E-Commerce Applications

Question 1

Define “supply chain management (SCM)”.

Answer 1

The process of planning, implementing, and controlling the operations of the supply chain; the process of transforming draw materials into a finished product and delivering that product to the consumer. Supply chain management incorporates all activities from the purcahse and storage of raw materials, through the production process, into finished goods through to the point-of-consumption.

Question 2

Define “electronic data interchange (EDI)”.

Answer 2

The system-to-system exchange of business data (e.g., purchase orders, confirmations, invoices, etc.) in structured formats that allow direct processing of the data by the receiving system.

Question 3

Define “electronic wallets”.

Answer 3

Software programs that allow the user to manage credit cards, user names, passwords, and address information in an easy-to-use, centralized location (e.g., RoboForm).

Question 4

Define “electronic funds transfer (EFT)’.

Answer 4

A technology for transferring money from one bank account directly to another without the use of paper money or checks. Reduces the time and expense required to process checks and credit transactions.

Question 5

Define “token-based payment systems”.

Answer 5

Electronic cash, smart cards, (cash cards), and online payment systems (e.g., PayPal); similar to electronic fund transfer (EFT), but governed by different laws.

Question 6

What are customer relationship management (CRM) systems?

Answer 6

Technologies that facilitate managing e-relationships with clients. Both biographic and transaction information about existing and potential customers is collected and stored in a database. The CRM provides tools to analyze the information and develop personalized marketing plans for individual customers.