What are three benefits of e-commerce? What are three limitations of ecommerce?

Helps small companies compete against large companies, enables

customers to make transactions all day from home, and allows
merchandise to be sold at lower prices (which increases standard
of living)
Lack of universally accepted standards for quality, security, and
reliability,
insufficient
telecommunication
bandwidth,
and
unresolved legal issues
Identify and discuss three challenges facing e-tailers that can slow the growth of
an organizations e-tailing efforts and their impacts.
Resolving conflicts with click-and-mortar organizations when a
company decides to sell direct online, it can create a conflict
within its offline operations.
Organizing order fulfillment and logistics there is a problem with
how to ship small quantities to large numbers of buyers.
Identifying appropriate revenue models
List and briefly describe three advertising strategies that can be used over the
internet.
Affiliate marketing an organization refers consumers to the
selling companys web site.
Viral marketing refers to word-of-mouth marketing in which
customers promote a product or service by telling others about it.
Advergaming using games to advertise or promote a product,
organization, or viewpoint.
Discuss three important ways in which retailers can benefit from online
communities.
Consumers can be a source of feedback on existing product
features and new product design.
Word-of-mouth marketing is free advertising that increases the
visibility of retailers and their products.
Increased web site traffic brings in more sales and ad dollars
What business opportunities or operations do virtual communities create or
support?
Virtual communities create new business opportunities. People
with similar interests that congregate at one web site are a
natural market segment for marketers.
Using chat rooms, members can exchange opinions about products
and services.
Virtual communities foster customer loyalty.

What risks are enterprises exposed to when they open up their marketing and
advertising to social networks?
There are some risks in opening up your marketing and
advertising to the less controlled social networks. On sites where
content is user-generated, customers can give not only good
feedback, but also negative feedback, which might hurt a
company.

List three types of enterprise system and describe what each of those systems
supports.
Enterprise resource planning (ERP) supports internal supply chain.
Customer relationship management (CRM) provides customer
care.
Knowledge management (KM) supports knowledge creation,
storage, maintenance, and distribution throughout the enterprise.
Partner relationship management (PRM) provides care to business
partners.
Business process management (BPM) involves the understanding
and realignment of processes in the organization, including
reengineering and managing the flow of activities and tasks.
Product life cycle management (PLM) seeks to reduce cycle times,
streamline production costs, and get more products to the market.
Decision support systems (DSSs) support decision making
throughout the enterprise, frequently with the help of a data
warehouse.
Business intelligence (BI) is a computer-based decision analysis
and includes forecasting, analyzing alternatives, and evaluating
risk and performance.
Discuss three key issues that should be examined prior to undertaking an ERP
implementation project to ensure that the company receives business value from
the ERP.
Organizations need to look at different ERP vendors and select the
vendor that meets the companys needs most effectively.
Organizations need process redesign to optimize their business
processes prior to, or in conjunction with, the ERP system
development processes.
The business case for funding an ERP project should not be made
solely on cost savings, but rather predominantly on the business
benefits to be gained from added functionality.

Identify and discuss three Web-related tools to enhance CRM.

FAQs are the simplest and least expensive tool for dealing with
repetitive customer questions.
E-Mail and automated response the most popular tool of
customer service, inexpensive and fast
Call centers one of the most important tools of customer service.
List and briefly discuss three prominent types of inter-organizational systems
(IOSs).
B2B trading systems designed to facilitate trading between or
among business partners.
B2B support systems non-trading systems (hubs, directories,
etc)
Global systems connect two or more companies in two or more
countries
Electronic funds transfer (EFT) telecommunication networks
transfer money among financial institutions.
Groupware facilitate communication and collaboration between
and among organizations.
List three benefits of demand-driven supply networks (DDSNs).
More accurate and detailed demand forecasting, lower supply
chain costs, reduced days of inventory.
Describe what PRM does.
Partner relationship management (PRM) solutions connect
companies with their business partners using web technology to
securely distribute and manage information. It facilitates partner
relationships.
Identify and briefly describe the four phases of decision making.
Intelligence starts the decision making process. Managers
examine a situation and define the problem.
Design decision makers construct a model that simplifies the
problem or opportunity. Model is validated and decision makers
set criteria for the evaluation of alternative potential solutions.
Choice selecting a solution, which is tested on paper
Implementation resolves the original problem or opportunity.
Discuss the characteristics automated decision support systems (ADS). Give an
example of a process that can be supported by an ADS system.
ADS systems are most suitable for repetitive decisions that must
be made frequently and/or rapidly using information available
electronically. Knowledge, decision criteria, and business rules

must be highly structured and the problem must be well

understood. One example of a process that can be supported by
ADS is loan application.
Explain modeling and models in decision making. List three benefits of modeling
in decision making.
A model in decision making is a simplified representation. With
modeling, one can perform virtual experiments and an analysis on
a model of reality.
Benefits are: lower costs, allows to better deal with uncertainty,
and models enhance learning and training.
How do economists measure productivity? What is labor productivity? What is the
productivity paradox? What are two possible explanations of the apparent
productivity paradox?
Economists measure productivity as outputs divided by inputs.
Labor productivity is the ratio of outputs to inputs measured in
hours of work.
The productivity paradox is the discrepancy between measures of
investment in information technology and measures of output at
the national level.
Two possible explanations are that productivity gains are offset by
high costs and time lag may distort the picture.

Traditional financial methods to evaluate investment decisions are net present

value (NPV), internal rate of return (IRR), and payback period. Explain these
methods.
In an NPV analysis, the values of future benefits are discounted to
their present value equivalent. Then the present value of future
benefits is compared to the costs to determine whether benefits
outweigh costs.
IRR is the discount rate that makes the NPV of cash flows equal to
zero.
The payback period is the point at which yearly benefits of a
project equal the costs.