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Management Information System Arshia Tabassum
UNIT-2
INTRODUCTION:
The advent of Internet technologies has really
revolutionized the business world today.
Internet is reshaping the way information systems are being
used in business
Internet has eliminated many technical, geographic, and
cost barriers that use to obstruct the global flow of
information.
E-commerce refers to the use of the Internet and the web to
transact business.
The concept of e-commerce started in 1995.
The Netscape.com started to publish advertisements from
many organizations on its web portal. It showed the web
may also act as new media.
Unfortunately, this exponential growth in e-commerce
created a market bobble called “Dot.com”, bubble which
burst in March 2001.
On the positive, despite the bubble burst a few of e-
commerce Amazon, e-bay and google not only survived but
also hada good growth and thus continued.
E-Commerce:
E-commerce today, is not just about buying and selling
products online as it was perceived a few years before.
It encompasses the entire online process of developing,
marketing, selling delivering, servicing and paying for
products and services transacted through the Internet.
Providing information about a product
Defining the requirements of the customer
Performing the purchase transaction
Electronic delivery of the product (for Eg: Software, music,
video or any information based product)
Providing customer service electronically
It is a major driving force
It provides number of benefits
Due to failures they learnt more
Advantages of E-commerce:
Reduce the transaction costs
Improve customer services
Speed up the flow of information
Coordination among manufactures
Suppliers and
customers.
DISADVANTAGES
OF E-
COMMERCE:
Main threats to e-
commerce
Payments, wrong
posting, Hacking
Categories of E-Commerce:
Business to
Consumer (B2C) e-
Commerce
Business to Business
(B2B) e-commerce
Consumer to
consumer (C2C) e-
commerce
E-Commerce
Infrastructure:
E-Commerce technology
infrastructure is the key to
successful e-commerce.
Hardware:
A web-server
hardware platform is
one of the main e-
commerce
technology
infrastructure
components.
The various features
of the web server like
the storage capacity
& computing power,
etc., depend upon the
software that runs on
the server and the
volume of the e-
commerce
transactions to be
processed.
Software:
Web-server software
e-commerce software
Web-server software:

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Management Information System Arshia Tabassum
To perform a large number of functions like:
Security
Identification retrieval
Sending of web pages
Website tracking
Website development
Website development
The website must have web server software
E-Commerce Software:
Locate or built to a host server, one can start to investigate and
install the e-commerce software.
Catalog management
Product configuration
Shipping chart
E-commerce transaction processing
ERP System
Introduction:
The Enterprise Resource Planning (ERP) system is a set of
application software/ package that provides operational,
managerial and strategic information for an enterprise. The ERP
systems serves as a cross functional enterprise backbone that
integrates all the process of the business and help plan the
resources of the organization. These systems help in focusing on
production capacities, logistics management and working out
financial implications of each decision rather than just come costs.
The basic philosophy of an ERP system is that business
processes are to be integrated at all levels and all the resources of
the organization are to be treated as common resources that are to
be used most efficiently to satisfy its customers.
These systems also offer flexibility to business processes as
the process itself instead of some functions in the process is
automated. For Example: SAP-R3, an ERP Software packages
provide more than 700 processes that are automated and integrated
with each other.
ERP system involves the
purchase of pre written
software modules from third
party suppliers, rather than
bespoke production of
software requirements.
Definition:
Enterprise Resource
Planning [ERP] system may
be defined as a highly
integrated information
system, which provides
information system, which
provides information for all
the functional areas as well
as all the management levels
of an organization.”
Evolution of ERP:
ERP systems have
evolved from the
Materials
Requirements
Planning
(MRP) system
[1970’s].
In 1980’s MRP-II
[Manufacturing
Resource Planning]
In natural evolution
from the first
generation MRP
systems was the
Manufacturing
Planning System
[MRP-II] that
addressed the entire
manufacturing
function and not just
a single task within
the manufacturing
functions.
Both MRP systems
and MRP-II systems
were fairly successful
in Industry.
In 1990’s

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Management Information System Arshia Tabassum UNIT-2 INTRODUCTION: • • • • • • • • The advent of Internet technologies has really revolutionized the business world today. Internet is reshaping the way information systems are being used in business Internet has eliminated many technical, geographic, and cost barriers that use to obstruct the global flow of information. E-commerce refers to the use of the Internet and the web to transact business. The concept of e-commerce started in 1995. The Netscape.com started to publish advertisements from many organizations on its web portal. It showed the web may also act as new media. Unfortunately, this exponential growth in e-commerce created a market bobble called “Dot.com”, bubble which burst in March 2001. On the positive, despite the bubble burst a few of ecommerce Amazon, e-bay and google not only survived but also hada good growth and thus continued. E-Commerce: • • • • • • • • • • E-commerce today, is not just about buying and selling products online as it was perceived a few years before. It encompasses the entire online process of developing, marketing, selling delivering, servicing and paying for products and services transacted through the Internet. Providing information about a product Defining the requirements of the customer Performing the purchase transaction Electronic delivery of the product (for Eg: Software, music, video or any information based product) Providing cu ...
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