Advanced Electronic Commerce Applications

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Advanced Electronic Commerce Applications
This Course Guide has been taken from the most recent presentation of the course. It would be useful for reference purposes but please note that there may be updates for the following presentation.

BIS B874
Advanced Electronic Commerce Applications



Introduction

E-commerce has made a triumphant comeback. Amidst the ashes of the dot-com boom and bust of the late nineties, online companies with solid business models, innovative offerings and real revenue streams, such as Google, Yahoo, Amazon, and eBay remain standing. New upstarts such as iTunes, YouTube and Facebook are thriving. The connectivity that the Internet provides to businesses and consumers continues to transform the way we live, work, and interact.

Offline businesses have also matured along with e-commerce. Companies now realize that e-business does not mean simply selling something over the Internet, but incorporating the Net into the daily operations of the company, in particular, as a channel for conducting business-to-business transactions and for enhancing customer relationships.

BIS B874 Advanced Electronic Commerce Applications is a ten-credit, compulsory course for the Master of Electronic Commerce programme. The course provides you with the management concepts and technological foundation to understand the business strategies and advanced electronic commerce applications managers must take advantage of in order to achieve e-business success in the next stage of the 'New Economy'.

Students taking this course should possess basic knowledge of electronic commerce (BIS B870) and Internet technologies (BIS B871). Upon completion, they will gain knowledge regarding the purposes, functions, and key issues driving the adoption of advanced e-commerce applications. Ten study units are included which address topics such as e-business trends and models, enterprise resource planning, supply chain management, business intelligence and decision support, customer relationship management, Internet marketing, knowledge management and mobile commerce.

What this course helps you do

This course provides you with the fundamental management concepts and technical know-how to appreciate the workings and the benefits of advanced e-commerce applications. It also demonstrates how to take advantage of the Internet infrastructure and connectivity to forge closer ties with internal departments, external supply chain partners and individual customers.

Aims

This course aims to:

  • Discuss how e-business models support a company's strategic objectives;

  • Provide you with a comprehensive understanding of enterprise resource planning, supply chain management, business intelligence, customer relationship management, knowledge management and mobile commerce;

  • Provide you with a comprehensive understanding of marketing strategies, tools and techniques in the context of e-commerce;

  • Demonstrate real-world usage of e-commerce applications through case studies, readings and software demonstrations.

Course learning outcomes

Upon completion of the course, you should be able to:

  1. Appraise the significance of current e-business models and the enablement of major business processes via e-commerce.

  2. Critically review the impact of enterprise resource planning and business process re-engineering on modern organizations.

  3. Identify the processes in supply chain management and integrate information and communication technologies into such processes.

  4. Identify data warehousing and data-mining techniques and apply such techniques in customer relationship management in e-commerce.

  5. Critically review the role of knowledge management in facilitating e-commerce applications.

  6. Critically analyse Internet consumer behaviour and apply such behaviour in the implementation of Internet marketing strategies and management.

  7. Critically review the rise of mobile marketing and mobile commerce applications.

Working through this course

This is the nuts-and-bolts, informative section, providing information such as what materials are needed in this course, and how the assignments and marking are arranged. Please read it carefully.

Materials

In addition to this Course Guide, this course will have 10 study units. There may be a small number of supplementary readings, case studies or articles taken from relevant journals and textbooks. Please ensure that you have all of these materials available.

Study units

Unit 1: E-business trends and models

This unit identifies the major kinds of e-business models and operations and their importance to the success of e-business. Based on these e-business operation models, the major types of e-commerce applications are introduced.

Unit 2: Enterprise resource planning and integration

This unit introduces enterprise resource planning (ERP) and discusses its role and importance to modern organizations. It demonstrates how ERP can integrate business processes internally and externally in an organization.

Unit 3: Supply chain management

This unit provides an introduction to supply chain management (SCM) and its importance to the success of business. This unit will look at the 'hard' side of SCM, which includes inventory management, logistic networks and distribution strategy.

Unit 4: E-supply chains

This unit is the continuation of the previous unit and discusses the 'soft' and 'e' sides of SCM. It includes the topics of information flow in SCM, use of technology in SCM and the role of e-SCM in e-business strategy.

Unit 5: Business intelligence

This unit discusses the importance of business intelligence tools and applications in e-commerce. In particular, it focuses on data warehousing, multidimensional analysis and data mining. It also describes how these techniques can be applied in the realm of behaviour prediction and targeted marketing.

Unit 6: Customer relationship management

This unit identifies the importance of customer relationship management (CRM) strategy to e-commerce success. It also discusses the architecture, components and features of CRM applications. Finally, it will outline an evaluation and implementation framework for CRM.

Unit 7: Knowledge management

This unit explains how knowledge management can help companies keep up with the rapid response and flexibility which are commonly expected within the e-commerce marketplace. It discusses how knowledge can be collected, stored, organized and distributed more effectively with the help of information technology.

Unit 8: Internet marketing research and strategies

This unit provides a comprehensive view of the Internet's use in performing consumer marketing research. It also explores key marketing tactics and capabilities enabled by the Internet. It helps to develop an understanding of how to create a profitable e-marketing strategy.

Unit 9: Internet marketing management

This unit discusses the various Web advertising tools and various Internet marketing techniques. It also takes an in-depth look at Web 2.0 marketing methods, such as online social media.

Unit 10: Mobile commerce

This unit discusses the growing prominence of mobile e-commerce, and how companies can adapt their business models, marketing strategies and business applications within a mobile environment.

Set textbooks

Simchi-Levi, D, Kaminsky, P and Simchi-Levi, E (2008) Designing and Managing the Supply Chain, McGraw Hill.

Audiovisual materials / Software

You will need to access the Internet frequently, so web access capability is necessary for this course.

For those who do not have Internet access, the OUHK's computer labs provide web access that is sufficient for this course.

Readings

A number of essential journal articles and papers (printed as well as online) are used to support the study units. Grey reading boxes in the study units will refer you to these readings. The readings are included at the backs of units if they are available in print.

For online readings, instead of typing in the URL, you can click the link in the online study unit provided in the OLE.

E-Library E-Reserve readings

You may be instructed to read articles in the E-Library E-Reserve. To read these items, go to the OUHK E-Library and click on 'E-Reserve'. Log in, click 'Accept/Agree' on the Copyright Restrictions page, fill in the 'Course Code' box, and click 'Search'.

Assignment File

There are four assignments for grading. A specific Assignment File is provided for this purpose. You can check for more information on assignments in the Course Guide section on 'Assessment' that follows, and in the Assignment File itself.

Presentation Schedule

The Presentation Schedule is available on the OLE, and it gives the dates for completing assignments, and attending tutorials, supplementary lectures, and so on.

Assessment

Tutor-marked assignments

There are four tutor-marked assignments (TMAs) in this course. You need to complete the material in the relevant units before working on the TMAs. Some TMAs are Internet-based case studies, therefore you will need to visit websites before answering these questions.

More specific instructions are confined to the Assignment File itself. The TMAs account for 50% of the total course assessment.

How to submit assignments

You must use word processing software (such as Microsoft Word) to prepare the TMAs, and submit the TMAs via the Online Learning Environment (OLE). All assignments must be uploaded to the OLE by the due date.

Failure to upload a TMA in the required format to the OLE may result in the score of the TMA being adjusted to zero.

TMA extension policy

The assignment policy of the University as stated in the Student Handbook should be observed. Students are required to submit assignments for a course in accordance with the dates communicated by the course coordinator. Students may apply for a submission extension on the grounds of illness, accident, disability, bereavement or other compassionate circumstances.

Applications for extensions of up to seven days should be submitted to the tutor. The tutor shall consider valid and unexpected emergencies on an individual basis. Normally, documented proof of the extenuating circumstances is not required for extensions of up to seven days. The tutor shall decide and advise the student of the revised date for submission.

For extensions of over seven days, students should note the following:

  1. If students require an extension of more than seven days on the grounds of illness, accident, disability, bereavement or other compassionate circumstances, they are required to complete an 'Application Form for Assignment Extension over seven days' and submit it to the Course Coordinator.

  2. Supporting documents must be submitted along with the application for extension of over seven days to justify the claim.

  3. Applications for extension should normally be lodged before or on the due date.

  4. Applications are considered by:
  • the Course Coordinator for extensions of 8 to 21 days; and
  • the Dean for extensions of over 21 days.

After an assignment is submitted via the OLE, it is your responsibility to check that the assignment has been successfully submitted. Extension applications due to any problem with uploading will not be accepted. The University cannot accept any responsibility for assignments that are not received by your tutor due to any problem with submission via the OLE. As a precaution, you are advised to keep a copy of each assignment you submit.

According to the University's policy, no extension of the due date will be allowed for the final TMA. This policy will be strictly enforced. Any late submission of the final TMA will result in the score of the TMA being adjusted to zero.

Final examination and grading

The final examination accounts for 50% of the total course assessment, and it is three hours long. The final examination covers materials from all ten units and links back to the course learning outcomes. You will need to demonstrate that you can meet those learning outcomes in this examination. The final examination has multiple choice questions and open-ended essay questions on problem solving.

Course marking scheme

Assessment Marks
Assignments 1-4 12.5% each = 50% of course marks
Final examination 50% of overall course marks
Total 100% of course marks
Course overview
Unit Title Weeks Assessment activity (end of unit)
1

E-business trends and models

4

 

2

Enterprise resource planning and integration

4

Assignment 1

3

Supply chain management

4

 

4

E-supply chains

4

Assignment 2

5

Business intelligence

4

 

6

Customer relationship management

4

 

7

Knowledge management

3

Assignment 3

8

Internet marketing research and strategies

3

 

9

Internet marketing management

3

Assignment 4

10

Mobile commerce

3

 

 

TOTAL

36

 

How to get the most from this course

The best way to study this course is to read each study unit and the readings indicated within the units. You may need to go over certain sections of the unit more than once in order to fully absorb the most essential concepts. You should also perform the assigned Web activities to gain hands-on, practical exposure to the ideas discussed.

The self-tests and questions that follow each reading are also very useful to help stimulate your thinking and to check your progress. Make a serious effort to answer these questions on your own. Don't give in to the temptation to jump directly to the answers!

Learning about advanced e-commerce applications also takes place in the real world. As you go about your daily life, remain alert to any new knowledge and up-to-date information regarding e-commerce and its growing role in today's economy. You will get more satisfaction and fulfillment from your studies once you are able to appreciate for yourself the impact and significance of e-commerce applications in the society we live in.

Tutors and tutorials

This course has 20 hours of tutorials. You are strongly encouraged to attend and participate in these tutorials. Please take advantage of the tutors since they can help you understand the work in this particular course. Also, you can use the telephone tutoring service, a service many students don't take advantage of.

Supplementary lectures

There will be five supplementary lectures for the course. The tutor will go over the unit contents briefly with you during the supplementary lectures.

Please note that attending supplementary lectures is not compulsory.

Online Learning Environment

This course is supported by the Online Learning Environment (OLE). You can find course materials and the latest course information from the OLE. Through the OLE, you can also communicate with your tutors, the Course Coordinator, as well as fellow students. For details about the OLE and how to access it, please refer to the Online Learning Environment User Guide.

Use of case studies

Case studies are a useful and increasingly popular form of learning and assessment in the OUHK's School of Business and Administration. In this section we will look at why case studies are used and then suggest some learning strategies that you can use to approach case studies. We will also briefly discuss some problems that you may encounter as you learn from case studies.

What is a case study approach to learning?

One main purpose of a case study is to explore an issue or a number of issues in relation to an organization. The intention is to get you to carefully diagnose an organization; to focus on key problems, and to suggest how these might be resolved. Often the case is a real-life account of an organization which you are required to analyse in order to focus on a problem. Usually, the information that is provided is incomplete and you are often expected to observe developments in the organization over a period of time. The case study approach is an excellent opportunity to actively apply material that you have read and conceptual knowledge to the reality of an organization.

At the OUHK, case studies may be used as part of TMAs, exams, study units, or day-school exercises. You normally are given some information about a company (this could be both text and graphical information, such as figures and tables). You are then asked to think about some problems related to the company and to use concepts and apply theories that you have learned in your course to propose possible solutions for the company.

Let's have a look at two kinds of case study questions that you might be asked to work through in your courses. The first example is quite structured, while the second is much more open-ended.

Two examples of case study questions

  1. Read the case study entitled 'ABC Consultants' and consider the following issues:

    • Using your understanding of the resource-based model, what measures could be taken to improve ABC's returns?

    • Drawing on your broad understanding of the consultancy industry, assess ABC's relative competitiveness and its profit potential.

    • To what extent do internal factors account for ABC's financial weaknesses?

    • Based on your assessment of ABC's financial weaknesses, formulate a new strategic intent and develop a mission statement for ABC.

  2. Read the case study entitled 'XYZ Industries'.

    • Identify the key problems that are currently faced by XYZ's management.

    • Propose viable solutions to these problems.

Why case studies?

As you can see from the above examples, a case study approach to learning requires a great deal of thinking and often will not easily yield a quick 'wrong' or 'right' answer. However, case studies are also good preparation for dealing with real-life business problems. Cases may be short and relatively simple, or longer and complex. The purpose is the same for both types: to give you an opportunity to develop your skills in analysing the strengths and weaknesses of the organization under examination, to consider the processes at work within the organization, and to make decisions about future actions.

Case studies are not meant to replace textbooks, but rather to ask you to draw connections between theories and practice and to apply abstract ideas, concepts, and principles to specific concrete situations. Consequently, case analysis develops a number of skills that are crucial in business. In particular, they help you to:

  • analyse complex, unstructured, sometimes ambiguous situations;

  • identify critical issues and problems;

  • question your own and others' assumptions;

  • improve your problem-solving skills;

  • develop your ability to find alternatives and make informed decisions;

  • make decisions with incomplete information and think strategically;

  • self-educate yourself and draw on a broad range of resources and knowledge; and

  • present and justify recommendations in writing.

You may find that there are many possible 'right' answers to the questions in a case study. This illustrates that there is often no single best way to responsibly manage and solve real-life business problems.

Some guidelines for analysing case studies

The following strategies should help you to successfully analyse case studies:

1 Read the case and become familiar with the facts

First, skim read the case to obtain a general understanding of the main point(s). Highlight or underline the pertinent points as you read.

Read the case again, and this time note down critical facts (such as names, time sequences, and where events occurred). Try to understand how events have influenced decisions. Identify the important individuals or stakeholders, and try to assess the importance of supporting information in the case. How reliable is this supporting information? Are there any gaps in the information that is given?

Make a note of any questions that you have as you read the case.

2 Assess the context of the case

Try to understand the environment of the organization and the wider context of the case.

Ask yourself questions about:

  • The state of the organization: What is the state of this organization: good, bad or in-between? Usually this involves thinking about interpersonal relationships, and assessing production or financial problems.

  • Key players and systems: How do systems and people operate in this organization? Why do they operate like this? Are the systems undergoing change? How successful are the changes? Is there someone who could sabotage any future strategy? Is there someone who can ensure the success of a future strategy?

  • Significant trends: How does this industry operate? What are the main or unique characteristics of the industry? What were they five or ten years ago, and what are they likely to be in the future? What impact are trends likely to have on the organization under investigation? How does this organization's performance compare with that of competitors?

  • Constraints: Clearly identify all constraints in the case. A constraint may be viewed as anything (usually beyond the control of the organization) that may prevent an otherwise feasible course of action from becoming a success. What is outside the control of individuals in the case study? For example, it is unlikely that any company or individual in Hong Kong could prevent a foreign government from imposing tariff barriers on imports.

A SWOT analysis is a good way to get a better understanding of the organization and the context or environment in which it is operating.A SWOT analysis considers the Strengths and Weaknesses of the organization, and the Opportunities and Threats which the organization faces in the external environment.

3 Recognize the case's symptoms

Read the case again and as you read, try listing all the symptoms of the case. The symptoms of a case are not the problems, but they may help you to identify the problems. Symptoms are all the things that are undesirable or that are not as expected. For example, falling sales could be a symptom of several problems such as poor market segmentation, poor product quality, or problems in a supply chain. At this stage of your analysis, you should just try to observe all the symptoms, and avoid prematurely identifying problems or suggesting solutions. Like a doctor who consults a patient, you first need to observe and note all the symptoms before you can give a definite diagnosis of the problem. Think about how the symptoms may be interrelated. Relationship diagrams, like the one below, may help you to see the relationships between symptoms.

4 Diagnose the case's problems

After you have a good sense of the symptoms, you're ready to determine key issues that need to be analysed more closely. You are now diagnosing the situation, like a doctor diagnosing a patient's symptoms. Ask yourself 'what seems to be the trouble in this organization?' and make a list of what you now perceive to be the key problem(s). You will probably need to go back to the details of the case and as you do this, you may add to or refine your list of potential problems.

If there are several problems, you need to order and prioritize them. You might want to number problems according to how you perceive their importance, or make a matrix, like the one below, which shows relationships between various criteria and each problem.

Criteria Problem #1 Problem #2 Problem #3
Importance: what will happen if the problem is not addressed?      
Urgency: how quickly must this problem be solved?      
Centrality: To what extent does this problem cause others?      
Solvability: Can this problem actually be solved?      

Also try to establish if there are relationships or themes in common among the various problems. Perhaps different problems in your list are actually variations of a broader central problem.

Ask yourself what assumptions you have made about the case. Are these assumptions reasonable, and are they supported by the facts? Would other people objectively suggest the same problems, based on the facts that you have? Are you suggesting problems that are not supported by the facts of the case?

After you have considered and put into order the possible problems and questioned your assumptions relating to these problems, you should write a statement of the problems as you perceive them. Avoid suggesting solutions at this stage.

Once you have a problem statement, you need to find evidence in the case to support your problem diagnosis. Also, try to identify ideas, concepts and theories from your textbook and course units which help to explain what is happening in the case.

5 Formulate criteria for a 'good' solution and identify possible constraints to solutions

Before you propose a solution, you need to consider the characteristics of a 'good' solution. Obviously, your solution should bring benefits such as improved productivity, reduced costs or greater profits. However, it also needs to be viable and to accommodate the constraints that you have already identified, i.e. Is the solution legal? Is there a budget for this solution? Does it conflict with the organization's culture?

Try to brainstorm alternative solutions. Aim to generate a broad and creative range of options and then try to rate each according to various criteria.

The following matrix demonstrates how this can be done.

  Cost Ease of implementation Impact on organization culture Impact on profits
Option 1 *** * * **
Option 2 * *** *** **
Option 3 ** * * ***

Also refer to ideas, concepts and theories from your course materials as you consider and assess each possible solution.

It's often wise to propose a solution that allows for plausible alternatives if it should fail. Managers use the term satisfice when they are considering acceptable alternative solutions, that is, the solution is able to satisfy the situation while also making some realistic sacrifices to existing constraints. Therefore, it is a satisficing rather than a maximizing solution.

Finally, don't forget to consider the possibility of taking no action. What will actually happen if no action is taken? Are any (or all) of the solutions less viable than taking no action at all?

6 Recommend a viable solution

After you have assessed the merits and pitfalls of each alternative solution, select the best solution for the situation.

Remember that the solution needs to be viable. Can the recommended solution be introduced? Are there the resources and the willingness to implement it? Be realistic about what may work. Explain why it is the best solution within the constraints of the existing context and explain how it can be applied to the organization. Suggest a time-frame for the solution's implementation.

Outline possible strategies for implementing your solution, either partially or completely. As many feasible courses of action as possible should be considered before you choose the one that seems the most likely to succeed. The more ideas you have, the greater your chance will be of finding a solution that will work well. The complexity of most organizational problems means that it is highly unlikely that one idea alone will correct the situation. Usually a combination of actions is required, and these need to be funded differently, timed carefully and staffed as necessary.

7 Present your solution as a written recommendation

Review your final solutions and then prepare a set of written recommendations. These should clearly outline your proposed solution in relation to the problems that you have identified. Your recommendations should also include details of why these solutions are the most appropriate given the circumstances and constraints of the case. Finally, you need to clearly state how and when your proposals will be implemented.

Your tutor and your course Assignment File can provide some guidelines on how to present your recommendations.

Some mistakes to avoid as you analyse cases

When you first tackle case studies, you should be careful to guard against the following mistakes:

  1. One of the most common mistakes made in case analysis is repeating or simply summarizing the facts of the case. Your tutor is already very familiar with the case details, so you do not have to restate them. You are required to use and analyse the facts, not repeat them. Your analysis should contain only enough case material to support your arguments. Therefore, be analytical!

  2. You may often be tempted to just deal with symptoms and ignore the causes of the problem. It is very important to analyse the background of the case (and the climate in which the events of the case unfold).

  3. Avoid discussing problems in isolation and do not overlook their interrelatedness. If you try to think in terms of 'systems' rather than in terms of individual problems, you are more likely to avoid this pitfall.

  4. Students often fail to state the assumptions underlying their analysis. If any important assumptions have been made, have you questioned them and are they reasonable and appropriate? Avoid selectively using and interpreting case material in order to justify a preconceived solution.

  5. Practical limitations and constraints may sometimes be overlooked. For example, a recommendation that a whole team be fired is probably unrealistic.

  6. A very common mistake is poor integration of the facts in the case with the concepts, principles, and theories in the textbook. Such integration is vital. Ask yourself if relevant theories from your course have been fully and constructively applied.

  7. Finally, recommendations are too often not spelled out in detail or are unrealistic. A timetable for implementing them is also often not given.

Analysing cases poses many challenges, and this is one reason the case study method is so rewarding. It is a very active form of learning. It offers you a risk-free opportunity to gain managerial and organizational experience and should greatly increase your confidence to make informed decisions in the real world.

Good luck and we hope you enjoy working through the cases that you encounter!

Deferment of studies

If you wish to defer your studies of this course until a later date, you should apply for deferment of studies. For the regulations governing deferment of studies, please refer to Section 14, 'Regulations for Admission, Registration and Maintenance of Status', in your Student Handbook. If you have applied for deferment of studies you should continue with your studies of this course and submit the required assignments until formal approval is given by the University. Should you have difficulties in submitting an assignment, you are advised to liaise with your Course Coordinator and apply for a TMA extension. Students who have been granted deferment of studies will not be allowed to submit TMAs due before the date that their application for deferment of studies is received by Registry.

A note about the developer of this course

Jenny Lim is currently teaching and developing tertiary-level courses covering e-commerce, web design, marketing and information management in Hong Kong.

She was previously a Program Manager in a New York web design firm, where she helped design and develop web-enabled database applications for clients in the financial, professional services, and entertainment industries. She was also a Project Leader in the Business Solutions group of a leading e-commerce retailer, where she was involved in implementing web-based procurement applications.

Prior to her web industry experience, she was a systems analyst and programmer of back-office software applications in the financial industry. She was also a senior technical staff member at a Big 4 consulting firm, where she participated in systems development, testing and integration projects on the mainframe, mid-range and personal computer platforms.

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