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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