is responsible for design, management and implementation of database.

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Types of Data Base Languages

DDL (Data Definition Language) is a language used to define data and their relationship to other files. DML (Data Manipulation Language) deals with the processing, manipulation (delete/modification) DCL (Data Control Language) DCL is used to impose security features to prevent unauthorized access.
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Data Base Views

Internal View Conceptual View External View

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Data Models
Hierarchical This model is like a structure of tree with records forming the nodes and field like the branch of the tree Network In this model, a record type can have multiple owners. For example order processing should use customer table, product table, order table, account table. Relational A relational model allows you to groups its data items into one or more independent tables that can be related to one another by using common field

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Database Structure
Multidimensional Structure Object Oriented Database structure

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What is System?
A system may be defined as a set of elements, joined together to achieve a common objective. The word system is used quite often in our everyday life, like educational system, political system, economic system, solar system & computer system etc. It is clear that a system is not a randomly assembled set of elements, rather it consists of elements which can be identified as related to each other.
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Types of system
Abstract and Physical System: Abstract system is an orderly
arrangement of interdependent ideas which may or may not have any counterpart in the real world. Where as physical system are concrete operational system made of people, material, machine etc.

Deterministic

system is one where occurrence of all events is known with certainty, where as in probabilistic system occurrence can not predicted.
interacts with the environment and exchange information, material and undefined input. Where as a closed system is one which does not interact with its environment. eg. A computer program
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& Probabilistic

System: A deterministic

Open and Closed System: an open system is one that

System Related concepts

Boundary: The boundary of a system may exist either
physically or conceptually. The system is inside the boundary, while its environment is outside the boundary. the interconnections and interactions among the subsystems are called interfaces.

Interface: Each system can have sub-systems where White box & Black box: White box is where a clear
understanding of internal working of the system is known while black box is where a no clear understanding of internal working of the system.

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Developing Business System

When the systems approach to problem solving is applied to the development of information system solutions to business problem, is called information system development.

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System Analysis & Design

The overall process by which information systems are designed and implemented within organizations is referred to as system analysis & design. Within this, process are contained activities that include the identification of business problem; the proposed solution, the design and implementation of that proposed solution to achieve the desired and stated goal of the organization.
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System Development Life Cycle

Using the systems approach to develop information system solutions can be viewed as a multistep Process called the information systems development cycle, also known as the System development Life cycle(SDLC). SDLC includes the steps of (1) investigation (2) analysis (3) design (4) implementation and (5) maintenance.

Understand the Business Problem or Opportunity

Systems Investigation Product: Feasibility Study Systems Analysis Product: Functional Requirement

Determine how to address business opportunities and priorities Conduct a feasibility study to determine whether a new or improved business system is a feasible solution Develop a project management plan and obtain management approval Analyze the information needs of employees, customers and other business stakeholders. Develop the functional requirements of a system that can meet business priorities and the needs of all stakeholders.

Develop an Information System solution

Systems Design
Product: System Specifications Systems Implementations Product: Operational System Systems Maintenance Product: Improved System
Develop specifications for the hardware, software, people, network and data resources, and the information products that will satisfy the functional requirements of the proposed business information system.

Implement The Information System Solution

Acquire hardware and software. Test the system, and train people to operate and use it. Convert to the new business system. Manage the effects of system changes on end users.

Use a post implementation review process to monitor, evaluate and modify the business system as needed

Feasibility Studies
Because the process of development can be costly, the systems investigation stage typically requires a preliminary study called a feasibility study. A feasibility study is a preliminary study where the information needs of prospective users and the resources requirements, costs, benefits, and feasibility of a proposed project are determined. The feasibility of a proposed business system can be evaluated in terms of five major categories.

Operational Feasibility

Economic Feasibility

How well the proposed system support the business priorities of the organization. How well the proposed system will fit in the existing organization.
Technical Feasibility

Cost savings Increased revenue Decreased investment requirements Increased profits Cost/Benefit Analysis
Organizational Feasibility

Hardware, software and Employee, customer, supplier network capability, reliability acceptance and availability. Management support

Legal/Political feasibility
Patent, copyright Software licensing. Government restrictions Affected stake holders and reporting authority.

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System Analysis
Whether you want to develop a new application quickly or involved in a long term project, you will need to perform several basic activities of system analysis. It is an in-depth study of enduser information needs that produces functional requirements that are used as the basis for design of a new information system. The activities, resources and products of one or more of the present information system being used.
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Organizational Analysis
The members of IS development team have to know something about the organization, its management structure, its people, its business activities, the environment system it deals and its current information system. Thats why business end users are frequently added to system development team.
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Analysis of present system

Before design a new system, it is important to study the system that will be improved or replaced. Here you need to analyze how this system uses hardware, software, network and people resources, data resources, reports and displays.

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Logical analysis
The logical model can be thought of as a blueprint of the current system. Here the system analyst can more easily understand various processes, functions and data associated.

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Functional requirement analysis

Here first you determine what type of information each business activity requires; what its format, volume and frequency should be; what response time is necessary. The requirements may include:

a. User interface requirement b. Processing requirement

of sales and cost.

Automatic entry of the product and easy to use data entry screen. Fast, automatic calculations

c. Storage requirement
data

Fast retrieval and update of

d. Control requirement
quick e-mail confirmation.

Signals for data entry errors and

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System Design
System analysis describes what a system should do to meet the information needs of users. Systems design specifies how the system will accomplish this objective. Systems design consists of design activities that produce system specifications satisfying the functional requirements that were developed in the systems analysis process.

User Interface Design

Screen , Form, Report and Dialog Design

Data Design
Data Element Structure Design

Process Design
Program and Procedure Design

Checklist for User Interface Design

Remember the customer Fast loading graphics Broadband content (accessibility) Easy to navigate (site map) Search ability Compatibility Registration Dead Links
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Prototyping Model
Prototyping is the process of iterative development of working model of new application that can be used by both IS specialist and business professionals. It makes the development process faster and easier, especially for projects where end-user requirements are hard to define. Usually, a prototype is modified several time before end users find it acceptable.

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Prototyping
Identifying an End Users Business Requirements

Investigation/Analysis: End users identify their business needs and assess the feasibility of several alternative information system solutions Analysis/Design: End users and/or IS specialists use application development tools to interactively design and test prototypes of information system components that meet end user business needs.

Develop Business system Prototypes Prototyping Cycle Revise the Prototypes to Better Meet End User Requirements Maintenance Cycle Use and Maintain The Accepted Business System

Design/Implementation: The business system Prototypes are tested , evaluated and modified repeatedly until end users find them acceptable

Implementation/Maintenance: The accepted Business system can be modified easily since most system Documentation is stored on disk.

Spiral Model
This methodology uses some features of waterfall model and prototype model both. The spiral model start with the quadrant A then B , C and D quadrant respectively. The spiral model moves one stage to another and after each stages the software gets improved.
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Spiral Model

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Rapid Application Development (RAD)

RAD is fast way of developing software. In RAD, the development cycle time is extremely short. RAD uses the component based approach for developing software. In this model software system be modularized, so that the components of the system can be built in parallel. The RAD model is suitable only where the developers and the customers are committed to a tight time schedule and help each other in the development process.
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End User Development

In end user development, IS professionals play a consulting role, while you do your own application development. Sometimes a staff of user consultants may be available to help you and other end users with your application development efforts. This may include training in the use of application packages; selection of hardware and software ; assistance in gaining access to organization databases and of course , assistance in analysis, design and implementing the business application of IT that you read. Control
What control are needed to protect against accidental loss or damage? Is there a need to control access to data used by the application?
What operations on the inputs are needed to produce the desired output? What software can most effectively support those operations?

Input What data available, in form?

Processing

are what

What information is needed by end users and in what form should the output be presented?

Output

Does the application use previously stored data? Does it create data that must be stored for future use by this or other applications?

Storage

System Testing
GUI software testing Usability testing Performance testing Compatibility testing Error handling testing Load testing Security testing Sanity testing Regression testing Reliability testing Installation testing Recovery testing
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System Implementation
Ones the new information system has been designed, it must be implemented as a working system and maintained to keep it operating properly. Implementation is a vital step in the deployment of IS to support the employees, customer, and other business stakeholders of a company.
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Implementation tasks
Implementation Plan Organizing the MIS department Selection & procurement of hardware Procurement of software Database administration Training of users Creating physical infrastructure Transition to the new system
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System Conversion Strategies

Parallel Conversion:
a. b. Both the system works simultaneously until the end-user fully satisfied. Parallel conversion bring high cost

Pilot Conversion:
a. b. This can be used when new system may be installed only at some branches. This approach is required where some location have different characteristics.

Phased Conversion:
a. b. c. Attempt to take advantage of the best features of both system. Implementation would be done in different phases. Risk minimization

Direct Conversion:
a. b. Both the system cannot coexist simultaneously Greatest risk of failure

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Success factors in implementation of information system

Top Management Commitment IS team composition Effective communication Change Management Training Technical quality of IS

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Information System Evaluation

A major activity during the implementation phase of SDLC is the acquisition and hardware & software necessary to evaluate the new system. Companies evaluate the system based on hardware, software and IT services (training & maintenance). Large companies requires RFP & RFQ to appropriate vendor, who use it as the basis for preparing a proposed purchased agreement.
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System Documentation
Documentation is a written text that accompanies computer software. It either explains how it operates or how to use it, and may mean different things to people in different roles. Types of documentation include: Requirements Statements that identify attributes, capabilities, characteristics, or qualities of a system. This is the foundation for what shall be or has been implemented. Architecture/Design - Overview of software. Includes relations to an environment and construction principles to be used in design of software components. Technical - Documentation of code, algorithms, interfaces, and APIs. End User - Manuals for the end-user, system administrators and support staff. Marketing - How to market the product and analysis of the market demand.
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Managing Software & Hardware Assets

IT assets having very short life span. The rate of obsolescence is again high. IT assets require very high capital expenditure. Constant maintenance is required. Requires strict monitoring to ensure that the assets are not devalued.
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Implementing Business Systems

Implementation can be a difficult and time-consuming process. However, it is vital in ensuring the success of any newly developed system, for even a well designed system will fail if it is not properly implemented. That is why the implementation process typically requires a project management effort on the part of IT and business unit managers. They must enforce a project plan which include job responsibilities, time lines for major stages of development, and financial budgets. This is necessary if a project is to be completed on time and within its established budgets, while still meeting its design objectives.

Implementation Activities

Acquisition Of H/w , S/w and Services

Software Development Or modification

Data Conversion

End User Training

Conversion Parallel Pilot Phased Direct

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Waterfall Model

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E-Commerce
For most companies today, electronic commerce is more than just buying and selling products online, instead it encompasses the entire online process of developing, marketing, selling, delivering, servicing and paying for product and services transacted on inter-networked, global market places of customer, with the support of a world-wide network of business partners.

E-Commerce
Most companies, large and small are engaged in some form of e-commerce activities. Therefore, developing an ecommerce capability has become a competitive necessity for most businesses in todays marketplace.

E-Commerce
The advantage of E-Commerce allow a business of any size that is located virtually anywhere on the planet to conduct business with just about anyone, anywhere.

E-Commerce
Introduction to E-commerce
E-commerce is changing the shape of competition , the speed of Action, and the streamlining of interactions, products and payments from customers to companies and from companies to suppliers.

Categories of e-Commerce
Many companies today are participating in or sponsoring three Basic categories of electronic commerce applications:
1.Business-to-Consumer(B2C) e-Commerce: In this form of electronic Commerce , businesses must develop attractive electronic marketplace to sell products and services to consumers. For example many companies offer e-commerce websites that provide virtual storefronts and multimedia catalogs, interactive order processing, secure electronic payment systems and online customer support.
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2.

Business-to-Business(B2B) e-Commerce: This category of electronic Commerce involves both electronic business marketplaces and direct market Links between businesses. For example, many companies offer secure Internet Or extranet e-commerce catalog websites for their business customers and Suppliers. Also very important are B2B e-commerce portals that provide auction and exchange marketplaces for businesses.

3. Consumer-to-Consumer(C2C) e-Commerce: The huge success of online auctions like eBay , where consumers can buy and sell with each other in an auction process at an auction website, makes this e-commerce model an important e-commerce business strategy. Thus, participating in or sponsoring consumer or business auctions is an important e-commerce alternative for B2B, C2B or B2B ecommerce. Electronic personal advertising of products or services to buy or sell by consumers at electronic newspaper sites, consumer ecommerce portals, or personal websites is also an important form of C2C e-commerce.

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Electronic Buying of goods and services

Product Discove ry

Product Evaluat ion

Terms Negotia tion

Order Placem ent

Order Trackin g

Order Payme nt

Product Receipt

Product Service s and Suppor t

Buying Process

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E-Commerce Process Architecture

Access Control And Security Access Control Authentication Security Measures

Content Management Dynamic Content Generation Data Repository

Collaboration And Trading

Mediation Negotiation Bidding/Auctioning Collaborative Buying Online Community

Profiling and Personalizing Profile Management Personalization Behavior Tracking

Pricing Calculation Product Configuration Catalog Generation

Catalog Management

Workflow Management Buying Process Automation Document Management Rule and RoleBased Content Routing

Search Management Content-Based Search Parametric-Based Search Role-and ruleBased Search

Payment Shopping Cart Payment Method Support Payment Verification

Event Management Event Driven Transaction Processing Message to eMail Message Boards Newsgroups

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1. Access Control and Security

E-commerce processes must establish mutual trust and secure access between the parties in an e-commerce transaction by authenticating users, authorizing access and enforcing security features. Security processes protect the resources of e-commerce site from the threats such as hacker attacks, password theft or credit card number theft and system failure.
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2. Profiling and Personalizing

Once you have gained access to an ecommerce site, profiling processes can occur that gather data on you and your website behavior and choices, as well as build electronic profile of your characteristics and preferences. User profiles are developed using profiling tools such as user registration, cookie file, website behavior tracking software and user feedback. This is also known as one-to-one marketing strategy.
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3. Search Management
Efficient and effective search processes provide a top e-commerce website capability that helps customer to find the specific product or service they want to evaluate or buy. Advance search option may also include to optimizes the search process.
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4. Content and catalog management

Content management software helps e-commerce companies to develop, generate, deliver, update and achieve text data and multimedia information at e-commerce website. It works with the profiling tool to personalize the content of web pages seen by individual users.
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5. Workflow Management
Workflow system for enterprise collaboration help employee electronically collaborate to accomplish structured work tasks within knowledge based business processes. Workflow system ensures that the proper transactions, decisions and work activities are performed and the correct data and documents are routed to the right employees, customer, suppliers and other business stakeholders.
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6. Event Notification
Event notification works with workflow system to monitor all ecommerce processes and record all relevant events. E.g. when you purchase any product from a website, you automatically receive e-mail of your order, payment status, shipment status or any other related information.
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7. Collaboration & trading

It consists of that support & collaboration arrangements and trading services needed by customer, suppliers & other stakeholders to accomplish e-commerce transactions.

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8. Electronic Payment Process

Payment process, are not simple because of anonymous electronic nature of transaction taking place between the networked computer systems of buyers & sellers and many security issues involved. It is also complex because of wide variety of debit & credit alternatives, as well as financial institutions and intermediaries that may be the part of the process.
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8. Electronic Payment Process

e-commerce websites uses many payment processes such as: a) Credit card b) PayPal c) BillPoint d) VisaBillPay e) CheckFree f) Paytrust g) EFT (Electronic fund transfer) h) CoD i) E-cheque j) IVRS
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Secure electronic Payment

When you are online, your credit card information is vulnerable to interception by network-sniffer. There are some security measures that can be taken: a) Encryption b) Secure Socket layer (SSL) c) Identity theft
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E-Commerce Applications and Issues

E-Commerce is changing how companies do business both internally and externally with their customers, suppliers , and other business partners. How companies apply e-Commerce to their business is also subject to change As their managers confront a variety of e-Commerce alternatives. The application of e-Commerce by many companies have gone through several major stages as e-Commerce matures in the world of business.
For Example, E-Commerce between businesses and Consumers(B2C) moved from merely offering multimedia company information at corporate websites to offering Products and services at web store front sides via electronic catalogs and online sales transactions. B2B e-Commerce , on the other hand , started with website Support to help business customers serve themselves ,and than moved toward automating intranet and extranet procurement systems.

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Trends in B2C and B2B e-commerce

Short Term Strategies Long Term Strategies
E-Business Empowerment

High
Self-Service Web Sales Interactive Web Store Interactive Marketing

B2C Portal B2B Portal

SCM CRM

Extranets And Exchanges

Business Value

Web Storefront & e-Catalog

Procurement Automation

B2C
Web Brochures

B2B

Customer Self-Service

Low

Short Term Project Time to Implement

Ritesh Singhal

Operations automation

High

e-Commerce Success Factors

Selection and Value: Attractive product selections , competitive prices, satisfaction guarantees and customer support after the sale. Performance and Service: Fast, easy navigation, shopping and purchasing, and prompt shipping and delivery. Look and Feel: Attractive Web storefront , website shopping areas, multimedia product catalog pages and shopping features Advertising and Incentives: Targeted Web page advertising and e-mail promotions , discounts and special offers, including advertising at affiliates sites. Personal Attention: Personal Web pages , personalized product recommendations, Web advertising and e-mail notices and interactive support for all customers. Community Relationship: Virtual communities of customers, suppliers, company representatives and other via newsgroups, chat rooms and links to related sites. Security and Reliability: Security of customer information and website transactions, trustworthy product information and reliable By Rakesh Roshan order fulfillment

E-commerce Example
B2B- Intel selling micro processors to Dell B2C- Target selling toilet paper to you

C2B- Grandma selling pies to the local coffee shop to sell to its customers
C2C- My neighbor selling his car to me

Ritesh Singhal

Web Store Requirement

Developing a web store a. Build site design, hosting b. Market advertising & promotions Serving the consumers a. Serve product search, shopping cart b. Transact order process, shipping, payments c. Support online help, chat room Managing a web store a. Manage -- sales, inventory, website b. Operate 24x7 hosting c. Protect password protection, encryption
Ritesh Singhal