CCT 355: E-Business TechnologiesClass 5: Transaction Processing and E-Commerce

Administration• First assignment• Schedule changes in coming days• Presentations to start today – please check dates for future

presentations!• Change management simulation – did you get your account

info yet? (@utoronto.ca address)• Read through prep material on change management over next

couple of weeks – it’ll make the game a lot easier• Oct 25 – simulation day – groups of 4 (ideally similar to final

group project)

Future assignments…• Change management – group paper on learning process (so

document starting with your advance reading…)• Final group project – business analyst consulting proposal for a

real business/organization (more on BA role later.)• Identifying and proposing resolutions to org. needs• Doing so understanding limits of people, process, technology• Can integrate BMG book (to be discussed starting next week)

or Change Management Simulation• NOT A ONLINE MARKETING ASSIGNMENT (e.g., don’t just

build them a nice looking web page.)

Disruptive/Sustaining Technology• Some technology = iterative improvement on previous

processes (sustaining)• Others aim to disrupt previous processes – for better or worse

and at varying levels of success• Sustaining tech?• Good/bad disruption?

Dis/re-intermediation• Early mythology of e-commerce – making middlemen

redundant• Music as example – why do artists only make pennies on the

dollar (if that?)• Which intermediaries have largely fallen by the wayside?• Why do intermediaries still exist?

Business -> Consumer (B2C) electronic transactions• Examples?• Successes/Failures?

Does IT Matter in B2C?• Increasingly turnkey solutions – e.g., Etsy, Shopify, etc. allow

for easy creation of online store• Still some behind the mark on this – but solutions surprisingly

easy *technically*• Sheridan alumni example

Challenges in B2C e-commerce• Privacy and security • Hacking/phishing scams• Interface with RL – what goods/services make less sense in

B2C?• Taxation issues – is the Internet a tax-free zone? Should it be?• Regulatory compliance issues • International issues

Future directions: M-Commerce• Some countries already well advanced in m-commerce –

North American context woefully behind (why?)• Issues in m-commerce – people, process, technology, context• Increasingly solved, if sketchily (e.g., tack-on additions to cell

phones)

C2C• Surprisingly disruptive – one (of many) challenges to

newspapers, but also things like garage sales• Auction-based models can be very effective at securing low

price transactions and exerting consumer pressure on pricing

B2B systems• EDI systems as established (but complex, expensive and

proprietary)• Systems integration issues usually require intermediary agents

and strict compliance• Still common – e.g., Walmart and supply chain integration

involves automatic transaction processing as well • When set up right, automates many transactions in

background and links with other systems

Mixed Systems: eg., Stock Brokerages (B2B -> C)• Stock market historically quite paper- and people-based (still

iconic representation of trading floor – doesn’t really exist anymore in most markets)

• Discount brokers – open exchanges to consumer, mitigates need for middlemen (broker

• Extends nature of trading (e.g., forex, international trades, automation (auto orders), hours of trading

• Benefits/drawbacks to capital as system?

Ex: Netfile as G2B2C• Ever opened a .tax file?• CRA integration issues with filing software providers • CRA and larger employers• Why this works

Ex: Group Buying (B2C2B?)• TeamBuy, GroupOn, WagJag, DealFind – etc. – group buying on

special deals arranged by service• Potential for use elsewhere – e.g., cooperative model