E-Business

• The whole process takes place in the Direct Order Centre (DOC)
• Several information systems are involved:
  • SAP SD (sales module, creation of internal customer orders),
  • The SAP-based configuratior (creating purchase requisitions),
  • SAP MM (material management module, creating and processing purchase orders and transport orders as well as
  • The information systems of the service provider SupplyOn.
• The process of the initiation of orders is automated to a large extend, e.g. the incoming order confimation is automatically compared with the purchase order.

• Processes use functions and data which are provided by information systems.
• The application view shows how the business logic – in the form of functions and data – can be distributed to several applications (information systems).
• The figure “application view” supports the textual description of the application view.

• The application view shows the distribution of the business logic (in the form of functions and data) to the involved applications (application systems, information systems).
• The application view assigns the involved applications to the involved roles or parties. Links between the applications show access options and integrations.
• Thus, the application view shows the distribution of the most important functions and data to the involved applications. This is useful for the understanding of responsibility areas, dependencies and risks.
• An application is seen as a logical unit in the sense of the operator. The figure shows the application level, the data level and the client level (see next slide).
• The application view does not show a possible distribution of an application to several technical systems.

• The service provider SupplyOn plays a certain role in the purchase-to-pay process. All exchange processes run via SupplyOn. There is no direct connection between Schindler and the suppliers.
• SupplyOn offers direct B2B integration (classical EDI) as well as Web EDI. Direct B2B integration connects ERP systems. Suppliers can send and receive different document formats according to their needs.
• On the side of Schindler, the different involved modules of the ERP system are shown. These modules are functionally integrated using one common database. For the communication with SupplyOn only the SAP standard format Idoc XML is used.

• LeShop uses a widely centralised information technology. Most systems are operated by Migros IT services, e.g. backend system, database, call center, online shop.
• Decentralised systems are operated in the logistics centres in Ecublens and Bremgarten, e.g. development system and analysis tool. The backend system is also operated there to secure availability in case of network interruptions
• The leshop locations are connected with Migros IT services via VPN.  External suppliers, business partners and customers are connected via Internet.

• In practice, the technical operation of application systems is often distributed to several technical platforms( platform = hardware + operating system).
• The technical view describes the distribution of the applications to technical platforms, their physical locations and their integration into a network or several connected networks.
• In contrast to this: The application view considers an application (e.g. an ERP system) as a logical unit in the sense of the user (the organisation operating the system).

Information technology in the sense of hardware, operating systems and standard software can be quite easily procured and is therefore not suitable for the creation of sustainable competitive advantage. (max 2 points)

Sustainable competitive advantage can be achieved, if information technology is connected with a USP, e.g. know-how, data or specific organisational structures, which cannot be procured or imitated easily. Information technology can then have the effect of an intelligence amplified. The intelligence lies in the business concept. The business concept has to be continually further developed to maintain the advantage. (Max. 4P).

• Information effect (0.5P): information can be seen as a resource. E-business systems can extend the access to information and thus provide or improve the capability to decide and act (1P). Example (0.5P): the worldwide reference database for music suppliers at Musik Hug or the multi-vendor catalogue at Rotonic with availability information.
• Brokerage effect (0.5P): Electronic media connect supply and demand, allow manual or automated selection and decision making (1P). Example (0.5P) the virtual community oelpooler for jointly ordering oil or the cooperation platform IFIS Uno at Verein IFIS.
• Integration effect (0.5P): companies overcome their system boundaries. A system has automatic access to independent other systems and uses their functions and data (1P). Example (0.5P): LetMeShip (multi-carrier system), SBB offerings including hotels and events, virtual companies.

Correct answer is number 3.

An e-commerce transaction can be divided into five phases. Tick the answer with the correct sequence of the phases.

1. Information phase - Agreement phase - fulfilment phase (settlement phase) - after-sales phase - animation phase
2. Animation phase - information phase - fulfilment phase (settlement phase) - agreement phase- after-sales phase

1. Animation phase - information phase - agreement phase- fulfilment phase (settlement phase) - after-sales phase

Which of the following processes are assigned to the Information phase? 1,4,6,8

1. The customer identifies a suitable product in the product catalogue.

1. The supplier informs the customer by telephone that orders can be placed via the online shop.
2. The supplier sends an order confirmation to the customer.

1. The customer looks for the availability of a certain product in the online shop of a supplier.

1. The customer selects her/his preferred payment method.

1. The customer tries to get an overview over the range of goods of an online shop.

1. Customer and supplier agree on the time and kind of delivery.

1. The customer fills the shopping basket.

E-procurement is the support of business relationships (0.5P and processes (0.5P) of a company with is suppliers(0.5P) using networked information technology (0.5P)

Right answers are: 1, 3, 4, 5

1. Low update frequency of prices, terms and conditions

1. Upfront investment

1. No product specific presentation
2. Limited or no product configuration
3. No availability information

1. Maintenance costs

• Suppliers, which are not EDI ready, can gain access to automated systems through a browser and receive and send electronic business messages. (max. 2P)
• Suppliers using Web EDI save costs for initial investments and keep the complexity of their IT low (max. 2P)
• Web EDI is a first step to become familiar with Edi and electronic processes, e.g. for small or inexperienced companies. (max. 2P)

There are many definitions and perspectives. One definition of knowledge is that knowledge is a higher aggregation as information and data. Knowledge is highly dependent on context and different humans use knowledge differnentyl.
in a process an employee selects information that is evaluated in his/her personal background, connects and transform it to reach certain objectives.

Relevance +Date = Information +  Experience equals Knowledge

Data adding meaning, understanding relevance and purpose is so transfered into Information. By Transforming information through experience and personal application it bekomes Knowledge. By enrichting through extensive, high quality practice and deliberate experimetnation you can bekome  Mastery/Expertise in the knowledge field. Knowledge cal also be transferred back into Information.

Develop a hypothesis, perform a test to prove the hypothesis right or wrong, analyze the results, and create a new hypothesis based on what you learned with data science.

Explicit knowledge: codified and documents in books, documents, reports, memos, ..
e.g. owner's manual accompanying the purchase of an electronic product.

Tacit knowledge: knowledge embedded in the human mind through experience and jobs. Cannot be adequately articulated through workds; described as know how.
e.g. is knowledge of the best means of approaching a particular customer using flattery, using a hard sell, using a no-nonsense approach

explicit knowledge is

• Objective
• Personal independent
• Rationality
• General valid
• Context independent
• Simple formalize
• Theory (textbooks)

Implicit (hidden knowledge) is

• Subjective
• Personal
• Experience
• "here and now" valid
• Context specific
• Difficult formalize
• Practise

"The mental action or process of acquiring knowledge and understanding through thought, experience, and the sensees. "

Information processing view of an individual's psychological functions.
there is an internal and extenral cognition.

Internal cognition: processing by using mental models.

Direct function of the complexity of the performed task and the cognitive capacity of the learner.
e.g. 23 * 4 =  ?
 

External cognition: processing with help of external representations (text, graphics). Complexity tied to the ways in which information is presented. High load through superfluous processed that do not directly contribute to develop understanding / learning

Eg. XXIII * IV = ?

• Offloading = extend to which external representations reduce the amount of cognitive effort requried to solve infomrationally equivalent problems. E.g. identify the longest spaghetti of the entire package
  • High extraneous cognitive load = measures each spaghetti
  • Low extraneous cognitive load = takes all of them and make them even at the bottom, so you see the one who sticks up the highest.

Arranging objects in office environment to increase efficiency and reduce cognitive load.

Order icons by colour. Remove all items in toolbar of the laptop I do not use at least 4 times a week.

Colored epics. Easy to sort through and recognizable without reading each name

• Not just the brain but an overall environment is conceived as a cognitive system
• Social-technical: cognition is off loaded into the environment through social and technological means
• Cognitive and embodied: embodiment of information that is embedded in representations of interaction
• E.g.
  • Aviation
  • IT: collaborative tagging: associate tags with online materials and share collectively
  • Clinical workplaces

• Medical actors use gestures to
• Connect speed
• With the visual and haptic structures of their own bodies
• And of artifacts, such as technological instruments and computers,
• To construct complex, multimodal knowledge representation

Production factors: input to produce goods and services
Four major groups:
- Land (include all natural resources),

• Labor(including all human resources),
• Capital (including all man-made resources), and
• Knowledge, recognized as a factor of production in ist own right.

Period = P

Economic goods = E

Assets = A

P: primary economics, E: raw material, A: Buildings, land

P: Secondary economics, E: Product, A: Machines , energy

P: Teriary economics, E: Services, A: Infrastructure

P: Quartiary economics, E: Knowledge, A: Networks