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Principles of Information Systems, Sixth Edition
Introduction to Electronic Commerce
• Business-to-consumer (B2C) e-commerce• Business-to-business (B2B) e-commerce• Consumer-to-consumer (C2C) e-commerce
Principles of Information Systems, Sixth Edition
Multistage Model for E-commerce
• Search and identification
• Selection and negotiation
• Purchasing products and services electronically
• Product and service delivery
• After-sales service
Principles of Information Systems, Sixth Edition
E-Commerce Challenges
• Change distribution systems & work processes• Split-case distribution• Integrate web-based order processing with
traditional systems
Principles of Information Systems, Sixth Edition
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
Principles of Information Systems, Sixth Edition
Business-to-Business
• Allows manufacturers to buy at low price worldwide
• Enterprise can sell to a global market
Principles of Information Systems, Sixth Edition
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
country’s currency, payment preferences, taxes, and tariffs
– ensuring that technological capabilities match local connection speeds
Principles of Information Systems, Sixth Edition
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
Principles of Information Systems, Sixth Edition
Retail and Wholesale
• Electronic retailing• Cybermalls• Wholesale e-commerce: B2B
Principles of Information Systems, Sixth Edition
Marketing
• Market segmentation
• Technology-enabled relationship management
Principles of Information Systems, Sixth Edition
Investment and Finance
• On-line stock trading
• On-line banking– Electronic bill presentment
Principles of Information Systems, Sixth Edition
Hardware
• Storage capacity– Software– Volume of e-commerce transactions
• Website hosting
Principles of Information Systems, Sixth Edition
Web Server Software
• Security and identification– Denial of service attack
• Web site tracking– Web log file
Principles of Information Systems, Sixth Edition
Web Server Software
• Web site development tools• Retrieving and sending Web pages• Web page construction software
– Static Web page– Dynamic Web page
Principles of Information Systems, Sixth Edition
E-Commerce Software
• Catalog management• Product configuration• Shopping cart
Principles of Information Systems, Sixth Edition
E-Commerce Transaction Processing
• Automates transaction processes from order placement to reconciliation
• Web traffic data analysis
Principles of Information Systems, Sixth Edition
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 approaches rely on packet switching and use routers
• Cost, availability, reliability, security, and redundancy must be considered when choosing a network
Principles of Information Systems, Sixth Edition
Electronic Payment Systems
• Digital certificate• Certificate authority• Secure sockets layer (SSL)• Electronic cash• Electronic wallets• Smart, credit, charge, and debit cards
Principles of Information Systems, Sixth Edition
Threats to E-Commerce
• E-commerce incidents
• Theft of intellectual property– Patents on business processes
Principles of Information Systems, Sixth Edition
Fraud
• On-line auction fraud
• Spam
• Pyramid schemes
• Investment fraud
• Stock scams
Principles of Information Systems, Sixth Edition
Invasion of Consumer Privacy
• On-line profiling• Clickstream data• Safe harbor principles
Principles of Information Systems, Sixth Edition
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 organization’s position on social
issues• Learn about the products or services that the
organization sells
Principles of Information Systems, Sixth Edition
Putting up a Web Site
• Web site hosting services• Storefront brokers
Principles of Information Systems, Sixth Edition
Building Traffic to Your Web Site
• Domain names• Meta tags• Traffic data analysis
Principles of Information Systems, Sixth Edition
Maintaining and Improving Your Web Site
• Be alert to new trends • Be prepared to take advantage of new
opportunities• Personalization
– Explicit– Implicit
Principles of Information Systems, Sixth Edition
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