Transcript Chapter 1
Chapter 9
e-Commerce Systems
McGraw-Hill/Irwin
Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
Learning Objectives
Identify the major categories and trends of ecommerce applications.
Identify the essential processes of an ecommerce system, and give examples of how
it is implemented in e-commerce applications.
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Learning Objectives
Identify and give examples of several key
factors and Web store requirements needed to
succeed in e-commerce.
Identify and explain the business value of
several types of e-commerce marketplaces.
Discuss the benefits and trade0ffs of several ecommerce clicks-and-bricks alternatives.
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Section 1
E-Commerce Fundamentals
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I. Introduction to e-Commerce
Electronic Commerce – the entire online
process of developing, marketing, selling,
delivering, servicing, and paying for
products and services transacted on
networked global marketplaces; more than
just buying and selling online
e-Commerce – the online exchange of
value; more than just buying and selling on
the Internet
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II. The Scope of e-Commerce
Includes marketing, discovery, transaction
processing, product and customer service
process, intranet and extranet access, and
customer collaboration
e-Commerce Technologies – involves most
information and Internet technologies
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II. The Scope of e-Commerce
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II. The Scope of e-Commerce
Categories of e-Commerce
Business-To-Consumer (B2C) e-Commerce – still
small when compared with all online commerce
Consumer-To-Consumer (C2C) e-Commerce – online
auctions, online advertising of personal products
and services
Business-To-Business e-Commerce – most of eCommerce is here
Business-To-Government (B2G) e-Commerce
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Forrester: Web 2.0 Has a Bright Future
What is Web 2.0?
What is Web 2.0 not?
What does Web 2.0 provide?
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III. Essential e-Commerce Processes
Access Control and Security – secure access
between parties to assure trust
Profiling and Personalizing – processes that
gather data on you and your behavior to
provide personalized service; this may raise
ethical issues
Search Management – effective and efficient
search processes are required for a good Web
site; there are more than 30 different search
engines on the Internet
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III. Essential e-Commerce Processes
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III. Essential e-Commerce Processes
Content and Catalog Management
helps e-commerce firms develop, generate, deliver,
and archive text and multimedia data
works with profiling tools
may include product configuration to support
customer self-service and mass customization
Workflow Management – ensure proper
transactions, decisions, and work activities are
performed, and documents distributed
correctly
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III. Essential e-Commerce Processes
Event Notification – monitor all e-commerce
processes and record all relevant events; most
e-commerce applications are event-driven and
respond to things that happen (events)
Collaboration and Trading – a major category
of e-commerce; processes consist of
collaboration and trading services needed by
various stakeholders
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e-Commerce Tools to Close the Deal
What is “an abandoned cart”?
Why might a customer fail to complete a
purchase?
What tools encourage a customer to complete
the transaction?
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Innvo Labs: Automated e-Commerce
Processes
What was the weakness in the original
Website?
How did the new Website improve that?
What other benefits did the new Website
provide?
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IV. Electronic Payment Processes
Very complex due to the anonymous nature of
electronic transactions
Web Payment Processes – most rely on credit
card payment processes
Electronic Funds Transfer (EFT) – a variety of
information technologies to capture and
process money/credit transfers between
banks, businesses, and customers
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IV. Electronic Payment Processes
Secure Electronic Payments – measures taken
to ensure security of information in electronic
payments
Encrypt data between customer and merchant
Encrypt data between customer and firm
authorizing credit cards
Take sensitive information offline
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IV. Electronic Payment Processes
A Secure Electronic Payment System
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Section 2
e-Commerce Applications and Issues
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I. Introduction
e-commerce has changed how firms do
business and is now defining how firms do
business
e-Commerce Trends
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II. Business-To-Consumer (B2C) e-Commerce
Attract potential customers, transact goods
and services, build customer loyalty
e-Commerce Success Factors
Selection and Value – attractive products, competitive
prices
Performance and Service – easy navigation and
purchasing, prompt shipping and delivery
Look and Feel – attractive Website, multimedia catalog
Advertising and Incentives – targeted Webpage
advertising, email promotions, discounts, special offers
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II. Business-To-Consumer (B2C) e-Commerce
Personal Attention – personalized Web pages
and product recommendations, email notices,
interactive support
Community Relationships – virtual communities
and links to related Web sites
Security and Reliability – security of customer
information and transactions, trustworthy
product information, reliable order fulfillment
Great Customer Communications – easy-to-find
contact information, online order status,
product support
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II. Business-To-Consumer (B2C) e-Commerce
Traditional Vs. Web Market
Communications
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Amazon.com: Partnering and Leveraging
Infrastructure
What service does Amazon provide
through Facebook?
Why might this be a popular service?
What security issues could be a problem
here?
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Stork Craft Manufacturing Helps Wal-Mart
Canada
What industry is Stork Craft in?
What partnership did they enter?
How do they market their products?
What benefits did this give them?
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III. Web Store Requirements
Most B2C e-commerce ventures are retail
businesses on the Web; primary focus is to
develop, operate, and manage the Website to
attract and maintain customers for repeat
sales
Getting Customers to Find You – customers must
find you on the Web
Search Engine Optimization (SEO) – focus
on improving the number/quality of visitors
to a Web site
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III. Web Store Requirements
Serving Your Customers – a Web site should
help serve customers personally and
efficiently so they become loyal customers
Web Cookie File – a file stored on the
customer’s computer with details about their
visit to your Web site
Managing a Web Store – a Web store must
be managed as both a Web site and a retail
store
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Luxury Goes Digital: Fashion House
Embraces Online Shopping
What was the historical issue of luxury
items?
What was the Net-a-Porter solution?
What issue was lost online and how did
they address this?
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IV. Business-To-Business (B2B) e-Commerce
The wholesale/supply side of e-Commerce
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Avnet Tears Up the B2B e-Commerce
Playbook
What business is Avnet in?
What was the problem they faced?
What was the solution?
How has that solution worked out?
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V. e-Commerce Marketplaces
One-to-Many – sell-side marketplace – one
major supplier dictates products and prices
Many-to-One – buy-side marketplace –
many suppliers attempt to sell to one buyer
Some-to-Many – distribution marketplace –
many suppliers combine catalogs to attract
a larger audience of buyers
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V. e-Commerce Marketplaces
Many-to-Some – procurement marketplace
– buyers combine purchasing power to gain
lower prices from suppliers
Many-to-Many – auction marketplace –
used by many buyers and sellers
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V. e-Commerce Marketplaces
A Sample B2B e-Commerce Web Portal
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SpecEx.com: B2B Trading of Wireless
Spectrum
What business is Spectrum Bridge in?
How do they make money in this
industry?
What is the problem with this business
and how are they trying to get around
that problem?
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VI. Clicks and Bricks in e-Commerce
Should virtual electronic business be combined
with physical operations or kept separate?
e-Commerce Integration – the Internet is just
another channel that gets plugged onto the
business architecture
Other Clicks and Bricks Strategies – partial
integration of e-commerce into the physical
business operations, or complete separation of the
two
e-Commerce Channel Choices – a marketing/sales
channel created to conduct/manage e-commerce
activities
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VI. Clicks and Bricks in e-Commerce
An Integrated Vs. Separate e-Commerce
Business
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IT Lessons from the Demise of Borders
What are the lessons to be learned from
the demise of Borders?
Discuss each lesson and what could have
been done differently.
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REI: Scaling e-Commerce Mountain
What did REI do with their Website?
Why?
Did it work? If so, how well?
What was the tricky part of making it all
work?
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