E-commerce

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Web CommerceRev 7/20/07 rdm

*ObjectivesDefine e-commerce and understand its role as a transaction processing systemDefine the three types of e-commerce and mobile commerce, listing the benefits and challenges associated with eachDiscuss several examples of how e-commerce and mobile commerce are being used to provide servicesList the components of an e-commerce system and explain how they function together to provide e-commerce services

*Types of E-commerceBusiness-to-consumer e-commerce (B2C)Connects individual consumers with sellers Business-to-business e-commerce (B2B)Supports business transactions across private networks, the Internet, and the WebConsumer-to-consumer e-commerce (C2C)Connects individual sellers with people shopping for used items

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*E-commerce from the Sellers PerspectiveSellers business practicesMarket research to identify customer needs and behavior (Omniture)Manufacturing products or supplying services that meet customer needsMarketing and advertising to make customers aware of available products and services

*E-commerce from the Sellers Perspective (Continued)Sellers business practicesProviding a method for acquiring paymentsMaking arrangements for delivery of the productProviding after-sales support

*M-commerce TechnologyMobile commerce (m-commerce)E-commerce that takes place over wireless mobile devices Technologies and standardsWireless Application Protocol (WAP)Wireless Markup Language (WML)Bluetooth

*Benefits and Challenges of E-commerceBuyers enjoy the convenience of shopping from their desktopB2C e-commerce Levels the playing field between large and small businessesChallengesEstablished businesses must alter systems and business practices Social concerns

*E-Commerce ApplicationsE-tailing provides customers with Product information The ability to comparison shop E-tailing optionsSet up an electronic storefrontLease space in a cybermall

*Online Clearing Houses, Web Auctions, and Marketplaces Provide a platform for businesses and individuals to sell their products and belongingsOnline clearinghousesManufacturers can liquidate stock Consumers can find a good deal

*Online Clearing Houses, Web Auctions, and Marketplaces (Continued) Most popular auction/marketplaceeBay.comAuction housesUsually only accept limited liability for problems that buyers or sellers may experience

*B2B Global Supply Managementand Electronic ExchangesGlobal supply management (GSM) Businesses can find the best deals on the global market Electronic exchange Provides convenient centralized platform for B2B e-commerceNormally industry specificPromotes cooperation between competing companies

*MarketingWeb is used forUnsolicited advertisingAccess to product information through business Web sitesMarket research

*M-commerce ApplicationsM-commerce between Cell Phone and WebApplications accessible with mobile Web browserM-commerce through SMS Text MessagingTexting can be used to order merchandiseMobile spam over SMS texting is raising concerns in the United KingdomM-commerce through Short-Range Wireless Data CommunicationsSmart phones with Bluetooth technology

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*E-Commerce ImplementationImplementing e-commerce Requires expertise May require large investmentE-commerce host Business that takes responsibility for setting up and maintaining an e-commerce system

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*InfrastructureE-commerceRequires significant infrastructure changesChanges may be required inPersonnel, manufacturing processes, storage, shipping, information systems, etc.Organizations expanding to the Web All areas of business are affectedManufacturing, finance, sales, customer service

*Hardware and NetworkingUnderestimating the amount of Web traffic Leads to network stalls and long wait times Typical e-commerce Web siteEmploys one or more server computers and a high-speed Internet connectionOutsourcing to a Web hosting companyCan operate 24 hours a day, 7 days a week

*SoftwareWeb Server SoftwareResponds to requests for Web pagesWeb Server Utility ProgramsProvide statistical information about server usage and Web site traffic patterns (i.e. Omniture)E-commerce SoftwareSupports e-commerce activitiesIncludes catalog management, electronic shopping cart, and payment software

*Software (Continued)Web Site Design ToolsWhat see is what you-get (WYSIWYG) applications or wizardsGraphics ApplicationsDesign and create graphic elements of Web sitesWeb Site Development ToolsApplication programming interfaces (APIs) Allow software engineers to develop Web-driven programs

* Software (Continued)Web servicesPrograms that automate tasks by communicating with each other over the WebSystems developers can provide tools for automating trivial or repetitive tasksImportant in transaction processing

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*Building TrafficThe 3Cs ApproachContent, community, and commerceKeywords and Search EnginesChoose name and product names that best describe business purpose and featuresSelect descriptive domain namesBusiness-related keywords can be listed in the HTML meta tag

*Building Traffic (Continued)PartnershipsOnline e-tailers often form partnerships and advertise each others Web sitesMarketingOnline advertising methods include banner ads, pop-up ads, and e-mailOffline advertising methods include magazines, newspapers, radio, and television

*Electronic Payment SystemsElectronic cash (e-cash or digital cash) Provides a private and secure method of transferring funds PayPalBest-known e-cash provider E-cash benefitsPrivacy - hides account information from vendorsConvenient if seller cannot process a credit card

*Electronic Payment Systems (Continued)Electronic wallet, or e-walletEncrypts and stores credit-card information, e-cash information, etc., securely on your computerSmartcardsCredit cards with embedded microchips

*International MarketsInternet users of all nationalities will have access to your products First consideration of a global e-commerce strategy Visitors of all nationalities and cultures should feel comfortable while viewing your Web contentCostly approachCreate multiple versions of your Web site, each in a different language

*E-commerce Security IssuesDigital certificate A type of electronic business cardAttached to Internet transaction dataVerifies the sender of the dataProvided by certification authorities Encryption Uses high-level mathematical functions and computer algorithms to encode data

*E-commerce Security Issues (Continued)Digital certificates combined with Secure Sockets Layer (SSL) technologyAllow for encrypted communications to occurSpoofingUsed to impersonate others on the Internet

*E-commerce Security Issues (Continued)Denial of Service AttacksUse many computers to request Web pages from the same Web server, at the same timeZombie computersComputers that are either hacked into or under the influence of a virus or worm

*Business Resumption PlanningTakes into accountEvery conceivable disaster that could negatively impact the systemGoal To protect data and keep key systems operational until order is resumed

*Whats New in E-Commerce?Phishing Threatens the Future of E-commerce Phishing scams involve hackers that use e-mail and Web sites to impersonate an authentic business in an effort to get unsuspecting customers to type in personal and private information.

*Whats New in E-Commerce?The Rise of the Mobile Web Web access can be added to most cell phone services for only a few dollars per month.mobile and .phoneiPhone

*Whats New in E-Commerce?Mobile Commerce Comes of Age Most cell phones include a menu area for shoppingVerizons Get It NowRFID-reading Cell PhonesRoyal Philips Electronics researchers are working on RFID-reader technology for cell phones.

*SummaryE-commerce Systems that support electronically executed transactions Transaction processing system (TPS)Supports and records transactionsThree main types of e-commerce Business-to-consumer (B2C)Business-to-business (B2B)Consumer-to-consumer (C2C)Mobile commerce, or m-commerceTakes place over wireless mobile devices

*Summary (Continued)Retail Web sitesAllow consumers to comparison shop E-commerce Makes market research easier and less intrusiveRequires investment in networking, hardware, and a wide variety of softwareRequires changes in infrastructureHardware and networking services for e-commerce Must be robust and trustworthy

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