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• Expensive, labor intensive
• Solution based on handheld computer
– Counts entered relayed immediately to headquarters – Bar code scanner employed to shorten process, minimize errors – Allows for real time product totals – Dramatic reduction in labor involved – Lower inventory levels and quicker response time
© 2005 Prentice Hall, Decision Support Systems and Intelligent Systems, 7th Edition, Turban, Aronson, and Liang
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DSS and E-commerce
• DSS supports e-commerce
– Efficient transfer of information – Enhances decision-support process – Data collection and storage
• E-commerce works with DSS
– Inventory management – Produce strategic change in call center by integration of simulation decision support – Marketing database applications and distribution systems – Streaming financial reports – Comparison shopping engines – Data transfer and storage for BI analysis
© 2005 Prentice Hall, Decision Support Systems and Intelligent Systems, 7th Edition, Turban, Aronson, and Libuying, selling, transferring, exchanging products, services, or information over computer networks • Pure versus partial
© 2005 Prentice Hall, Decision Support Systems and Intelligent Systems, 7th Edition, Turban, Aronson, and Liang
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Limitations
• Limitations: – Lack of universal standards – Insufficient bandwidth – Software-development tools are still evolving – Integration difficulties – Need for special Web servers in addition to network servers – Accessibility expensive – Unresolved legal issues – Lack of national and international governmental regulations – Lack of mature methodologies to measure benefits and justify – Customer resistance – Security questions – Insufficient number of buyers and sellers for profitable ecommerce operations
Turban, Aronson, and Liang Decision Support Systems and Intelligent Systems, Seventh Edition
Chapter 14 Electronic Commerce
© 2005 Prentice Hall, Decision Support Systems and Intelligent Systems, 7th Edition, Turban, Aronson, and Liang
© 2005 Prentice Hall, Decision Support Systems and Intelligent Systems, 7th Edition, Turban, Aronson, and Liang 14-9
DSS and E-commerce
• E-commerce facilitates decision support
– Hardware – Software
• Messaging, multimedia, interfaces, business services
– Networks
• communications
• Support areas
– – – – – People Legal and public policy and regulations Marketing and advertisements Support services ranging from payments to order delivery Business partnerships like joint ventures, e-marketplaces, affiliations
– DSS allows for scheduling and transportation optimization – Match buyers to sellers – Improves market operations – Conducts risk analysis – Optimizes selection of transportation routes – Assists in running B2C operations – Data collection – Business intelligence
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© 2005 Prentice Hall, Decision Support Systems and Intelligent Systems, 7th Edition, Turban, Aronson, and Liang
Advantages
• Advantages: – Expands marketplace globally – Expands availability of resources – Shortens marketingdistribution channels – Decreases expenses – Reduces inventory – Aids small businesses in competing – Enables specialized niches – Quicker delivery of information – Enables individuals to work from home – Facilitates delivery of public services – Allows for purchase of goods at lowered prices – Enables customization, personalization – Decreases costs to customers, while increasing their choices – Allows for 24 hour shopping – Makes electronic auctions possible – Enables people to interact in electronic communities
• Convenience store chain needs accurate stock count
– – – – Overstocking expensive Understocking results in customer dissatisfaction Losses due to shrinkage Manual counts used data collection sheets
© 2005 Prentice Hall, Decision Support Systems and Intelligent Systems, 7th Edition, Turban, Aronson, and Liang 14-5
Scope of E-commerce
• Applications supported by infrastructure
– Based on degree of digitization
• Product • Process • Intermediary
– Pure requires all three components to be fully digitized
• Internet versus non-Internet
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Learning Objectives
• • • • • • • • • Describe the concepts involved in electronic commerce. Understand auctions and portal mechanisms. Know the applications involved in e-commerce. Learn about electronic market research, eCRM, and online advertising. Define collaborative commerce and B2B applications. Understand e-government activities. Describe mobile commerce and pervasive computing. Learn e-commerce infrastructure and support services. Understand the ethical and legal issues involved in ecommerce.