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7/30/2019 Building E Business
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Operating Your E-Business
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2Thursday, J anuary 21,1:43:28 PM
Learning Objectives
Describe operational challenges for a startup
e-business
Define legal, office space, and human resourcesissues
Discuss electronic payment methods
Explain front-end and back-end e-businesssystems
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Startup and Operational
Challenges
Identifying and solving legal issues
Planning for and acquiring commercial officespace
Hiring employees
Selecting and managing electronic paymentmethods
Selecting e-business technologies andtechnology providers
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Legal Issues
Establish a relationship with an attorneyexperienced in startups
Helps to develop business plan
Establishes company valuation for investors
Provides leads to investors
Participates in negotiations
Reviews all legal documents Advises on copyright, trademark, employee
benefits, personnel policies
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6Thursday, J anuary 21,1:43:28 PM
Legal Issues (continued)
Copyright
Form of legal protection for original work
Takes effect the moment the work is created
Need copyright notice on Web site as a bestpractice
U.S. Copyright Office good source of information
on copyright law
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Legal Issues (continued)
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Legal Issues (continued)
Trademark and service mark
Distinctive symbol, word, or phrase used toidentify a business
Make it easy for consumers to identify source ofproducts and services
U.S. Patent and Trademark Office good source ofinformation on trademarks and service marks
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9Thursday, J anuary 21,1:43:28 PM
Legal Issues (continued)
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Legal Issues (continued)
Content liability
Exposure to potential liabilities based on Webcontent
Need appropriately worded disclaimer of liabilityat Web site
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11Thursday, J anuary 21,1:43:28 PM
Legal Issues (continued)
Customer information privacy
Customers may hesitate to provide information
Must have clear policy on how customer
information is handled, secured, and used
Consider voluntary programs such as TRUSTe
Non-profit organization
Advocates disclosure of information privacyprograms
Members post TRUSTe seal at Web site
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13Thursday, J anuary 21,1:43:28 PM
Legal Issues (continued)
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18Thursday, J anuary 21,1:43:28 PM
Hiring Employees (continued)
Leads on finding qualified and talentedemployees
Investors and advisors
Family and friends
Professional recruiters
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Hiring Employees (continued)
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Hiring Employees (continued)
U.S. Department of Labor and Salary.com
Good sources of area information
Salaries
Benefits
Employment statistics
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Hiring Employees (continued)
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Hiring Employees (continued)
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Electronic Payment Methods
Make selection based on type of products andservices offered and type of customer
Payment cards
Credit, debit, and charge cards
Require a merchant account to accept paymentcard receipts
Require access to a payment gateway to processpayments
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Electronic Payment Methods
(continued)
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Electronic Payment Methods
(continued)
Cost of accepting payment cards
Merchant account fees
Setup
Per transaction
Statement
Discount rate (percentage of each transaction)
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Electronic Payment Methods
(continued)
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Electronic Payment Methods
(continued)
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Electronic Payment Methods
(continued)
Must provide secure transmission of data
Use Secure Sockets Layer (SSL) protocol toencrypt transaction data
Relies on digital certificates for authentication
https://
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Electronic Payment Methods
(continued)
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Electronic Payment Methods
(continued)
Other electronic payment methods
Stored value cards, such as gift cards and smartcards
Electronic checks Electronic equivalent of paperchecks
Electronic cash (micropayments)
P2P payment systems
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Electronic Payment Methods
(continued)
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Electronic Payment Methods
(continued)
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Electronic Payment Methods
(continued)
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36Thursday, J anuary 21,1:43:28 PM
E-Business Technologies
Technology decisions
Processing sales and payment transactions
Monitoring inventory
Accounting and internal recordkeeping
Connecting to the Internet
Hosting a Web site
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E-Business Technologies
(continued)
Front-end systems
Customer interaction and control
Web site and related processes
Back-end systems
Not directly accessed by customers
Accounting and budgeting
Manufacturing, warehousing, distribution Order tracking and customer support
Marketing
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E-Business Technologies
(continued)
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E-Business Technologies
(continued)
Integration of front-end and back-end systems
Requires technologies to tie disparate systemstogether
Reduces costs by sharing the same transactiondata across systems
Issues to consider when integrating systems
Need for real-time or batch processing
System security
Compatibility
E B i T h l i
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E-Business Technologies
(continued)
E B i T h l i
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E-Business Technologies
(continued)
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E B i T h l i
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E-Business Technologies
(continued)
E B i T h l i
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E-Business Technologies
(continued)
E B i T h l i
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E-Business Technologies
(continued)
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Outsourcing Operations
Wide array of outsourced technology solutionsare available
Internet service providers
Web hosting companies
Application service providers
Fulfillment houses
Major advantage is reduced cost
Major disadvantage is loss of control
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Chapter Summary
Establish relationships with an attorney andaccountant or other professionals
Post appropriately worded liability disclaimer
and privacy policy at Web site
Create a facilities plan before securing newoffice space
First hires should be key managementpersonnel
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49Thursday, J anuary 21,1:43:28 PM
Chapter Summary
(continued) Electronic payment methods
Payment cards and stored value cards
Electronic checks and electronic cash
Micropayments and P2P payment systems
Merchant account and payment gateway
Necessary to accept payment cards
Risks include cardholder not present risk andchargeback risk
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Thank You