Unit-4

What Is Electronic Commerce (E-commerce)?

Electronic commerce, or e-commerce, is the buying and selling of goods and services over the
internet. E-commerce can be conducted on computers, tablets, smartphones, and other smart
devices. Nearly every imaginable product and service is now available through e-commerce,
and it has upended how many companies and entire industries do business.

History of E-commerce

Most of us have shopped online for something at some point, which means we've taken part in e-
commerce. So it goes without saying that e-commerce is everywhere. But very few people may
know that e-commerce has a history that predates the internet.

E-commerce actually goes back to the 1960s, when companies used an electronic system called
the Electronic Data Interchange to facilitate the transfer of documents. It wasn't until 1994 that
the very first transaction took place. This involved the sale of a CD between friends through an
online retail website called NetMarket.1

The industry has evolved rapidly since then, with companies like Alibaba and Amazon becoming
household names around the world. The introduction of free shipping, which, at least on the
surface, reduces costs for consumers, has also helped increase the popularity of the e-commerce
industry.

Advantages and Disadvantages of E-commerce

Advantages

E-commerce offers buyers and sellers a number of advantages:

 Convenience: E-commerce can happen 24 hours a day, seven days a week. Consumers
can buy at their convenience, and business owners can make sales while they sleep.

 Increased selection: Many stores offer a wider array of products online than they could
ever carry in their brick-and-mortar counterparts. And many stores that solely exist online
offer consumers exclusive inventory that is unavailable elsewhere.

 Potentially lower start-up costs: E-commerce companies may require a warehouse or

manufacturing site, but they usually don't need a physical storefront. The cost to operate
 digitally is often less expensive than needing to pay rent, insurance, building
maintenance, and property taxes.

 International sales: As long as an e-commerce store can find a way to ship its products
to its customers, it can sell to anyone in the world and isn't limited by physical
geography.

 Opportunity to collect valuable data: Willingly or unknowingly, consumers share a lot

of information on their interests and shopping habits when they buy or even just browse
online. Site owners can monetize this data in a number of ways, using it themselves and
selling it to others.

Disadvantages

There are also some drawbacks that come with e-commerce. Those can include:

 Limited customer service: If you shop online for a computer, you cannot simply ask an
employee to demonstrate a particular model's features in person. And although some
websites let you chat online with a staff member, that is not a typical practice. A
disadvantage for shoppers, this can also be a money-saver for retailers.

 Lack of instant gratification: When you buy an item online, you must wait for it to be
shipped to your home or office. However, e-tailers like Amazon now make the waiting
game a little bit less painful by offering same-day delivery as a premium option for select
products.

 Inability to touch products: Online images do not necessarily convey the whole story
about an item, and e-commerce purchases can be disappointing when the items don't live
up to the buyer's expectations. Case in point: an item of clothing may be made from
shoddier fabric than its online image indicates.

 Dependence on technology: If a website crashes or must be temporarily taken down for

any reason, the business is effectively closed until things return to normal.

 Greater competition: Although the low cost of starting an e-commerce business can be
an advantage, it also means competitors can just as easily enter the market.

Types of E-commerce model:

There are types of e-commerce models that can describe almost every transaction that takes place
between consumers and businesses.
 1. Business to Consumer (B2C): When a good or service is sold to an individual consumer
by a business, e.g., we buy a pair of shoes from an online retailer.

2. Business to Business (B2B): When a good or service is sold by a business to another

business, e.g., a software-as-a-service is sold by a business for other businesses to use.

3. Consumer to Consumer (C2C): When a good or service is sold by a consumer to

another consumer, e.g., we sell our old furniture on eBay to another consumer.

4. Consumer to Business (C2B): When a consumer's own products or services is sold to a

business or organization, e.g., an authority offers exposure to their online audience in
exchange for a fee or a photographer licenses their photo for a business to use.

5. Business-to-government (B2G): In this model, businesses sell products or services to

government agencies through online portals or marketplaces.

6. Government-to-business (G2B): In this model, government agencies sell products or

services to businesses through online portals or marketplaces.

7. Government-to-consumer (G2C): In this model, government agencies provide products

or services directly to consumers through online portals or marketplaces.

Business Application of E-commerce:

 Conversational commerce: e-commerce via chat

 Digital Wallet

 Document automation in supply chain and logistics

 Electronic tickets

 Enterprise content management

 Group buying

 Instant messaging

 Newsgroups
  Online banking

 Online office suites

 Online shopping and order tracking

 Pretail

 Print on demand

 Shopping cart software

 Social networking

 Teleconferencing

 Virtual assistant (artificial intelligence)

 Domestic and international payment systems

Features:

Product catalog: An e-commerce platform should provide an easy way to create and manage a
product catalog, including adding new products, editing existing ones, and categorizing them.

Shopping cart: A shopping cart is a tool that allows customers to add products they want to
purchase and keep track of the items as they continue to browse the website.

Checkout and payment processing: A reliable checkout and payment processing system is
essential for e-commerce success. Customers should be able to complete transactions quickly
and easily using a variety of payment methods.

Shipping and order management: Once a customer places an order, the e-commerce platform
should provide tools to manage the order, including tracking information, shipping options, and
delivery status.

Customer accounts and loyalty programs: Many e-commerce platforms allow customers to
create accounts, which can help businesses build relationships and loyalty. Additionally, loyalty
programs can incentivize repeat purchases and encourage customers to refer others.
Marketing and analytics: An e-commerce platform should offer tools to help businesses market
their products, such as email campaigns and social media integration. Additionally, analytics can
help businesses track customer behavior, identify trends, and improve their overall strategy.

Mobile optimization: With more people shopping on their mobile devices, it's essential that e-
commerce platforms are mobile-optimized, with a responsive design that provides an optimal
shopping experience on smartphones and tablets.

Advantages of E-commerce:

 E-commerce enables fast and secure shopping.

 It is making digitalized world.

 E-commerce also enables to choose different goods and services according to your
choice.

 It is a simple way of selling and buying products and services.

 E-commerce replaced the paper work as all transactions are through internet today.

 It provides better management system, as it has a centralized database.

 E-commerce via internet covers a large number of customers worldwide.

 E-commerce has several payment modes.

Disadvantages of E-commerce:

 E-commerce has no universal standard for quality and reliability.

 E-commerce works through internet, it is possible that navigation on internet itself may
be slow.

 Strong security is required in e-commerce as all transactions are through internet.

 There is high risk of buying unsatisfactory products through e-commerce.

 It uses public key infrastructure which is not safe.

 Customers also trap in banking fraud which is quite frequent.

 Hackers also try to get access of data or to destroy data in e-commerce.

Uses of E-commerce:

1. Online retail: One of the most well-known uses of e-commerce is online retail, where
businesses sell products directly to consumers through their online store, website, or
mobile app.

2. Digital products and services: E-commerce is also commonly used for the sale of
digital products and services, such as music, e-books, software, and online courses.

3. Business-to-business transactions: E-commerce can be used for B2B transactions,

where businesses sell products or services to other businesses.

4. Online marketplaces: E-commerce marketplaces, such as Amazon and eBay, provide a

platform for businesses and individuals to sell their products to a large audience.

5. Auction sites: Online auction sites, such as eBay, allow users to bid on and purchase
items from other users.

6. Online banking and financial services: E-commerce is used extensively for online
banking and financial services, including payment processing, bill payment, and money
transfers.

7. Online booking and reservations: E-commerce is used for booking and reservations of
flights, hotels, rental cars, and other travel-related services.

8. Food delivery: E-commerce platforms are used for online ordering and delivery of food
from restaurants.

9. Online advertising: E-commerce is also used for online advertising, where businesses
can advertise their products and services to a large audience.

There are many benefits of e-commerce for both businesses and consumers. Some of the
key benefits of e-commerce are:

1. Convenience: E-commerce allows customers to shop from the comfort of their own
homes or wherever they have internet access, making it convenient for them to make
purchases at any time.

2. Global Reach: E-commerce enables businesses to reach a wider audience beyond their
physical locations, allowing them to expand their customer base globally.

3. Cost-Effective: E-commerce eliminates the need for physical storefronts and reduces
overhead costs associated with operating a traditional brick-and-mortar store.

4. Personalization: E-commerce allows businesses to personalize their offerings based on

customer behavior and preferences, offering a more personalized shopping experience.
 5. Easy and Secure Payment: E-commerce provides secure and convenient payment
options, making it easy for customers to make purchases.

6. Data Collection and Analysis: E-commerce provides businesses with the ability to
collect and analyze customer data, enabling them to improve their marketing and sales
strategies.

7. 24/7 Availability: E-commerce websites are always available for customers to access,
allowing them to make purchases at any time, even outside of business hours.

8. Overall, e-commerce provides businesses with new opportunities to expand their

customer base, increase sales, and improve customer satisfaction, while also offering
customers greater convenience, access, and flexibility.

What is an Intranet?

An intranet is owned by a single organization and is a tool for sharing information throughout the
organization. It is the type of Internet that is used privately. Since the intranet is a private
network no one can use the intranet whose have not valid username and password. In intranet,
there are a limited number of connected devices as compared to the internet. The intranet is
highly secure and has a small number of visitors. It is used in order to get employee information,
telephone directory, etc.

Advantages of Intranet

 Enhanced Communication: Promotes easy flow of communication between

departments.

 Centralized Information: Enables easy retrieval of documents and other key resources
that are used in a given process.

 Increased Productivity: Decrease the physical time that is required in locating

information and conducting work within the organization.

 Secure Environment: Ensures the safety of the user’s information only allows internal
personnel to access the application.

Disadvantages of Intranet

 Maintenance Costs: Need a frequent fixing and updating process which may fancy the
cost.
  Limited Accessibility: Only accessible within the organization which means there may
be a problem if need to involve personnel who are not physically present at the
organization.

What is an Extranet?

Extranet is owned by either a single or a many organizations. It is managed on a contractual basis

between organizations and is a tool for sharing information between the internal members and
external members. Like intranet, it is also a private network so only those who have a valid
username and password can use the extranet. Extranet is used to check status, access data, send
mail, place order etc.

Advantages of Extranet

 Improved Collaboration: Facilitates interaction with other bodies outside the

organization.

 Secure Data Sharing: Gives a restricted access to communicate with outside vendors or
other third parties, thus protecting the TCP.

 Cost-Effective: Saves on costs by doing away with physical consultations which are
often very expensive.

Disadvantages of Extranet

 Complex Setup: If implemented and designed properly it will be very strong but the
planning is key to security and functionality.

 Security Risks: poses an increased risk if it is not protected which can lead to external
threats penetrating the business.
Difference between Intranet and Extranet

Intranet Extranet

Intranet is a tool for sharing information Whereas Extranet is a tool for sharing information
throughout the organization. between the internal members and external members.

Intranet is owned by a single organization. While Extranet is owned by either a single or a many
organization.

In intranet, security is implemented through a Whereas in this, security is implemented through a

firewall. firewall in order to separate the extranet and the
internet.

Intranet is managed by an organization. Whereas Extranet is managed by many organizations.

Intranet has a limited number of connected Whereas in the extranet, connected devices are
devices. comparable with the intranet.

Intranet is a private network type for an While it is also a private network in which public
organization. network is used in order to share the information to
the suppliers and customers.

Intranet is used in order to get employee While It is used to check status, access data, send
information, telephone directory etc. mail, place order etc.
Intranet Extranet

Intranet is the limited and compromised version While Extranet is the limited and compromised
of Extranet. version of Internet.

A particular organization is the regulating While it is regulated by multiple organizations.

authority for intranet.

It is accessible to only the members of It is accessible to members of organization as well as

organization. external members with logins.

It's restricted area is upto an organization. It's restricted area is upto an organization and some
of its stakeholders.

It is derived from Internet. It is derived from Intranet.

Example: WIPRO using internal network for its Example: DELL and Intel using network for business
business operations. related operations.

Difference between Internet, Intranet and Extranet

Point of
difference Internet Intranet Extranet

Accessibility of
Public Private Private
network

To share information with

suppliers and vendors it
Global system. Specific to an organization.
makes the use of public
Availability network.

Restricted area upto an

Restricted area upto an
All over the world. organization and some of its
organization.
Coverage stakeholders or so.

Accessible only to the

It is accessible to It is accessible only to the members of organization and
Accessibility of everyone connected. members of organization. external members with
content logins.
 Point of
difference Internet Intranet Extranet

No. of The connected devices are

It is largest in number The minimal number of
computers more comparable with
of connected devices. devices are connected.
connected Intranet.

Single/ Multiple
No one. Single organization.
Owner organization.

It's purpose is to share

It's purpose is to share It's purpose is to share
information between
information information throughout the
Purpose of the members and external,
throughout the world. organization.
network members.

It is dependent on the It is enforced via firewall that

user of the device It is enforced via firewall. separates internet and
Security connected to network. extranet.

Employees of the
Employees of the
General public. organization which are
organization.
Users connected.

Policies behind There is no hard and Policies of the organization Policies of the organization
setup fast rule for policies. are imposed. are imposed.

It is maintained by CIO. HR It is maintained by CIO. HR

It is maintained by or communication or communication
ISP. department of an department of an
Maintenance organization. organization.

It is more economical
It is less economical. It is also less economical.
Economical to use.

It is the network of
It is derived from Internet. It is derived from Intranet.
Relation networks.

WIPRO using internal DELL and Intel using

What we are normally
network for its business network for its business
using is internet.
Example operations. operations.
What is an enterprise solution?

An enterprise solution is a software application designed to meet the multifaceted needs of an

organization rather than an individual end user or small business. Being large organizations with
broad ranges or operations, enterprises often face unique challenges, such as interdepartmental
communication and international commerce. The use of enterprise solutions can help an
enterprise to overcome these challenges, thus improving its performance. Enterprise solutions
commonly integrate multiple systems within an organization, allowing for the correlation or
dissemination of information across its various databases, which can streamline business
processes and improve workflows. They can be particularly useful for enterprise professionals
whose responsibilities cover multiple functional areas within the organization. A compliance
officer, for example, may require access to the systems of all the departments of an enterprise.

Types of enterprise solutions

There are multiple types of software solutions intended for enterprises or that may be useful to
them. Some of the most broadly used enterprise solutions include:

Accounting

An accounting solution provides tools that facilitate the completion of tasks relating to financial
transactions and management. At the enterprise level, a common challenge in the area of
finances is the access and integration of monetary data from various functional areas. Accounting
enterprise solutions commonly aim to resolve this challenge by centralizing financial data and
providing automation capabilities for repeatable processes. They also commonly include features
that allow enterprises to maintain a general ledger, complete tax reporting obligations, track
accounts and assets, manage the payroll and handle billing concerns.

Business intelligence

Business intelligence refers to the concept and practice of drawing insight from business data and
using it to inform sound decisions. A business intelligence solution facilitates the practice by
integrating data from various sources and visualizing it, allowing analysts a clearer view of the
enterprise's performance and areas of improvement. Such software commonly draws data from
sales, marketing and manufacturing databases, has customizable dashboard capabilities and
features robust reporting functions.

Customer relationship management

Customer relationship management, commonly known by the initialism CRM, is a category of

tools for tracking customer data that can help an organization to improve their relationships with
their customers and thus increase revenue. An effective CRM solution can help an organization
to create better sales techniques and streamline the stages of CRM, from developing leads to
retaining existing customers.

Enterprise asset management

Enterprise asset management, known by the abbreviation EAM, is a solution for tracking
physical assets and their associated life cycles. The life cycle of an asset refers to the stages
involved in identifying the need for an asset, acquiring an asset, maintaining it and then
liquidating it at the optimal time. With an EAM tool, an enterprise can more easily stay informed
about the values of their respective assets and make informed decisions about acquisitions and
disposals.

Enterprise resource planning

Enterprise resource planning, or ERP, refers to a solution that integrates multiple essential
processes within an organization, namely those relating to accounting, inventory and supply
chain management. With an ERP tool, an enterprise can maintain relevant data in a central
database where leaders and other decision-makers can access it as required. The software also
allows for the automation of repeatable workflows, thus improving operational efficiency.

Product life cycle management

Product life cycle management, or PLM, is the process and practice of overseeing the product
life cycle — the length of time that starts with its conception and ends with its removal from
market circulation. A PLM solution allows members of an enterprise to access and modify data
relating to the product life cycle. The centralization of this data can help teams to stay aligned in
terms of product designs, specifications and goals.
Supply chain management

Supply chain management is the process and practice of overseeing all of the steps involved in
creating a product and delivering it to the customer. The process includes devising product ideas,
acquiring raw materials necessary for a product's creation, moving and storing these materials,
receiving orders that initiate production, storing finished goods and transporting them to their
destinations. An enterprise-level supply chain management solution can facilitate the process by
centralizing data, integrating essential operations and providing features for monitoring,
analytics, material procurement, and order process, to name just a few.

Advantages of enterprise solutions

Using an enterprise solution can provide an organization with numerous advantages by

improving operations in the following areas:

Data management

One of the primary advantages of using an enterprise solution is that it can help track data
throughout an organization. Broad access to data is important in numerous roles and for various
purposes. Payroll, for example, involves visibility into salary records for all of an organization's
employees. An enterprise solution makes sure that type of data is accessible to those who require
it, helping to ensure a smooth-running operation.

Decision-making and problem-solving

Making the right enterprise decisions can be the deciding factor that allows an organization to
realize its goals. An organization can foster good decision-making by basing its decisions on
data. An enterprise solution integrates the various systems within an organization, allowing
decision-makers to access the data they require to inform their decisions. Broader data access can
improve an enterprise's problem-solving as well. Integrated systems provide individuals with a
broader view of the organization's performance, which can lead to a clearer understanding of its
strengths and areas of improvement. With this understanding, you can more easily identify
problems and use the data available to you to devise a solution.
Productivity and quality

Enterprise solutions can improve productivity throughout the organization in a couple of ways.
One is by simplifying how people within the organization access the information they require.
Instead of spending time locating relevant data, they know to look for what they seek in a central
database associated with the solution. Another way is through automation, a common feature
among enterprise solutions. Automating repeatable processes removes the necessity for human
operation, which allows for faster, more consistent completion of tasks. The automation factor
can also improve the quality of the goods or services an enterprise provides. It removes the
possibility of human error, such as in data input, helping to ensure that the data within the
organization is accurate and streamlined. This, in turn, can improve the quality of the insights
that analysts can draw from the data, leading to better-informed business decisions.

Customer retention

Customer retention refers to practices aimed at ensuring that customer decides to prolong their
consumer relationship with a company. Various factors can affect the customer retention rate,
including but not limited to the timeliness and accuracy of service and the quality of the goods
provided. The data centralization and automation features of many enterprise solutions can
improve an enterprise's capabilities in these respects. Moreover, it can use a dedicated CRM
solution to track the data necessary to understand its customers better and devise strategies that
may lead to stronger, longer-lasting customer relationships.

Revenue

The various advantages that enterprise solutions can provide all contribute to higher revenue for
the organization. For example, improved insight pulled from business data can guide an
organization's decision-making toward directions that lead to greater profitability, a business
intelligence solution can identify areas that may be limiting revenue potential and a CRM
solution can ensure that it maintains the relationships that reliably generate revenue for it.
Working together, these solutions can optimize the level of performance that an enterprise is
capable of achieving.
Information system for business operations

Information systems (IS) are crucial for businesses, acting as the backbone for operations and
decision-making. They encompass a wide range of interconnected components, including
hardware, software, data, and people, all working together to collect, process, and disseminate
information. These systems support various business functions, from automating routine tasks to
providing insights for strategic planning.

Key Aspects of Information Systems in Business:

 Data Collection and Management: IS collects data from various sources within and
outside the organization, such as customer information, financial records, and inventory
levels.

 Data Processing: Data is processed and analyzed to provide meaningful insights and
reports, enabling informed decision-making.

 Information Dissemination: The processed information is then disseminated to different

users within the organization, such as managers, employees, or customers, through
various channels like reports, dashboards, or online portals.

 Automation of Processes: IS automates repetitive tasks and streamlines business

processes, leading to increased efficiency and reduced operational costs.

 Decision Support: IS provides managers and employees with the information they need
to make informed decisions, whether operational or strategic.

 Communication and Collaboration: IS facilitates communication and collaboration

between employees, customers, and suppliers, improving overall business effectiveness.

 Types of IS: There are various types of information systems, such as transaction
processing systems (TPS), management information systems (MIS), and decision support
systems (DSS), each serving a specific purpose.
Benefits of Information Systems in Business

 Increased Efficiency: Automation and streamlined processes lead to faster and more
efficient operations.

 Reduced Costs: Automation of routine tasks and optimized resource allocation can
significantly reduce operational costs.

 Improved Decision-Making: Data-driven insights and reports enable managers to make

more informed decisions.

 Enhanced Customer Service: IS can be used to manage customer relationships,

personalize customer interactions, and provide timely support.

 Competitive Advantage: By leveraging IS to improve efficiency, reduce costs, and

enhance decision-making, businesses can gain a competitive advantage in the
marketplace.

Examples of Information Systems in Business

 Enterprise Resource Planning (ERP) Systems: Integrate various business functions,

such as finance, accounting, inventory management, and human resources.

 Customer Relationship Management (CRM) Systems: Manage interactions with

customers and improve customer satisfaction.

 Supply Chain Management (SCM) Systems: Optimize the flow of materials,

information, and finances within a supply chain.

 Manufacturing Information Systems: Manage production processes, track inventory,

and optimize resource allocation in manufacturing organizations.

 Financial Information Systems: Manage financial transactions, track revenue and

expenses, and generate financial reports.
Information System for Managerial Decision Support

Information systems, particularly decision support systems (DSS), are crucial for managerial
decision-making. DSSs provide tools and information to help managers analyze data, model
scenarios, and ultimately make better decisions. These systems can range from fully
computerized to human-powered, and they serve various levels of management within an
organization.

Key Aspects of Information Systems for Managerial Decision Support:

 Data Analysis: DSSs help managers analyze vast amounts of data to identify trends,
patterns, and exceptions that might otherwise be missed.

 Scenario Modeling: DSSs enable managers to simulate different scenarios, perform

"what-if" analyses, and assess the potential impact of various decisions.

 Information Presentation: DSSs provide information in a clear and concise format,

making it easier for managers to understand complex issues and make informed
decisions.

 Integration of Data: DSSs can integrate data from multiple sources, providing a holistic
view of the organization's operations and performance.

 Support for Unstructured and Semi-Structured Decisions: DSSs are particularly

valuable for decisions that are not easily programmed or automated, such as those
involving strategic planning or complex operational challenges.

Different Types of Information Systems for Decision Support

 Management Information Systems (MIS): MIS provides managers with routine reports
and information to support daily operations and tactical decision-making.

 Executive Information Systems (EIS): EIS are designed for senior executives,
providing them with a high-level view of the organization's performance and strategic
trends.
  Decision Support Systems (DSS): As mentioned above, DSSs are specifically designed
to support decision-making at various levels of the organization.

Benefits of Using Information Systems for Decision Support

 Improved Decision Quality: By providing access to relevant information and analytical

tools, DSSs can help managers make more informed and effective decisions.

 Increased Efficiency: DSSs can automate tasks, reduce manual effort, and save time,
allowing managers to focus on strategic decision-making.

 Enhanced Communication: DSSs can facilitate communication and collaboration

among managers, ensuring that everyone is on the same page.

 Better Problem Solving: DSSs can help managers identify and solve problems more
effectively by providing insights into underlying issues and potential solutions.

In essence, information systems, particularly DSSs, are essential tools for modern
managers. They provide the information, analytical power, and flexibility needed to navigate
complex challenges and make effective decisions that drive organizational success.

Information System for Strategic Advantage

Information systems play a crucial role in gaining a strategic advantage by enabling businesses to
improve efficiency, foster innovation, enhance customer service, and facilitate faster decision-
making. These systems, when strategically implemented, can be leveraged to achieve operational
excellence, create new products or services, and differentiate the company from competitors.

Here's a more detailed look at how information systems contribute to strategic advantage:

1. Improving Efficiency and Reducing Costs:

 By automating and streamlining business processes, information systems can

significantly improve efficiency and reduce operational costs.
  Examples include implementing enterprise resource planning (ERP) systems to integrate
various business functions, or using supply chain management (SCM) systems to
optimize inventory and logistics.

2. Enhancing Customer Service:

 Information systems can be used to gather and analyze customer data, allowing
businesses to personalize their offerings and improve customer relationships.

 This can involve implementing customer relationship management (CRM) systems or

using social media analytics to monitor customer sentiment and address issues
proactively.

3. Fostering Innovation:

 Information systems can provide access to valuable data and insights, which can be used
to identify new business opportunities and develop innovative products or services.

 This includes using data analytics to identify trends, conduct market research, and
develop new products or services.

4. Enabling Faster Decision-Making:

 Information systems can provide real-time data and insights, allowing managers to make
more informed decisions faster.

 This can involve using management information systems (MIS) or executive information
systems (EIS) to provide executives with a comprehensive view of the company's
performance and the competitive landscape.

5. Achieving Operational Excellence:

 Information systems can be used to optimize various business processes, such as supply
chain management, production scheduling, and logistics.

 This can involve implementing various technologies like radio frequency identification
(RFID) tags or using automation to improve efficiency and reduce costs.
6. Differentiating the Company from Competitors:

 By using information systems to create unique products or services, improve customer

service, or optimize operations, companies can differentiate themselves from their
competitors.

 Examples include using social media to build a strong brand identity, offering
personalized customer experiences, or leveraging data analytics to identify and exploit
market niches.