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Summary Information Management for IBA
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Summary of information management for IBA for year 2 for the chapters 1,2,3,4,5,6
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Chapter 1Today, mobile, social, and local are the driving forces in e-commerce. The rapid growth of e-
commerce is also pro-viding extraordinary growth in career and employment opportunities
E-commerce: the use of the Internet, the Web, and mobile apps and browsers running on mobile
devices to transact business. More formally, digitally enabled commercial transactions between and
among organizations and individuals.
Digitally enabled transactions include all transactions mediated by digital technology. For
the most part, this means transactions that occur over the Internet, the Web, and/or via
mobile devices.
Commercial transactions involve the exchange of value (e.g., money) across organizational or
individual boundaries in return for products and services.
Exchange of value is important for under-standing the limits of e-commerce. Without an
exchange of value, no commerce occurs.
The Internet: is a worldwide network of computer networks built on common standards.
The Web: is one of the Internet’s most popular services, providing access to billions of web pages.
An app (short-hand for application) is a software application. The term is typically used when
referring to mobile applications, although it is also sometimes used to refer to desktop computer
applications as well.
A mobile browser: is a version of web browser software accessed via a mobile device.
E-business: the digital enabling of transactions and processes within a firm, involving information
systems under the control of the firm.
A firm’s e-business infrastructure pro-vides support for online e-commerce exchanges.
E-commerce and e-business systems blur together at the business firm boundary, at the point
where internal business systems link up with suppliers or customers.
E-business applications turn into e-commerce precisely when an exchange of value occurs.
One way to measure the growth of the Internet is by looking at the number of Internet hosts with
domain names. (An Internet host is defined by the Internet Systems Consortium as any IP address
that returns a domain name in the in-addr.arpa domain, which is a special part of the DNS
namespace that resolves IP addresses into domain names.)
World Wide Web (the Web): an information system running on Internet infra-structure that provides
access to billions of web pages.
The Web provides access to billions of web pages indexed by Google and other search
engines.
These pages are created in a language called HTML (HyperText Markup Language). HTML
pages can contain text, graphics, animations, and other objects.
Mobile platform: provides the ability to access the Internet from a variety of mobile devices such as
smartphones, tablets, and other ultra-lightweight laptop computers.
Information asymmetry refers to any disparity in relevant market information among parties in a
transaction.
,E-commerce technologies make it possible for merchants to know much more about consumers and
to be able to use this information more effectively than was ever true in the past. Online merchants
can use this information to develop new information asymmetries, enhance their ability to brand
products, charge premium prices for high-quality service, and segment the market into an endless
number of subgroups, each receiving a different price.
Marketplace: is a physical place you visit in order to transact.
E-commerce, in contrast, is characterized by its ubiquity: it is available just about everywhere, at all
times.
Marketspace: a marketplace extended beyond traditional boundaries and removed from a
temporal and geo-graphic location.
- ubiquity reduces transaction costs: the costs of participating in a market.
To transact, it is no longer necessary that you spend time and money traveling to a market.
- - At a broader level, the ubiquity of e-commerce lowers the cognitive energy required to
transact in a marketspace. Cognitive energy refers to the mental effort required to complete
a task.
The total number of users or customers an e-commerce business can obtain is a measure of its
Reach.
The technical standards for conducting e-commerce are universal standards (they are shared by all
nations around the world).
Lowers market entry cost
Reduces search cost
Price discovery becomes simpler
Network externalities—benefits that arise because everyone uses the same technology.
Information richness: refers to the complexity and content of a message.
e-commerce technologies allow for interactivity, meaning they enable two-way communication
between merchant and consumer and among consumers.
E-commerce technologies vastly increase information density: the total amount and quality of
information available to all market participants, consumers and merchants alike.
E-commerce technologies reduce information collection, storage, processing, and
communication costs.
Price transparency
Cost transparency
Price discrimination
E-commerce technologies permit personalization: merchants can target their marketing messages to
specific individuals by adjusting the message to a person’s name, interests, and past purchases.
The technology also permits customization: changing the delivered product or service based on a
user’s preferences or prior behavior.
Different types of E-commerce relationship:
,Business-to-consumer (B2C) e-commerce: in which online businesses attempt to reach individual
consumers. B2C e-commerce includes purchases of retail goods, travel, financial, real estate, and
other types of services, and online content.
Business-to-business (B2B) e-commerce: in which businesses focus on selling to other businesses, is
the largest form of e-commerce.
Here are two primary business models used within the B2B arena: Net market-places, which include
e-distributors, e-procurement companies, exchanges, and industry consortia, and private industrial
networks.
Consumer-to-consumer (C2C) e-commerce: provides a way for consumers to sell to each other, with
the help of an online market maker (also called a platform provider).
In C2C e-commerce, the consumer prepares the product for market, places the product for
auction or sale, and relies on the market maker to provide catalog, search engine, and
transaction-clearing capabilities so that products can be easily displayed, discovered, and
paid for.
Mobile e-commerce (m-commerce): refers to the use of mobile devices to enable online
transactions. M-commerce involves the use of cellular and wireless networks to connect
smartphones and tablet computers to the Internet. Once connected, mobile consumers can purchase
products and services, make travel reservations, use an expanding variety of financial services, access
online content, and much more.
Social e-commerce: is e-commerce that is enabled by social networks and online social relationships.
Social e-commerce is often intertwined with m-commerce, particularly as more and more social
network users access those networks via mobile devices.
Local e-commerce, as its name suggests, is a form of e-commerce that is focused on engaging the
consumer based on his or her current geographic location. Local merchants use a variety of online
marketing techniques to drive consumers to their stores.
Disintermediation: displacement of market middlemen who tradition-ally are intermediaries
between producers and consumers by a new direct relationship between producers and consumers.
Friction-free commerce: a vision of commerce in which information is equally distributed, trans-
action costs are low, prices can be dynamically adjusted to reflect actual demand, intermediaries
decline, and unfair competitive advantages are eliminated.
A network effect: occurs where all participants receive value from the fact that everyone else uses
the same tool or product.
Thus, the early years of e-commerce were driven largely by visions of profiting from new technology,
with the emphasis on quickly achieving very high market visibility.
Web 2.0: set of applications and technologies that enable user-generated content.
The defining characteristics of this period are often characterized as the “social, mobile, local” online
world.
The phenomenon of e-commerce is so broad that a multidisciplinary perspective is required. There
are two primary approaches to e-commerce: technical and behavioral.
Technical:
, - Computer scientists are interested in e-commerce as an exemplary application of Internet
technology
- Operations management scientists are primarily interested in building mathematical models
of business processes and optimizing these processes\
- Technical groups within the information systems specialty focus on data mining, search
engine design, and artificial intelligence.
Behavioral:
- information systems researchers are primarily interested in e-commerce because of its
implications for firm and industry value chains, industry structure, corporate strategy, and
online consumer behavior.
- Economists have focused on online consumer behavior, pricing of digital goods, and on the
unique features of digital electronic markets.
- The marketing profession is interested in marketing, brand development and extension,
online consumer behavior, and the ability of e-commerce technologies to segment and
target consumer groups, and differentiate products.
- Management scholars have focused on entrepreneurial behavior and the challenges
- faced by young firms who are required to develop organizational structures in short time
spans.
- Finance and accounting scholars have focused on e-commerce firm valuation and accounting
practices.
- Sociologists—and to a lesser extent, psychologists—have focused on general population
studies of Internet usage, the role of social inequality in skewing Internet benefits, and the
use of the Web as a social network and group communications tool.
Chapter 2
A business model: is a set of planned activities (sometimes referred to as business processes)
designed to result in a profit in a marketplace.
A business plan: is a document that describes a firm’s business model. A business plan always takes
into account the competitive environment.
An e-commerce business model: aims to use and leverage the unique qualities of the Internet, the
Web, and the mobile platform.
Eight elements of a business model:
1) value proposition
2) revenue model
3) market opportunity
4) competitive environment
5) competitive advantage
6) market strategy
7) organizational development
8) management team
1. A value proposition: defines how a company’s product or service fulfills the needs of
customers.
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