Flashcards in E-Commerce Applications Deck (7):
CRM customer relationship management
Technologies for managing client relationships; the CRM provides tools to analyze the information and develop personalized marketing plans for individual customers
EDI electronic data interchange
Computer-to-comuter exchange of business data
Structured data & processing protocols reduce cost & speed processing
Facilitates JIT inventory use (Walmart direct EDI)
Often, direct links been trading partners through intermediaries (service bureaus or VANs) - value added networks
vast majority of EDI transactions are still processed through value-added networks
The well-established audit trails, controls, and security provided for EDI transactions by VAN are the principal reasons for their continued popularity.
Translation software converts between standardized EDI format & internal company
Costs of change -- Costs associated with locating new business partners who support EDI processing; legal costs associated with modifying and negotiating trading contracts with new and existing business partners and with the communications provider; costs of changing internal policies and procedures to support the new processing model (process reengineering) and employee training.
Hardware costs -- Often additional hardware such as communications equipment, improved servers, etc., is required.
c. Costs of translation software
d. Cost of data transmission
e. Costs of security, audit, and control procedures
Demanded by customers; management requires senior management and B of Directors oversight, technology under Senior IT, Operational management monitoring & measuring risk
Technology for electronically transferring funds - increases speed and reduces cost
Usually third-party vendor is intermediary between company and banking system