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1
Introduction to e-Commerce
SESSION 3

Professor: Bahman Moghimi
Doctor of Business Administration
M.Sc. Of “Industrial Marketing & e-Commerce”

University of Georgia
3
What is Paradigm Shift?

B.Moghimi@yahoo.co.uk
B.Moghimi@yahoo.co.uk

5
Information Society
A

society in which more people work at
handling information than at agriculture and
manufacturing combined.

B.Moghimi@yahoo.co.uk



6

Businesses depend on information technology
to get their work done.
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information system (IS)



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Any combination of information technology and people's
activities that support operations, management and
decision making.
In a very broad sense, the term information system is
frequently used to refer to the interaction between
people, processes, data and technology. In this sense,
the term is used to refer not only to the information and
communication technology (ICT) that an organization
uses, but also to the way in which people interact
with this technology in support of business processes
information system (IS)


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An information system(IS) is typically considered to be a
set of interrelated elements or components that
collect(input), manipulate(processes), and disseminate
(output) data and information and provide a feedback
mechanism to meet an objective.
information system (IS)


An Information System is a business strategy &
an organized combination of people, hardware,

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10

software, communication networks and the
data resources that collects, transforms and
disseminates information in a organization.
IS Elements

11

People


B.Moghimi@yahoo.co.uk



Process



Software



Hardware



Database



Network
Payroll
System

INFORMATION
TECHNOLOGY

Hardware
Software

Inventory
System
are used to build
INFORMATION
SYSTEMS

Databases

Marketing
System

Networks

Customer
Service
System

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IS as Discipline


IS is an interdisciplinary field influenced by
Computer Science, Political Science,

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Psychology, Operations Research,
Linguistics, Sociology, and Organizational
Theory.
Information technology


Information technology provides the means to
rethink/recreate/reengineer conventional business
processes.

B.Moghimi@yahoo.co.uk

–

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Reengineering: The reshaping of business processes to
remove barriers that prohibit an organization from providing
better products and services and to help the organization
capitalize on its strengths.

–

Business Processes: Collections of activities, often spanning
several departments, that take one or more kinds of input and
create a result that is of value to a company’s customers.
What is Information Technology?


A term used to refer to a wide variety of items
and abilities used in the creation, storage, and

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16

dispersal of data and information. Its three main
components are computers, communications
networks, and know-how.
What is Information Technology?

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17
The Functions of Information Technology

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The Functions of Information Technology
Capture: The process of compiling detailed records of
activities.


B.Moghimi@yahoo.co.uk



Processing: The process of converting, analyzing,
computing, and synthesizing all forms of data or
information.
–
–
–
–

19

–

Data Processing
Information Processing
Word Processing
Image Processing
Voice Processing
The Functions of Information Technology

B.Moghimi@yahoo.co.uk



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Generation: The process of organizing information into
a useful form, whether as numbers, text, sound, or
visual image.



Storage and Retrieval: Storage is the computer
process of retaining information for future use. Retrieval
is the process by which a computer locates and copies
stored data or information for further processing or for
transmission to another user.
The Functions of Information Technology



Transmission: The computer process of
distributing information over a

B.Moghimi@yahoo.co.uk

21

communications network.
–

Electronic Mail, or E-Mail

–

Voice Messaging, or Voice Mail
The Benefits of Information Technology

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The Benefits of Information Technology

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3 Elements of any I.S. System

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Quote :

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26

Technology should not
be overrated !
Quote :

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27
25 lessons by Jack Welch

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B.Moghimi@yahoo.co.uk

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B.Moghimi@yahoo.co.uk

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B.Moghimi@yahoo.co.uk

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B.Moghimi@yahoo.co.uk

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Quote :


B.Moghimi@yahoo.co.uk

33

"The best single lesson I ever learned was to
maximize the intellect of the company.
You need to gather the knowledge of
individuals, share those ideas and celebrate
the sharing. That, in the end, is how a
company becomes great.“
Jack Welch
Former chairman and CEO
General Electric
Value in EC systems


Knowledge management is the art of
creating commercial value from intangible
assets.

B.Moghimi@yahoo.co.uk

34



For creating value in any IT systems; we
need crucial information that is just
available in KM.
Knowledge Based Economy


B.Moghimi@yahoo.co.uk

35

Knowledge is the key strategic asset to be managed.
Business Assets

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36
37
B.Moghimi@yahoo.co.uk
KM Role in Information Technology World
To create knowledge-enabled processes
– allow companies to evaluate key
business measures such as customer
B.Moghimi@yahoo.co.uk

38

satisfaction, customer profitability, or
customer loyalty to support their business
decisions
KM & CRM: Example
• A hospital sends a new mother flowers after a baby is born
– Not at the same time everyone else does BUT
– 30 days after the birth

B.Moghimi@yahoo.co.uk

39

• Perfect time, because
– All the flowers she received earlier are gone!
– The exhaustion that accompanies having a new baby has
set in
• The new mother really appreciates this thoughtful gesture
• It comes at a time when she doesn’t expect it
B.Moghimi@yahoo.co.uk

40
E-Business Model

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41
E-Business Model

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42
E-Business Model for FedEx

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43
EBM

B.Moghimi@yahoo.co.uk

44
For next Session…

B.Moghimi@yahoo.co.uk

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B.Moghimi@yahoo.co.uk

47

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