Routine Items(BL)- Low profit impact and Low Supply risk Leverage Items(BR)- High Profit impact and Low Supply risk Bottleneck Items(TL)- Low Profit impact and High Supply risk Strategic Items(TR)- High Profit impact and High Supply risk

X-axis: Profit Impact

Y-axis: Supply Risk

Definition of e-procurement

and

Advantages of using it

Purchase of Supplies and Services over the internet

Electronic procurement Advantage

• Automates, Streamlines, and Customizes a company’s operating resource purchasing process.

Hub and spoke approach: Closed Trading Environment

1. Buyer – centric: The buy organization is at the hub, connecting suppliers at the spokes

2. Seller – centric: The supplier is at the center, with buying organizations connected at the spokes

3. e-Marketplace: A third party is at the hub, with buying and selling organizations trading with each other

Open Trading Environment

1. Allows buyers/suppliers to establish systems that meet their requirements, w/o imposing them on their trading partners

2. XML/EDI

3. OBI – Open Buying on the Internet

1. Requisition Management

   1. Request can be approved by anyone in company, helps speed along request systems

   2. Allows orders to flow

2. Transaction Management

   1. Helps transfer funds over the internet easier and in larger amounts

   2. Transfers order over to supplier, using various types of connections

3. Connectivity Management

   1. How the e-procurement system is connected to other systems within a company

4. Content Management

   1. Up-to-date Data

   2. Technical Functionality is working

Electronic representations of information about products and services of an organization

• Advantages

  • Greater flexibility, personalize content, standard interface, reduce cost of coordination, data gathering analysis.

• Disadvantages

  • Cost of system integration, distributed order and delivery volumes by individual employees.

Types of e-catalogs

1. Supplier managed

2. Buyer managed

3. Electronic marketplace managed catalog

Definition of a network/ network org

Network- everyone has their own unique structure but work together for a common goal

1. Operational Network

   1. Routine operational work

   2. Ex. Walmart and Procter & Gamble

2. Collaborative Networks

   1. Companies that interact with each other in a network that can take a piece of the market share

   2. Ex. Yahoo joining Microsoft to take a bit of the market share from Google

3.  Innovative Networks

   1. Companies combining researching and development (R&D). Reducing risk involving R&D

   2. Ex. Intel and Nokia creating 3-d interface

4. Interest Group networks

   1. Company’s competitors that form a network that have an interest they want to support or work against/ for policy.

   2. Ex. Microsoft, Google, Apple, all teaming up to reduce spam.

1. Stable or Dynamic

   1. Stable – companies that are not easily broken

   2. Dynamic – flexible and easily broken

2. Thick or Thin (Work activities with communication)

   1. Thick – Communication about work/ extending employees to outside of work functions

   2. Thin – Little work communication outside of work

3. Tightly or Loosely coupled networks (Processes)

   1. Tightly coupled – Processes at one company effect processes at another company in the network

   2. Loosely coupled – None of the processes are effected or influenced by other companies within the network

1. Technology: Middleware, protocols, security

2. Syntax: Structure or language of messages exchanged

3. Semantics: Meaning of terms

4. Pragmatics: Agreements on practices triggered by specific messages

Steady flow of material through a network

Arranging activities in a particular order

Pushed Model – Based off of forecasting what customers will buy

• Forecasting can be a loss if not done properly (over/under forecasting)

Pull Model – Based off of customers’ orders

• Inventory may take longer for customers

Security

• Policies, Procedures, and Technical Measures

• Guarantee a proper functioning of Information Systems

• Security requires a combination of technical, organizational and legal measures

• Making sure you have enough measurements available, optimal level of quality for service

• Making sure enough resources are available to ensure a high level of quality for your server.

• Availability:

• Accessibility:

•  Conformance to Standards:

• Integrity:

• Performance(2): Throughput and Latency

• Reliability:

• Scalability-

• Security:

• Transactionality:

A contract between a service provider to a customer, in measurable terms, what services they are providing and delivering. Mutual understanding and expectations.

• Purpose

• Parties

• Validity Period

• One important function that an SLA should address is the Quality of Service (QoS).

1. Man in the Middle Attack

   1. Someone who changes information at the time between when it travels from client to server

   2. Altering the information/ message and no one knows the difference

2. Spoofing

   1. Creating fake websites that look similar to original and stealing information

3. Hacking

   1. Unauthorized access into a server

4. Denial of Service Attack

   1. Group of individuals will create software that accesses over the number of throughput and crash the server

1. Authentication: Ensuring user is who they say they are

2. Authorization: Having a secure enough password/username

3. Integrity: Honest and trustworthy

4. Confidentiality: Ensures information is properly secured

5. Availability: Making sure server is available

6. Auditability: Information is saved on the server for audit purposes

7. Non-repudiation: Read receipts, making sure communication was delivered and read

8. Certification: making sure you have security certificates to prove encrypted data

Technology that provides the foundation to implement e-Business security

• Asymmetric encryption

• System of digital certificates that verify and authenticate the validity of parties involved in a transaction

• Public and Private Keys

  • Public key for creating and transforming data

  • Private key for verifying a digital signature or returning the message

Digital certificates and signatures

Helps secure and safe communication

Files that identify user or organization that owns certificate

Establishes a relationship with public key and the person (or company) that owns the private key

Signatures guarantee that the enterprise/ person represented in the digital certificate sent the message