E-commerce in Baro Gambella College, Department of Logistics and Supply Chain Management
1. E-commerce and Supply Chain
Information System
Shiferaw Mitiku ,PhD
(Assistant Professor)
2. Objectives
Upon successful accomplishment of the course, students shall be able
to:
Distinguish traditional business operations from e-commerce, e-procurement.
Describe different types of technologies that used e- procurement
Identify the business models that of great help for e-procurement.
Procure products online, using e-procurement technologies
Identify type of e-procurement, and discuss each of them
Illustrate e-auction process, and explain its benefit
Explain benefit and challenges of implementing e-procurement and other e-
business
Discuss e-payment system and its process
Explain e-security in e-commerce and e-procurement and how companies
protect itself from being fraud and theft over the internet.
Discuss the benefit of information sharing across supply chain partners
Discuss how information is managed across supply chain
3. Course contents
• Chapter One: An Overview To E-commerce
• Chapter Two: Technology In E-procurement
• Chapter Three: Business Models For E-
commerce
• Chapter Four: Concepts Of E-procurement
• Chapter Five: E-payment Systems
• Chapter Six: Supply Chain Information System
• Chapter Seven: E-security
5. e-commerce ?
e-commerce is the use of the Internet and the Web to
transact business. More formally, digitally enabled
commercial transactions between and among
organizations and individuals
• e-business the digital enablement of transactions
and processes within a firm, involving information
systems under the control of the firm
6. Seven Unique Features of E-commerce
E-commerce is
different and more
powerful than
Traditional
commerce that
support the face-to-
face marketing …
because of the
following 7 features:
7. The Benefits of Electronic Commerce
– Expands the marketplace to national and
international markets
– Decreases the cost of creating, processing,
distributing, storing and retrieving paper-based
information
– Allows reduced inventories and overhead by
facilitating “pull” type supply chain management
– The pull type processing allows for customization of
products and services which provides competitive
advantage to its implementers
– Reduces the time between the outlay of capital and
the receipt of products and services
– Supports business processes reengineering (BPR)
efforts
Benefits to
Organizations
8. The Benefits of Electronic Commerce
– Enables customers to shop or do other transactions 24 hours
a day, all year round from almost any location
– Provides customers with more choices
– Provides customers with less expensive products and
services by allowing them to shop in many places and
conduct quick comparisons
– Allows quick delivery of products and services in some cases,
especially with digitized products
– Customers can receive relevant and detailed information in
seconds, rather than in days or weeks
– Makes it possible to participate in virtual auctions
– Allows customers to interact with other customers in
electronic communities and exchange ideas as well as
compare experiences
– Electronic commerce facilitates competition, which results in
substantial discounts.
Benefit to the
customer
9. The Benefits of Electronic Commerce
– Enables more individuals to work at home, and to do
less traveling for shopping, resulting in less traffic on
the roads, and lower air pollution
– Allows some merchandise to be sold at lower prices
benefiting the poor ones
– Enables people in Third World countries and rural areas
to enjoy products and services which otherwise are not
available to them
– Facilitates delivery of public services at a reduced cost,
increases effectiveness, and/or improves quality
Benefits to the society
10. Major Types of E-Commerce
• Based on market relationships: who sales to
whom
– Business-to-Consumers (B2C)
– Business-to-Business (B2B)
– Consumer-to-Consumer (C2C)
• Technology-based: what technology is used
– Peer-to-Peer (P2P)
– Mobile Commerce (M-commerce)
18. Origin of the internet and new uses of internet
• The history of internet can be segmented in to three phases:
• Innovation Phase (1961 – 1974)
• Institutional Phase (1975 -1995)
• Commercialization Phase (1995 )
Computer
Internet
Search engine..?
Email,…social media..
E-commerce
19. Origin of the internet and new uses of internet
• The history of internet can be segmented in to three phases:
Innovation Phase (1961 – 1974)
– Fundamental building blocks were conceptualized and realized Packet-
switching, client/server computing and TCP/Ip to link together large
mainframe computers in college campuses & form one-to-one
communication
• Institutional Phase (1975 -1995)
– Large institutions provide funding for the invention (DoD, National Science
Foundation,
– DoD develop the concept of Internet in to military communication system,
– ARPANET – Advanced Research Project Agency Network was a WAN to share
computing facilities
– Grows exponentially connecting academic, research and US government sites
– NSF began development of civilian Internet NSFNet in 1986
• Commercialization Phase (1995 )
– Private corporations involved in expanding the Internet to be used by
ordinary citizens.
20. The Internet: Key Technology Concepts
Packet switching: Packet: The parcels into which digital messages
are sliced for transmission over the Internet
Protocol: A set of rules for formatting, ordering, compressing, and
error checking messages
TCP/IP: is a suite of communications protocols used to connect
hosts on the Internet
establishes the connections among sending and receiving Web
computers
client/server computing
Routers: Special-purpose computers that interconnect the computer networks
that make up the Internet
21. Cont’d.
• Internet is a clustered system of interrelated
computer networks that uses a standard IP/(TCP)
GLOBAL network .
• Intranet is a computer network system in which a
specific organizational systems share information,
computing services and operational systems with
each other by using an Internet (IP) technology. This
term basically refers to the network of a specific
organization.
• computer network that allows the outside users to
access the Intranet of organization for business to
business (B2B) purpose, which allows the outside
users of an organization to remain in touch with the
activities of organization.
Internet
intranets
extranets
WWW ?
22. Webpage request and delivery protocols, Electronic mail protocols
–Hypertext documents: A protocol used for transferring web pages
–IMAP: Internet Message Access Protocol allows users to search, organize
and filter their mail before downloading
–File Transfer (FTP): Permits users to transfer files (of any form) from the
server to their client machine
–Secure Socket Layer(SSL): works between the Application and Transport
layer and Secures communication between client and server via message
encryption, digital signature
–Telnet: a protocol that allows users to login to a remote server and feel like
working on it
–Packet Internet Groper (Ping): is testing the Address of a host computer to
check the connection between your computer and the server, tell you IP
address of host and time it takes for the server to respond
23. Markup languages and the web
• Hypertext markup language/HTML
• Extensible markup language/XML
• HTML & XTML editors
• What else?
• Java, VB, C+, C++, SQEL..etc
• Content Management
24. The Web Site Design and Development Process
• There are numerous steps in the web site design and
development process.
• From gathering initial information, to the creation of your web
site, and finally to maintenance to keep your web site up to
date and current.
25. The Web Site Design and Development Process
• The exact process for web site design and
development process will vary slightly from designer
to designer, but the basics are the same.
• Information Gathering
• Planning
• Design
• Development
• Testing and Delivery
• Maintenance
26. The Web Site Design and Development Process
Phase One: Information Gathering
• The first step in designing a successful web site is to gather information as
it involves a solid understanding of the company it is created for.
• It involves a good understanding of you – what your business goals and
dreams are, and how the web can be utilized to help you achieve those
goals
27. The Web Site Design and Development Process
Phase One: Information Gathering : Certain things to consider are:
Purpose
What is the purpose of the site?
Do you want to provide information, promote a service, sell a product… ?
Goals
What do you hope to accomplish by building this web site?
Two of the more common goals are either to make money or share information.
Target Audience
Is there a specific group of people that will help you reach your goals?
It is helpful to picture the “ideal” person you want to visit your web site.
Consider their age, sex or interests – this will later help determine the best design style
for your site.
Content
What kind of information will the target audience be looking for on your site?
Are they looking for specific information, a particular product or service, online
ordering…?
28. The Web Site Design and Development Process
Phase Two: Planning
• This is the point where a site map is developed.
• The site map is a list of all main topic areas of the site, as well
as sub-topics, if applicable.
• This serves as a guide as to what content will be on the site,
and is essential to developing a consistent, easy to understand
navigational system.
29. The Web Site Design and Development Process
Phase Three: Design
• Drawing from the information gathered up to this point,
it’s time to determine the look and feel of your site.
Phase Four: Development
• the point where the web site itself is created.
• At this time, your web designer will take all of the individual
graphic elements from the prototype and use them to create
the actual, functional site.
30. The Web Site Design and Development Process
Phase Four: Development
• On the technical front, a successful web site requires an
understanding of front-end web development.
• This involves writing valid HTML / CSS code that complies to
current web standards, maximizing functionality, as well as
accessibility for as large an audience as possible
31. The Web Site Design and Development Process
Phase Five: Testing and Delivery
attend to the final details and test your web site.
They will test things such as the complete functionality of
forms or other scripts, as well last testing for last minute
compatibility issues (viewing differences between different
web browsers), ensuring that your web site is optimized to be
viewed properly in the most recent browser versions.
A good web designer is one who is well versed in current
standards for web site design and development
32. The Web Site Design and Development Process
Phase Five: Testing and Delivery
Validating code - your site meets the current web development standards
– by checking cross-browser compatibility
After final approval, it is time to deliver the site FTP program is used to
upload the web site files to your server.
Offer domain name registration and web hosting services as well, or have
recommendations as to where you can host your site.
Plugin installation (for WordPress or other CMS driven web sites and
SEO (Search Engine Optimization).
SEO is the optimization of your web site with elements such as title,
description and keyword tags which help your web site achieve higher
rankings in the search engines.
33. The Web Site Design and Development Process
• Phase Six: Maintenance
bring repeat visitors to your site is to offer
new content or products on a regular basis.
• update the information on your web site
34. Web page Development Using HTML Codes
• Document Codes
• Text Formatting Codes
• Paragraph Formatting Codes
• Lists
• Tables
• Links
• Images
• Color Codes
• Background Images
• Forms and Other HTML Codes
Get ready for for practical class on Webpage
development
35. Web Page Development Content
Web Page Development Setup
Web page header setup
Web page Title
Web page Body setup
Web page Body Color
Web page Font style and size
Web page marquee effect
Web page New paragraph
Web page paragraph font style & size
Web page New paragraph
Web page Inserting Picture
Web page Listing
Web page inserting video clip
Web page Interactive and Personalized
Web page Payment mechanisms
38. Major Types of E-Commerce
Market relationships
Business-to-Consumers (B2C)
Business-to-Business (B2B)
Consumer-to-Consumer (C2C)
Consumer-to-Business (C2B)
Technology-based
Peer-to-Peer (P2P)
Mobile Commerce (M-commerce)
39. Business-to-Consumer E-commerce
• Online businesses attempt to reach individual
consumers
• Businesses selling to the general public typically
through catalogs utilizing shopping cart software.
• B2C is the indirect trade between the company and
consumers.
• It provides direct selling through online.
• If you want to sell goods and services to customer so
that anybody can purchase any products directly from
supplier’s website.
42. Business-to-Business E-commerce
Largest form of e-commerce
Businesses focus on sell to other businesses
Primarily involved inter-business exchanges at first
Other models have developed: e-distributors,
infomediaries, B2B service providers
43. Business-to-Business E-commerce
B2B can be open to all interested parties or limited
to specific, pre-qualified participants (private
electronic market).
Companies doing business with each other such as
manufacturers selling to distributors and
wholesalers selling to retailers.
45. Consumer-to-Consumer E-commerce
Provide a way for consumers to sell to each other
Consumer:
prepares the product for market
places the product for auction or sale
relies on market maker to provide catalog,
search engine, and transaction clearing
capabilities
46. Consumer-to-Consumer E-commerce cont’d.
C2C e-commerce consumers selling to other
consumers.
e-commerce provides a way for consumers to sell to
each other, with the help of an online market maker
such as the auction site eBay.
It facilitates the online transaction of goods or
services between two people.
47. Peer-to-Peer E-commerce
P2P technology enables Internet users to share files
and computer resources directly without having to
go through a central Web server.
48. Mobile E-commerce
Wireless digital devices enable transactions on the Web
Through use of wireless digital devices to enable transactions on
the Web.
Uses personal digital assistants (PDAs) to connect
49. CONSUMER TO BUSINESS (C2B)
• A consumer posts his/her project with a set of
budget online and within hours companies review
the consumer's requirements and bid on the project.
• The consumer reviews the bids and selects the
company that will complete the project.
• C2B empowers consumers around the world by
providing the meeting ground and platform for such
transactions.
50. Discussion
• Like traditional business, e-commerce need to
develop competitive advantage. What are the
strategies needed to develop competitive
advantage?
53. E-COMMERCE EXAMPLES:
An individual purchases a book on the Internet.
A government employee reserves a hotel room over the
Internet.
A business buys office supplies on-line or through an
electronic auction.
A manufacturing plant orders electronic components
from another plant within the company using the
company's intranet.
55. What is e-Procurement ?
It’s a collaborative procurement of goods,
works and services using electronic methods in
every stage for bringing efficiency &
transparency
56. Introduction
Why e-procurement system?
• “Paper based” procurement systems are less
effective than electronic ones
• the introduction of e-procurement system
saves at least 10% of the procurement budget
due to higher efficiency and transparency
Non healthy competition
Systemic Corruption
Non fully implemented reforms
Complex bureaucratic
procedures
High compliance costs
Geographical inequality
57. Issues in Public Procurement
• Lack of a common Public Procurement Policy
• Public Procurement Law and regulations
• Dedicated Agency
• Transparency in Procurement Act
• Lack of model bidding documents and contract
documents
• Complicated procedures for bidding, approvals and
payments.
• Lack of skilled resources
• No centralized system of registration of suppliers
• Delays in making payments to suppliers
58. Benefit of e-Procurement
•Increased transparency – Everyone Sees
Everything
Maximum transparency of all procedures.
Better mechanisms (including public ) of
control over the government spending secure
the increased efficiency. Minimization of
systemic corruption
•Increased efficiency due to IT technologies
Use of the modern IT solutions, process
automatization
•Savings due to increased competition
Openness and increased accessibility of the
system promotes greater competition. Average
number of participants is increased
•Wider geography of the suppliers,
minimization of “geographical inequality”
Geographical distance – no problem any more
(one click distance)
• Increasing the productivity
of purchasing agents
• Lowering purchase prices
through product
standardization and
consolidation of purchases
• Improving information flow
and management
59. Cont’d--- Benefits e-Procurement
– Improving the payment process
– Establishing efficient, collaborative supplier
relations
– Ensuring delivery on time
– Reducing the skill requirements and training
needs of purchasing agents
– Streamlining the purchasing process, making it
simple and fast
– Reducing the administrative processing cost per
order
– Improved sourcing
– Integrating the procurement
process with budgetary control
in an efficient and effective way
– Minimizing human errors in
the buying or shipping process
– Monitoring and regulating
buying behavior
60. Objectives of e-Procurement
• To act as the catalyst for procurement reform
• To enhance transparency, monitoring and control in
procurement process
• To bring in economies of scale through aggregation of demand
• To reduce cost of doing business for both government and
suppliers
• To establish level playing field and “fair” competitive platform
for the suppliers
61. Cont…
Understanding the Need for Procurement
Automation. Procurement automation has the
following potential benefits:
• Improved visibility
• Reduced costs
• Risk mitigation &
• Enhanced supplier collaboration
62. Cont…
– E-procurement adoption: Conclusively, “Paper based”
procurement systems are less effective than electronic
ones, the introduction of e-procurement system saves at
least 10% of the procurement budget due to higher
efficiency and transparency
• Major activities of e-procurement
– Pre-Award: e-Procurement process phases occurring before the award
of the contract (e-Notification, e-Access, e-Submission, e-Evaluation,
e-Awarding).
– Post Award: e-Procurement process phases occurring after the award
of the contract (e-Ordering, e-Invoicing, e-Payment).
63. Cont…
• STEP 1: THE PLANNING/READINESS
ASSESSMENT
– Establish institutional framework and coordination
system
– Prepare general assessment and strategic e-
Procurement Plan
– Prepare Connectivity Plan and Internet
Assessment
64. Cont…
• STEP 2: E-TENDERING ( e-Bidding)
• Objective: to carry out tendering processes in a much shorter
period, at a lower cost with total transparency, and with a
high impact on development.
The specific activities:
• Posting of tendering opportunities and contract-awarded
information on a SINGLE internet site.
• Customized Information
• Open access to all bidding document via internet.
• Electronic Bid submission.
65. Cont…
STEP 3: E-COMPREHENSIVE CONTRACT MANAGEMENT
Objective: to achieve transparency, economy and
efficiency in the procurement processes.
The specific activities:
Contact execution management
Contract Capacity consolidation
66. Cont…
STEP 4: E-PURCHASING
• Objectives: to create a transactional system in which all suppliers may offer
their goods and services and all public entities may select online the best
option among them, order the supply, receive it, incorporate it to the
inventories and process the payment.
The specific activities of E-PURCHASING :
• Define purchasing policies regarding the scope and orientation of the program
• Supplier enablement through development of a set of market instruments
• Posting of eligible bids on the internet
• Organization of Public Sector Demand on the internet
• Electronic processing of transactions
• Personalized services, and supply-side incentives
67. Range of Procurement Services and its components
• Indent Generation & Approval
• Procurement Process
• Demand Aggregation
• Bid Evaluation
• Award & Purchase Order
• Supply Management
• Quality Management
• Inventory Management
• Payments Management
• MIS & EIS Indent
Management E-Tendering
E-Auctions
Contract
Management
Catalogue
based
Procurement
68. Implementing E-Procurement
• Major e-procurement implementation issues:
– Fitting e-procurement into the company EC strategy
– Reviewing and changing the procurement process itself
– Providing interfaces between e-procurement with
integrated enterprise wide information systems such as
ERP or supply chain management (SCM)
69. Implementing E-Procurement (cont.)
– Coordinating the buyer’s information system with that of
the sellers; sellers have many potential buyers
– Consolidating the number of regular suppliers to a
minimum and assuring integration with their information
systems, and if possible with their business processes
72. Introduction to Electronic Payment Systems
• A payment system consists of instruments, banking
procedures , and interbank fund transfer systems that
ensure and facilitate the circulation of money
• There are different ways on how customers would be
able to pay for purchased products and services.
• Apart from the most common which is of course, face to
face, online transaction has really brought payment
easier than ever.
73. E-payment System
EPS have become popular on account of the
following reasons
1. Decreasing technology cost.
2. Reduced operational and processing Cost
3. Increasing Online Transaction.
4. Lower transaction fee or cost for e-payments
5. Variety of e-payment options are available to the customers
6. The seller is able to receive payment from any part of the world
within a few minute
7. E-payment is convenient for both to the merchant and customer
74. E-payment System
Requirements of E-Payment Systems
1. Security
2. Privacy
3. Integrity
4. Authentication
5. Reversible
6. Standardized
7. Economical
8. Scalable
75. Benefits of Electronic Payment Systems
• 1. Speed and Convenience
• 2. Safety
• 3. Accept Online Payments
• 4. Cut Costs
• 5. Reduce Late Payments
• 6. Environment Friendly
Limitations of Electronic Payment Systems
1. Lack of Security
2. Lack of Applicability
3. High Usage Costs for Merchants
4. Unsuitability
76. Payment Options
Online
• Checking Account Withdrawal
• Electronic Cash
• ATM/ Debit card
• M-banking
• Internet banking
• Credit/Debit Card payment System
• Electronic Cheque Payment System
• Electronic Cash Payment System: E-Cash or Digital Cash
• Cyber Cash
• Electronic Banking (E- Bankin
• ELECTRONIC FUND TRANSFER (EFT)
• NEFT
• RTGS (Real Time Gross Settlement).
77. Payment Systems
Types of Payment Systems
• Credit card
– SSL, SET protocols
• Payment orders, direct transfers,
checks
– Automated Clearing House (ACH)
• Online Banking
– Wingspan
• Intermediaries
– PayPal
• Stored-Value Cards, Smart Cards,
Wallets
– Mondex
– Octopus
Ways you Can Collect Payment
• Credit Card
• Debit/ATM card
• Certified Check / Money
Order
• COD
• Smart Card
• Server Scrip
• Third Party Funds
78. Types of Payment Systems…Cont’d.
• Micropayment
– Millicent
• Aggregation
– Centralized account for merchants + customers (Qpass)
• Digital Scrip
– Flooz, Beenz (both now bankrupt)
• Electronic Cash
– eCash
79. Smart Cards
• Magnetic stripe
• Memory cards
• Optical memory cards
• Microprocessor cards
– Imbedded microprocessor
– Intelligent, active devices with defenses
80. Smart Card Applications
• Ticketless travel
• Authentication, ID
• Medical records
• E-cash
• Store loyalty programs
• Personal profiles
• Government
– Licenses
• Mall parking
81. Credit Cards
WHY are credit cards the most common payment
option?
• Most customers have credit cards
• Merchants have the accounts and equipment
• Credit cards are widely accepted
• Large corporations ensure payment
82. Online Payment process
Like any other business transactions,
1. the process begins with a customer who wants a purchase of a
certain product.
2. navigate and click the product of his/her choice.
3. placing the order and the merchant should now transfer the order
securely to the cyber source through the internet.
4. The purchaser should double-check on his order to avoid
mistaken information such as account names, numbers, or the
item itself
5. Then the cyber source will receive the information about the
order and take the necessary service according to the request
83. Online Payment process... Cont’d.
6. The cyber source will now convert the transaction in the
most appropriately format.
7. After which, the transaction is routed through the
gateway of payment. Then it will be processed.
8. The next step to online payment processing is to connect
to the bank.
9. It is a must that a purchaser possesses a bank account.
84. Online Payment process... Cont’d.
11. The cyber source then connects with the bank
of the person who wants the purchase and asks
for an authorization of the request transaction.
12. Depending upon many varying reasons, the
bank has the right to approve or authorize the
transaction asked by the cyber source.
85. The Reasons behind Bank has the right not to approve online financial
transaction
• out dated credit line,
• unpaid loans,
• unfinished transactions, or
• lack of money deposited by the merchant ..etc.
In which cases there may be both the cyber source
and the bank should notify the customer.
86. Online Credit card transaction Enablers
Companies that have established business
relationships with financial institutions that will
accept online credit-card payments for merchant
clients
• Cybercash
• iCat
• Trintech
• NextCard, Inc.
---
Information Technology and Network infrastructure
88. • What are the major e-payment option
available in Ethiopia?
89. Security in Online Payment
• Security is vital when doing business be it online or offline.
• Common challenges that the merchants have to face are
Internet fraud, product returns, non-delivery claims,
disputes that leads to chargebacks and etc.
• SSL and SET technologies are used for data security where
data are encrypted and digitally signed before transmission
over the Internet.
• Secure Socket Layer (SSL) and Secure Electronic
Transaction™ (SET™) are the standard security protocols
that protect the integrity of these online transactions.
90. • you are transacting safely or when the website is
running on a secure server when you see the lock
icon found in the status bar of your browser and
also in the URL in the address bar has the prefix
‘https’ instead of ‘http’
93. Supply Chain Management (SCM) Systems
• SCM is an Efficient and effective integration of
suppliers, manufacturers, warehouses, stores, and
transportation intermediaries into a seamless value
chain.
• SCM information systems: is the use of
technology to more effectively manage supply
chains and help to ensure that a firm meets the
logistics needs of its customers.
94. BASICS OF SUPPLY CHAIN
The supply chain has three main links:
1. Materials flow from suppliers and their
“upstream” suppliers at all levels
2. Transformation of materials into semi-
finished and finished products through the
organization’s own production process
3. Distribution of products to customers and
their “downstream” customers at all levels
95. BASICS OF SUPPLY CHAIN
Organizations must embrace technologies that can
effectively manage supply chains
96. INFORMATION TECHNOLOGY’S
ROLE IN THE SUPPLY CHAIN
• IT’s primary role is to create integrations or tight process and
information linkages between functions within a firm
97. Supply chain process
Supply chain operational reference model(SCOR)
defined best practices, performance metrics, and
software functionality requirements for each core
supply chain process, sub-process, and activity.
The SCOR model provides a framework and
standardized terminology to help organizations
integrate a number of management tools, such as
business process reengineering, benchmarking, and
best-practice analysis
98. Supply chain process
Focuses will be given on the five major supply chain
processes:
– plan
– source
– Make
– deliver and
– return
99. Supply chain process
Plan
• Every supply chain process has inputs and outputs.
• Plan’s input is information on demand, supply, and
supply chain resources.
• Planning excellence has five key principles:
Use timely, accurate information
Aim for simplicity.
Focus resources on business priorities.
Integrate all supply chain requirements.
Create explicit actions and accountabilities.
100. Cont’d.
Source
• the supply chain source process procures all needed materials and
services, performing the operational activities of purchasing,
scheduling, receiving, inspecting, and authorizing supplier
payment.
• The source activity also involves supplier selection and relationship
management.
• Process excellence in source is built on four key principles:
Aim for the lowest total cost of ownership (TCO)
Set procurement strategies according to category.
Maintain an enterprise wide focus
Measure and manage performance
101. Cont’d.
Make
• The supply chain make process transforms the resources procured by source into
goods and services according to agreed-on specifications and any regulatory
requirements.
Objective is to:
• increase flexibility,
• minimize costs, or boost asset utilization,
• using external partners to execute some or all of the make activities, such as
production, testing, certification, and packaging.
• There are four principles for process excellence in make:
Focus on business priorities.
Aim for speed and flexibility, not just low costs.
Set and monitor quality standards.
Synchronize all manufacturing activities.
102. Cont’d.
Deliver
• The deliver process starts with the receipt of a customer order
and includes all the activities needed to complete that order,
from providing a price quote to collecting payment from the
customer.
• Deliver includes all warehousing, transportation, and distribution
activities.
• The four principles for deliver process excellence:
Balance service with the cost to serve
Cut costs and time with straight-through processing
Set up end-to-end tracking and traceability
Manage data for ongoing accuracy and timeliness
103. Cont’d.
Return
• The return process ensures that previously sold products are supported,
collected, and dispositioned according to business policies and customer
agreements and covers all activities from return authorization to financial
settlement.
• Different activities may be associated with each of these return “types.”
– Return is a reverse supply chain process or the return physical network entails
specific challenges.
For return process excellence, follow these four key principles:
– Create a distinct supply chain for return,
– Feedback return information quickly
– Base return policies on total cost of returns
– Maximize revenue opportunities
104. Logistics Information Systems (LIS)
• LIS is an interacting structure of people,
equipment, and procedures that together
make relevant information available to the
logistics manager for the purposes of planning,
implementation, and control.
105. Information Technology for SCM
• Software Systems
– Electronic Data Interchange (EDI)
– Material Requirements Planning (MRP)
– Manufacturing Resource Planning (MRP II)
– Enterprise Resource Planning (ERP)
– Supply Chain Management Systems (SCM)
– Customer Relationship Management (CRM)
– Internet-based Software
• Network Infrastructure
– Wide Area Network
– Internet (for E-commerce: B2B, B2C)
106. Enterprise Resource Planning (ERP) Systems
• Enterprise resource planning (ERP) is a system
that links individual applications into a single
application that integrates the data and business
processes of the entire business.
107. ERP Systems
ERP system can encompass, but is not limited to,
the following functions:
– Sales and order entry
– Raw materials, inventory, purchasing, production
scheduling, and shipping
– Accounting
– Human resources
– Resource and production planning
108. Supply Chain Management (SCM) Systems
A typical SCM system Solutions
– Planning
– Vendor selection
– Manufacturing
– Logistics
– Customer relationship
Oracle SCM solutions:
– Demand Planning
– Collaborative Planning
– Inventory Optimization
– Manufacturing
Scheduling, and
– Global Order Promising
109. Major Systems in SCM
Major ERP Systems
• SAP R/3
• Oracle
• PeopleSoft
• Microsoft Dynamics
Major SCM Systems
• i2 Technologies
• Manugistics
• Oracle
• SAP
110. Supply Chain Management (SCM) Systems…Cont’d.
The two basic types of SCM system software are:
• Supply Chain Planning software (SCP): uses mathematical
models to predict inventory levels based on the efficient flow
of resources into the supply chain
• Supply Chain Execution software (SCE): is used to automate
different steps in the supply chain such as automatically
sending purchase orders to vendors when inventories reach
specified levels
112. Why Integration of SCM with information
System?
Tangible benefits
– Inventory reduction,
– personnel reduction,
– productivity improvement,
– order management improvement,
– financial-close cycle improvements,
– IT cost reduction,
– procurement cost reduction,
– cash management improvements,
– revenue/profit increases,
– transportation logistics cost reduction
maintenance reduction,
– on-time delivery improvement
Intangible benefits
– Information visibility,
– new/improved
processes,
– customer
responsiveness,
– standardization,
– flexibility,
– globalization, and
– business performance.
113. Global Considerations in using SCM/ERP Systems
• Time differences
• Language issues
• Currency exchange rates
• Tax
• Different accounting systems
• Internet and security restrictions
• Culture and religion holidays
116. What is Security?
It is the protection or defense against attack,
interference, espionage, etc.
• Computer Security features Classification:
Confidentiality: Protecting against unauthorized data
disclosure and ensuring the authenticity of the data’s source
Integrity: Preventing unauthorized data modification
Availability (or Necessity) : Preventing data delays or
denials (removal)
118. Major issues of e-security?
Accountability : Security relevant activities on a system can be traced to
individuals who may be held responsible for their actions
Availability :System resources are safeguarded from tampering and are
available for authorized users at the time and in the format needed
Access Control :Access to the system resources is limited to authorized
individuals, entities, or processes
Confidentiality :Information is not accessed by or disclosed to
unauthorized individuals, entities, or processes
Identification and Authentication :Verification that the originator of a
transaction is the originator
Integrity :Information is not undetectably altered or destroyed by an
unauthorized person or process
Non-repudiation :Undeniable proof of participation by the sender and/or
receiver in a transaction
Privacy :individual rights to nondisclosure
119. e-Security Policy and Integrated Security
Security policy is a written statement describing what assets are to be
protected and why, who is responsible, which behaviors are acceptable
or not. The major security and integrated policy lies can be seen from:
Physical security
Network security
Access authorizations
Virus protection
Disaster recovery
– Copyright protect protection of programs and website helps to possess the
resource developed
120. Specific Elements of a Security Policy
Authentication: Who is trying to access the site?
Access Control: Who is allowed to login and access
the site?
Secrecy: Who is permitted to view selected
information
Data integrity: Who is allowed to change data?
Audit: What and who causes selected events to
occur, and when?
121. Three components to security
Three perspectives to e-security
User’s point of view
Server’s point of view
Both parties
Three parts of e-security
Client-side security
Server-side security
Document confidentiality
122. What can go wrong with e-securiy?
• Risks that affect both client and server
– Eavesdropping
– Fraud
• Risks that affect to the end user
– Active content
– Privacy infringement
• Risks that affect to the web site
– Webjacking
– Server and LAN break-ins
– Denial-of-service attacks
123. Client-side security
It deals with measures to protect the user’s
privacy and the integrity of his/her computer
Technological solutions
Protection from computer viruses and other
malicious software
Limit the amount of personal information that
browser’s can transmit without the user’s
consent
124. Server-side security
Measures to protect the server and the machine it
runs from break-ins, site vandalism, and denial-of-
service attacks.
Solutions range
installing firewall systems
tightening operating systems security measures
125. Document confidentiality
• Measures to protect private information from being
disclosed to third parties.
• Solutions range
– Password to identify users
– Cryptography
126. Electronic Commerce Threats/Risks
Client Threats (Active Content, Programs, Malicious,
Cookies)
Downloaded software
Active X control: is an object that contains programs
and properties that perform certain tasks
Graphics, Plug-ins, and E-mail Attachments
127. Communication Channel Threats
Secrecy Threats (prevention of unauthorized information
disclosure)
Anonymizer: A Web site that provides a measure of secrecy as long as it’s used as the
portal to the Internet
Integrity Threats: Unauthorized party can alter data.
example.
Change the amount of a deposit or withdrawal
Availability Threats (delay or denial risk) : Disrupt normal computer processing
Deny processing entirely
Slow processing to intolerably slow speeds
Remove file entirely, or delete information from a transmission or file
Divert money from one bank account to another
128. Server Threats
The more complex software becomes, the higher the probability
that errors (bugs) exist in the code
• Denial of Service Attacks
• Database Threats (Disclosure of valuable and private information
could irreparably damage a company)
• Common Gateway Interface (CGI) Threats (programs that
present a security threat if misused
• Programs executed by the server
• Confidentiality violations
• The Web server administrator
• IP spoofing: attacker sends packets with forged source IP
address in the TCP/IP header
130. Consult the following e-resource online video
• https://www.youtube.com/watch?v=gBUY3ba2qU8
• https://www.youtube.com/watch?v=RPZP4-PY7Wg
131. Group Assignment
Write a brief overview of e-commerce development in Ethiopia
Highlight major technology which are in place for e-procurement practices in
Ethiopia and level of penetration of the concepts of e-procurement
Briefly describe the e-payment systems available in Ethiopia, their strength
and weakness as well types of e-payment technologies adopted and major
payment gateways
Give a real business world example on the types of Business models for e-
commerce from Ethiopian perspective
Describe the e-security issues in Ethiopia, major security threats from e-
commerce in Ethiopia and describe e-security threat incidents exhibited so far
#94:Collecting, analyzing, and distributing transactional information to all relevant parties, SCM systems help all the different entities in the supply chain work together more effectively
SCM has significantly improved companies’ forecasting abilities over the last few years
Businesses today have access to modeling and simulation tools, algorithms, and applications that can combine information from multiple sources to build forecasts for days, weeks, and months in advance
