INFORMATION SYSTEMS 1B

Thando Ngwenya 201706443

AUGUST 15, 2017

DAMELIN BRAAMFONTEIN
Individual Assignment
 Table of Contents
Question 1: Acronyms.............................................................................................................2
Question 2: CRM and SCM.....................................................................................................2
Question 3: Electronic Commerce...........................................................................................5
Question 3: Electronic Commerce Market Places...................................................................7
Question 4: Electronic Commerce Marketplaces....................................................................8
Question 5: FAQs....................................................................................................................9
Question 6: Web Store............................................................................................................9
Glossary................................................................................................................................ 10
Bibliography.......................................................................................................................... 11
Question 1: Acronyms
a) Customer relationship management: is defined as “the collection and analysis of
information designed for sales and marketing decision support to understand and
support existing and potential customer needs.

b) Enterprise resource planning: is the business process management software that

allows an organization to use a system of integrated applications to manage the
business and automate many back office functions related to technology, services
and human resources.

c) Electronic Data Interchange: is the transfer of data from one computer system to
another by standardized message formatting, without the need for human
intervention. EDI permits multiple companies to exchange documents electronically

d) E-commerce: is the buying and selling of goods and services, or the transmitting of
funds or data, over an electronic network, primarily the internet. These business
transactions occur either as business-to-business, business-to-consumer, consumer
to-consumer or consumer-to-business.

Question 2: CRM and SCM

a) Customer relationship management

CRM is an acronym that stands for Customer Relationship Management. It describes

the strategy that a company uses to handle customer interactions. One example of a
common CRM strategy is the rewards card program offered by many supermarkets.
The store gives its customers a free card that gives them access to special deals
and discounts when they swipe the card during checkout. But that card also tracks
everything the customer buys and allows the store to create an extremely detailed
customer profile based on his or her purchasing habits

Armed with that

information, the store can
then offer its customers
targeted coupons and
other programs that will
motivate its customers to
buy more products from
that store
Customer relationship
management is a strategy
for understanding your
customers and their needs
in order to optimize your
interactions with them.
This philosophy leverages
technology to create stronger relationships with former, current and prospective
customers while maximizing your marketing and customer service capabilities.

CRM can enable you to actively manage your customer relations in an organized
and strategic manner. In practice, that means developing your company's
methodologies, internal operations, software and Internet capabilities to be able to
better address your customers' needs and, as a result, make your relationships with
your customers more profitable.

Using a CRM system, you can keep track of key customer information such as
contacts, communications, accounts, purchases and preferences. This can allow you
to match your customers' needs with your products and services. By analyzing the
data, you can:

 Identify your best customers

 Enrich and customize the way you communicate with your customers
 Manage marketing campaigns
 Reduce customer response times
 Serve wider geographical regions
As your company grows, it may outgrow a simple contact management system,
leading you to consider implementing a full-featured customer relationship
management system. An integrated CRM system can provide your business with the
following:
  Central database: All of your employees can access a central database to
view and update customer data, ultimately improving customer service, loyalty
and retention
 Customer analysis: Your customers
and prospects can be segmented,
enabling you to customize marketing or
sales campaigns, improve campaign
targeting and close ratios
 Customer service: Provide your
customers with the ability to self-order
and self-help using passwordaccessed,
web-based system, reducing your
order entry costs and customer service
costs
 Prospect tracking: Track your sales
leads from start to close while
analyzing closing probabilities and ratios; proposals, products and pricing for
each of your prospects can be tracked
 Reporting: Forecast your revenues using automated reporting and trend
analysis, resulting in better decision making

b) Supply Chain Management

Supply chain management (SCM) is the oversight of materials, information, and

finances as they move in a process from supplier to manufacturer to wholesaler to
retailer to consumer. Supply chain management involves coordinating and
integrating these flows both within and among companies. It is said that the ultimate
goal of any effective supply chain management system is to reduce inventory (with
the assumption that products are available when needed).
 For a successful supply chain management, sophisticated software systems with
Web interfaces are competing with Web-based application service providers (ASP)
who promise to provide part or all of the SCM service for companies who rent their
service.

Supply chain management requires the commitment of supply chain partners to work
closely to coordinate order generation, order taking, and order fulfillment. They
thereby create an extended enterprise spreading far beyond the producer's location

Supply chain management flows can be divided into three main flows:
 The product flow
 The information flow
 The finances flow

The product flow includes the movement of goods from a supplier to a customer, as
well as any customer returns or service needs. The information flow involves
transmitting orders and updating the status of delivery. The financial flow consists of
credit terms, payment schedules, and consignment and title ownership
arrangements.

Question 3: Electronic Commerce

a) B2C (Business-to-Consumer)
It is the most common form of e-commerce out there. This type of e-commerce
involves you, the consumer, buying products or services from an online business.
One of the most interesting parts about B2C is that a lot of the online businesses are
actually just standard businesses that you can find around your hometown. The
benefit to putting that store online though, is that people from all around the world
who do not have access to this type of store can easily get products or services from
the store by purchasing them online. This has become an extremely handy and
efficient way for businesses to reach as many clients as possible with little extra cost
to them. It’s about expanding the business’ client group a lot without having to build
an entirely new business in other places around the world.

Businesses selling to the general public typically through catalogs utilizing shopping
cart software. By dollar volume, B2B takes the prize, however B2C is really what the
average Joe has in mind with regards to ecommerce as a whole

C2C (Consumer-to-Consumer)
The second type of e-commerce is consumer-to-consumer (C2C) and is like basically
what it sounds like. This type of e-commerce is typically grouped with online
auctions, although certainly not limited to that. Think eBay or Amazon.com. Those
two websites are perfect examples of C2C commerce because they involve two
consumers, or non-businesses, exchanging goods and services with one another.
This has to be one of the most popular forms of e-commerce out there as well
because it allows people to get access to goods that may not even be available any
longer. Here are a few good examples of C2C e-commerce is beneficial: In the first
scenario you are looking to find an old antique clock from the 1902’s. Your
grandmother used to have a clock just like it and now you want to own a clock like it
for your home. Every weekend you scour the flea marketing and thrift stores in your
area, in hopes of finding that antique clock that you want so badly. After years of
searching, you simply cannot find it anywhere. This is because your range of looking
is completely limited. That same clock might be in the possession of someone living
in China, but you might have no idea. This is where e-commerce really comes in
handy. After looking for a long time, you go on eBay and search that clock and style
that you are looking for. After 3 seconds, you find that clock! Someone in England is
selling their clock and for a price that you cannot pass up. After all of those years of
searching, you find it in a matter of minutes online. Amazon.com is great because
you can buy, sell and trade books with other people for prices that you simply cannot
get in the bookstores. Textbooks for college are priced much lower than normal and
so college immediately becomes more affordable.

There are many sites offering free classifieds, auctions, and forums where individuals
can buy and sell thanks to online payment systems like PayPal where people can
send and receive money online with ease. eBay's auction service is a great example
of where person-to-person transactions take place everyday since 1995.

B2B (Business-to-Business)
 The last type of e-commerce is business-to-business (B2B). This is probably the
least popular, but certainly one of the most useful type of e-commerce out there. This
type of e-commerce involves businesses exchanging goods and services with one
another. Most of the time B2B involves online marketing companies doing services
for other online companies who are looking to get better results on the search
engines. The most popular forms of online marketing are Search Engine
Optimization (SEO) and Pay-Per-Click (PPC). SEO basically means that the online
marketing company will help get your website or business to the top of the search
engines when people search for that type of service or business in their area. They
do this through word optimization, where they place keywords on your website that
make the major search engines like Google, Yahoo and MSN recognize your site as
one that has a lot of valuable information. PPC basically means like what it sounds
like. They place ads and links on various pages and websites that link them back to
your site. Every time someone clicks on a link to see your website, you pay the
online marketing company a very small amount of money for getting your site more
traffic. All of the other forms of e-commerce would not be possible without online
marketing and B2B e-commerce.

Companies doing business with each other such as manufacturers selling to

distributors and wholesalers selling to retailers. Pricing is based on quantity of order
and is often negotiable.

Question 3: Electronic Commerce Market Places

a) Access control is a security technique that can be used to regulate who or what can
view or use resources in a computing environment.
b) There are two main types of access control: physical and logical. Physical access
control limits access to campuses, buildings, rooms and physical IT assets. Logical
access limits connections to computer networks, system files and data. Invalid
source specified.. In the fields of physical security and information security,access
control (AC) is the selective restriction of access to a place or other resource. The
act of accessing may mean consuming, entering, or using. Permission to access a
resource is called authorization.
c) A
d) A
e) Catalogue management ensures the quality of product data and its configurability to
the buyer's required format. It is a dynamic process that enables suppliers to quickly
broadcast product and price changes, and introduce new items. (CIPS: Content and
catalogue management; Ross, 2002). A
f) Workflow management is the coordination of tasks that make up the work an
organisation does. By ‘workflow’ we mean a sequence of tasks that are part of some
larger task, and is sometimes synonymous with ‘business process’. The purpose of a
workflow is to achieve some result, and the purpose of workflow management is to
achieve better results according to some set of goals.The definition of an electronic
 payment system is a way of paying for a goods or services electronically, instead of
using cash or a check, in person or by mail. An example of an electronic payment
system is Pay Pal. An example of an electronic payment system is the use of a credit
card.
g) Event notifications send information about events to a Service Broker service. Event
notifications execute in response to a variety of Transact-SQL data definition
language (DDL) statements and SQL Trace events by sending information about
these events to a Service Broker service
h)

i) A

j) A SWOT analysis is a strategic planning tool that helps a business owner identify his
or her own strengths and weaknesses, as well as any opportunities and threats that
may exist in a specific business situation. A SWOT analysis is most commonly used
as part of a marketing plan, but it is also a good tool for general business
strategizing, and to use as a starting point for team discussions. Invalid source
specified.

Question 4: Electronic Commerce Marketplaces

An online marketplace (or online e-commerce marketplace) is a type of e-commerce site
where product or service information is provided by multiple third parties, whereas
transactions are processed by the marketplace operator. Online marketplaces are the
primary type of multichannel ecommerce and can be described as a "simple and convenient
portal" to streamline the production process.

Online Marketplace is a business place where business is done through internet. All
business processes like sell and buy are performed through online marketplaces. The
products on online marketplaces can be from multiple vendors, may be stores, brands or
persons in the same marketplace platform. All the marketing strategy for attracting
customers and money transaction processes are handled by marketplace owner while
manufacturing and product shipping is dealt by third party vendor. This way, the
manufacturer is able to sell his own products directly and marketplace owner is able to
avoid holding stocks. This type of supply chain management is called Drop Shipping. The
marketplaces generate revenue by taking a percentage commission of sales on any
product sold on the marketplace platform
A marketplace store also has potentially much lower startup costs, and due to the larger
inventory usually much more sales volume than a standard eCommerce store.

A traditional eCommerce store requires that the store owner builds up the inventory
themselves, which can be time consuming and costly if the stock needs to be purchased
on-hand. Using the marketplace style model, a store owner is responsible for attracting
customers, and keeping track of the transactions through the store, while the vendor is
responsible for manufacturing the products, and shipping them to the customer.
Question 5: FAQs
• Are there any system requirements?
• Can I sell to any country around the world, in any currency?
• Can I sell to any country around the world, in any currency?
• Where is the website hosted?
• What are merchants

Question 6: Web Store

A webstore is a website that offers items for sale and accepts credit cards.Invalid source
specified.

An online storefront is a web site that enables visitors to find, order and pay for products
and services. Running a successful store involves getting qualified buyers to visit your
store, helping them to understand their problem (and the pain or desire that it is causing
them), giving evidence you can solve their problem (credibility), and making it easy for them
to acquire the solution from you (steps they use to gain ownership of the item).

Online storefronts typically include storefronts, shopping carts, payment processing, and
order fulfillment systems. There are many store hosting options that can influence the
effectiveness of a user experience and web analytics can be used to determine which mix
of web pages, content choices, and product offers are most effective.

The basic process for running online stores includes promoting, qualifying, interest
building, convincing, and order processing. There are different types of online stores which
include online mall, e-commerce hosts, e-commerce software applications or custom
software.

The online storefront provides various types of information to the visitor such as company
description, product types, product description pages, store policies, and contact
information. A shopping cart allows customers to select and temporarily store products
that they want to purchase.

Payment processing is a system that allows the user to select which payment method they
want to use, gather payment information (e.g. credit card number), and processes or
records the payment information. Fulfillment is the process of picking or obtaining the
items the customer has ordered, shipping the item(s), and maintaining delivery tracking
information.Invalid source specified.

Glossary
Bibliography
Margaret Rouse, 2012. e-commerce. [Online]
Available at: http://searchcio.techtarget.com/definition/e-commerce
[Accessed 04 08 2017].

Anon., n.d. [Online].

Beal, V., 2017. ERP.html. [Online]

Available at: http://www.webopedia.com/TERM/E/ERP.html [Accessed
10 08 2017].

Money, M., August 27, 2016 . marketplace-ecommerce. [Online] Available

at: https://www.refresh.co.za/2016/08/marketplace-ecommerce/
[Accessed 14 August 2016].