TOPIC 1 IT IN ORGANIZATION

1. Strategy Use of IT in the Digital Economy:

1.1 Digital Economy: - Digital economy refers to an economy that is based on digital technologies. Digital economy is referred as Internet economy, new economy, or the Web economy. Digital economy means the organization is involved in: Electronic Business (E-business): use electronic technologies to transact business example purchasing boo online, and conducting financial transaction. ollaboration !co"ng ta#c$: interacting, communicating, collaborating an searching information, %xample: sending electric email, receive electric messages, video conferencing. Information e!change: storing, exchanging and transmission of information, %xample information can be stored in the form of data, text, audio, video & Data can be transferred and transmitted through internet. ' business model is a method of doing business by which a company can generate revenue to sustain itself. " business mo#els: $ Ten#ering %ia re%erse auctions: a reverse form of auctioning ta es place where the lowest bid wins, in any only tender, select the lowest price to win the bid. ( &ffiliate mar'eting: a website becomes a host site !trang chu)$ to other businesses. Icons from other companies may be placed on the host website and commission will be paid to the host site for any transaction done via the icon. ( (rou) )urchasing: purchase orders of many buyers are aggregated to negotiate for discounts. !cho v* du+ ve, nho#m mua etc.$ ( E-mar'et)laces an# E!changes: trading between buyers and sellers in an electronic mar etplace %xample: businesses of any size can buy everything from boo to electronic components at the e-mar etplace

or they serve as an exchange for buying and selling via a bidding !ebay website$ 1.* Business +ressure, -rgani.ational +erformances, IT Su))ort: / Business +ressure: - Economic01ar'et -rom the global company and strong competition, the need for real time operations, the changing forces and powerful customers %xample: when you buy products not only at a physical shop but customer can have more choices and compare the products and prices. .usinesses must launch better products, good service locally and internationally. -Technology: /echnology pressure comes from technological innovations, obsolescence and information load. /echnology plays an important role in any business. /echnology affects businesses in many ways. 0ne such technology is the Internet - Society: Including social responsibility, compliance with government regulations and social deregulations, ethical issues, terrorist attac s and homeland security %xample in 1alaysi, in term of government regulations, every government agency needs to use electronic procurement. / +erformance of -rgani.ation: 2 categories - Strategy 1anagement an# Systems: enable organizations to increase mar et share and2 or profits. %xample I/ support systems to integrate and automate many of their internal business process. 3reating efficiency and dynamic business environment for the company. - ontinuous Im)ro%ement: business can increase their operating efficiency. %xample: businesses apply /otal 4uality 1anagement to improve their products. - 3estructuring Business +rocesses: improving and redesign business processes. %xample: in the ban , a customer has to deal with many departments for different services. .y using I/, the ban can redesign so that the customers can conduct ban ing transaction through a single point of contact. - 1anufacturer to or#er: it is build-to-order, companies will produce products and services on demand. %xample: a computer company can ta e orders over the Internet for a computer and build the computer according to your specification. 3omputers will be delivered within a designated time period.

- 1ass-customi.ation: customized orders are fulfilled using efficient procedures and processes. %xample companies produce a large 5uantity of items but customize them to fit the desire of each customer. - ustomer 4ocus Strategy: companies will be able to provide good customer service, anticipate their future needs, respond to customer concerns and prevent losing customers to competitors. - Electronic Business an# E commerce: Doing business electronically, %commerce describes the process of buying, selling, transferring, or exchanging products, services and2or information via computer networ s, including the Internet. %-business refers to a broader definition of ecommerce, not 6ust the buying and selling of goods and services, but also servicing customers, collaborating with business partners, conducting elearning and processing electronic transactions. - Business &lliances: 1any companies have alliances and business lin ages with other companies for effective collaboration to reduce ris s and costs. %xample: airline and hotel chains - Data management: data managed through life cycle, data management in security, 5uality. Data is well secured. 1.5. IT De%elo)ments an# Tren#s IT De%elo)ment 6 tren#s: 7 areas of development in I/ $ (eneral De%elo)ment: 3ost decrease, performance increase 8uge increases in computer processing capacity and sharp decline in cost. 9torage capacity will increase dramatically 1ultimedia use increase especially virtual reality 3omputers will be increasingly compact and more portable :ush for open architecture eg. 0pen source Intelligent systems such as expert system are embedded in other system. :lug and play software increase. 9oftware as a service 9torage networ . 1any corporations are relying on outside server to manage their technology, which they can access via the web 1obile and wireless computing will be a ma6or component of I/ $ 7et8or' com)uting #e%elo)ments:

0ptical computing will increase networ capacity. /hese high capacity telecommunication networ s will convert signals to colours of light and transmit this over fiber ;optic filaments !ca#p 5uang$

/he use of internet will grow %-commerce changing businesses <etwor ed and intelligent systems =-ID !radio fre5uency identification

*. IT Su))ort System
*.1 Information System an# Information Technology: ( Information system (IS) collects, processes, stores, analyses and disseminates information for specific purpose. I9 can be used to support people and organization activities. 8ardware: mouse, monitor, processor, eyboard 9oftware: is a set of programs that instruct the hardware to process data. Database: a place where data is stored. <etwor : is a communication channel that permits sharing of resources. :rocedures is a set of instructions or rules for the computer to follow in order to produce a desired output. :eople are individuals that are related to the system. ( Information technology (IT) is defined as the collection of computing systems used by organization> therefore I/ can be viewed as a subsystem of an information system. *.* ategories of IT Su))ort System: /hese systems support the managerial activities and also decision ma ing. ? Transaction +rocessing System (T+S): record and process data resulting from business transactions. /:9 automates routine and repetitive tas that are critical to the operation of the organization. /ransaction processed in two basic ways: .atch processing is transactions data are accumulated over a period of time and processed periodically. %xample payroll system and order system.

=eal time processing: processing is transaction data are processed immediately after the transaction occurs. %xample airline boo ing system

? -ffice &utomation System (-&S): 0'9 refers to a set of office-related systems used to increase the productivity of office wor ers and enable wor ers to interact and wor together more efficiently. %xample: end and receive email, video meeting ? 1anagement Information Systems (1IS): 1I9 access, organize, summarise and display information in supporting routine decision ma ing in the functional areas. 1I9 are characterized mainly by their ability to produce periodic reports such as a daily list of employees and hours they wor , or a monthly report of expenses. ? 9no8le#ge 1anagement Systems (91S) are nowledge ;based information systems that support the creation, organization and dissemation of business nowledge to employees and managers throughout a company. ? Decision Su))ort Systems (DSS): is a computer-based system designed to assist a manager or decision ma er in ma ing decisions. %xample: advertising manager may use D99 to analysize as a part of a decision to define ad budget. ? Intelligent Su))ort System (ISS): applies artificial intelligence !'I$ techni5ues to business information systems. 'I is a system that can perform intelligent problem solving. 0ne application of 'I is the expert system. %xpert systems !%9s$ provide the stored nowledge of experts to non experts, so that the latter can solve difficult or time consuming problems in the absence of the expert. / E!ecuti%e Su))ort system (ESS): %99 is called %xecutive Information 9ystem !%I9$, %I9 are information systems that combine many features of 1I9 and D99. /he focus of %I9 was on meeting strategic information needs of top management. %I9 is used by managers, analyst and nowledge wor ers. *.5 Su))ly hains an# Enter)rise Systems: ? Su))ly chain: divided into @ parts ( U)stream Su))ly hain (ca:) t;< nguo=n): It includes the organizations fist- tier suppliers and their suppliers. I/ supports the upstream supply chain by improving the procurement activities.

%xample: In 1alaysia all government agencies use e-procurement to do purchasing. /ransaction between government and suppliers will be done online to save cost and time. $ Internal Su))ly hain: It includes all the processes used by an organization in transforming the inputs of the suppliers to outputs. %xample: company uses selected supply chain management !931$software to connect suppliers, distributors, customers and other partners. $ Do8nstream Su))ly hain: It includes all the processes involved in delivering the products to final customers. I/ supports Down 9upply 3hain in 7 areas: customer relationship management !3=1$ and order ta ing and shipments. %xample: prompt shipping and delivery ? Enter)rise System: is an information system that includes the entire enterprise, implemented on a company wide networ . I/ system such as /ransaction :rocessing 9ystems !/:9$, %nterprise =esource :lanning 9ystems !%=:$, 3ustomer =elationship 1anagement !3=1$, 0ffice 'utomation, Intranet and etc. can support an enterprise by providing high5uality, consistent I9 services throughout the organization. %xample: %=: not only conducts common business transaction but plans and manages resources of an enterprise.

5. 1anagerial Issues
=ecognizing opportunities for using It and the new way to compete and conduct business, locally and globally Who will build, operate and maintain the information systemsA 8ow important is I/ to organizationsA %thics !Ba+o BC#c$ and social issues. /he implementation of I/ involves many ethical and social issues.

TOPIC 2 IT INFRASTRUCTURE
1. Data 1anagement: 's a ma6or organizational resource, data have to be managed and organized li e any other company asset. It must be available when re5uired and must be current support ad hoc business decisions. 'n important activity of data management is receiving data from 5uality sources. 'ppropriate data management serves to maintain data more efficiently and effectively as well as to increase their value. ( :roblems during organizational data management: <eed to archive historical data for reference and trend analysis purpose. 0nly small portions of an organizationDs data are relevant for any specific application Data may exist in various format, databases, servers and computing systems in organizations, data must be clearly identified and defined because the same data may be used in various applications. 0rganizations do not depend solely on internal data for ma ing organizational decisions. 'n ever ;increasing amount of external data need to be considered for decision ma ing Data may be captured more than one resulting in redundancy and often that are is out of date. 1.1 Tra#itional 4ile En%ironment / Data >ierarchy: begins with bits and proceeds to databases - ' .it: smallest unit of data - ' .ite: group of bits that represents a single character which can be a number, letter or symbol.

- ' field: logical grouping of characters into a word, a small group of words. - ' record: logical group of related fields such as studentDs name, date etc. - ' database: a logical grouping of related files. %xample studentDs database. - ' primary ey: is re5uired to retrieve, update, and sort the records in a file. ' secondary ey may also be re5uired to locate a particular record. ? -ile 0rganization and 'ccess 1ethods: 9e5uential !lieEn tieFp$ file organization: the records must be retrieved in the same physical se5uence in which they are stored !such as in the operation of a tape or video recorder. 1agnetic tapes utilize this form of file organization. Direct or random file organization: the data records can be retrieved in any se5uence, without regard to how they are being stored physically in the storage medium. 1agnetic dis s use direct file organization. /wo methods of file access: the indexed se5uential access method !I9'1$ and the direct access file method. I9'1 uses an index of according to their ey fields to locate individual records. =ecords are stored on dis s ey se5uence. /he direct access file method uses the ey field to locate the physical address of a record.

+roblems 8ith the Tra#itional 4ile En%ironment

%ach functional area in an organization tends to develop systems independently from other functional areas. -unctional areas li e accounting, human resources, finance, manufacturing and sales and mar eting all develop their own systems, applications and data files. +roblems 8ill result: Data re#un#ancy an# inconsistency : Data redundancy is the presence of duplicate date in multiple data files. Data inconsistency is the presence of different values for same attributes when data redundancy occurs. Date an# )rogram #e)en#ence: Date and program dependence leads to #ata isolation whereby data files are organized differently, stored in different formats and physically inaccessible to other programs.

?ac' of #ata sharing: It is virtually impossible for information to be shared or accessed in a timely manner if information cannot flow freely across different functional areas of the organization.

Infle!ibility: ' traditional file system can deliver routine scheduled reports after extensive programming but is unable to deliver ad hoc reports or respond to unanticipated information re5uirements in a timely manner.

+oor #ata security: Data security is difficult to enforce in the file environment because new applications may be added and more people may have access to data as a result of the new applications. 9ecurity will be poor as there may not be ade5uate control, monitoring and management of the data.

1.* Data ?ife ycle +rocess Data, information and nowledge

Data: are the raw materials for data processing. Data can be numeric, alphanumeric, figures, sounds, or imagine. Database consists of data item. %xample data is a student grade in a class Information: is data that have been processed in a such a way as to be by means of an application, %xample an university online meaningful to the person who receives it. Data items are processed into information registration system. 9no8le#ge: is data and2or information that have been organized and processed to convey understanding, experience, accumulated learning, and expertise as they apply to a current problem or activity. ? Data life cycle process is explained in terms of the following G areas: - Data sources - Data collection - Data storage - Data analysis - =esults and solutions a) Data Sources: Internal Data: it is organizational data bout personnel, products, services and processes. /his data is accessed via intranet of organization. 9ome data is stored in one location and some data is stored in many locations.

E!ternal Data: data sourced from databases worldwide, government reports, environmental scanning, sensors, telecommunication channels, web servers, secondary storage media, and many others. 1uch external data must be monitored and captured to ensure important data are not overloo ed.

+ersonal (en# user) Data: data created from ideas, suggestions, concepts and opinions. Data are not centralized and may be found on the userDs personal computer or on departmental or corporate databases.

b) Data ollection /here are 7 types of data collection: 1anual #ata collection metho#s: involve surveys, observations, interviews ad contributions from experts. Electronic #ata collection metho#s: a variety of hardware and software is used for data storage, communication, transmission and presentation. Data may be collected by using instruments, sensors. 3ollecting via internet for the electronic method of external data. c) Data Storage Databases: ' database is an organized collection of related data files. Data in the database are integrated and related in order that a data base management system is able to access all the data. Databases also increase data security and data integrity. Databases can be centrali.e# or #istribute# - .enefits: 3entralized database save the expenses %asier for database administrators to wor -iles are more consistent with each other. -iles are inaccessible except via centralized host computer =ecovery from disasters can be more easily implemented at a central location. a$ entrali.e# #atabases are vulnerable to a single point of failure in that should the host computer fail to function properly. b) Distribute# #atabases: / & )artitione# #atabase: is such that portions of the entire database are subdivided and distributed to many locations. /he :ortion will be distributed according to the userDs local needs. - .enefits: /he response speed of localized files is not impaired as there is no need to replicate all changes in multiple locations.

 /he data in a file can be 5uic ly entered and ept more accurately. ? & #u)licate or re)licate# #atabase: has completed copies of the entire database in many locations. /his offsets the single point of failure problems dominant in centralized databases as well as increases user access responsiveness. /he limitation to this type of distributed database is that overhead costs are significant as consistency has to be maintained among the replicated databases as records are added, modified and deleted. Database 1anagement Systems

Data 1anagement Systems (DB1S) refer to a group of programs that provide access to a database. D.19 allows organization to facilitate the centralization of data and perform data management more efficiently. It permits access to stored data by application programs from many different users. D.19 acts as interface between application programs and physical data files, provide a logical and physical views of database data: -/he logical view depicts what is in the database. Hogical views allow users to view database information according to business needs. - /he physical view depicts how the data is physically organized in the database. Data specialists use the physical view to ma e efficient use of the storage and processing resources. D.19 including: !i$ !ii$ /he #ata or #atabase mo#el defines the conceptual blueprint of the data structure. %xample: common databases models /he #ata #efinition language (DD?) provides the lin between logical and physical views of the databases. D.19 users can define the physical characteristics of each record, the fields within a record, data type and character length. !iii$ /he #ata mani)ulation language (D1?) contains commands that permit D.19 users to manipulate the data in the database. Isers can retrieve data, sort and display as well as delete database contents to satisfy information re5uests or develop applications. !iv$ ' data dictionary essentially provides a repository of metadata for each data element. ' metadata is data about data and a data element represents a data field. /ypical uses of data dictionaries are: 8elp reduce data inconsistency and increase data reliability owing to standardized definitions for all data elements.

9peed program development as programmers do not need to create new data names. %ase modification of data and information.

ommon Database 1o#els

/he structure of the relationships in most databases follows one of the three logical database models: ( ' hierarchical model ( ' networ model is an expansion of the hierarchical model as it provides many-to-many logical relationship. ( /he relational model describes data using a tabular format. Data @arehouse

' data warehouse is a repository of sub6ect-oriented historical data that are organized to be accessible in a form readily acceptable for analytical processing activities. 'nalytical processing involves analysis of accumulated data by end users. ' data warehouse is a database that collects business data from existing corporate databases in the organization as well as from external sources. /o create a data warehouse, a company pulls data from its operational systems and puts the data in a data warehouse so that users may access and analyze the data without endangering the operational systems. In warehouse, the data is organized in a sub6ect-oriented form. Data warehouses provide for the storage of metadata. 1aAor characteristics of #ata 8arehousing: -rgani.ation: Data organized by sub6ects !vendor, products, price level etc.$ and contain information relevant for decision support only. onsistency: Data in different operational databases may be encoded differently !e.g gender data may be encoded J and K in one operational system and m and f in another. Time %ariant: Data ept for many years, they can be used for trends, forecasting, and comparisons over time. 7on%olatile: 0nce entered into the warehouse, data are not updated. 3elational: /ypically the data warehouse uses a relational structure. lient0ser%er: Ising the client2server architecture mainly to provide the end user an easy access to its data. @eb-base#: designed to provide an efficient computing environment for Web-based applications. Integration: Data from various sources are integrated.

 3eal time: 'rrange for real-time capabilities. Data 1art:

' data mart may be a subset or a smaller version of a data warehouse to be of use to small and medium-sized businesses and to departments within larger companies. Data marts contain a subset of the data for a single aspect of a companyDs business!finance, inventory or personnel$ who want to access detail data. Data mart is useful for smaller group of users, has shorter lead time for implementation, provides local control, has faster response time and is easier to navigate warehouses. Data marts allow a business unit or a department to build its own decision support systems. @eb-Base# Data 1anagement Systems

Data management and business intelligence activities are often performed with Web tools or are interrelated with Web technologies and e-business. Iser with browsers can log onto a system, ma e en5uiries and get reports in a real time setting. /his is done through intranets and for outsiders via extranet. %lectronic commerce software vendors are providing Web tools that connect the data warehouse with electric commerce ordering and cataloging systems. %lectronic mar etplaces provide additional avenues for manufacturers and suppliers to communicate and conduct business transactions. /he Web- based system is accessed via a portal and connected to the following parts: -/he business intelligence services - the data warehouse and marts - the corporate applications and - the data infrastructure #) Data &nalysis: 0nce the data are in the data warehouse, and2or data marts, users !li e managers, analysts$ can retrieve a copy of the re5uired data for analysis. :atterns are analyzed from the retrieved data through the use of data analysis and data mining tools. 'nalysis activities area generally referred to as analytical processing or business intelligence. ( Business intelligence: (BI) is a broad category of applications and techni5ues for gathering, storing, analyzing and providing access to data. It helps enterprise users ma e better business and strategic decisions. 1aAor a))lications: the activities of 5uery and reporting, online analytical processing !0H':$, decision support system !D99$, data mining, forecasting and statistical analysis.

.I tools can be divided into categories: Information and nowledge discovery Decision support and intelligent analysis

i) Information an# 'no8le#ge #isco%ery: /he process of extracting useful information and nowledge from volumes of data is nown as nowledge discovery in databases !LDD$ or nowledge discovery. Information and nowledge discovery tools include: &# hoc Bueries: 'd hoc 5ueries allow users to re5uest, in real time, information from the computer that is not available in periodic reports. -nline analytical )rocessing (-?&+): 0H': is a set of tools that analyze and aggregate data to reflect business needs of the company. 0H': involves examining many data items in complex relationships, is performed on data warehouses and marts. Data mining: Data mining is a tool for analyzing large amounts of data. Data mining technology can generate new business opportunities by providing automated prediction of trends and behaviors and automated discovery of previously un nown or hidden patterns. @eb mining: is the application of data mining techni5ues to discover actionable and meaningful patterns, profiles, and trends from data related to the World Wide Web. ii) Decision Su))ort an# Intelligent &nalysis .I technologies used to directly support decision ma ing including: Decision su))ort system (DSS): D99 is a computer-based information system that combines models and data in an attempt to solve semi-structured and unstructured problems with user involvement. %very D99 consists of at least data management, user interface, model management components and the end users. E!ecuti%e (Enter)rise) su))ort system (ESS): an %99 is a technology designed in response to the specific needs of top level managers and executives. (rou) #ecision su))ort system ((DSS): the MD99 methodology was initially designed to support individual decision ma ers. MD99 supports a decision room group whose members are in one place and a virtual group, whose members are in different locations. Intelligent system (IS): Intelligent system is a term that describes the various commercial applications of artificial intelligence !'I$. /he ma6or intelligent systems are expert systems, intelligent agents, robotics and sensory systems, neural computing, speech understanding, natural language processing, computer vision and scene recognition.

1anagement science analysis: including seven steps Defining the problem 3lassifying the problem into a standard category 3onstructing a standard mathematical model that describes the reallife problem. -inding potential solutions to the modeled problem and evaluating them 3hoosing and recommending a specific solution 1anagement science attempts Implementing the proposed solution.

Business )erformance management (B+1): /his is a methodology for measuring organizational performance, analyzing it by comparing it to some standards and planning how to improve it.

Business acti%ity monitoring (B&1) system: .'1 is one of the ma6or tools of .:1. It consists of real-time enterprise systems that alert managers to potential opportunities, impending problems or threats.

e) 3esult an# Solutions: /he result of these activities generate information and nowledge which may be presented to users when needed. /he results are presented in text, graphics , tables &Data visualization tools such as digital images, graphic user interfaces, virtual reality and three dimensional presentations are developed for presentation purposes. Data visualization is easier to implement when necessary data are in a data warehouse. 1anagerial concerns during the data life cycle process and most centered on the 5uality, accuracy and completeness of the data sourced and collected as these will affect the 5uality of information output and nowledge created. 1.5 Issues on Data 1anagement a) Data Cuality an# Integrity: /he 5uality of data is very important because 5uality determines the usefulness of data. 3ele%ance: Data must be relevant to the purpose for which they are to be used. &ccuracy: 0bviously data should be accurate if not there is serious and damaging conse5uences in use of incorrect information. om)leteness: Data must be complete for the purpose for which they are to be used.

Timeliness: Information produced from data that are available at right time will significantly impact the outcome of a business decision. &ccessibility: /he importance of data accessibility cannot be overemphasized.

Data is considered to have integrity !nguyNn v n) when it is whole, complete and unchanged while in data storage or transmitted. b) Document Management: Document management is seen as a solution to problems faced by organizations to documentation. Document management is the automated control of electronic documents, page images, spreadsheets throughout their entire life cycle within an organization. Benefits of document management: greater control over the production, storage and distribution of documents and greater efficiency in the reuse of information. *. 7et8or' om)uting 4or ollaboration *.1 7et8or' om)uting: networ is a communication system that allows users to send and receive messages and share common resources. <etwor computing: as nown as distributed computing, connects computers and other electronic devices via telecommunications networ s. 9uch connections allow users to access information stored in many locations and to communicate and collaborate with others. 3onnectivity may be via wireline and or wireless systems a) -%er%ie8 of net8or' technology: i) Ty)e of 7et8or's /here are @ common types of networ s -H'<, 1'< and W'<. Wireless technology is as considerable improvement for organizations and individual Hocal area networ !H'<$: smaller networ , 6ust serve one or more departments or buildings located close to one another and owned by a single company. Wireless H'<s for mobile computing use radio or infrared transmissions to lin devices in a H'< invironment. Wireless -idelity or Wifi is a WH'< technology that allows computers to share a networ or Internet connection without the need to connect to a commercial networ . 1etropolitan area networ s !1'<$: Harger networ than H'< owned by two or more companies within the confines of a metropolitan area. Wide area networ !W'<$: this networ provides communication services over large areas that are not geographically defined and serves multiple owners. Wireless W'<s are W'<s for mobile computing where the extent of coverage depends on the transmission media and the wireless generaion.

ii) 7et8or' To)ologies: refers to its physical layout and connectivity. Devices connected to a networ are called nodes. 3ommon topologies are bus, star and ring In a bus topology, all networ nodes connect to a bus, which is a single communications channel. In a star topology, all networ nodes connect to a central hub, typically the file server, which facilitates communication btw the nodes In a ring topology, networ nodes are connected to ad6acent nodes to form a close loop. b) 7et8or' om)uting Infrastructures: /he ma6or networ computing infrastructure include the Internet, the Web, valueadded networ s, intranets and extranets. i$Internet: as the information superhighway, is a global networ of computer networ s that enables people to access data in distributed business units or in other organizations and to communicate, collaborate and exchange information 5uic ly, inexpensively and seamlessly worldwide. /ransmission 3ontrol :rotocol2Internet :rotocol !/3:2I:$ are two best nown elements of the Internet protocol suite. Internet is become a necessity in the digital economy. ii$ @eb: /he Web !World Wide Web or WWW$ is a system of universally accepted standards for storing, formatting and displaying information via a client2 server architecture. iii$ Dalue-a##e# net8or's (D&7s): O'<s are private, data-only W'<s that are managed by neutral third parties that provide telecommunication and computing services to multiple organizations. iv) Intranets: 'n intranet is a networ that uses Internet technologies to serve the internal informational needs of a company. /he intranet provides browsing, and search capabilities and also supports communication and collaboration. v$ E!tranets: 'n extranet is a networ that uses Internet technologies to connect parts of the intranets of business partners. %xtranets facilitate the secure communications among business partners over the Internet using virtual private networ s !O:<s$. O:<s are private communications networ s that use the Internet to securely connect users by using a tunneling process that incorporates encryption. *.* ategories of Internet &))lications: /he Internet supports applications in the following ma6or categories: Discovery 3ommunication 3ollaboration

a) Disco%ery: is a category of commercial applications supported by the Internet. /he discover capability can facilitate education, government services, entertainment and commerce. ' ma6or problem of discovery is the amount of information on the Internet and intranet that is growing rapidly. Search engines and intelligent agents are some common search tools and Internet technologies that deliver customized information to users. i) Search engines: /hese are search tools for locating specific sites or information on the Internet. - 9earch the Internet based on ey words or terms - eep an index of the words they find - 'llow users to search words or combinations of wor s found in that index. %xample: google, yahoo !www.yahoo.com$ ii$ Intelligent agents: Intelligent agent technology is useful in searching through large amounts of data to locate only information that is considered important and, in some cases, acting on that information on behalf of the user. /hey are software programs that carry out specific, repetitive and predictable tas s for individual users, business process or software application without direct human intervention. %xample intelligent agent application is the Wizards in 1icrosoft 0ffice software tools. Information portal: - ommercial ()ublic) )ortals: offer content for diverse communities and are the most popular portals on the Internet. %g. Pahoo.com, msn.com - +ublishing )ortals are intended for communities with specific internets eg techweb.com - +ersonal )ortals target specific filtered information for individual - &ffinity )ortals support communities such as hobby groups or a political party - 1obile )ortals are portals accessible from mobile devices. - or)orate )ortals provide single-point access to specific enterprise information and applications available on the Internet, intranets and extranets to employees, business partners and customers. b) ommunication: /he Internet provides communication channels that are fast and inexpensive, and includes information transfer and processing. 3ommunication as an interpersonal process of sending and receiving symbols with messages attached to them. Information technology plays a significant role in providing communication support for organizations. I/ provides communication support to a specific organization or a group or users as below:

+artici)ants: 9ender and recipients of information <ature of sources and destinations: /he sources and destinations of information may be human or machine. %xamples include people, databases, and sensors.

1e#ia: 3ommunication generally involves at least one I/ supported media such as text, voice, graphics, pictures, video, an animation. Ise of different media can increase the effectiveness of a message, expedite learning, and enhance problem solving.

+lace (location): .oth sender and receiver can be in the same room or at different locations. Time: 1essages can be sent and received almost instantaneously. %xample electronic mail

In the time2place framewor , information technology communication is divided into four cells: Same-time0same-)lace: :articipants are meeting face to face in one place and at the same time, in this case group support software such as group decision support system !MD99$. Same-time0#ifferent-)lace: the :articipants are in different places but communicating at the same time. %xample: chat rooms, video conferencing Different ; time0same E )lace: /he place is the same, the participants are communicating at different times. Different ; time0#ifferent-)lace: virtual meeting where participants are in different places and communicating at different times. c) ollaboration: 1utual efforts by a group of individuals who perform activities in order to accomplish certain tas s or attain a common goal. %lectronic collaboration btw individuals and groups and btw organizations is increasing rapidly with improved communication technologies. /ools that aid collaboration include communications media li e elec. 1ail, video conference, instant messaging !I1$, OoI:. i$ (rou) 8or': 1ost complex decision ;ma ing in organizations are done in groups. Mroup wor refers to wor done together by at least 7 people. Mroups are better than individuals at understanding problems and catching errors. 8owever group wor is time consuming and may face high cost and lac of coordination in terms of scheduling group meetings. ii$ Dirtual collaboration: Mroup wor is needed in virtual corporations and multinational organizations. /he support provided by information technology has prompted an increase in group wor .

Oirtual collaboration or electronic collaboration refers to the use of digital technologies that enable individuals or organizations to collaboratively plan, design, develop, manage, and research products, services and innovative applications. %xample: information sharing btw retailer and their suppliers, lower transportation and inventory costs. iii) ollaboration-enabling tools 9ome common collaboration-enabling tools and technologies: @or'flo8 technologies: refer to the movement of information through the se5uence of steps that ma e up an organizationDs wor procedure or business processes. Wor flow management is the automation of wor flows from start to finish. (rou) 8are are software products that support groups of people who share a common tas or goal and who collaborate on it accomplishment. Mroup ware products are follows: -Electronic meeting system: attempt to improve face to face meetings with their electronic counter part. - Electronic teleconferencing is the use of electronic communication that allows two or more people at different locations to have a simultaneous conference. - Di#eo teleconferencing: where participants in one location can see participants in other locations - @eb conferencing is videoconferencing solely conducted on the Internet. - 3eal-time collaboration (3T ) tool that help companies bridge time and space to ma e decisions and to collaborate on pro6ects.

T-+I 5 @EB 3ED-?UTI-7

1. E- ommerce an# E-Business /urban et al.!7JJQ$ defined electronic commerce as the process of buying, selling, transferring, or exchanging products, services, or information via computer networ s, including the Internet. Electronic business !e-business$ is referred to as a broader definition of ecommerce that includes not 6ust the buying and selling of goods and services, but also servicing customers, collaborating with business partners, conducting electronic transactions within an organization. 1.1 -%er%ie8 of E- ommerce an# E-Business a) E conce)ts /here are several forms in which %3 can be classified depending on the degree of digitization. /he degree of digitization relating to the following three dimensions: /he product !or service$ sold /he process /he delivery agent

'll three dimensions are physical, as indicated by the lower-left shaded cube in the diagram. 0rganizations that display purely physical dimensions are termed as bric'an#-mortar organi.ations. 3ompanies that are engaged only in %3 activities are considered virtual or pure-play organizations. %xample purchase a boo from 'mazon.com or a shirt from Wal-1art 0nline, it is partial %3. b) Brief >istory of E : 'pplications of %3 were first developed in the early KRSJs with innovations of electronic funds transfer !%-/$ and later, electronic data interchange !%DI$. In %-/, funds could be transferred electronically to settle accounts btw ban s and other businesses. %DI bought in a technology to electronically transfer documents such as purchase orders, invoices, and electronic payments btw firms doing business. In early KRRJs, as the Internet became more commercialized, users floc ed to participate in the World Wide Web !WWW$. %3 applications rapidly expanded primarily owing to the development of new networ s, protocols, software and specifications. c) E 4rame8or': /here are many %3 applications, as may be seen at the top part of the framewor . /o execute these applications, companies need the right information, infrastructure and support services. %3 applications are supported by an infrastructure and five support areas. -ive support areas: :eople: seller, buyer, intermediaries, information system specialists, other employees etc. :ublic policy: legal and other policy and regulating issues 1ar eting and advertising: %3 often re5uires the support of mar eting and advertising. 9upport services: 1any services are needed to support %3 .usiness partnerships: Toint ventures, electronic mar etplaces and partnerships are some of fre5uently occurring relationships in e business. 'll these %3 components re5uire good coordination and management practices to unify applications, infrastructure and support. #) The Structure of E : /he basic idea of %3 is to automate as many business processes as possible. ' process can be an order initiation, order fulfillment, procurement of materials, the manufacture of products, delivery, or providing customer relationshi) management !3=1$. 3=1 is a customer service approach that focuses on building long term and sustainable customer relationships that add value both for the customer and the company.

%3 mechanisms: %lectronic mar ets !emar ets$ are online mar etplaces where buyer, sellers meet to exchange goods, services, information %lectronic procurement !e-procurement$ is the electronic ac5uisition of goods and services for organizations. %lectronic 3=1 !e 3=1$ refers to the use of Web browsers, Internet and other electronic mechanisms to manage customer relationships. :artner relationship management !:=1$ is a business strategy that focuses on providing comprehensive 5uality service to business partners. %mployee relationship management !%=1$: is the use of Web-based applications to streamline the human resources process and to better manage employee. %lectronic learning !e learning$ is the online delivery of information for purpose of education, training, nowledge management or performance management. %nterprise resource planning !%=:$ of enterprise system refers to software that integrates the planning, management and use of all resources 9upply chain refers to the flow of materials, information, funds, and services from raw materials suppliers through factories and warehouses to the end customers. 0rder fulfillment: refers to all the activities needed to provide customers with ordered goods and services, including related customer services. 1ost %3 activities are done over the Internet but it can conducted via O'<s, H'<s, W'<s. e) Ty)es of E Transactions Business-to-consumers (B* ). in .73 %3, the sellers are business organizations and the buyers are individuals. Including retail transactions from businesses to individual consumers Business-to-business (B*B). In .7. %3, both the sellers and the buyers are business organizations Business to business-to- consumers (B*B* ). a business provides some products or service to a client business onsumer-to-consumer ( * ). Individual consumers sell products or services to other consumers in 373 %3 ollaborati%e commerce (c-commerce). .usiness partners collaborate electronically. %xample: business partners in different locations may design as product together, using screen sharing, or they may 6ointly forecast mar et demand.

onsumer-to-businesses ( *B). 37. %3 re5uires that consumers ma e nown a particular need for a product or service and suppliers compete to provide it to the consumers.

Intrabusiness (intraorgani.ational) E . 'n organization uses %3 internally to improve its operations. Intrabusiness %3 include all internal organizational activities that involve the exchange of goods, services, or information among various units and individuals in that organization.

(o%ernment-to-citi.ens ((* ). ' government entity provides services to its citizens via %3 technology. M7M: government-to-government 1obile commerce (m-commerce). When %3 transactions and activities are conducted in a wireless environment. Hocation-based commerce !lcommerce.

f) E Business an# 3e%enue 1o#els: ' business model is a method of doing business by which a company can generate revenue to sustain itself. -nline, #irect mar'eting. 1anufacturers or retailers sell directly online to customers Electronic ten#ering systems. Harge organizational buyers do purchase by tendering. .7. %3 is used with a reverse auction mechanism. -nline &uctions. /his business model is favorable for .73 and .7. %3. 3ompanies and individuals run many types of online auctions. 7ame your o8n )rice. 'llow customers to set the price they are willing to pay for a specific product or service. 4in# the best )rice: ' customer specifies a need and then intermediary compares providers and locate the lowest price. &ffiliate mar'eting. Oendors ma e arrangements with partners !business, organization or individual$ to place logos or banners on the partnerDs Web site. Diral mar'eting. Is a word or mouth mar eting in which customers promote a product or service to friends or other people using the Internet. (rou) )urchasing. Is getting many small buyers together to buy in large 5uantities in order to obtain a discount on the products purchased. +ro#uct an# ser%ice customi.ation. 3ustomization is the creation of a product or service according to the buyerDs specifications. Electronic mar'et)lace an# e!change. %lectronic mar etplace provides significant benefits to both buyers and sellers.

Su))ly chain im)ro%ers. %3 has contributed to the creation of new models that change or improve supply chain management. Information bro'ers an# matching bro'ers. /hese bro er or intermediaries provide services related to %3 information as trust, content, matching buyers and seller.

Dalue-chain ser%ice )ro%i#ers. 0ffer specialized services in supply chain operations such as providing logistics or payment services.

ommon re%enue mo#els in %3 /ransaction fees. /ransaction fees refer to the commission a company receives based on the volume of transactions made, %xample: when you sell a house, you pay bro er transaction fees. 9ubscription fees. 3ustomers pay a fixed amount, usually monthly, to get some type of service, %xample access fees to O<:/. 'dvertisement fees. -rees are duly collected when companies charge other for placing a banner on their Web site. 'ffiliate fees. -rom the affiliate mar eting business model. 9ales. 3ompanies generate revenue from selling on their Websites or from providing a service. 0ther revenue models. =evenue can be generated through licensing fees that can be assessed as an annual fee or as per usage fee such as 1icrosoftDs licensing fees. g) Benefits an# ?imitations of E ? .enefits of %3 will include @ groups: 0rganizations, 3ustomers and 9ociety i) Benefits to organi.ations %xpand a companyDs mar etplace to national and international mar ets %nables companies not only to find new customers but also to interact more closely with them and to receive 5uic and accurate feedbac . %nables companies to procure material and services from other countries, rapidly and at less cost. 9hortens or even eliminates mar eting distribution channels, ma ing products cheaper and vendorDs profit higher. Decreases the cost of creating, processing, distributing, storing etc. 'llows lower inventories by facilitating UpullV-type supply chain management. Howers telecommunication costs because the Internet is much cheaper. 8elps some small business compete large companies %nables a very specialized niche mar et

ii) Benefits to ustomers

:rovides less expensive products and services by allowing consumers to conduct 5uic online searches and comparisons. Mives consumers more choices in selecting products and vendors. %nables customers to shop or ma e other transactions 7W hours2day from almost any location. 3ustomers can retrieve relevant and detailed information in seconds. %nables consumers to get customized products 'llows 5uic delivery of products and services, especially with digitized products. 1a es it possible for people to wor and study at home. 1a es possible electronic auctions that benefit buyers and sellers. 'llows consumers to interact with other consumers in electronic communities and exchange ideas and compare experience.

iii) Benefits to society %nables more individual to wor at home, to do less travelling for shopping, less traffic, lower air pollution 'llows some merchandise to be sold at lower prices, benefiting less affluent people %nables people in developing countries and rural areas to en6oy products and services which otherwise are not available to them -acilitates delivery of public services, such as government entitlements, reducing the cost of distribution, increasing the 5uality of social services, police wor , health care and education. 1.*. 1aAor E 1echanisms /he 1a6or %3 mechanisms area below: %lectronic mar ets or mar etplace %lectronic catalog %lectronic auction %lectronic bartering

a) Electronic 1ar'ets: /here are @ functions of mar et 1atching buyers and sellers through determination of product offerings, search of buyers for sellers and vice versa -acilitating the exchange of information, product, services, and payments associated with mar et transactions. :roviding a institutional infrastructure such as a legal and regulatory framewor .

/here are several types of e-mar etplaces: %lectronic storefront !e-storefront$ refers to a single companyDs Web site where products and services are sold. It can be classified as general or specialized. %xample 'mazone.com 'n electronic mall !e-mall$ is an online shopping center under one Internet address where many stores are located. In .7. environment, there are @ ma6or e-mar etplaces +ri%ate e-mar'et)laces are owned by a single company, generally a large corporation. ' sell-side e-mar etplace can be identified by its one-seller and many buyer characteristics. ' buy-side e-mar etplace is a company that conducts purchasing only from invited suppliers. +ublic e-mar'et)laces are usually owned and managed by an independent third party. /hey are .7. mar ets that include many sellers and many buyers. onsortia (or consortium, singular) are formed when a small group of ma6or industry buyer comes together to create an e-mar etplace to deal with suppliers in the same industry. b) Electronic atalogues: 3atalogues have traditionally been printed on paper. 'n electronic catalogue !ecatalogue$ is the presentation of product information in an electric format. % catalogues can be searched 5uic ly with the help of search engines. 'n e catalogue system consists of a product database, directory and search capability and a presentation function. c) Electronic &uctions %lectronic auctions are auctions that are conducted online. /he Internet opens many opportunities for e-auctions. 'uctions can be conducted from the sellerDs site, the buyerDs site, for a third partyDs site !%bay$. /hey increase revenues for sellers by broadening the customer base and shortening the cycle time of the auction. .uyers benefit by opportunities to bargain for lower prices and convenience of bidding. 0nline auctions are used in .73, .7., 37., 373, M73 and M7. %3. /wo ma6or types of e-auctions: i$ -orward auctions are auctions that sellers use as a selling channel to many potential buyers. /he highest bidder wins the items !ebay$. www.heya.com.vn ii$ =everse auctions. =everse auctions have one buyer, usually an organization that wants to buy a product or a service. 9uppliers are invited to submit bids. 9everal rounds of bidding may ta e place until the bidders do not reduce the price, the lowest price will win bids. #) Electronic Bartering

.artering refers to an exchange of goods and services and is the oldest method of trading. %lectronic bartering is bartering conducted online. /wo forms of e-bartering: individual ; individual and corporate e-bartering. In individual-to-individual, e bartering is done through means of advertisement that appear in some newsgroups, bulletin boards and chat rooms. 1.5. B* E &))lications a) Electronic 3etailing: ' retailer is a sales intermediary that operates btw manufacturer and customers. Done through home shopping catalogue, television shopping channels. %-retailing is the direct sale of products through e-storefronts or e-malls, and is usually designed around an electronic catalogue format and2or auctions. b) Ser%ice In#ustries in B* Electronic ban'ing: including various ban ing activities conducted from home or a business instead of at a physical ban . International an# multi)le-currency ban'ing: International ban ing and the ability to handle trading in multiple currencies, transfers of electronic funds and electronic letters of credit are critical for international trade. -nline security tra#ing can be placed from anywhere and at any time -nline Aob mar'et: the Internet offers a perfect environment for 6ob see er and for companies searching for candidates. Tra%el ser%ices: /he Internet is an ideal place to plan, explore and arrange almost any trip. 3eal estate: =eal estate transactions are an ideal area for e-commerce.

c) ustomer Ser%ice: 3ustomer service is a series of activities designed to enhance customer satisfaction. 9ome examples of online customer services: %lectronic mails are used by companies to send confirmations, product information and instructions to customers and also ta e orders, complaints and other in5uiries. 9ome companies ma e available trac ing facilities for customers to trac online the status of their accounts, orders, services or 6ob application 9ome companies provide user friendly tools for customers to self-configure their individualized pages at the vendorDs site. In company-sponsored online chat rooms or discussion board.

't Web-based call centres, a company can handle customersD in5uiries in any form they come and answer them 5uic ly and automatically, whenever possible.

/hree areas of customer service in this section: $ ustomer ser%ice life cycle: W phases !i$ !ii$ !iii$ !iv$ 3eBuirements )hase: to help the customer to determine needs &cBuisition )hase: assistance is provided to help the customer ac5uire a product or service. -8nershi) )hase: During ownership phase, the customer is supported on an ongoing basis. 3etirement )hase: the client is assisted in the disposal of a product or service. 1any activities can be conducted in each of these phases. %xample: 'irasia offer information on flight schedules and fare 5uotes on its Web-site, it is supporting re5uirements and ac5uisition phases. When computer vendors provide electronic help des s for their customers, they are supporting the ownership phase. ustomi.ation. 3ustomization of products or services means creating a product or service according to the buyerDs specifications. 0ne of the ma6or benefits of %3 is its ability to offer product and service customization at an affordable cost. 3ustomization will change mar eting and sales activities both in .73 and .7.. +ersonali.ation: ' significant characteristic of many online mar eting models is the ability of the e-tailer to create an element of personalization for each customer who has made a product or service purchase. #)E-tailing Issues: .73 e-tailers face some issues that need to be resolved in order to sustain the growth of an organizationDs e-tailing efforts. /hese issues are described as below: i)3esol%ing channel conflict: 3hannel conflict refers to any situation in which the online distribution !mar eting$ channel upsets the traditional channels due to real or perceived damage from competition. 3hannel conflict has forced some companies to either limit their .73 efforts or stop selling directly online. %xample an automobile company could allow customers to configure a car online, but re5uire that the car be pic ed up from a car dealer. I/ tools can help to resolve channel conflict by using a group decision support system !MD99$. ii) 3esol%ing conflicts 8ithin clic' an# mortar organi.ations:

When an established company decides to sell directly online, it may create a conflict within its existing operations in areas such as pricing, services, allocation of resources and logistics support. iii) -rgani.ing or#er fulfillment an# logistic: %-tailers face a difficult problem of how to ship small 5uantities to a large number of buyer. I/ supported decision models can help with scheduling, routing, shipments, inventory management, and other logistics-related decisions. i%) Determining %iability an# ris' of online e-tailers: Due to ease of entry to e-mar etplaces, e-tailers face fierce online competition especially in commodity-type products such as 3Ds, toys, boo s, or groceries. ' decision support system !D99$ modeling can be helpful in such cases. %) I#entifying a))ro)riate re%enue mo#els: 1any dotcom companies were selling products at or below cost, with the ob6ective of attracting many customers and advertisers to their Websites. 1.". B*B E &))lications: 1any business models for .7. %3 applications> they are sell-site .7. mar etplaces, buy-side.7. mar etplace, electronic mar etplaces or exchanges and collaborative commerce. a) Sell-Si#e 1ar'et)laces It is a web-based mar etplace in which one company sells to many business buyers from e-catalogues or auctions, fre5uently over an extranet. 9uch sellers are Intel, Dell etc. In .7. sell ;side mar etplace the buyer is an organization. %3 is used in this model to increase sales, reduce selling and advertising expenditures, increase delivery speed and reduce and reduce administrative costs. b) Buy-Si#e 1ar'et)laces: 0rganizations attempt to buy needed products or services from other organizations electronically, usually from their own private emar etplace. /his buy ;side mar etplaces use re%erse auctions and electronic )rocurement metho#s. i$' ma6or of buying products and services in the buy-side model is a re%erse auction ii$ Electronic )rocurement is the electronic ac5uisition of goods and services for organizations. .esides reverse auctions, e-procurement uses two other mechanisms: (rou) )urchasing: is aggregation of orders from several buyers into large volume purchases so that better price can be negotiated from sellers.

Des'to) )urchasing: Des top purchasing is most suitable for 1=0s !maintenance, repair, operations$ indirect items such as office supplies, or light bulbs.

a$ Electronic E!changes: %-exchanges are .7. e-mar etplaces or trading venues open to all interested parties and are usually owned and managed by third parties. 'll exchanges share one ma6or characteristic which is that they are an electronic trading-community meeting place for many sellers and many buyers, and possibly for other business partners. /he exchanges depend on two dimensions: /ypes of materials traded 9ourcing strategies used

Ty)e of materials: Direct materials: materials used in the production of a product !paper in boo s, steel in a car$. In#irect materials or 1=0s are used to support products !office supplies, light bulbs$ Strategic sourcing: deals with purchasing done in long-term supplier- buyer relationships. S)ot sourcing: refers to the purchase of goods and services as the need arises. 9pot sourcing involves #ynamic )ricing. /wo types of electronic exchanges: Oertical exchange: which deals with materials from one industry or industry segment ex: plastic, steel 8orizontal exchange: that handles materials and services traded in several different industries. b) ollaborati%e ommerce: 3ollaborative commerce refers to collaboration btw business partners to use digital technologies to enable collaborative planning, designing, developing, managing and researching of products, services and innovative %3 applications. 1.F. E Su))ort Ser%ices: %3 support services include %-infrastructure !mostly technology, consultants, system developers and integrators, hosting, security, wireless and networ s$ %-process !mainly payments and logistics$ %-mar ets !mar ing and advertising$ %-communication !different audiences and business partners$ %-services !3=1, :=1 and directory services$ %-content !supplied by content providers$

a) 1ar'et 3esearch:

1ar et research is needed for product design, mar eting, and advertising, decisions, pricing, and strategy. :urpose of mar et research is to find information and nowledge that describes the relationships among consumers, products, mar eting methods and mar eters. 1ar et researchers have tried to understand consumer behavior and develop models to help vendors understand how a consumer ma es a purchasing decision. 's ing customers what they want 0bserving customer behavior on the Web: /he Web is a rich source of business intelligence and many companies are building data warehouses that capture the nowledge contained in clic stream data that is obtained from a companyDs Web sites. %i) Bran#-an# %en#or-fin#ing agents an# )rice com)arisons: When the consumer has decided what to buy, a type of intelligent agent called a comparison agent will help in doing comparisons. %ii) Search agents: Intelligent agents help customer to by specific need. What products best fits their profile and re5uirements. %iii) ollaborati%e filtering agents: intelligent agents use customer data to infer customer interests in other products or services. b$ -nline &#%ertising: 1any methods of internet advertising, effectiveness and cost-6ustification of the advertisement i$Banners: a graphic display advertising display on a Web page. /hey are electronic billboards ii$ +o)-u), +o)-Un#er an# Similar &#s: these adv are contained in a new browser window that is automatically launched when one enters or exists a Website. iii$E-mail &#%ertising: combine with audio or video clips, cost effective, it is online advertising and mar eting channels. iv$ Electronic catalogues an# brochures: :rovide information on products and services. 0nline advertising: Unsolicite# a#%ertising: 3hu dong 5uang cao, electronic message without permission of the receiver: 9pamming +ermission a#%ertising: accept online advertising and email, permission mar eting is very important for mar et research. Diral mar'eting: Word-mouth mar eting, customers promote a product or service by telling others about it. Interacti%e a#%ertising an# 1ar'eting: 5u ng c !o t " #ng t !c: $dvertisers in interactive advertising attempt to target their ads to the desired mar%et and to the invidiual.

On-line Promotions: & ways to attract visitors to a 'ebsite: -Improve the companyDs ran ing one the search-engine list. - 3onduct line events, promotions and attractions to attract customers.

c$ Electronic +ayments: in online environment, electronic payment methods are used to ma e purchases. 9ecurity in electronic payments: i$'uthentication: X ac nh an l a dung ii$ Integrity: iii$ <onrepudiation: Lh Yng tu ch oi: vi$ :rivacy: customers wants their identity to be secured, they do not wants other to now their purchases. v$ 9afety: provide security protection, many methods and mechanisms are used. d$ -r#er 4ulfillment: /huc hien order, 0rder fulfillment refers not only to providing customers what they ordered and doing on time but also relating to customer service. :roblem in order fulfillment is inability to deliver on time, wrong items, high delivery cost, need to compensate unsatisfied customers.

*. @ireless De%ices &n# &))lications *.1 1obile om)uting an# ommerce: 3omputers in such an environment were connected to each other, to networ s, servers etc. via wires. a$1obile com)uting: introduced through laptop computers and smaller computers, personal digital assistants !:D's$ and other handheld devices. .ecoming lighter with time and more powerful in terms of storage and speed. Wireless mobile computing refers to computing that connects a mobile device to a networ or another computing device, in a wireless environment. 3haracteristics offered by wireless mobile connections: =each ability !their users can be reached when not in their normal location$ 3onvenience !not need a fixed line connection$ 9ecurity :rivacy !more privacy if compared with des top :3$ Instant access :ersonal Digital 'ssistant !:D'$a small portable computer such as :oc et :3 devices

.asic terminology on wireless mobile computing:

9hort 1essage 9ervice !919$ %nhanced 1essaging 9ervice !%19$ 1ultimedia 1essaging 9ervice !119$the next generation of wireless messaging Mlobal :ositioning 9ystem !M:9$ 9mart phones .luetooth: designed for temporary, short range data and voice coonection among mobile devices and other devices. Wireless 'pplication :rotocol !W':$ Wireless -idelity !Wifi$ Wireless Hocal 'rea <etwor !WH'<$ Worldwide Interoperability for 1icrowave 'ccess !Wimax$

b$ 1obile ommerce: When wireless devices are used for electronic commerce !%3$ or business application, this is called as mobile commerce. 3lassification of application of m-commerce into K7 categories: i$'ttributes of 1obile 3omputing and 1-3ommerce 1obile computing and m-commerce are based on the following two ma6or characteristics -1obility: users can carry a mobile devices !cell phone$ -.road reach: accessibility of people in that they can be reached at any time :rovide value added attributes: Ibi5uity: being available at any location at any given time. ' mobile phone or :D' offers ubi5uity in that it can fulfill the need for both real time information and for communication. 3onvenience: very convenience for user to operate in wireless environment. 1any places with wifi to enable users to get online. Instant connectivity: :ersonalization Hocalization of products and services:

ii) Dri%ers of 1obile om)uting an# 1- ommerce: Including Widespread availability of mobile devices: large number of user, specially mobile phone

<o need for a :3. Internet can use in a smart phone /he handset culture: widespread use of cellphone has developed in a social phenomenon among young people Oendor mar eting: Declining price Improvement of bandwidth: transmitting text, voice, video and multimedia. @M technology provide necessary bandwidth !b (ng r )*ng)

iii$ 1-3ommerce Oalue 3hain 1Z3ommerce is a complex process involving a number of operations and entities !customers, merchants, mobile operations$, the value chain of mcommerce involves delivering content and applications to the end users. *.* 1obile om)uting Infrastructure: a) 1obile com)uting har#8are: i$ 3ellular mobile phones: improving time by time, adding more fuctions, large screen ii$ 'ttachable eyboard: iii$ :ersonal digital assistant !:D's$ with Internet access iv$ Interactive pagers: send and receive text message v$ 9creen phones: 3olor screen, a eyboard, email services and internet, wireless screenphone. vi$ %mail handheld vii$ 0ther devices: such as spea er, wireless mouse, smartpad etc. -ollowing hard ware for wireless connectivity: W'< modem, H'< and 1'< adapter, communication server, Web server with wireless support, database server etc. b) 1obile om)uting Soft8are: - 1icro browser - 0perating system !09$ for mobile client - .luetooth - Iser interface - 'pplication middle ware - Wireless middle ware - Wireless application protocol !W':$ - Wireless mar up language - Ooice X1H

c) 1obile 7et8or's: 7 types of mobile networ s: wide area and local area networ s i$ @ireless 8i#e area 7et8or's (@@&7s): Wide are networ s for mobile computing are nowns as wireless wide area networ s !WW'<s$. Mlobal communications and cell phone companies use WW'<s. 9everal transmission media can be used for wireless transmission. KM, 7M, 7.GM, @M and WM !wireless technology$ -re5uency Division 1ultiple 'ccess !-D1'$ /ime Division 1ultiple 'ccess !/D1'$ 3ode Division 1ultiple 'ccess !3D1'$ @ main communication protocols inWW'<

ii) @ireless ?ocal &rea 7e8or's (@?&7s) an# @ireless 4i#elity (@ifi) ' WH'<s is li e a wired H'< but without the cables. Wifi is the standard on which most WH'<s run. 5. 1obile ommerce &))lications: a) 1obile 4inancial &))lications: including 1obile ban ing: offer mobile access to financial and account information Wireless payment systems 1icropayments: electronic payments for small purchase amounts Wireless wallets: software that store online shopperDs credit card numbers and other personal information .ill payment services 1obile bro erage services: provision of stoc trades and 5uotes 1obile money transfer: money transferred from one account to another. b) 1obile B* &))lications: Sho))ing from 8ireless #e%ices: enables customers to perform 5uic search, compare prices, and use a shopping cart, order. =estaurant chains enabling consumers to place an order for pic up or delivery 0nline companies li e ebays, 'mazone.com :urchasing movie tic ets /argeted advertising: adv messages to wireless devices

1obile portals

c) 1obile B*B &))lications: 1obile computing solutions that are being applied to .7. and supply chain management, enable organizations to respond faster to disruptions by shifting resources related to critical events as they occur. ". ?ocation E Base# ommerce Hocation-based commerce !l-commerce$ refers to localization of products and services, offer opportunities to meet customersD needs such as: 9afety: example: user can connect emergency service with a mobile devices 3onvenience :roductivity: example optimize your travel and time Hocation. H commerce help determine the basic position of a person or a thing !car, boat$ <avigation. =oute ma ing /rac ing. 1onitor movement of a person or thing !vehicle$ 1apping. 3reation of maps or specific geographic locations /iming: H-commerce can help determine the precise time at specific location /o provide location-based services, it needs the following technologies:
:osition Determining %5uipment !:D%$: identifying the location of mobile device via M:9 1obile :ositioning 3enter !1:3$: manages the location information sent to :D% Hocation-based technology Meographic content: including street, road maps, addresses, route, post codes etc. Hocation-specific content: F. +er%asi%e om)uting: /+a %h,p - .adio fre/uency 0dentification 1.20D) - $ctive badges - Memory buttons - 3onte4tual computing - 5mart homes - 5mart cars 6tc.

-ive ey areas i-commerce services are associated:

Topic 4: Organizational Applications

4.1 FUNCTIONAL APPLICATIONS AND TRANSACTION PROCESSING 4.1.1 Functional Information Sy t!m "IS# IS are composed of multiple subsystems, each providing information for various tasks ithin the function! The ma"or functional areas are: accounting, finance, production#operations, marketing, $%,& C$aract!ri tic of Functional Information Sy t!m% 'omposed of smaller systems Integrated or independent Interfacing Supportive of different level of IS applications: operational, managerial, and strategic 4.1.& Tran action Proc! in' Information Sy t!m "TPS#

T(S is a system that records company transactions, in an e)change bet een t o or more business entities! The specific ob"ectives of a T(S may include: To allo

hich a transaction is defined as

for efficient and effective operation of the organization

To provide timely documents * reports To increase the competitive advantage of the corporation To provide the necessary data for tactical and strategic systems To ensure accuracy and integrity of data an information To safeguard assets and security information 4.1.( Int!'ratin' Functional Information Sy t!m Systems that are isolated from other internal systems often create comple) problems!

+usinesses should plan for an integrated system rather than stand,alone systems! -): -%( 4.1.4 Sy))y C$ain% The section covers the filling and delivery of customer orders, including innovative solutions, timely delivery, returns, and managerial issues! 4.& ESSENTIALS OF ENTERPRISE S*STE+S AND SUPPL* C,AINS -nterprise systems are systems or processes that involve the entire enterprise or ma"or portions of it! The enterprise systems are the integration of supply,chain related systems, business systems, and the process#product systems! Supply,chain related systems .aterials re/uirement planning 0.%(1, hich facilitates the plan for purchasing or producing parts, subassemblies, or materials in case of interdependent items! .anufacturing resource planning, hich adds functionalities to a regular .%( system by determining the costs of parts and the associated cash flo ! It also estimates costs of labour, tools, e/uipment repair, and energy hile generating a re/uirements report! S'., hich manage the end,to,end process! -%(, hich supports internal supply chain! +usiness systems 2ecision support systems 02SS1, hich supports decision making throughout the enterprise! 3no ledge management system 03.S1, hich support kno ledge creation, storage, maintenance, and distribution throughout the enterprise! Intelligent system 0IS1, hich includes a kno ledge component, such as e)pert system and neural net ork!

+usiness intelligent 0+I1, hich is computer,based, decision analysis usually done online by managers and staff! (rocess#product systems

+usiness process management 0+(.1, hich involves the understanding and realignment of processes in the organization! (roduct life cycle management 0(4.1, hich involves conceptualisation, design, building, and support of products and services! 'ustomer relationship management 0'%.1, hich provides customer care! Supply chain is the interrelationship ith suppliers, customers, distributors, and other

businesses in order to design, build, and sell a product! These make up the net ork of business entities, relationships, and processes! It5s divided into 6 parts: 7pstream, Internal and 2o nstream supply chains! 6 types of flo in the supply chain: .aterial flo s Information flo s! 8inancial flo s 4.&.1 Su))ly C$ain +ana'!m!nt "SC+# S'. is a cross functional inter,enterprise system that uses IT to help support and manage links bet een some of a company5s business processes and those of its suppliers, customers, and business partners! 4.&.& Su))ly C$ain % C$all!n'! an- O))ortuniti! a# C$all!n'! % Trust and collaboration 9lobal S'. Outsourcing: make,or,buy decisions .any,supplier strategy :ender selection 2ifficulty in forecasting demand 'ost of reverse logistics .# O))ortuniti! % .anaging information

.anaging e,business .anaging 4ogistics .anaging Inventory Inventory e,procurement .anaging collaboration .anaging other IT,assisted solutions: supply chain teams, virtual factories, ireless solutions 4.&.( Ent!r)ri ! R! ourc! Plannin' "ERP# Sy t!m -%( serves as a cross,functional enterprise backbone that integrates and automates

many internal business processes * information systems

ithin the manufacturing, financial,

$%, corporate services, customer#product, and supply chain! This soft are integrates the planning, management, and use of all resources in the entire enterprise! Some top reasons hy -%( installations fail are: 7nrealistic e)pectation! Inability to map business processes Inaccurate data 8ailure to factor in hidden costs! Things that need to be done hen implementing an -%( programs: 'reate a steering group ith a strong e)ecutive champion 9et help from consulting team Set e)pectations and manage the pro"ect effectively .anage the change in the organizations -nable infrastructure to support the change! 'ommunicate to all interested parties 4.&.4 /u in! Proc! +ana'!m!nt "/P+#

+(. refers to activities performed by businesses to optimize and adapt their processes! +enefits of +(.: %educe product design by ;<= %esult in faster time,to,market of competitive product %educe order fulfillment time by ><= Improve customer satisfaction ith the ordering process

$elp organizations achieve gains of ?<= in call centres! 4.&.0 Pro-uct Lif! Cycl! +ana'!m!nt "PL+# (4. is a business strategy that enables manufacturers to control and share product,

related data as part of product design and development efforts, and to support supply chain operations! 4 phases of product life cycle: 'onceive: imagine, specify, plan, and innovate 2esign: describe, define, develop, test, analyse, and validate! %ealise: manufacture, make, build, procure, produce, sell, and deliver Service: use, operate, maintain, support, sustain, phase,out, retire, recycle, and dispose 4.&.1 Pro-uct Lif! Cycl! +ana'!m!nt "CR+# '%. is an enterprise effort to ac/uire and retain profitable customers! '%. is a comprehensive business and marketing strategy that integrates techonology, process and all business activities around the customers! .a"or issues related to '%. failures: 2ifficulty in measuring and valuing intangible benefits! 8ailure to identify and focus on specific business problems 4ack of active senior management 0non,IT1 sponsorship (oor user acceptance! Trying to automate a poorly defined process! 4.( GLO/AL 2 INTERORGANISATIONAL INFOR+ATION S*STE+S 4.(.1 Int!ror'ani ational Information Sy t!m "IOS# 2 3irtual Cor)oration "3C# IOS are systems that span organizational boundaries! :' is an organization composed of t o or more business partners, in different locations, sharing costs and resources for the purpose of producing a product or service! IOS technologies: -lectronic 2ata Interchange -)tranets @.4 Aeb services 4.(.& Glo.al Information Sy t!m

9lobal Information Systems are IOSs that connect companies located in B or more countries! These systems help companies share information freely across national boundaries through the use of telecommunications 'ultural differences 4ocalization -conomic and (olitical 2ifferences 4egal Issues .a"or benefits of 9lobal Information Systems: -ffective communication at a reasonable cost! -ffective collaboration to overcome differences in distance, time, language, and culture! Access to databases of business partners and ability to ork on the same pro"ects hile their members are in different locations! 4.(.( Partn!r R!lation $i) +ana'!m!nt "PR+# an- Colla.orati4! Comm!rc! "c5 comm!rc!# (%. aims at ac/uiring and retaining partners distribution of a company5s products and services! 'ollaborative transactions commerce 0',commerce1 refers to non,selling#buying electronic ithin, bet een and among organizations! It implies communications, information ho can enhance the selling and

sharing, and collaboration done electronically by means of tools such as group are and specially designed collaboration tools! Some of areas in collaboration that use IOSs are: %etailer,Suppliers (roduct 2esign 'ollaborative .anufacturing 4.4 +ANAGERIAL ISSUES "for -i cu in'#

Intergration of functional information system! (riority of transaction processing %ole of IT Organisational adaptability The customer is king#/ueen 9oing global (artner and supplier relationship management

-thical issues

T-+I F 1&7&(E3I&? &7D DE ISI-7 SU++-3T SGSTE1

F.1 1anaging 9no8le#ge: 1. Intro#uction to 9no8le#ge 1anagement: Lnowledge 1anagement !L1$ is a process that helps organizations to identify, select, organize, disseminate and transfer important information and expertise that are part of the organizationalDs memory. In I/, nowledge is very distinct from data and information. Lnowledge has the following characteristics: %xtraordinary leverage and increasing returns -ragmentation, lea age and need to refresh, nowledge is dynamic, it is information in action Incertain value: many intangible aspects Incertain value of sharing: =ooted in time Tacit 'no8le#ge: in domain of sub6ective, cognitive and experiential learning. /acit nowledge is the cumulative store, some examples are corporate

T8o ty)es of 'no8le#ge:

experiences, metal maps, insights, trade secrets, s ill sets, organizational culture. %xplicit nowledge: deals with ob6ective, rational and technical nowledge. %xample: data, policies, procedure, software, documents, products, strategies etc. 0rganization needs to integrate the both nowledge, W ey reasons for the integration: Information must be managed so employees can apply it as nowledge. 1uch information is lost because it is not captured. Lien thuc cua K chuyen gia hYng ghi chep nen hi chuyen gia roi cong it , thong tin tro nen unavailable. 9haring nowledge creates a more powerful company. Oaluing intellectual capital signals that the company values its people. %ncourage employees to learn daily ' functioning nowledge management system follows six steps i$ reate 'no8le#ge: 0rganizationsals must create a learning environment that encourages ris ta ing and accepts the chance of failure. ii$ a)ture 'no8le#ge: <ew nowledge must be identified as valuable and be presented in a reasonable way. iii$ 3efine 'no8le#ge: <ew nowledge must be placed in context so that it is actionable. iv$ Store 'no8le#ge: Lnowledge is stored in a certain format in a nowledge repository !n#i ch7a) where organizational can access v) Manage knowledge: must be %ept current, must be reviewed to verify that it is relevant and accurate. vi) Disseminate knowledge: 8nowledge must be made available in useful format to anybody in the organizational who need it. 2. nowledge Management A!ti"ities# 8nowledge creation or %nowledge ac/uisition: is the generation of new insights, ideas, or routines. 9here are : %nowledge creations: - $o!iali%ation mode: new %nowledge through social interactions and shared e4perience. 64ample when senior staff guide or supervise ;unior staff - Com&ination mode: creation of new e4plicit %nowledge by merging, categorizing, reclassifying e4isting e4plicit %nowledge. - '(ternali%ation: converting tacit %nowledge to new e4plicit %nowledge. - Internali%ation: the creation of new tacit %nowledge from e4plicit %nowledge. nowledge s)aring is e4changing of ideas, insights, solutions, e4periences to another individuals via %nowledge transfer computer system or other non-05 methods.

nowledge seeking is the search for and use of internal organizational %nowledge. nowledge Management:

*. A++roa!)es to

< approaches to %nowledge management: - Pro!ess a++roa!)es: to codify organizational %nowledge via formalized controls, processes and technologies fre/uently using information technologies to enhance the /uality and speed of %nowledge creation and distribution. - Pra!ti!e a++roa!): to %nowledge management assumes that organizational %nowledge is tacit in nature and formal controls, processes and technologies are not suitable for transmitting this type of understanding. - T)e &est +ra!ti!e a++roa!)es are the activities and the methods that the most effective organizational use to operate and manage many functions. : levels of the best practices: - $ good idea that is not yet proven, but ma%e intuitive sense - $ good practice, an implemented techni/ue, methodology, procedure that improve business results - $ local practice - $n industry best practice based on analyzing hard data ,. 'ns-ring $-!!ess o. nowledge Management '..orts# =rganizationals can gain benefits from implementing a %nowledge management strategy: .educe loss of intellectual capital due to people leaving the company .educe costs by decreasing the numbers of times the company must repeatedly solve the same problem .educe redundancy of %nowledge-based activities 0ncrease employees> satisfaction by greater personal development and empowerment ?ain a competitive advantage in the mar%etplace @ac% of management involvement @ac% of clear understanding of 8M benefits @ac% of ade/uate staff and resources =verambitious scope for the 8M effort 6mployees often prefer face-to face conversation over technology =rganizationals implements 8M in an effort to imitate the competition. Management involvement and priorities $de/uate technical infrastructure Aser education and training $de/uate non-technical infrastructure $de/uate deployment of8M system

9here are many cases of knowledge management .ail-re:

9here are few important success factors for 8M

Baving effective influence in terms of coordination, control and measurement, pro;ect management and leadership Baving %ey resources such as financial resources and cross functional e4pertise 9a%ing advantage of technological opportunities

/.2 Cor+orate Per.orman!e Management And 0-siness Intelligen!e# 1. A 1ramework .or 0-siness Intelligen!e# Con!e+ts and 0ene.its Business intelligence 1B0) is about leveraging corporate data and transforming it into useful %nowledge in improving access and refining it to enable appropriate actions. , ma2or !om+onents o. 0I: - Data 'arehouse: is a repository of sub;ect-oriented historical data that is organized to be accessible in a form readily acceptable for analytical processing activities 1data mining, decision support) - Business $nalytics. 0s the application of models directly to the business data. 5uch as =@$C 1online analytical processing) - Business Cerformance Management: BCM is a methodology for defining, implementing, and managing and enterprise>s business strategy by lin%ing ob;ectives with factual measures. - Aser 0nterface: covers all aspects of the communications btw a user and the system. Ma2or &ene.its o. 0I: 9ime saving 5ingle version of truth 0mproved strategies and plans 0mproved tactical decisions More efficient processes 3ost savings 0mproved customers and partners relationships 2ailure to recognize B0 pro;ects Anengaged or wea% business sponsors Anavailable or unwilling business representatives from the functional areas @ac% of s%illed staff Do software release concept Do wor% brea%down structure Do business analysis or standardization activities Do appreciation of the negative impact of Edirty dataF on business profitability Do understanding of necessity for metadata 9oo much reliance on disparate methods and tools.

Many critical challenges for B0 success:

2. 0-siness Anal3ti!s4 Online Anal3ti!al +ro!essing4 Re+orting and 5-er3ing Business analytics 1B$) provides the models and procedures to B0, B$ %nown as analytical processing, business intelligence tools, business intelligence applications or ;ust business intelligence. *. Data 6is-ali%ation4 Geogra+)i!al In.ormation $3stems and 6irt-al Realit3#

Data visualization refers to technologies that support visualizing and sometimes interpreting data. 0t includes images, geographical information system 1?05), graphical user interface 1?A0), graphs, virtual reality, video, and animation. $ geographical information system 1?05) is a computer-based system for capturing, storing, chec%ing, integrating, manipulating and displaying data using digitized maps. ?05 is used along with ?C5 to help them to select new retail store locations, optimized distribution routes etc. Girtual .eality 1G.) is interactive, computer-generated, three-dimensional graphic delivered to the user through a head mounted display. G. applications have been used to support decision ma%ing indirectly. $!ore!ards: provide visual presentation of reports by providing tabular and graphical views of various reports. Das)&oard: is a common component for BCM suites. $lso provides tabular and graphical view of various reports including comparisons to metrics. /.* Managerial De!ision Making and IT $-++ort $3stems 1. Managers and De!ision Making# Management is a process by which organizations goals are achieved through use of corporate resources. $ decision is a choice btw two or more alternative. Decision ma%ing can be classified into & board categories: problem solving and opportunity e4ploitation. , reasons managers need s-++ort o. IT: - Dumber of alternatives to be considered is increasing due to innovations in technology, improved communication, development of global mar%et etc. - Many decisions are made under time pressure. Decision ma%ers want to ma%e decision /uic%ly - Due to uncertainty - Decision ma%ers can be in different lo!ations and so is the information. - Decision ma%ing fre/uently re/uires an organizational to conduct a forecast of prices, mar%et share, etc. - Ma%ing decisions re/uires data. Data are located in multiple sources and need to be integrated from those sources. 5ome M55 1management support system) tools used for decision ma%ing Decision support systems 1D55s) 64ecutive 5upport 5ystems 1655) ?roup decision 5upport 5ystems supports manager and staffing wor%ing in group 0ntelligent systems cable reasoning, learning and problem solving 0ntelligence phase: identify organizational goals and ob;ectives Design phase: generating, developing and analyzing possible courses of action 3hoice phase: including search, evaluation and recommending an appropriate solution.

P)ases in Making De!ision#

Model in decision ma%ing is a simplified representation of reality. 0ene.its o. modeling in de!ision making#

9he cost of virtual e4perimentation is much lower than the cost of e4perimentation with a real system. Models allow for simulated compression of time Manipulating the model is much easier than manipulating the real system. 9he costs of mista%es are much lower in virtual e4perimentation Modeling allows a manager to better deal Mathematical models allow the analysis and comparison Model enhance and reinforce learning and support training

2. De!ision $-++ort $3stems# 1or indi"id-als4 Gro-+s and t)e 'nter+rise Decision support system 1D55) is a computer-based information system that combines models and data in an attempt to solve semistructured and some unstructured problems with intensive user involvement. D55 includes: Dew and accurate information is needed 0nformation was needed fast 9rac%ing the company>s numerous business operations was increasingly difficult. 9he company was operating in an unstable economy 3ompany faced increasing foreign and local competition 9he 05 department are unable to address the diversity of company>s need 9he business analyst function is not inherent within the e4isting systems.

a) Gro-+ de!ision s-++ort s3stems 1?D55s) are an important variant of D55s in which the system is designed to support a group rather than an individual. 5upporting the wor% team to ma%e decision. b) Organisational de!ision s-++ort $3stem 1=D55) that focuses on an organizational tas% or activity involving a se/uence of operations and decision ma%ers and provide the following: 0t affects many organizational units or corporate problems 0t cuts across organizational functions 0t involves computer-based and communications technologies

c) $n e(e!-ti"e in.ormation s3stem 1605) %nown as e4ecutive support system 1655) is a technology designed in response to the specific needs of e4ecutive, Main features: - .apid access - Direct access to management reports - Gery user friendly and supported by graphics - Drill down reporting H investigating information in increasing detail - 6asily connected within online information services and email - 0nclude analysis support, communications, office automation and intelligence support *. Intelligent $-++ort $3stem and '(+ert $3stem# Intelligent s3stem is a term that describes the various commercial applications of artificial intelligence 1$0). 9he goal of $0 is to develop computers that can simulate the ability to thin%, hear, see, tal%, wal% and feel.

AI a++li!ation# Ma%e computers easier to use Ma%e %nowledge more widely available 0ncrease the speed and consistency of some problem solving Bandle problems 0ncrease the productivity of performing many tas%s Belp in handling information overload

'(+ert s3stem targets to capture the %nowledge of e4perts in all forms and use that %nowledge to solve comple4 problems of an organization. ,. Ot)er Intelligent $3stems# Nat-ral lang-age +ro!essing 7N8P9: 3ommunicating with a computer in 6nglish or whatever language you may spea% Nat-ral lang-age -nderstanding:s+ee!) 7"oi!e9 re!ognition Nat-ral lang-age generation:"oi!e s3nt)esis: 9echnology that enables computers to produce ordinary language by EvoiceF Arti.i!ial Ne-ral networks# are a system of programs and data structures that appro4imates the operation of the human brain $re particularly good at recognizing subtle, hidden and newly emerging patterns within comple4 data. /. A-tomated De!ision $-++ort# 8nown as enterprise decision management 16DM) systems are rule-based systems that automatically provide solutions to repetitive managerial problems. 9hrough, 6DM, business can increase customer profitability, build stronger customer relationships, reduce credit ris% and lower costs of ma%ing decisions. Benefits of 6DM: - Deed a higher return from previous infrastructure investments - 2ace increasing business decision comple4ity - 2ace competitive or regulatory pressure that calls for more sophisticated decisions - Must ta%e advantage of increasingly short windows of competitive advantage.

To+i! ;#IMP8'M'NTINGAND MANAGING IT

PART I# $TR<CT<R' ;.1IT $TRAT'GIC A8IGNM'NT AND P8ANNING 09 can contribute to an organization>s strategic ob;ectives and competitive advantage in the following manner: 0nnovative applications 3ompetitive weapons 3hanges in processes @in%s with business partners. 3ost reductions. .elationships with suppliers and customers. Dew products.

 3ompetitive intelligence. ;.1.1IT $trategi! Alignment a. Com+etiti"e 1or!es Model 0t views five ma;or forces of competition that determines the industry>s structural attractiveness. 9hese forces, in combination, determine how the economic value created in an industry is divided among the players in the industry. 5uch an industry analysis helps companies develop their competitive strategy. 9he five forces are as follows: 9he threat of new entrants. 9he bargaining power of suppliers. 9he bargaining power of customers 1buyers). 9he threat of substitute products or services. 9he rivalry among e4isting firms in the industry. 9he following are some generic strategics proposed for competitive advantage: 3ost leadership strategy. Differentiation strategy. Diche strategy. $lliance strategy. 0nnovation strategy. =perational effctiveness strategy. 3ustomer-orientation strategy. 9ime strategy. 6ntry-barriers strategy. @oc% in customers or suppliers strategy. 0ncrease switching costs strategy. &. 6al-e C)ain Model Primar3 a!ti"ities# 0nbound logistics 1inputs)

=perations 1manufacturing and testing) =utbound logistics 1storage and distributiona) Mar%eting and sales 5ervice $-++ort a!ti"ities#

9he firm>s infrastructure 1accounting, finance, management) Buman resources management 1research and development) Crocurement !. $trategi! Reso-r!es and Ca+a&ilities ;.1.2 IT Planning 09 planning is the organised planning of 09 infrastructure and applications portfolios done at

various levels of the organisations. a. IT Planning A++roa!)es T)ere are .i"e general a++roa!)es to IT +lanning as .ollows# Business-led approach. Method-driven approach. 9echnological approach. $dministrative approach. =rganisational approach. &. IT Planning Model 9he four-stage 09 planning model is the foundation for the development of a portfolio of applications that is highly aligned with the corporate goals and has the ability to create an advantage over competitors. 0t consists of the following four ma;or stages I activities: $trategi! IT +lanning. 9his stage can also be e4panded to include the process of searching for strategic information systems 1505) that enable a firm to develop a competitive advantage. 9his involves assessing the current business environment and the future ob;ectives and strategies: 09 alignment with organizational plans $ssess current business environment.

$lignment 5everal tools and methodologies can be used to facilitate 09 planning. 9hese methods are used:

9o help organisations to align their business 09 I 05 strategies with the organisational strategies. 9o indentify organisations to utilise 09 for competitive advantage 9o analyse internal process. 9he following methodologies have been used for 09 planning:

9he business systems planning 1B5C) model. 9he stages of 09 growth model: 0nitiation 64pansion 3ontrol 0ntegation Data administration Maturity

3ritical 5uccess 2actors 1352s) $pproach 5cenario planning

0nformation rre/uirements analysis. 0nclude five step: 5tep J: Define underlying organizational subsystems. 5tep &: Develop a subsystem matri4. 5tep <: Define and evaluate information re/uirements for organisational subsystems. 5tep :: Define ma;or information categories and map interview results into them. 5tep *: Develop an information I subsystem matri4.

.esource allocation. Cro;ect planning. !. IT Planning C)allenges

09 planning becomes more complicated when several organisation are involed, this is particularly so when dealing with multinational corporations: Clanning for interorganisarinal systems 10=5)involving several organisations may be comple4. 09 planning for multinational corporations face a comple4 legal, political, and social environment, which complicates corporate 09 planning. =ther problems for 09 planning include: 3ost and returns-on-investment 1.=0) ;ustification 9ime-consuming process Asing absolete methodologies @ac% of /ualified personnel, especially in the planning phase Coor communication flow Minimal top management support 2ailing to translate business goals and strategies into action plans 2ailing to ad;ust the 05 plan to reflect ma;or environmental changes 0gnoring the 05 plan once it has been developed in the implementation phase.

d. IT Planning = >e&-&ased $3stems

5trategic planning for web-based systems can be viewed as a subset of 09 strategic planning. Bowever, in many cases it is done independently of 09 planning. 'le!tri! +lanning 7'-Planning9 mostly deals with the 63 infrastructure, uncovering business opportunities, and deciding on an applications portfolio that will e4ploit those opportunities.

;.2 IT 'CONOMIC$
;.2.1 T)e Prod-!ti"it3 Parado( 9he discrepancy between measures of 09 investment and measures of output is termed as the productivity parado4. Cossible e4planations of the parado4 include: Croblems with data or analyses hide productivity gains from 09. ?ains from 09 are by losses in other areas. 09 productivity gains are offset by 09 costs or losses. ;.2.2 '"al-ating IT In"estment

a. 3ategories of 09 0nvestment 9o evaluate 09 invesments, we need to e4amine the following:

Galue of information in decision-ma%ing. 9raditional methods for assessing the value of information and 09 investment. Methods for evaluating and ;ustifying 09 investment. b. Galue of 0nformation Galue of 0nformation K Det benefits with information H net benefits without information c. 9raditional Methods for $ssessing the Galue of 0nformation and 09 0nvestment $utomation of business processes is an area where it is necssary to define and measure 09

benefits and costs. 3apital investment decisions can also be analyzed by !ost-&ene.it anal3ses, which compare the total value of the benefits with the associated costs. 9raditional tools used to evaluate capital investment decisions are Net Present 6al-e 7NP69 and Ret-rn On In"estment 7ROI9. T)e as+e!t o. intangi&le &ene.its# 3osting 09 0nvestment Croblem of 0ntangible Benefits 9o handle intangible benefits, suggested the following solutions: 9hin% broadly and softly Cay your freight first 2ollow the unanticipated.

d. Met)ods .or '"al-ating and ?-sti.3ing IT In"estment $ppraisal methods for 09 investments are categorized into the following four types: 2inancial 1DCG L .=0) Multicriteria 1information economics and value analysis) .atio 109 e4penditures vs total turnover) Cortolio $ specific approach for 09 cost evaluation is the 9otal 3ost of =wnership 193=). 93= is a formula for calculating the cost of owning, operating, and controlling an 09 system. 9he cost incudes: $c/uisition cost 1hardware and software) $perations cost 1maintenance, training, operations, etc) 3ontrol cost 1standardisation, security, central services, etc)

Methods for 6valuating 09 0nvestments include: Galue analysis 0nformation economics 5coring methodology Benchmar%s Management by ma4im .eal-options valuation Balanced scorecard Cerformance dashboard $ctivity-based costing

;.2.* IT '!onomi!s $trategies a. C)arge&a!k

9hese systems may be used to regulate the use of shared information systems. 9here are two alternatives to this strategy: $ll e4penses go into an overhead account. 'ith this approach, 09 is EfreeF and has no e4plicit cost, so there are no incentives to control usage or avoid waste. 3ost recovery is an approach where all 09 costs and usage levels.

&. O-tso-r!ing
9his is a strategy for obtaining the economic benefits of 09 and controlling its costs by obtaining 09 services from outside vendors rather than from internal information system 105) units within the organization. =utsourcing may reduce 09 costs and can ma%e it possible for organizations to concentrate their management efforts on issues related to their core competencies. 9he various forms of outsourcing include: =ffshore outsourcing of software development $pplication 5ervice Croviders 1$5Cs) and utility computing $5Cs that manage and distribute software-based services and solutions from a central, off-site data center, via the 0nternet Management 5ervice Croviders 1M5Cs) who are vendors that remotely manage and monitor enterprise applications. Potential O-tso-r!ing 0ene.its# Financial:

 $voidance of havy capital investment, thereby releasing funds for other users. 0mproved cash flow and cost accountability. 0mproved cost benefits from economies of scale and from sharing computer housing, hardware, software, and personnel. @ess need for e4pensive office space. .educe and control operating costs. Technical: $ccess to new information technologies. ?reater freedom to choose software due to a wider range of hardware. $bility to achieve technological improvements more easily. ?reater access to technical s%ills not available internally. 2aster application development and placement of 09 applications into service. Management: 3oncentration on developing and running core business activity, improved company focus. Delegation of 09 development 1design, production, and ac/uisition) and operational responsibility

to suppliers. 6limination of need to recruit and retain competent 09 staff. .educed ris% of bad software. Human Resources: =pportunity to draw on specialist s%ills, available from a pool of e4pertise, when needed. 6nriched career development and opportunities for remaining staff. Quality: 3learly defined service levels 0mproved performance accountability 0mproved /uality accreditation

Flexibility: Muic% response to business demands 1agility) $bility to handle 09 pea%s and valleys more effectively 1fle4ibility). ;.2., Ot)er As+e!ts o. IT '!onomi!s

a. 6conomics of 'eb-based 5ystems and 63 b. 09 2ailures and .unaway Cro;ects ;.* IT APP8ICATION AC5<I$ITION$ AND OPOTION$ ;.*.1 IT A++li!ation A!@-isition# is to create, buy, or rent applications and implement them. 9he ac/uisition issues is comple4 as there is a large variety of 09 applications and they are constantly changing over time. a. IT A!@-isition Pro!ess# it can be divided five steps: 5tep J: planning, identifying, and ;ustifying 09-based systems 5tep &: creating an 09 architecture 5tep <: selecting an ac/uisition option 5tep :: testing, installing, integration, and deploying 09 applications 5tep *: operations, maintenance, and updating. &. A!@-isition o. IT A++li!ation# A"aila&le O+tions 9he ma;or options for ac/uiring applications are buy, lease, or build 1that is, develop in-house). =ther options are online auctions, ;oint ventures and use of private or public electronic mar%etplaces or e4changes =ption J: Buy =ption &: @ease =ption <: Build - Build from scratch. - Built from components - 5ystems Development @ife 3ycle 15D@3). - Crototyping and other methodologies - 6nd user development 1or end-user computing) ;.*.2 O-tso-r!ing4 A++li!ation $er"i!e Pro"iders4 and <tilit3 Com+-ting

a. O-tso-r!ing O-tso-r!ing is defined as ac/uiring 09 services from an e4ternal 1outside) organisation rather than through internal information systems units O..s)ore o-tso-r!ing is the practice of migrating business processes overseas to lower cost without significantly neglecting /uality. 0t is increasingly a proper option for 09 systems ac/uisition. &. A++li!ation $er"i!e Pro"ider 7A$P9 $n $5C is an agent or vendor who assembles the software needed by enterprises and pac%ages them usually with outsourced development, operations, maintenance, and other services. !. <tilit3 Com+-ting $n important variation of leasing and $5C is utility computing. <tilit3 Com+-ting is defined as unlimited computing power and storage capacity that can be obtained on demand, used and reallocated for any application, and billed on a pay-per-use basis. ;.*.* $ele!ting an A!@-isition A++roa!) and Ot)er Im+lementation Iss-es 3riteria for 5election of 09 $c/uisition $pproach Gendor and 5oftware 5election =ther 0mplementation 0ssues ;.*., Integration o. IT A++li!ations

$side from connecting to bac%-end databases, many 0t applications also re/uire integration with a variety of others systems such as: 6nterprise .esource Clanning 16.C) 3ustomer .elationship Management 13.M) 8nowledge Management 18M) 5upply 3hain Management 153M) 6lectronic Data 0nterchange 16D0) Data warehouses $nd other applications both inside and outside the organisation. 'eb services are self-contained, self-describing business and consumer applications delivered over the internet that users can select and combine through almost any device. 0n service-oriented style of architecture 15=$), software components such as 'eb services can be invo%ed by other programs that act as clients or consumers of those services. 'eb services and 5=$ provide ine4pensive and rapid solutions for application integration across hardware, operating systems, new applications, and legacy systems. 0n addtion, business

processes that are managed via 'eb services and 5=$ adapt faster to changing customer needs and business climates. ;.*./ 0-siness Pro!ess Redesign 9he introduction of new technology may re/uire restructure or redesign of business processes. also, processes may need to be redesigned to fit standard software. Drivers of Business Crocess .edesign $ business process is a collection of activities that converts inputs into outputs. 9he following are some drivers of business process redesign: 2itting commercial software 5treamlining the supply chain Carticipating in private or public e-mar%etplaces 0mproving customer service and implementing 3.M 3onducting e-procurement 6nabling direct online mar%eting .educing cost and improving productivity .estructuring or eliminating old processes prior to automation 9ransformation to e-business Deed for information integration Deed for customization

Methodologies for .edesigning Crocesses 0-siness Pro!ess Reengineering 70PR9, a methodology in which an organization fundamentally and radically redesigned its business processes to archieve dramatic improvement. 9oday, BC. can focus on anything from the redesign of an individual process, to redesign of a group of processes, to redesign of the entire enterprise. $ new method for restructuring %nown as 0-siness Pro!ess Management 70PM9 combines wor%flow systems and redesign methods. 9his emerging methodology covers three process categories: people-to-people, systems-to-systems, and system-to-people integrations. 0t is a blending of wor%flow, process management, and applications integration.

.ole of 09 in Business Crocesses .edesign

9he role of 09 in redesigning business processes can be very critial. 09 can help in analyzing, combining, improving, and simplifying business processes. redesign of business processes often means need to change some or all of the organisational information systems. 9his process is referred to as retooling. N.: N.:.J N.:.& N.:.< N.:.: N.:.* N.* 659$B@05B0D? $DD M$D$?0D? 09 563A..09O 9he 05 Department and the 30= 05 Gulnerability and 9hreats Crotecting 0nformation .esources Business 3ontinuity and Disaster .ecovery Clanning 0mplementing 5ecurity: $uditing and .is% Management M$D$?6.0$@ 055A65

PART II# $<MMARA 0nfomation technology 109) can contribute to an organisation>s strategic ob;ectives and competitive advantage: create innovative applications, utilise as competitive weapons, reengineering business processes, establishing lin%s with business partners, reducing costs, building relationships with suppliers and customers, create new products, providing competitive intelligence. $lignment 09 with the organisation has two aspects: 05 alignment is aligning the 05 function>s strategy, structure, technology, and processes with those of the business units and 05 strategic alignment involves aligning 05 strategy with organisational strategy. 9o help 30=s and other 09 specialists develop an understanding of the industry and organisation in which they operate, several framewor%s such as the competitive forces model, the value chain model, and the resource-based view of the firm model can be used. 09 planning is the organised planning of 09 infrastructure and applications portfolios done at various levels of the organisations. 9he four-stage 09 planning model is the foundation for the development of a portfolio of applications that is highly aligned with the corporate goals and has the ability to create an advantage over competitors. 0ts stages include strategic 09 planning, information re/uirements analysis, resource allacation, and pro;ect planning. 09 planning becomes more complicated when several organisations are involved through interorganisational systems and when dealing with multinational corporations. $lthough organisations have spent tremendous amounts of money on 09, it is also difficult to prove that the spending has increased national or industry productivity. 9he discrepany between measures of 09 investment and measures of output is termed as the productivity parado4.

9here are several traditional methods for assessing information value and 09 ;ustification such as cost-benefit analyses, DCG, and .=0. 5pecial methodologies are used to assess some of the newest 09 technologies such as value analysis, information economics, and balanced scorecards.

6valuating 09 investment re/uires finding the total costs of ownership and the total benefits of ownership and subtracting the costs from the benefits. 9he value of information to an organisation should be part of that calculation.

3hargebac% systems may be used to regulate the use of shared information systems. =utsourcing may reduce 09 costs can ma%e it possible fororganisations to concentrate their management efforts on issues related to their core competencies.

'eb-based technologies may be approached differently for conducting cost-benefit analysis due to their different economic curves, lac% of baseline data, fre/uent changes, etc.

09 application ac/uisition includes all approaches to obtaining systems, that is buying, leasing, or building. 9he ob;ective of 09 application ac/uisition is to create, buy, or rent applications and implement them.

9he process of ac/uiring 09 applications can be divided into five steps: planning and ;ustificationP 09 architecture creationP selecting development optionsP testing, installing, and integrating new applicationsP and conducting operations and maintenance. 9his prosess needs to be managed.

9he ma;or options for ac/uiring applications are buy, lease, or build 1that is develop in-house). =ther options are online auctions, ;oint ventures and use of private or public electronic mar%etplaces or e4changes.

Many enterprises elect to outsource the development and maintenance of their 09 organisations. 9he most common type of 09 applications outsourecing is the use of application service providers 1$5Cs). Atility computing is an emerging option.

$ ma;or aspect of developing an 09 application revolves around the selection of an ac/uisition approach, the selection and management of vendors and their software offerings, and implementation issues.

Dew applications need to be connected to infrastructure 1including databases), other enterprise systems 1e.g., enterprise resource planning) and so on inside the organization. 5uch connections are referred to as integration. 0n the case of 63 applications, they must also be connected to partner>s information systems or to public e4changes, especially for B&B 63.

9he introduction of new technology may re/uire restructure or redesign of business processes. $lso, processes may need to be redesigned to fit standard software. 5everal methodologies li%e BC. and

BCM e4ist for redesigning processes. 09 can help in analyzing, combining, improving, and simplifying business processes. 0nformation resources scattered throughout the organization are vulnerable to attac%s and difficult to coordinate and control, and therefore difficult to manage. 5teering committees, service-level agreements, and information centers can reduce conflicts between the 05D and end-users. 0nformation systems are made up of many component s that may be housed in several locations. 9hus, each information system is vulnerable to many potential hazards or threats. 3omputer crimes occur generally in two ways: the computer is the target of the crime and the computer is the medium to commit the crime. 8nowing about potential threats to information system is necessary, understanding ways to defend against these threats is e/ually critical. Defending information resources is a difficult and e4pensive tas%. Business continuity planning includes bac%up of data and computers, and a plan for what to do when disaster stri%es. Disaster recovery planning is an integral part of effective control and security management. 0n 05 auditing, independent or unbiased observers are tas%ed to conduct an audit to ensure that information systems wor% properly. .is% management approach helps to identify threats and selects cost-effective security measures.