MGSC 300 Week 9.

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Management Information Systems!

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MGSC 300 Class Meeting 9.2 Agenda
• The daily poll
• Business in the News
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• Chapter 8 – Retail, E-commerce, and Mobile Commerce

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Business to Business (B2B) E-commerce and E-
procurement
• Business-to-business (B2B) Markets
o The buyers, sellers, and transactions involve only organizations
o B2B comprises about 85 percent of e-commerce dollar volume
o Enterprise forms electronic relationships with distributors,
resellers, suppliers, customers, and other partners
• Business models for B2B applications:
o Sell-side marketplaces
o E-sourcing (the buy-side marketplace)

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Business to Business (B2B): Sell-side Marketplaces

• Sell-Side Marketplaces
o Where organizations sell their products or services to other
organizations from their own private website or from a third-
party site.
o Creates greater competition for sellers (a buyer advantage)
o Similar to B2C model, but the ‘C‘ is an organization.
• Amazon Business
• Alibaba wholesaling Chinese products

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Business to Business (B2B): E-procurement
• Corporate procurement (corporate purchasing):
transactional elements of buying products and services
for operational and functional needs.
• Direct procurement: buying materials to produce
finished goods.
• Indirect procurement: buying materials for daily
operations.
• E-procurement: reengineered procurement using e-
business technologies and strategies.

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Business to Business (B2B): Electronic Data
Interchange (EDI)
• Public and Private Exchanges
o Vertical exchanges serve one industry along the
entire supply chain (automotive, chemical,
manufacturing, etc.).
o Horizontal exchanges serve many industries using the
same products or services (office supplies, cleaning
materials, bearings, etc.). Also called Maintenance,
Repair, and Operations (MRO) supplies.

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Mobile Commerce: Retailing & Marketing
• Mobile Retailing
o The use of mobile technology to promote, enhance, and add
to value to the in-store shopping experience.
• Mobile Marketing
o A variety of activities used by organizations to engage,
communicate, and interact over Wi-Fi and
telecommunications networks with consumers using wireless,
handheld devices.

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Mobile Commerce: Competitive Advantage
• M-commerce provides competitive
advantage
• In-Store Tracking
o Tracking a customer’s movement through a
retail store through mobile technology to
optimize shopping experiences.
• Quick Response (QR) Codes
o Customers scan the QR code containing a
link to an Internet webpage.
o Easier alternative to typing a URL address
into a mobile browser.

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Mobile Commerce App Features
• Location-Based Marketing
o Advertising using mobile GPS systems to determine user
locations.
o Structured as mobile social media games to elicit consumer
information and ratings for special attention or discounts from
retailers.
• Augmented Reality (AR)
o Apps that utilize a special technology to create computer-
generated graphic superimposed images based on where/how
a user points their phone or camera.

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Mobile Search
• Almost 60% of all Internet searches are conducted from
a mobile device
• Over half of all web traffic comes from mobile devices
• As a result, Google and other Internet search engines
now use the performance of a company’s mobile
website as part of the criteria for ranking listing in
search results
SEO specialists must now focus on a set of new factors for
optimizing websites for mobile search.

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Mobile Transactions and Financial Services
• Hotel Services and Travel
o Airline QR boarding passes and SMS
flight updates
o Google Maps widely used for
automobile navigation
o Travel planning with roadside
assistance, Wi-Fi hotspots, and
recommendations
o Hotel guest reservations, bill
checking, and local services

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Mobile Payment Systems
• Transfer of Funds from Payment Account Using SMS
o Phone sends SMS to transfer payment through third party (Obopay.com,
PayPal.com)
• Mobile Phone Card Reader
o Phone attached device allows credit card swipe (Square.com,
Paypal.com)
• Micropayments
o Transactions involving small sums of money (vending machines, parking
meters, Venmo, etc.)
• Mobile Bill Payments
o Payments made directly from cell phone (Western Union, Citibank, HDFC
Bank in India)

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Mobile Banking Services
• Natural extension of online banking
• Uses combination of mobile media channels
o (SMS, mobile Web browsers, customized apps)
• Common services include account alerts, balance
information, branch location, bill pay, funds transfers and
verification
• Mobile banking benefits seem to outweigh potential
security threats.
• Increasing mobile banking likely means increased targeting
of mobile financial activities.

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Mobile Banking Security Risks
Cloning Duplicating the electronic serial number (ESM) of one phone and using it in
second phone, the clone. This allows the perpetrator to have calls and other transactions
billed to the original phone.
Phishing Using a fraudulent communication, such as an e-mail, to trick the receiver into
divulging critical information such as account numbers, passwords, or other identifying
information.
Smishing Similar to phishing, but the fraudulent communication comes in the form of an
SMS message.

Vishing Again, similar to phishing, but the fraudulent communication comes in the form
of a voice or voicemail message encouraging the victim to divulge secure information.
Lost or stolen phone Lost or stolen cell phones can be used to conduct financial
transactions without the owner’s permission.

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Reminders
• Have a great Easter Weekend!

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