Outline

• Overview of E-Business and E-Commerce

• Major EC Mechanisms

• Business-to-Consumer Applications

• Business-to-Business Applications

• Major Models of E-Business: From E-Government to C2C

• E-Commerce Support Services: Payment and Order Fulfillment

• Ethical and Legal Issues in E-Business

• Managerial Issues

• Problem – Leader & target for Compaq. Losses exceed $100 million.

• Solution – Rapid expansion with selling via online.

• Result – Leading systems provider in US; second worldwide. Fortune’s top 5 “Most Admired” companies since 1999. By-product – sell refurbished Dell computers.

• http://configure.la.dell.com/dellstore/config.aspx?c=mx&cs=mxdhs1&l=es&oc=LSHAOES&s=dhs

Overview of E-Business and E-Commerce

• Electronic Commerce: Describes the process of buying, selling, transferring, serving, or exchanging products, services, or information via computer networks, including the Internet.

Electronic Commerce (EC)

Click-&-mortar vs Brick-&-mortar organizations

• Brick-&-mortar: Purely physical organizations.

• Click-&-mortar: Those that conduct some e-commerce activities, yet their primary business is done in the physical world.

E-commerce in our company.

• The basic idea of EC is to automate as many business process as possible. EC activities support selling, buying, and providing relationships, as well as the internal and external transactions involved.

E-Commerce Business Model

• Online Advertisers, Marketers & Students.

– Every year new students join schools while others join the workforce.

• Company-sponsored Socially Oriented Sites

Powerstudents.com

TheirSpace.com

Application Programming Interface - Examples

A framework for E-commerce.

Good coordination and management practices to unify the applications, infrastructure, and support.

Benefits of E-Commerce

Limitations of E-Commerce

• As time passes, the limitations will lessen or be overcome. • Appropriate planning can minimize the negative impact of some of them

IS Major EC Mechanisms

E-Market Trends

• The e-market is a virtual marketplace in which sellers and buyers meet and conduct different types of transactions.

• Electronic Catalogs: Consist of a product data, directory and search capabilities, and presentation function. For merchants, the objectives is to advise and promote; for customer, to have a source of information.

Virtual Greats Profile

• E-Auctions: ‒ Forward Auctions: Auctions that sellers use as a

selling channel to many potential buyers. ‒ Reverse Auctions: One buyer wants to buy a product

or service placing a request for quote.

‒ E-Classifieds

E-Market Trends

stores business

Bartering & Negotiations

The New Age of Bartering

• The electronically supported exchange of goods or services without a monetary transaction.

Business-to-Consumer Applications

Electronic Storefronts

• Business-to-Customer Applications began when companies such as Amazon.com and Godiva.com started selling directly to customers using the Internet: Electronic Storefronts are an extension physical stores or new

business started by entrepreneurs who saw a niche on the web.

Electronic Malls are a collection of individual shops under one Internet address. The basic idea is to provide a one-stop shopping place that offers many products and services.

• Online Job Market: Is used by job seekers to reply online to employment ads, to place résumés on various sites, and to use recruiting firms.

• Travel Services: The Internet is an ideal place to plan, explore, and economically arrange almost any trip. Online travel services allow you to purchase airline tickets, reserve hotel rooms, and rent cars.

Real Estate Online

• People can view many properties on the screen, and sort and organize properties according to their preferences and decision criteria.

Business-to-Business (B2B) Applications

ChemConnect Case Study

ChemConnect

B2B Applications

• Sell-side marketplaces: own private e-marketplace or third-party site.

• Buy-side marketplace: e-procurement, group purchasing, desktop purchasing.

• Public exchanges: many sellers & many buyers.

– Vertical exchange: serves only one industry.

– Horizontal exchanges: useful for many industries that use the same products or services.

Major Models of E-Business: From E-Government to Consumer-to-Consumer (C2C)

E-Government to C2C

• Business-to-employees (B2E)– organizations disseminate information to employees over company intranet.

• Employee-to-employee (E2E) – employees communicate with each other to sell/buy products and services

• Among Strategic business units (SBU/SBU) – company owned dealerships buy goods & services from main company. Improves internal supply chain operations.

• E-Collaborative – digital technologies that enable collaboration, such as design, develop, manage, etc.

• E-Government – delivers information & services to citizens, business partners & suppliers.

E-Government to C2C

• C2C – buyer and seller are individuals.

– Auctions: most are conducted by intermediaries.

– Classified Ads : access to a wider audience.

– Personal Services : should be done carefully, fraud could be involved.

E-Commerce Support Services: Payment, & Order Fulfillment

E-commerce support services.

E-commerce support services.

• The previous figure portrays the major EC services, which include: – E-Infrastructure: Technology consultants, system developers, hosting,

security, wireless and networks.

– E-Process: Logistics and payment

– E-Markets: Sales, marketing, advertising, affiliate programs, etc.

– E-communities: this refers to the different audiences such as customers, suppliers, government, etc.

– E-Services: CRM, PRM and directory services.

– E-Content: this comes from content providers.

Market Research and Web Advertising

• Market research involves gathering information about economy, industry, products, brands, pricing, etc.

• Using internet makes it faster and more efficient. Gives access to a wider audience.

• Advertising tries to affect buyer-seller transactions by disseminating information.

• Internet introduced interactive marketing

Electronic Payment

• Cash cannot be used, because there is no face-to-face contact.

• Electronic Payment Systems:

– Electronic credit cards.

– Ellectronic bill payments

• Security is one of the major issues.

Security in Electronic Payments

• Five elements needed to make EC payments safe.

1. Authentication: assure the idantity of the parties.

2. Integrity: data and information transmitted are not altered or destroyed during transmission.

3. Nonrepudiation: mechants protection against customers unjustified denial of placing an order & customers protection against merchants unjustifed denial of payments made.

4. Privacy: identity to be secured.

5. Safety: it is safe to provide a credit card number on the Internet

1. When you buy, your credit card information and puchase amount are encrypted in your browser.

2. When this information arrives at the sellers site it is not opened and it is transfered to a clearing house.

3. At the clearing house the information is decrypted for verification and authorization.

• The next slide shows the complete process of how e-credit cards work

How e-credit cards work?

How e-credit cards work?

Security Protection

• E-wallets: it stores the financial information, so you don’t have to reenter it in every purchase.

• Virtual credit cards: shop with an ID number and password instead of a credit card.

Order Fulfillment Process • Assurance of customer payment: depending on payment

method, this consists of validating each payment.

• Check of in-stock availability: as soon as the order is received the seller needs to make an inquiry regarding stock availability.

• Package and Shipment arrangement: if the item os physical and it is available, packaging and shipment arrangements must be made.

• Insurance: sometimes contents of a shipment need to be insured.

The following slide shows all the activities involved in the order fulfillment process.

Order Fulfillment Logistics System

Ethical & Legal Issues in E-Business

Ethical Issues

• Privacy

• Web Tracking

– Cookies

– Spy Ware

• Loss of Jobs

– intermediation

Legal Issues

• E-Commerce

– Fraud

• Credit Card

• Advanced Fee-Fraud

• Buyer Protection

• Seller Protection

Tips for Sale Electronic Shopping

Managerial Issues

Managerial Issues

• E-Commerce failures – common. Solid business analyses a must.

• Failed initiatives within an organization. Levi’s

• Success stories & lessons learned should be shared.

• Managing resistance to change.

• Integration into business overall.

• Lack of qualified personnel & outsourcing.

• Alliances can be very helpful & productive.

• Choosing appropriate strategy. (lead, watch and wait, experiment)

Outline

• Overview of Mobile Computing and Commerce

• Mobile Applications in Financial Services

• Mobile Shopping, Advertising, and Content-Providing

• Mobile Enterprise and Interbusiness Applications

• Mobile Consumer Services and Entertainment

• Location-Based Services and Commerce

• Pervasive Computing, Context Awareness, and RFID

• Managerial Issues

• Food Lion is a supermarket chain, the competition level in this market is very fierce.

• In order to distinguish itself from competition, the company created Bloom, a new store concept that uses wireless technology.

• The objective is to enhance the shopping experience and help customers find products, get information and check out with greater ease.

• For example customers can pick up a personal scanner to scan and bag their items as they shop. Checkout then is just the process of paying.

• In addition, the personal scanners give customers a running total of the items they have selected while they shop.

Food Lion Case

Food Lion Case

• Problem Competition is fierce; profit margins low. Bloom needs appropriate technology to compete with Wal-Mart.

• Solution –Wireless technology – mobile check stands, scanners, handhelds, Wi-Fi, RFID.

• Results – Better customer service & speedier checkout; higher employee productivity; fewer employees overall.

Overview of Mobile Computing and Commerce: Attributes, Benefits, Drivers, and Basic Technology

Overview of Mobile Computing and Commerce

• The use of wires limited the use of computers and created a hardship for workers on the move.

• 1ST solution: make computers small – laptops

• 2nd solution: replace wires – wireless communication

• 3rd solution: combining 1 &2 – wireless mobile computing

Value Added Attributes of Mobile Computing

• Ubiquity – being available at any location at any given time.

• Convenience – Internet enabled; many available hot spots.

• Instant Connectivity – quick connections to Internet, intranets, other mobile devices & databases.

• Personalization – preparation of customized information for individual consumers.

• Localization of products & services – wireless device has GPS.

Drivers of Mobile Computing & M-Commerce

• Widespread availability of mobile devices

• No need for a PC

• Declining prices, increased functionalities

• Improvement of bandwidth

• Centrino chip

• Networks

Landscape of mobile computing and commerce

Mobile Applications in Financial Services

Mobile Banking & Stock Trading

• Services offered include:

– Bill payments & money transfers

– Balance inquiries & statements of account;

– Interest & exchange rates;

– Sale/purchase of stocks.

• Increasing % of banks offer mobile access – financial & account information.

Wireless Electronic Payment System

• Use of mobile phones as secure, self-contained purchasing tools.

• Micropayments: high transaction costs

• M-wallet: the mobile version of an e-wallet

Mobile Shopping, Advertising, and Content-Providing

Shopping from Wireless Devices

• Enables customers to:

– Perform quick searches, compare prices, use a shopping cart, order, pay and view the status of their order.

Targeted advertising

• Send user-specific ads, depending on their location and preferences.

• Getting paid to listen to ads.

• Mobile portal: channel optimized for mobility

• Voice portal: mainly used by airlines or to replace help desks

Mobile Enterprise and Interbusiness Applications

Mobile Enterprise Applications

• Supporting salespeople during customer visits – Medicines

• Supporting field employees during repairs – Wearable devices

• Supporting traveling of employees

• Supporting employees working within the organization – Inventory

• Supporting employees driving trucks

Examples

• Retailing.- Inventory

• Sales Force – Palm, BB, check order status

• Operations.- accelerate transactions, Home Depot

• Wearable Devices.- Screen, Camera, Keyboard

• Job Dispatch.- mobile employees, improbed response

• Other types of work.- farmers, national security, Insurance

• B2B.- improve supplier and customer relationships ERP

Mobile Consumer Services and Entertainment

Mobile Entertainment

• Mobile Games

• Mobile Gambling

• Hotel Services

• Mobile Social Networks

• Smart Cards

Location-Based Services and Commerce

Location Based Services

• The main idea is to provide announcements, recommendations, services or products to people considering their current location.

• Announcements: - for example when being nearby a Starbucks, the mobile sends you an alert and invites you to go there, and it may even offer you a discount.

• Services: you are able to know what is around you without consulting a directory. Like hospitals, emergency service, etc.

• Products: you can see which stores near you sell the products you are looking for.

Location Based Commerce

• Is based in 5 main concepts:

– Location: determining the position of a person or a thing, for example ( car, lowjack)

– Navigation: routes (Guia Roji)

– Tracking: monitoring the movement of a person or a thing (FedEx, UPS, monitor your pet)

– Mapping: digital maps

– Timing: precise time

Location Based Technologies

• Location-based technologies

– Technology that uses the location of a person for commerce purposes, for example a list of restaurants near our current location.

• Geographic Content

– Digital maps in which we can consult streets, specific addresses, etc.

• Location-specific Content

– Gives us the exact location of a place, it works with help of geographic devices.

• Position Determining Equipment (PDA)

– It is a device used to identify the geographic position of the mobile device in which it is contained.

• Mobile Positioning Centre (MPC)

– Is the server that interprets the information received from the PDA.

Location-Bases Applications

• Examples – Next bus

– Advertising • Billboards

• Phones

– Pets

– E-911

– Police • Crash notification

– Hold back?

Pervasive Computing, Context Awareness, and RFID

Pervasive Computing

• A world in which virtually every object has processing power with wireless or wired connections to a global network.

– Invisible Computing Everywhere: the processing power automatically helps the user perform a task.

– Contextual Computing and Context Awareness: capturing a broad range of contextual attributes to better understand what the consumer needs, and what products or services he or she might possibly be interested in.

How RFID works?

• RFID is a technology that uses radio waves to identify items.

• An RFID system consist of an RFID tag that includes an antenna and a chip with information about item, and an RFID reader that contains a radio transmitter and receiver.

• An RFID tag remains inactive until radio frequency energy from the radio transmitter hits its antenna, giving the chip enough power to emit a string of information that is read by the radio receiver.

• It is much faster but the margin of error of barcode usage is higher.

Managerial Issues

Managerial Issues

• Inhibitors and barriers of mobile computing.

• The future of WiMax.

• Ethical & legal issues.

• Implementation issues.

• Failures in mobile computing & m-commerce.

• Mobile device management plans are too often non-existent.