SESSION 19

E-COMMERCE

KM

BUILDING INFORMATION SYSTEMS

 E-Commerce
Two Models:

1. Inventory Model

2. Marketplace Model

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 E-Commerce
 E-Commerce – Recent Govt. Regulations?
 CASE STUDY

WALMART vs. AMAZON

 WALMART vs. AMAZON
 Walmart – World’s Largest & Most Successful
Retailer

 Started in 1962 as traditional offline physical store

 11,000 stores world-wide

 First in Fortune 500

 First competitor – Amazon

 WALMART vs. AMAZON
 Amazon – Sells all products

 Amazon – Produces consumer electronics

(Kindle)

 Now half of Walmart customers - Shopped at

Amazon also

 Affluent customers – Use Amazon

 Walmart’s traditional customers (< $50,000/year) -

Becoming more comfortable with technology
 WALMART vs. AMAZON
 Amazon’s Revenue Growth - Faster than Walmart

 2013 – Amazon’s Sales - $67 billion

 2013 - Walmart’s Online Sales - $9 billion

 Amazon’s premium shipping service - “Amazon Prime”

 Amazon Prime – Fast shipping at subscription model

($99/year)

 Walmart’s Supply chain – Massive (has to support

11,000 physical stores) – Not a problem for Amazon
 WALMART vs. AMAZON
 Amazon’s Shipping Cost < Walmart

 Shipping Cost – Big difference for Walmart (as

popular purchases are low cost)

 Walmart - No sense to create a duplicate supply

chain for e-commerce

 Walmart – Instant gratification

 WALMART vs. AMAZON
 2/3rd of US population - Within 5 miles of a
Walmart store

 Walmart spent $300 million – For increasing

online business

 @WalmartLabs – Digital division

 Improving product recommendations for web

visitors to Walmart, using smartphone as
marketing channel, personalizing shopping
experience & expanding integration with Social
N/Ws like Pinterest
 WALMART vs. AMAZON
 Walmart App (“Endless Aisle”) – To immediately
order from Walmart.com through smartphones if
item out of stock

 “Pay With Cash” program (for 25% of Walmart

customers w/o Bank Accnt/Credit card) to order
online & pay with cash at nearby Walmart store

 @WalmartLabs - Acquires recipe technology

startup Yumprint

 Subscription Service (free shipping) – 47 million

members can order 700 items (competes with
Amazon’s “Subscribe & Save” program)
 WALMART vs. AMAZON
 Walmart - Earlier not affected by competition for
Fresh groceries etc (either not sold online or more
costly)

 Now many Walmart’s “Sam’s Club” members

belong to “Amazon Prime” also

 Walmart – Improving links between Store

Inventory, Web Site & Apps (customers can order
online & pick up purchases at stores avoiding
queue)
 WALMART vs. AMAZON
 Walmart designed its App to maximize its biggest
advantage (Physical Presence) over Amazon

 App’s “In-Store mode” (detects when customer is

inside store)

 App’s “In-Store mode” – Customer’s can see their

wish list, Locate items in store & See local
promotions

 App’s “Scan & Go” feature – Self-Checkout

 WALMART vs. AMAZON
 Walmart Website – Monitors prices of competitors &
can lower prices in real time

 Tracking sales of 3rd party retailers on Walmart’s online

platform & getting trends (striking directly on
Amazon’s 3rd party market place)

 Amazon - Trying to offer goods as exhaustive as

Walmart

 2014 – Amazon comes up with own phone (Fire Phone)

 Fire Phone - Hologram effect, Browsing by tilting

 WALMART vs. AMAZON
 Mayday – Amazon’s Customer Support Service

 Firefly – Powerful automatic tool by Amazon which

recognizes 100 million items. Eg. Point phone at
some shoe & order them immediately from
Amazon

 Amazon – Expanding “Fulfilment Centers” closer

to urban areas (same day services)
 WALMART vs. AMAZON
QUESTIONS:

1. Relationship of Walmart’s Online model to its overall

business model?

2. Should Walmart try to best Amazon as world’s

dominant e-commerce company?

3. Should Walmart make its online model secondary to

its traditional model?

4. Should Walmart’s online business be

supplement/complement for its offline business ?
KNOWLEDGE MANAGEMENT SYSTEMS(KMS)

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KNOWLEDGE MANAGEMENT SYSTEMS (KMS)

WISDOM (Why Not?)

KNOWLEDGE (Why?)

INFORMATION (What?)

DATA (Raw)
 DATA, INFORMATION & KNOWLEDGE
DATA
Soap –1.50
Tooth Brush – 3.5
Tooth Paste – 2.5
Tooth Brush – 3.5
Soap – 1.50
Tooth Paste – 2.5

INFORMATION
Description - Soap
Units Sold – 20
Revenue – Rs. 30
“What” was sold at what price?

KNOWLEDGE
“Why & How” did Soap generate most revenue?

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 KNOWLEDGE MANAGEMENT SYSTEMS(KMS)
 Tangible / Intangible ?

 Virtual / Physical ?

 Can Virtual be Tangible?

 Knowledge – Virtual ?

 Knowledge – Tangible ?

 Knowledge – Virtual, Intangible Asset for

Organization

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 KNOWLEDGE MANAGEMENT SYSTEMS(KMS)

 Knowledge about how to Create, Produce, Deliver

Goods & Services – Competitive/Comparative
Advantage for Organization ?

 “Explicit” & “Tacit” Knowledge

 KMS – Collect relevant Knowledge & Expertise

within Firm & Outside & also create New
Knowledge & make it available to improve
Business Processes & Management Decisions

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 KNOWLEDGE MANAGEMENT SYSTEMS (KMS)
 KMS,

1. Support processes for Acquiring, Storing,

Distributing & Applying “Existing knowledge”

2. KMS - Support processes for “Creating New

Knowledge” & Integrating it into organization

 Eg. RLLE Experiential “Tips” by students

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 KNOWLEDGE MANAGEMENT SYSTEMS (KMS)
 Include “Enterprise wide” systems for managing &
distributing Documents, Videos, Knowledge
Directories of employees with special expertise &
“Knowledge Work Systems” to facilitate knowledge
creation

 Eg.

 Solution Exchange – COP (Communities of Practice)

 http://in.one.un.org/page/un-solution-exchange

 http://www.ggk-irma.in/
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 KMS CASE

UNISYS – SOCIAL COLLABORATION IS

 UNISYS – SOCIAL COLLABORATION IS
 Unisys – Presence - 100 countries including India

 IT Services

 140 years existence

 23,000 employees

 Harnessing & Sharing of Intellectual Capital –

Vital to its operations (lacking)
 UNISYS – SOCIAL COLLABORATION IS
 Multiple Info. Silos

 Top-Down communication model

 Employees - No-way to find & connect with

subject matter experts

 Need for “Enterprise wide collaboration” through

IS
 UNISYS – SOCIAL COLLABORATION IS
 Use of Social Media

 Areas identified where social technology could

deliver value to customers

 Redesign of Intranet – New feature – NewsGator

 NewsGator - Social Engine for employees to create

individual profiles & follow colleagues

 Newsfeeds & Blogs – Sharing & Learning

 UNISYS – SOCIAL COLLABORATION IS
Communities - Hubs for Social Collaboration

Communities - “Crowd-Source” ideas from Employees

A. “Organic” communities – Developing expertise

through interaction with like-minded people

B. “Business Unit” communities – Dissemination of

latest news (Employees “hard-aligned” to respective
business unit communities)

C. “Areas of Strength” communities - Authoritative

communities that leveraged knowledge in Unisys’ key
solutions
 UNISYS – SOCIAL COLLABORATION IS

Awareness campaigns on Enterprise Collaboration

(for employees)

Communities integrated into Orientation Program

for quick on-boarding
 UNISYS – SOCIAL COLLABORATION IS
RESULTS:

1. First 18 months – 91% of targeted 16,000 employees

adopted

2. 120 Organic communities developed

3. Enhanced Innovative Culture, Efficiency, Employee

Devp., Market Agility, Customer Service

4. Virtual Teams (remote, home-based employees) –

Feel “connected” to their business environment
 UNISYS – SOCIAL COLLABORATION IS
Business
Challenge

Go for Enterprise Multiple Info. Silos,

Collaboration Top-Down
Communication
Management
prevented Info.
Sharing

Design Commn.
Flow for Virtual IS Business
Organization
Communities, Solutions
Train employees Facilitate knowledge
Consolidation, Increase
Redesign Intranet Creation, Sharing & workplace
with ‘NewsGator’ Technology Use efficiency,
feature Creativity,
Employee Devp.

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 “Digital Marketing”

 Marketing through Digital Channels (Not

restricted to internet)
BUILDING INFORMATION SYSTEMS

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 SYSTEMS DEVELOPMENT
&
ORGANIZATIONAL CHANGE
SYSTEMS DEVELOPMENT & ORGANIZATIONAL CHANGE

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SYSTEMS DEVELOPMENT & ORGANIZATIONAL CHANGE
1. AUTOMATION – Performing tasks more
efficiently

Eg. Giving bank tellers faster access to customer

deposit records (“Paving the cow path”)

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SYSTEMS DEVELOPMENT & ORGANIZATIONAL CHANGE
2. RATIONALIZATION - Remove
bottlenecks/Increase efficiency in Orgn.’s
functioning

Eg. Bypassing RLLE Coordinator for Financial

Approval

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SYSTEMS DEVELOPMENT & ORGANIZATIONAL CHANGE
3. BUSINESS PROCESS RE-ENGINEERING
/REDESIGN (BPR)

 Radical restructuring of Business Processes

 Eg. Ford’s Invoice-less Processing

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SYSTEMS DEVELOPMENT & ORGANIZATIONAL CHANGE
BPR - FORD’S INVOICE-LESS PROCESSING
 AP clerks – Time wasted on resolving
discrepancies between POs, GRs & Invoices

 INVOICE-LESS PROCESSING

 Purchase Dept – Enters POs into online DB

 Receiving Department – Checks GRs with POs

(Matching)

 If Matching is OK, AP system automatically

generates cheque for vendor
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SYSTEMS DEVELOPMENT & ORGANIZATIONAL CHANGE
4. PARADIGM SHIFT

Radical change in Business Model

Eg. “Schneider National” – Business involved

Trucking & Transportation

Change in Business model - To manage logistics

for other companies

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 BUSINESS PROCESS MANAGEMENT
 To use “Process” as the fundamental building blocks
of Corporate IS

 Manage incremental process changes that are

required across many areas of business

 BPM – Steps:

1. To identify & document existing processes (using

“Process Mapping Tools”)
2. Create models of improved Processes (“Business
Process Modeling”)
3. Translate new models into software systems

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 BUSINESS PROCESS MANAGEMENT
 BPM Products – IBM, Oracle

 Eg. XYZ Insurance company (Life Insurance,

Property Insurance, Medical Insurance &
Investment Services)

 BPM built rules to guide Customer Service

Representatives(CSR) through a single view of a
customer’s information across multiple systems
(eliminating need to juggle multiple mainframe
applications simultaneously)

 Increased CSR’s capacity by 192%

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 SYSTEMS DEVELOPMENT
(or)
BUILDING INFORMATION SYSTEMS

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 SYSTEMS DEVELOPMENT
 Producing an IS solution to Organizational
problem(s) (Some problems may not need IS
solution)

 Stages,

1. Systems Analysis
2. Systems Design
3. Programming
4. Testing
5. Conversion
6. Maintenance

“SYSTEMS ANALYSIS & DESIGN”

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 1. SYSTEMS ANALYSIS
STEPS,

1. Defining Problem
2. Specifying Solution
3. Identifying INFO. requirements that must be
met by a Systems solution

Info. requirement – Who needs What Info.,

Where, When and How

4. Describes the “Functions” that the new/modified

system must do to meet Info. requirements
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 2. SYSTEMS DESIGN
 Similar to “Blueprint” of house (SRS)

 How will the system fulfill the “Functions” identified

during Systems Analysis ?

 Details system “specifications” that will deliver the

functions

 Specifications – Should address Managerial,

Organizational & Technological components of the IS
solution

 Insufficient User involvement is a major cause of

system failure

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 SYSTEMS DEVELOPMENT
3. PROGRAMMING

Most firms don’t do this themselves

Outsource

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 SYSTEMS DEVELOPMENT
4. TESTING

a. Unit Testing - Testing each part separately

b. System Testing - Testing whether discrete

modules will function as a whole

c. Acceptance Testing – Evaluation by Users (UAT)

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 SYSTEMS DEVELOPMENT
5. CONVERSION

Old to New System

a. Parallel Strategy
b. Direct Cut-Over Strategy
c. Pilot Strategy
d. Phased approach

Detailed documentation – Technical & End-User

perspective

6. MAINTENANCE

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 SYSTEMS DEVELOPMENT
SYSTEM
SYSTEM DESIGN PROGRAMMING
ANALYSIS

MAINTENANCE CONVERSION TESTING

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 SYSTEMS DEVELOPMENT
For Systems Analysis & Design (a.k.a Modeling &
Designing Systems),

1. STRUCTURED METHODOLOGY

2. OBJECT ORIENTED METHODOLOGY

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 SYSTEMS DEVELOPMENT
1. STRUCTURED METHODOLOGY

Top-Down Approach – From Abstract to Concrete level

Step-by-Step

“Process” oriented (Process – Actions that capture,

store, manipulate & distribute data)

Focuses on modeling the Processes

Separate Data from Processes

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 SYSTEMS DEVELOPMENT
STRUCTURED METHODOLOGY
1. SYSTEM ANALYSIS

 Principal Tool for Structured Systems Analysis -

Data Flow Diagram(DFD)

 DFD - Represents a System’s component Processes &

Flow of Data

 Partitioninga System into modules that show

manageable levels of detail

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 SYSTEM ANALYSIS - STRUCTURED METHODOLOGY
DFD - UNIVERSITY COURSE REGISTRATION SYSTEM

Student Requested
(external Courses(DF) 1.0 Open Courses(DF)
entity) Verify
Availability
Rejection
Letter(DF) Course
Accepted
File
Selections(DF)
Course Details(DF)
Confirmation 2.0
Letter(DF) Course Enrollment(DF)
Enroll
student

Student Details(DF) Student

Master
3.0 File
Confirm
Registration Registration(DF)

53
 APPLY SYSTEMS ANALYSIS STEPS IN PREVIOUS DFD

1. Defining the Problem

2. Specifying the Solution
3. Identifying INFO. requirements that must be met by
a Systems solution

Info. requirement – Who needs What Info., Where,

When and How

4. Describes the “Functions” (or “Process”) that the

new/modified system must do to meet Info.
requirements
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 SYSTEMS DEVELOPMENT
STRUCTURED METHODOLOGY
2. SYSTEMS DESIGN
 S/W Design is modeled using hierarchical
“STRUCTURE CHARTS”.

 “Structure Chart” – Top-down chart showing each

level of design

 Main Function  Sub-Function Lowest detailed

level

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 STRUCTURED METHODOLOGY
SYSTEMS DESIGN – STRUCTURE CHART
UNIVERSITY COURSE REGISTRATION SYSTEM
1.0
Verify
Course 2.0
Availability Enroll
student

I/P
Requeste- Send
d Course Rejectio
Name & Check
n
All Course Link
Message
Available Availabil Get Student
/Accepte
Course -ity Course & Name
d
names Message Student with
from DB Names Course
Name 56
 STRUCTURED METHODOLOGY
SYSTEMS DESIGN – STRUCTURE CHART
UNIVERSITY COURSE REGISTRATION SYSTEM

3.0
Confirm
Registration

Get
Make & Send
Course &
Confirmation
Student
Letter
Names
 STRUCTURED METHODOLOGY
SYSTEMS DESIGN – STRUCTURE CHART
(PAYROLL PROCESS)
Payroll
Process

Calculate
Validation Pay Write O/P

Validate Calculate Calculate

Get I/Ps Update
I/Ps Gross pay Net Pay Do
master
Payments
file

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 Link between “Systems Analysis & Design” &
“Enterprise Systems/Solutions/Applications”?

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SYSTEM ANALYSIS & DESIGN FOR ADMISSION
PROCESS IN UNIV. (DFD & STRUCTURE CHART)
 Admission Process.docx

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“ICTID” Elective Course (6th Term)