BUSINESS IMFORMATION

SYSTEMS AND
PROCSESSES REPORT

INSTRUCTED BY

MR. LÊ DUY TIẾN

PREPARED BY

LÊ MINH HẢI HỒ PHƯƠNG LINH

NGUYỄN VĂN TÚ TRẦN PHƯƠNG THẢO
NGUYỄN THU PHƯƠNG
TABLE OF CONTENTS

01 Purpose of research

02 Overveiw of the company

03
Funtional areas involves in online
selling/service ativities

04
Information systems are being used to
support online selling/service activities

05 Conclusion and recommedation

 01.PURPOSE
OF RESEARCH

Globalization and the strong development of

the economy are challenges facing
companies today. This problem has created
for businesses extremely great competitive
pressure. Therefore, businesses always need
to accurately and promptly grasp the trends
of society so as not to be left behind. Business
THE PURPOSE OF THIS THESIS IS
processes have always played an important
TO EXPLICITLY RESEARCH AND
role in the proper functioning of an CONSIDER THE ROLE OF
organization and its structure. A business INFORMATION SYSTEMS ON
process-oriented approach is a key to the ORGANIZATIONS’ BUSINESS
success of modern organizations. A well- PROCESS REDESIGNING. BASED
designed process will improve efficiency and ON STUDYING THE CURRENT
STATE OF ALIBABA'S BUSINESS
deliver greater productivity. However, with
INFORMATION SYSTEMS AND
the overload of information where the data PROCESSES. THE STUDY
from the external environment as well as ANALYZES THE BUSINESS
from the inside of the enterprise can be INFORMATION SYSTEMS AND
obtained from a wide variety of content-rich PROCESSES THAT SUPPORT
THEIR ONLINE SALES AND
sources, decision making turns out much
SERVICE OPERATIONS. THEREBY,
difficult and time-consuming, leading to the GIVING SOME SUGGESTIONS AND
need for information technology support in SOLUTIONS THAT CAN CREATE
business information management to help AN APPROPRIATE AND
the business manager with delivering PRACTICAL INFORMATION
SYSTEM FOR THE COMPANY'S
decisions timely and quickly. The application
OPERATIONS TO MAINTAIN AND
of information systems in business STRENGTHEN THEIR MARKET
management in today’s competitive POSITION
landscape is essential in the societal
environment. The reason is that for businesses
to thrive and survive, they need the capability
of decision-making effectively to achieve
business objectives.
 02.
OVERVEIW
OF THE
COMPANY
2.1 INTRODUCTION
2.2 BUSINESS MODEL CANVAS AND BRIEF
EXPLANATION IN DETAIL

Alibaba (Chinese: 阿里巴巴集团

控股有限公司 , Alibaba Group
Joint Stock Company) is an e-
commerce corporation
providing sales services
between consumers and
consumers, business to
consumers. users and
business to business sales
services through the portal.
The group also provides
electronic payment services,
shopping search engines and
cloud computing services,
founded in 1999 by Jack Ma
and headquartered in
Hangzhou, Zhejiang, China.
Alibaba Group and its
affiliated entities now have
more than 22,000 employees
across some 70 cities and
regions, including China,
Hong Kong, India, Japan,
Korea, Taiwan, the United
Kingdom, and the United
States.
Mission
To make it easy to do business anywhere

Vision

To solve the chanllenges of small business in

procurement, sales and marketing,
management and financing through
imformation technology.

Value
Customer comes first: Customers are everything
Teamwork: Team interests are always ahead of
individual interests
Embrace changes: Go beyond yourself and
welcome changes
Integrity: Honest and upright, honoring
commitments
Passion: Never give up and stay optimistic
Commitment: Perform the extraordinary with a
professional attitude and an ordinary mind
2.1 INTRODUCTION
2.2 BUSINESS MODEL CANVAS AND BRIEF
EXPLANATION IN DETAIL
 3.1 DESCRIBE THE
COMPANY'S FUNTION AREAS

03.
FUNTIONAL
AREAS
"ALIBABA DIVIDES INTO
TWO COMMERCIAL

INVOLVES
PLATFORMS IN ONLINE
SELLING/ SERVICE
ACTIVITIES:

IN ONLINE INTERNATIONAL
COMMERCE AND CHINESE

SELLING/ COMMERCE
."

SERVICE
ATIVITIES
3.1.1 International commerce 3.1.2 Chinese commerce
Alibaba.com (B2B platform) 1688.com (B2B platform)
Alibaba.com is the largest online 1688 is a website specializing in
wholesale platform for international providing the largest wholesale goods
trade in the world. Exporters from in China as well as in the world. Web
China and other countries can 1688 is the convergence and
connect with buyers from over 200 concentration of large factories with a
countries through the platform. Trade wide variety of products. You can
agencies, wholesalers, merchants, easily find the same products offered
manufacturers, and SMEs involved in by many different shops at very good
the import and export business are prices.
common buyers. Taobao (C2C platform)
AliExpress (B2C platform) Taobao Marketplace
AliExpress is the leading cross-border (www.taobao.com), formerly known as
online B2C eCommerce site. Founded Taobao, is China's largest consumer-
in 2010 and considered an affiliate of to-consumer online retail
Alibaba.com that allows businesses to marketplace. It was founded in 2003
sell to consumers.AliExpress also and offers a wide range of products.
includes a number of useful features, As of the end of 2010, the corporation
including a currency conversion claimed to have served over 370
service, support for up to 38 different million registered users.
local payment channels, safe Tmall (B2C platform)
transactions, Buyer Protection Taobao Mall (www.tmall.com)
Policies, and Seller Resources. On the debuted in April 2008 as a dedicated
platform, you can learn about B2C platform to complement
business. Taobao's C2C marketplace, and it
became a stand-alone company in
June 2011. It is becoming a popular
online shopping site in China for high-
quality, name-brand items.
Alimama AliExpress
Alimama is the biggest open AliExpress is a global retail
marketing platform in China. It acts marketplace that enables
like the Adsense in China. This consumers from around the world
online advertise trade platform for to buy directly from manufacturers
both publisher and advertiser lets and distributors in China. The
advertisers from purchase content- difference between Taobao and
based PPC advertising plan or AliExpress is that Taobao focuses
banner or text link based on cost on selling to the Chinese
per impression or cost per time. consumers, whereas AliExpress
Simultaneously it helps publishers allows consumers from countries
make money by placing like Russia, USA, Spain, Brazil,
advertisements in their content. France, UK, etc, to shop directly
from Chinese businesses.
Alipay
Alipay is a third-party online
payment platform to assist buyers
with their transactions. It is an
eWallet platform just like Paytm in
India which helps shoppers store
funds and use the stored funds
securely with an ease to transact
online and offline.
3.2 EXPLAIN AND DRAW DIAGRAM FOR CORE
BUSINESS PROCESS
 Explain
Its main business is to provide a digital marketplace where customers and merchants
can connect and purchase and sell. Alibaba's business is divided into four main parts,
the largest of which being its massive e-commerce operations.
Commerce (formerly Core Commerce)
Cloud Computing
Digital Media and Entertainment
Innovation Initiatives and Others

Commerce
Alibaba's commerce business includes digital retail and wholesale platforms, as well as
logistics and local consumer services. Merchants pay for a variety of marketing services,
membership fees, customer management services, product sales, transaction
commissions, and software service costs, among other things. Platform commissions
and on-demand delivery service fees are how the company makes money from local
customers.
Alibaba's commerce division generates the most revenue, accounting for $27.9 billion
in Q1 FY 2022, or around 88 percent of the company's overall revenue. When compared
to the same three-month period a year ago, revenue for the category increased 35.2
percent.
Cloud Computing
Alibaba Cloud offers a full range of cloud services to businesses, including database,
storage, administration, and application services, big data analytics, a machine-
learning platform, and more. 12 The company's cloud computing division collects
revenue from enterprise customers based on the length of time they use the services
and how they use them.
Digital Media and Entertainment
Alibaba's digital media and entertainment division was created as part of the
company's overall goal to generate money from consumption outside of its core
commerce operations. 12 Customer management services, self-developed online
games, and membership subscription fees are the main sources of revenue for this
area.
Innovation Initiatives and Others
Alibaba's innovation efforts and other section attempts to create new services and
products to fulfill the demands of its customers. Amap, a digital navigation software,
and DingTalk, a network communication app, are two examples of previous
innovations.15 Services fees and product sales to consumers and enterprise customers
are the primary sources
04.IMFORMATION SYSTEMS
ARE BEING USED TO SUPPORT
ONLINE SELLING/ SERVICES
ACTIVITIES
4.1
ALIBABA
CLOUD

4.1.1 OVERVEIW
“Alibaba Cloud, also known as Aliyun,
is a subsidiary company in Alibaba
Group. Aliyun provides cloud
computing services to online
businesses and Alibaba's own E-
Commerce ecosystem.”

4.1.2 THE STORY OF ALIYUN

Jack Ma -the CEO of Alibaba Group-
had a profound awareness that an
enterprise cannot survive in the long
term without developing self-owned
technologies. Despite lots of internal
disputes over this decision, Jack Ma
insisted that 1 billion yuan should be
invested in the cloud computing
program every year for the next 10
years. Henceforth, Alibaba Cloud was
founded in 2009
.
4.1.3 ALIYUN SERVICES

Alibaba Cloud, also known as Enterprises Application and

Aliyun, now offers common cloud communication services include
services such as Elastic Computing, Mailing services, customer data
Networking & CDN, Databases, lookup, messaging services, and
Storage, Enterprises Application even chatbots for Sellers’ firm
and communication, as well as operations.
more advanced services such as Analytics services utilize
Analytics, Artificial Intelligence complicated mathematical
or Developer Services. All of it models, machine learning to
serves as essential cogs of Alibaba’s provide forecasts and make use
E-commerce platform as well as of high-end computers to
tools that allow sellers to boost process large amounts of data,
their revenue. create professional graphs and
Elastic Computing services free illustrations for sellers’ decision-
Sellers’ firms from investing in makers.
high-end machines for their Artificial Intelligence services
employees. This service reduces offer pre-trained AI or new AI
the cost and risk of losing assets algorithms to perform tasks
while ensuring sensitive data is such as speech recognition,
secured. sentiment analysis,
Networking $ CDN allows their minimization, and optimization
sellers to host their own server All of the services above either
using a quality cloud network make Sellers’ work more
that allows sellers’ firms to convenient or give them solutions
operate with minimized cost. to work more efficiently, resulting
Databases and Storage services in revenue boost for all parties.
lend space for sellers to store, These services are also being
alter, deliver,... their files and utilized by Alibaba themselves to
databases securely maintain their platform, advertise
Security services protect Sellers’ their product efficiently,...
servers and files from DDOS
attacks, Malware takeover, and
ensure sensitive connections
such as money transfers are free
from hacks.
4.2
CAINIAO
4.2.1 OVERVIEW
China Smart Logistics Network, which is
shortened and known as Cainiao, is a
Chinese logistics company that was
created by Alibaba in 2013. In 2016, the
company made waves by announcing
that it was going to guarantee Cainaio
parcel delivery to any location within
China in 24 hours or less, and in 72
hours or less worldwide.
This is a bold claim as, In China, an
average of 57 million packages were
delivered each day in 2015 (U.S. average
35 million), a figure expected to increase
to 145 million by 2020

4.2.2 MAIN GOAL

Cainiao’s cross-border logistics solutions
are primarily focused on serving
merchants on Alibaba’s marketplaces,
including the outbound AliExpress and
Taobao International, on which products
are shipped overseas from China, and
the inbound platform Tmall Global, on
which overseas products are shipped to
China.
Through its big-data technology,
Cainiao also helps Alibaba extend its e-
commerce network across China’s vast
rural area and population.
Their position as a logistics ecosystem
empowered by data and collaboration
makes Cainiao a unique solution to
enhancing the efficiency of China’s
logistics network, benefiting domestic
and global merchants and consumers
alike
 4.2.3 FUNCTIONALITY

a. Delivery c. Storages
Guarantee Cainaio parcel delivery to Cainiao offers smart storage
any location within China in 24 hours capabilities to 200 network
or less, and in 72 hours or less warehouses and collaborates with
worldwide was very stunning, over 40 domestic partners, including
somehow they pulled it off, by Suning and RRS.
collaborating with the top 15 delivery Cainiao provides integrated
firms in China, including SF Express, warehousing services to large
Shentong Express, YTO Express, ZTO merchants such as P&G and Walch,
Express, and Yunda, Cainiao has increasing their inventory turnover
established a data platform that rate.
processes an average of 4.2 million In their Smart Warehouses, product
packages each day, or 70% of the packaging can be completed in an
total deliveries in China. average of three minutes.
By feeding them real-time Cainiao and its partners formed the
information, Cainiao allows small Cainiao Alliance in March 2016. With
merchants to choose from a pool of an enhanced warehousing and
delivery firms that can provide the delivery network, they have
most efficient delivery option. At the introduced same-day and next-day
same time, Cainiao’s smart routing delivery services to more than 700
and sorting service reduce firms’ districts and counties in China (as of
delivery errors by 40%. July 2016).

b. Rural area services

Rural logistics is fundamental for
Cainiao as it facilitates e-commerce
and improves connectivity across
China’s vast countryside. Their
delivery network covers 20,000
villages (as of August 2016) and they
planned to set up 1,000 county-level
operating centers and 100,000
village-level service stations. Their
goals are to provide home delivery in
rural areas for customers, small and
medium enterprises, and e-
commerce platforms; to help
villagers sell their products more
widely; and to provide after-sales
service for rural customers.
d. Global shipment
Cainiao provides highly efficient one- Data: Cainiao provides one-stop
stop cross-border storage and cross-border logistics services,
delivery services. They cooperate with enhancing the efficiency and
over 50 global partners, including effectiveness of order pickup,
Singapore’s SingPost, Royal Mail in storage, transportation scheduling,
the U.K., and the United States Postal customs clearance, and delivery.
Service. Their extended logistics Cainiao provides bonded import
network covers 224 countries and logistics for Tmall Global by offering
regions, with 110 cross-border the best-bonded customs system
warehouses and a daily processing connection in China. Through
capacity of four million orders. AliExpress’s smart sorting service,
Following Alibaba Group’s China-based merchants have a
acquisition of Southeast Asia-based trusted solution for efficiently
e-commerce platform Lazada, sending their products to customers
Cainiao is integrating these logistics all over the world.
resources and empowering them
through the Cainiao big-data
network.
4.3
ALIPAY
4.3.1 OVERVEIW
Alipay, an online payment system operated by financial services
company Ant Financial, belongs to Alibaba group. Alipay is used
on e-commerce platforms: Taobao, Tmall, ... for small local
businesses.

Up to now, Alipay has developed its software to apply to

payment of electricity and water bills, to phone bills, to airline
tickets... and almost Alipay is used to pay for all kinds of goods.
single. Users do not need to go to the transaction point but
easily pay with the screen.

In addition, Alipay is not only applicable to Chinese people, but

also to customers outside the country who buy goods at Chinese
e-commerce stores.

Alibaba now also provides loans to small businesses and farmers

who cannot get money from the main financial system.
Customer data collected through Alipay's system allows the
consolidated company to try to supplement the data analysis
system of customers' information.

After more than a decade, Alipay has now become one of the
largest online payment companies in the world by number of
users and transaction volume.

At Ant Financial's headquarters in Hangzhou, Zhuanjiang

province, China, a large screen is seen showing the locations
where Alipay is used. Time here Alipay online payment system in
China calculates on all three important criteria: speed, cost and
safety.
ALIPAY'S
STORY
The problem arose from the birth of the Taobao
e-commerce site in 2003, with the policy of
allowing sellers to post products freely
"dropping the door" at no cost, the number of
Taobao users within a year was increasing
rapidly. However, the problem arises: Buyers
and sellers don't trust each other - “People are
not willing to pay upfront just as sellers are not
willing to ship first.
Alibaba needs to handle the transaction and
Alipay can be considered a third party -
connecting and securing online transactions

Jack Ma: "China's e-commerce was not

developed at that time because at that time
there was a lack of a piece of the puzzle, a
mechanism to create trust between people"
On the night of the decision to set up Alipay,
Jack Ma said he would accept jail time if legal
problems arise with the platform.
4.3.2 TRANSACTION PROCESS
4.3.3 MAIN FEATURES

High security : To limit the case of Accepted on many major e-

"get 1 get 2", Alipay requires users to commerce platforms in China: Due
set different login password and to the large number of users, most
payment password. In addition, you major e-commerce platforms in China
are only allowed to enter the wrong accept Alipay as payment method.
login password up to 5 times and the Limit the risk of goods: If you use
payment password up to 3 times. Alipay wallet, you can cancel the
Fast money transfer : Users only need transaction or ask the seller to return
to choose the instant payment the goods and then confirm the order.
method to receive all transaction Only after both parties are satisfied
information quickly. with the purchase and sale benefits
Flexible use: Similar to other e-wallets, will the money be poured into the
Alipay can be used anywhere, as long seller's Alipay wallet. Otherwise, if you
as the user's smartphone has an cancel the transaction, the money will
internet connection. be immediately refunded to your
Protecting customer interests : wallet.
Alipay will not transfer the buyer's Save on payment costs: Using Alipay
money directly to the seller's account wallet, there is no fee when paying on
to avoid buying poor quality goods or the e-commerce platform. And this
not receiving goods. type of e-wallet also has no
Low exchange rate: The rate of transaction limit, so you can make a
payment for orders by Alipay will be one-time payment for a large-value
lower than that of bank cards or order immediately.
international payment cards such as in Covid-19: In 2020, Alipay used a QR
Visa/Mastercard. For each transaction, code system to help in containing the
Alibaba charges a fee of 0.6% of the COVID-19 outbreak. The health code
transaction value, which is low. much system tags users one of three colors
more than card transaction fees from according to their location, basic
banks. health information and travel history.
4.3.4 ALIPAY’S RISK

As Alibaba develops a huge system of .As the Central Bank of China has
customer data through its operations, confirmed that it will use the
Alibaba faces a big risk: the Chinese obtained data to prevent money
government will be able to use laundering, by asking financial
Alibaba's data to get a tight grip. companies and banks to cooperate,
more about the life of the Chinese they will gain a lot of information.
people. customer details.
The People's Bank of China has Alibaba is now in a difficult position
notified financial institutions that they between its commitment not to
will have to conduct electronic provide customer information to third
transactions through the central parties and its regulatory compliance.
bank's system, Nets Union Clearing,
starting next year.
The People's Bank of China currently
holds a 37% stake in Nets Union
Clearing, with Tenpey and Alipay each
holding a 9.6% stake.
 THE STORY OF ALIMEBOT

4.4
SHOP ASSIGTANT

ACS (Customer service) employees

ALIMEBOT
have to take on a large but similar
amount of work everyday such as
receive feedback, answer questions
about product quality. Traditional and

SHOP inefficient way of working

Therefore, Shopping assistant was
born to help analyze and handle this

ASSIGTANT boring work with artificial intelligence

technology quickly and efficiently
4.4.1
OVERVEIW

Alime Bot platform is a complete set

of intellegent human-computer
interaction solution

3 domains solutions:
● AliMe Assitant: Platform solution
for Alibaba business
● TiMi: Platform solution for
Mechants of Taobao
● Bee Bot: Platform solution for
enterprises, ISV etc.

2 types of infrastructures:
● SAAS: front to end solution, a
whole chat bot system including chat
UI
PAAS: Supply AI interfaces capability
for the developers to help build their
systems
4.4.2 KEY FEATURES

●Strong predictive analytics

● The ability to automate creating
demand for customers, increase sales
● Save cost for business in customer
sevice
● Available on all Alibaba’s e-
commerce platforms
● Save time so that merchants can
devote more time to other tasks

4.4.3 ADVANTAGE

In 11.11 – Alibaba’s annual Global

Shopping Festival
In 2017, during the one-day mega-sale,
Alime Shop Assistants had 100 million
conversations with customers, leading
to sales that made up 15% of the
event’s record-shattering gross
merchandise volume
05. CONCLUSION AND
RECOMMENDATIONS
5.1 CONCLUSION
In this report, we have taken a first step toward the systematic study of business models.
With Alibaba’s business model and value chains, the future goal of the company
includes strengthening and securing their supply chain to increase their substantial
market share, increase profits, and hold off competitors. Many of these planned
strategies will happen through various marketing and customer service initiatives, such
as targeting marketing to increase the customer base, continuously adding tools and
features to the software, monetizing a user base that has been receiving many free
services for years, and expanding their service platform from trading to customer
relationship management. Alibaba does business in 5 different areas. First, they focus on
business-to-business (B2B) specifically with Alibaba.com B2B and B2B 1688.com, to
facilitate trade between suppliers and worldwide buyers. Alibaba also has a consumer-
to-consumer (C2C) marketplace, called Taobao, to make transactions between
consumers more convenient. This market is mainly for China.

And besides that, there is a business-to-consumer (B2C, business-to-consumer) shopping

portal, called Tmall, which is the largest B2C website in China, and B2C platform
AliExpress. This site is also mainly focused and www.alibaba.com China market. Alibaba's
e-commerce market is gradually expanding globally with the increase of overseas
Chinese shopping transactions as well as plans to enter developing markets. This plan of
Alibaba is greatly supported by Alipay - the company's very special online payment
system (Alipay only pays the seller when the buyer is satisfied with the product received).
Alipay contributes greatly to building trust online where the legal system is not strong
enough. In addition, they also have AliCloud, the cloud computing business in mainland
China. Finally, they also own Cainiao (Alibaba Group's Logistics Weapon) which aims to
provide a logistics information platform, connecting logistics service providers,
warehouses, and distribution centers to optimize the operational efficiency of China's
logistics industry.
 5.2.
RECOMMENDATIONS

Through the review, evaluation, descriptive analysis, especially focusing on

studying the e-commerce image of Alibaba Group, the above study identifies
the success of Alibaba with three typical models along with advantages and
limitations of using information systems software that support their tools and
services. At the same time, it shows the importance of e-commerce in general
and information systems in particular in business. Not only businesses in the
world but also businesses operating in Vietnam are also very interested.
Therefore, for businesses to achieve great success, especially Vietnamese
businesses who are still very surprised in building an e-commerce model, it is
necessary to thoroughly understand this model, development measures to take
advantage of benefits, overcome limitations, and then build the most
appropriate model based on the current size of the enterprise. We now need to
learn from successful websites in the world like Alibaba to make the right
decisions for our business model.
 REFERENCES

1. (Cainiao-Factsheet.pdf (alizila.com))
2. Cainiao - Alibaba Group Logistics Arms - MAIKA TRADE
INVESTMENT
3. CAINIAO Tracking | Track Cainiao Parcel & Shipment
Delivery - Ship24
4. Alipay: https://vnexpress.net/jack-ma-xay-dung-alipay-
thanh-de-che-thanh-toan-dien-tu-the-nao-
3661542.html
5. https://www.thegioididong.com/game-app/alipay-
la-gi-uu-diem-va-han-che-khi-su-dung-alipay-
1363984
6. https://www.brandsvietnam.com/14224-Alibaba-se-
su-dung-he-thong-du-lieu-nguoi-dung-khong-lo-
cho-muc-dich-gi
7. https://theconversation.com/ai-shop-assistants-
get-ready-for-a-world-where-you-cant-tell-
humans-and-chatbots-apart-171522

Work assignment