Electronic Commerce

1
Electronic Commerce

• Chapter 8

2
Chapter 8 Outline

• An Introduction to Electronic Commerce
• E-Commerce Applications
• Technology Infrastructure
• Electronic Payment Systems
• Threats to E-Commerce
• Strategies for Successful e-Commerce

3
An Introduction to Electronic Commerce
4
Introduction to Electronic Commerce

• Most common types of e-commerce
• Business-to-consumer (B2C) e-commerce
• Business-to-business (B2B) e-commerce
• Consumer-to-consumer (C2C) e-commerce

5
Multistage Model for E-commerce

• 1. Search and identification
• 2. Selection and negotiation
• 3. Purchasing products and services
  electronically
• 4. Product and service delivery
• 5. After-sales service

6
Multistage Model for E-commerce
7
Product and Service Delivery
8
E-Commerce Model
9
E-Commerce Challenges

• Changing distribution systems work processes
• Split-case distribution
• Integrating web-based order processing with
  traditional systems

10
The E-Commerce Supply Chain

• Supply chain management
• Demand planning
• Supply planning
• Demand fulfillment
• Increased revenues and decreased costs
• Improved customer satisfaction
• Inventory reduction across the supply chain

11
The E-Commerce Supply Chain
12
Supply Chain Management
13
Business-to-Business

• Allows manufacturers to buy at low price
  worldwide
• Enterprise can sell to a global market

14
Global E-Commerce

• Steps in localization
• recognizing and conforming to the nuances,
  subtleties, and tastes of local cultures
• supporting basic trade laws such as each
  countrys currency, payment preferences, taxes,
  and tariffs
• ensuring that technological capabilities match
  local connection speeds

15
Global E-Commerce

• Determine which global markets make the most
  sense for selling products or services on-line
• Decide whether Web content should be generated or
  updated centrally or locally

16
E-Commerce Applications
17
Retail and Wholesale

• Electronic retailing
• Cybermalls
• Wholesale e-commerce B2B

18
Manufacturing
19
Marketing

• Market segmentation
• Technology-enabled relationship management

20
Investment and Finance

• On-line stock trading
• On-line banking
• Electronic bill presentment

21
Investment and Finance
22
Investment and Finance
23
Technology Infrastructure
24
Technology Infrastructure
25
Hardware

• Storage capacity
• Software
• Volume of e-commerce transactions
• Website hosting

26
Web Server Software

• Security and identification
• Denial of service attack
• Web site tracking
• Web log file
• Web site development tools
• Retrieving and sending Web pages
• Web page construction software
• Static Web page
• Dynamic Web page

27
E-Commerce Software

• Catalog management
• Product configuration
• Shopping cart

28
E-Commerce Transaction Processing

• Automates transaction processes from order
  placement to reconciliation
• Web traffic data analysis

29
Electronic Shopping Cart
30
Network and Packet Switching

• All e-commerce depends on a type of network to
  securely transmit data
• Internet
• Extranet
• Value-added network (VAN)
• Virtual private network (VPN)
• All EC approaches rely on packet switching and
  use routers
• Cost, availability, reliability, security, and
  redundancy must be considered when choosing a
  network

31
Electronic Payment Systems
32
Electronic Payment Systems

• Digital certificates
• Certificate authority
• Secure sockets layer (SSL)
• Electronic cash
• Electronic wallets
• Smart, credit, charge, and debit cards

33
Threats to E-Commerce
34
Threats to E-Commerce

• E-commerce incidents
• Theft of intellectual property
• Patents on business processes
• Fraud
• Privacy Issues

35
Fraud

• On-line auction fraud
• Spam
• Pyramid schemes
• Investment fraud
• Stock scams

36
Invasion of Consumer Privacy

• On-line profiling
• Clickstream data
• Safe harbor principles

37
TRUSTe Seal
38
BBB On-line Privacy Seal
39
How to Protect Your Privacy While On-Line
40
Strategies for Successful E-Commerce
41
Developing an Effective Web Presence

• Visitors to a web site should be able to
• Obtain general information about the organization
• Obtain financial information for making an
  investment decision
• Learn the organizations position on social
  issues
• Learn about the products or services that the
  organization sells

42
Putting up a Web Site

• Web site hosting services
• Storefront brokers

43
Building Traffic to Your Web Site

• Domain names
• Meta tags
• Traffic data analysis

44
Maintaining and Improving Your Web Site

• Be alert to new trends
• Be prepared to take advantage of new
  opportunities
• Personalization
• Explicit
• Implicit

45
Summary

• E-commerce - enables consumers and companies to
  gain access to worldwide markets
• Electronic retailing (e-tailing) - the direct
  sale from business-to-consumer through electronic
  storefronts designed around an electronic catalog
  and shopping cart model
• E-commerce shoppers - must be on constant guard
  to protect their rights, security, and personal
  privacy

46
Principles and Learning Objectives

• E-commerce is a new way of conducting business,
  and as with any other new application of
  technology, it presents both opportunities for
  improvement and potential problems.
• Identify several advantages of e-commerce.
• Outline a multistage model that describes how
  e-commerce works.
• Identify some of the major challenges companies
  must overcome to succeed in e-commerce.
• Identify several e-commerce applications.

47
Principles and Learning Objectives

• E-commerce requires the careful planning and
  integration of a number of technology
  infrastructure components.
• Outline the key components of technology
  infrastructure that must be in place for
  e-commerce to succeed.
• Discuss the key features of the electronic
  payments systems needed to support e-commerce.

48
Principles and Learning Objectives

• Users of the new e-commerce technology must take
  safeguards to protect themselves.
• Identify the major issues that represent
  significant threats to the continued growth of
  e-commerce.
• Organizations must define and execute a strategy
  to be successful in e-commerce.
• Outline the key components of a successful
  e-commerce strategy

49
End of Chapter 8