Electronic Commerce Systems
I. LECTURE OVERVIEW
Foundation Concepts: Electronic Commerce systems introduce the basic process components of e-commerce systems, and discuss important trends, applications, and issue in e-commerce. Electronic Commerce: Electronic commerce encompasses the entire online process of developing, marketing, selling, delivering, servicing, and paying for products and services. The Internet and related technologies and e-commerce websites on the World Wide Web and corporate intranets and extranets serve as the business and technology platform for e-commerce marketplaces for consumers and businesses in the basic categories of business-to-consumer (B2C), (C2C) e-commerce. The essential processes that should be implemented in all e-commerce applications – across control and security, personalizing and profiling, search management, content management, catalog management, payment systems, workflow management, event notification, and collaboration and trading – are summarized in Figure 7.5 e-Commerce Issues: Many e-business enterprises are moving toward offering full-service B2C and B2B e-commerce portals supported by integrated customer-focused processes and internetworked supply chains as illustrated in Figure 7.11. IN addition, companies must evaluate a variety of e-commerce sector choices as outlined in Figure 7.12, and integration or separation alternatives and benefit trades-offs when choosing a clicks and bricks strategy and e-commerce channel, as summarized in Figure 7.21, 7.22, and 7.23. B2C e-Commerce: Businesses typically sell products and services to consumers at e-commerce websites that provide attractive Web pages, multimedia catalogs, interactive order processing, secure electronic payment systems, and online customer support. However, successful e-tailers build customer satisfaction and loyalty by optimising factors outlined in Figure 7.14, such as selection and value, performance and service efficiency, the look and feel of the site, advertising and incentives to purchase, personal attention, community relationships, and security and reliability. In addition, a Web store has several key business requirements, including building and marketing a Web business, serving and support customers, and managing a Web store, as summarized in Figure 7.16. B2B e-Commerce: Business-to-business applications of e-commerce involve electronic catalog, exchange, and auction marketplaces that use Internet, intranet, and extranet websites and portals to unite buyers and sellers, as summarized in Figure 7.18 and illustrated in Figure 7.19. Many B2B e-commerce portals are developed and operated for a variety of industries by third party market-maker companies called infomediaries, which may represent consortiums of major corporations.
II. LEARNING OBJECTIVES
· · · · · Identify the major categories and trends of e-commerce applications. Identify the essential processes of an e-commerce system, and give examples of how they are implemented in e-commerce applications. Identify and give examples of 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 trade-offs of several e-commerce clicks and bricks alternatives.
III: LECTURE NOTES Section I: Electronic Commerce Fundamentals
Online customer support · Business-to-Business (B2B) e-Commerce: This category of electronic commerce involves both electronic business marketplaces and direct market links between businesses. in Section IX). · Electronic personal advertising of products or services to buy or sell by consumers at electronic newspaper sites. · Consumer-to-Consumer (C2C) e-Commerce: Successes of online auctions like e-Bay. discovery. The Internet. and other computer networks. selling. payment. marketing. intranets. and other business partners. or personal websites is an important form of C2C e-commerce. This allows companies to engage in three basic categories of electronic commerce applications: · Business-to-Consumer (B2C) e-Commerce In this form of electronic commerce. Interactive order processing 3. 2. Analyzing Yahoo! Inc. Electronic commerce can include: · Interactive marketing. Electronic data interchange (EDI) via the Internet or extranets for computer-to-computer exchange of e-commerce documents with their larger business customers and suppliers. suppliers. and product and customer service processes. Intranets. We can learn a lot about the challenges and opportunities of retail electronic commerce from this case. Companies may offer: 1. B2B e-commerce portals that provide auction and exchange markets for businesses. Electronic commerce systems rely on the resources of the Internet. extranets. 3. Instead. servicing. · Online consumer or business auctions are an important e-commerce alternative for B2C or B2B ecommerce. global global marketplaces of customers. delivering.
Electronic Commerce Technologies: [Figure 7. Secure electronic payment systems 4. and customer support processes at e-commerce sites on the World Wide Web · Extranet access of inventory databases by customers and suppliers · Intranet access of customer relationship management systems by sales and customer service reps · Customer collaboration in product development via Internet newsgroups and e-mail exchanges. Take a few minutes to read it. businesses must develop attractive electronic marketplaces to entice and sell products and services to customers. and we will discuss it (See Yahoo! Inc. 2. Companies may offer: 1. it encompasses the entire online process of developing. consumer e-commerce portals. Anatoly Sachenko
INTRODUCTION TO e-COMMERCE Electronic commerce is more than just buying and selling products online. ordering. e-commerce websites that provide virtual storefronts and multimedia catalogs. transaction processing. THE SCOPE OF e-COMMERCE Companies involved in e-commerce as either buyers or sellers rely on Internet-based technologies and e-commerce applications and services to accomplish marketing.3]
. and extranets provide vital electronic commerce links between the components of a business and its customers. allow consumers (and businesses) to buy and sell with each other in an auction process at an auction website.Prof. with the support of a worldwide network of business partners. and paying for products and services purchased by internetworked. Secure Internet or extranet e-commerce websites for their business customers and suppliers.
Information Push Navigation/Search
Customers Profiling/ Web Usage and Analysis Advertising Merchant Server • Catalog • Information • Publication Authoring/ Application Development Tools
• Online Community
Legacy/We Website b Management Middleware Content Management Data Warehousing/ Decision Support System Customer Account Database
. Anatoly Sachenko
Internal Remote Employees Employees -Multimedia Database Communications Server Groupware/Messaging Document Management Webtop/Office "Productivity
. ^ ' 1
Supply Chain and Financial Systems
Technologies that are necessary for electronic commerce include: · Information technologies · Telecommunications technologies · Internet technologies
e-commerce content frequently takes the form of multimedia catalogs of product information.
Profiling and Personalizing Profile Management Personalization
Catalog Management Pricing Calculation Product Configuration
Generation Event Notification
Search Management Content-Based Search Parametric-Based Search Role.and Rule-Based Search
Payment Shopping Cart Payment Method Support . and build electronic profiles of your characteristics and preferences. Event notification . website behavior tracking software. Generating and managing catalog content is a major subset of content
. mid Components (Cambridge.
The nine2e0s7sential e-commerce processes required for the successful operation of management of e-commerce activities consist of: . cookie files.
Access Control and Security Access Control Authentication Security Measures
Content Management Dynamic Content Generation Data Repository Workflow Management Buying Process Automation Document Management Rule. E-Enterprise: Business Models. Content and Catalog Management: Content management software helps e-commerce companies develop. and enforcing security features. Profiling and personalizing . Search management . Workflow management . Anatoly Sachenko
ESSENTIAL e-COMMERCE PROCESSES: [Figure 7. Access control and security . Content management . deliver.5]
processes. UK: Cambridge University Press. and multimedia information at e-commerce websites. and user feedback. authorizing access.and Role-Based Content Routing Collaboration and Trading Mediation Negotiation Bidding/Auctioning Collaborative Buying ■ Online Community . User profiles are developed using profiling tools such as user registration. generate. Catalog management . Search Management: Efficient and effective search processes provide a top e-commerce website capability that helps customers find the specific product or service they want to evaluate or buy. Collaboration and trading Access Control and Security: e-commerce processes must establish mutual trust and secure access between the parties in an e-commerce transaction by authenticating users. Payment . and archive text data. update. Architecture. Profiling and Personalization: Profiling processes gather data on an individual and their website behavior and choices.Paymen t Verification
Event-Driven Transaction Messaging
Message to e-Mail Message Boards Newsgroups
Source: Adapted from Faisal Hoque.Prof.
management. and other stakeholders to accomplish e-commerce transactions. suppliers. and the security issues involved. Workflow Management: e-business workflow systems help employees electronically collaborate to accomplish structured work tasks within knowledge-based business processes. Concerns of electronic payments and security include: · The near-anonymous electronic nature of transactions taking place between the networked computer systems of buyers and sellers. employees.Prof. The workflow model expresses the predefined sets of business rules. · Varieties of electronic payment systems have evolved. roles of stakeholders. Content and catalog management may be expanded to include product configuration processes that support Web-based customer self—service and the mass customization of a company’s products. ELECTRONIC PAYMENTS PROCESSES Payments for the products and services purchased are an obvious and vital step in the electronic commerce transaction process. authorization requirements. · Electronic payment process is complex because of the wide variety of debit and credit alternatives and financial institutions and intermediaries that may be part of the process.8]
. Configuration software helps online customers select the optimum feasible set of product features that can be included in a finished product. Event Notification: Most e-commerce applications are event-driven systems that respond to a multitude of events. suppliers. and sequence of tasks required for each e-commerce process. databases used. Workflow management in both e-business and e-commerce depends on a workflow software engine containing software models of the business processes to be accomplished. Event notification processes play an important role in e-commerce systems. New payment systems are being developed and tested to meet the security and technical challenges of electronic commerce over the Internet. and other stakeholders must be notified of all events that might affect their status in a transaction. Web Payment Processes: [Figure 7. routing alternatives. Collaboration and Trading: This category of e-commerce processes are those that support the vital collaboration arrangements and trading services needed by customers. since customers.
Secure Electronic Payments: When you make an online purchase on the Internet.Prof.software encrypts a digital envelope of digital certificates specifying the payment details for each transaction. your credit card information is vulnerable to interception by network sniffers. Several basic security measures are being used to solve this security problem. · Secure Electronic Transaction (SET) . Both types of e-commerce typically use an electronic shopping cart process. This enables your browser to encrypt your credit card data in such a way that only the bank that authorizes credit card transactions for the merchant can see it. · EFT systems use a variety of information technologies to capture and process money and credit transfers between banks and businesses and their customers. They include: · Encrypt (code and scramble) the data passing between the customer and merchant · Encrypt the data passing between the customer and the company authorizing the credit card transaction · Take sensitive information offline Security methods developed include: · Secure Socket Layer (SSL) . Buy many B2B e-commerce systems rely on more complex payment processes based on the use of purchase orders.you add security software add-on modules to your web browser. Anatoly Sachenko
Request Client Browser Merchant's Web Server
Verify merchant Receive order info Receive payment info Confirm order
Verify customer Review payment info Authorize or deny payment
Online third-party computers with links to multiple
Credit cards VISA MasterCard
Bank accounts Debit cards Online banking
Online buying Payflow Pro 1 ClickCharge
e-Bill payment CheckFree Paytrust
Electronic cash BillPoint PayPal
Most e-commerce systems on the Web involving businesses and consumers (B2C) depend on credit card payment processes. Electronic Funds Transfer: Electronic Funds Transfer ( EFT) systems are a major form of electronic commerce systems in banking and retailing industries. software that easily recognizes credit card number formats.automatically encrypts data passing between your web browser and a merchant’s server. which enables customers to select products from web-site catalog displays and put them temporarily in a virtual shopping basket for later checkout and processing.
. SET is expected to become the dominant standard for secure electronic payments on the Internet. · Digital Wallet .
and is moving toward automated intranet and extranet procurement systems. trust. and price Functionality. appeal. presentation. Anatoly Sachenko Section II: Electronic Applications and Issues
e-COMMERCE APPLICATION TRENDS e-commerce is changing how changing how companies do business both internally and externally with their customers. convenience. efficiency. retrieval. transaction security. and broadcast medium (for advertising) Information (general and specific. links to services and content. mobility. communication. 48. Analyzing ChemConnect and Heritage Services We can learn a lot about the challenges that companies face as they develop major e-commerce marketplaces from this case. and VeriSign Adobe. and price Quality of experience. support services (such as insur ance and delivery). and are now moving strongly toward the use of e-commerce portals that provide auctions. TerraLycos. BEA Systems. scalability. compatibility. · Interactive marketing capabilities have been added to support a personalized e-commerce experience. . and Travelocity ChemConnect. eBay. iVillage. p. and Reuters Amazon. e-Commerce Sectors: [Figure 7. How companies apply e-commerce to their business is also subject to change as their managers confront a variety of e-commerce alternatives. Grainger. and reception and transmission of information Internet gateway. exchange. Ariba.Prof. reliability.W. Summer 2001. Excite. storage. bfinance. IBM. btrade. · B2C e-commerce is moving toward a self-service model where customers configure and customize the products and services they wish to buy. AOL. size and attractiveness of user base. tracking. · B2B e-commerce participants were early users of extranets connecting trading partners. privacy. and price Companies That Target the Sector Akamai. and a totally integrated web store that completely supports a variety of customer shopping experiences. Pearson. Tibco Software. community experience. Covisint. reliability. and price Exhaustiveness. matching. Commerce One. Newscorp. privacy. e-Commerce Trends: · B2C e-commerce has moved from merely offering multimedia company information (brochureware). · B2B e-commerce started with website support of business customer self-service. and barter markets for business customers within or across industries. and Yahoo!
AOL Time Warner. Intuit. EMI. Microsoft. customizability. Multex. display. digitization.12]
e-Commerce Sectors Sector Infrastructure Online Products and Services Access. convenience. W. Merck-Medco. and SAP AOL. customization. timeliness. E*Trade.
. Elemica. DoubleClick. privacy. Telefonica. speed. CEOExpress. and price Accuracy. IBM. FreeMarkets. search and navigation. current and archived). QXL." MIT Sloan Management Review. Sun Microsystems. "Profits and the Internet: Seven Misconceptions. StarMedia Networks. Bloomberg. entertainment (including games). privacy. and processing Organization. upgradability. interconnectedness. and price Transaction density. interpretation. efficiency. coverage. and other business partners. Inktomi. speed. simplification. to offering e-commerce services at web storefront sites with electronic catalogs and online sales. suppliers. Oracle. news. manipulation. CNN. (See ChemConnect and Heritage Services in Section IX). and databases An act that satisfies a need or want Key Value Drivers Availability. interactivity. and matching and creation of supply and demand
Source: Adapted from Subramanian Rangan and Ron Adner. Media Metrix. analysis. completeness.and Ventro
A virtual trading place. security.
easy navigation. loyalty. multimedia product catalog pages. trustworthy product information. location‖ imperative of success in retailing is concerned. This makes it vital that businesses find ways to build customer satisfaction. A basic fact of Internet retailing (e-tailing) is that all web sites are created equal as far as the ―location. personalized product recommendations. suppliers. and others via newsgroups. and reliable order fulfillment. No site is any closer to its customers. Targeted Web page advertising and e-mail promotions. company representatives. e-Commerce Success Factors [Figure 7.14] e-Commerce Success Factors • Selection and Value. Security and Reliability. including advertising at affiliate sites. satisfaction guarantees. and relationships. BUSINESS-TO-CONSUMER e-COMMERCE Electronic commerce on the Internet between businesses and consumers is accelerating the impact of information technology on consumer behavior and business processes and markets. chat rooms. and purchasing. and competitors offering similar goods and services may be only a mouse click away. and customer support after the sale. • Personal Attention. Attractive product selections. and links to related sites. and shopping features. Personal Web pages. and prompt shipping and delivery. website shopping areas. Anatoly Sachenko
Another way to look at how companies have moved into e-commerce is to organize present and potential online services and products into a variety of e-commerce sectors that go beyond simple classifications.Prof. so keep customers coming back to their Web stores. Fast. Look and Feel. Security of customer information and website transactions.12 defines and describes six major e-commerce sectors that companies have chosen or can choose to operate in as they formulate their e-commerce strategies. Performance and Service. competitive prices. Figure 7. Attractive Web storefront. Community Relationships. discounts and special offers. location. The key to e-tailing success is to optimize factors such as: · Selection and value · Performance and service efficiency · Look and feel of the site · Advertising and incentives to purchase · Personal attention · Community relationships · Security and Reliability WEB STORE REQUIREMENTS
. These sectors include: · Infrastructure · Applications · Portals · Content · Services · Exchanges Stress from this Figure: How each sector differs in the online services and products they offer and the key customer values that drive their e-commerce activities. Virtual communities of customers. and interactive support for all customers. • Advertising and Incentives. shopping. Web advertising and e-mail notices.
customer relationship management. and personal Web pages and promotions that help them develop a one-to-one relationship with their customers. and sales results. or trade with other businesses. Managing a Web Store A Web store must be managed as both a business and a website. or provide customer relationship management features to help retain Web customers. E-commerce software includes links to download inventory and sales data into accounting packages. · Develop your website as a retail Web business by marketing it in a variety of ways that attract visitors to your site and transform them into loyal Web customers. This ensures that all electronic commerce activities are integrated with e-business processes and supported by up-to-date corporate inventory and other databases. Most e-tailers use several website tools to create user profiles. the website must help you welcome and serve them personally and efficiently so that they become loyal customers. and online transaction processing.Prof. Developing a Web Store In order to launch your own retail store on the Internet. · Password and encryption protection of Web store transactions and customer records. where businesses buy. customer files. Many businesses are integrating their Web-based e-commerce systems with their e-business systems for supply chain management. Larger companies can use their own software developers or hire an outside website development contractor to build a customdesigned e-commerce site. you must: · Build an e-commerce website. This can be done by: · Creating incentives to encourage visitors to register · Develop Web cookie files to automatically identify returning visitors · Contracting with website tracking companies for software to automatically record and analyze the details of the website behavior and preferences of Web shoppers. and manage their websites to they become high-priority destinations for consumers who will repeatedly choose to go there to buy products and services. B2B electronic commerce relies on many different technologies. and most e-commerce hosting companies offer software and services to help you do just that. which in turn are automatically updated by Web sales activities. inventory. and employ firewalls and security monitors to repel hacker attacks and other security threats. computer-based accounting and business information systems. Serving Your Customers Once your retail store is on the Web and receiving visitors. B2B applications include: · Electronic catalog systems · Electronic trading systems such as exchange and auction portals · Electronic data interchange · Electronic funds transfers · Etc. The primary focus of such e-tailers is to develop. and efficient Web store. · Build customer lists for e-mail and Web page promotions.
. Anatoly Sachenko
Most business-to-consumer e-commerce ventures take the form of retail business sites on the World Wide Web. · Provide clients twenty four hour tech support to help them with technical problems BUSINESS-TO-BUSINESS e-COMMERCE Business-to-business electronic commerce is the wholesale and supply side of the commercial process. friendly. operate. most of which are implemented at e-commerce websites on the World Wide Web and corporate intranets and extranets. For example – service providers can offer their clients: · A variety of management reports that record and analyze Web store traffic. as well as to their traditional. or legacy. sell. · Twenty-four hours a day and seven day a week operation all year long. Many companies use simple website design software tools and predesigned templates provided by their website hosting service to construct their Web retail store. · Ensure that your website has the look and feel of an attractive.
Business buyers get one-stop shopping. An electronic catalog shopping and ordering site for products from many suppliers in an industry. CLICKS AND BRICKS IN e-COMMERCE E-business managers must understand the alternatives and benefit trade-offs that e-business enterprises face when choosing an e-commerce ―clicks and bricks‖ strategy. Suppliers’ benefit from easy access to customers from all over the globe. These B2B e-commerce portals are developed and hosted by third-party market maker companies who serve as infomediaries that bring buyers and sellers together in catalog. 140-141. An exchange for buying and selling at negotiated prices. The business case for such strategies rests on: · Capitalizing on any unique strategic capabilities that may exist in a company’s traditional business operations that could be used to support an e-commerce business." Business 2. • Many to many: Auction marketplaces used by many buyers and sellers that can create a variety of buyers' or sellers' auctions to dynamically optimize prices. exchange.com and Dell. Examples: Cisco. • Some to many: Distribution marketplaces. and auction markets. Many to one: Buy-side marketplaces. where their e-business is integrated in some major ways into the traditional business operations of a company. . and joint buying power and distribution efficiencies. Infomediaries are companies that serve as intermediaries in e-business and e-commerce transactions. . and more cost effective . For example: . such as the sharing of established brands and key business information.18] e-Commerce Marketplaces • One to many: Sell-side marketplaces. Examples are eBay and FreeMarkets. · Gaining several strategic benefits of integrating e-commerce into a company’s traditional business. Host one major supplier. and impartial advice from infomediaries that they can’t get from the sites hosted by suppliers and distributors.Prof. Other Clicks and Bricks Strategies: Other clicks and bricks strategies range from: · Partial e-commerce integration using joint ventures and strategic partnerships
. "Battle to the Bitter End (-to-End).0. July 25. who dictates product catalog offerings and prices. 2000.com • Many to some: Procurement marketplaces. or keep them separate‖? e-Commerce Integration: Many companies have chosen integrated clicks and bricks strategies. Ability to makes business purchasing decisions faster.
Source: Adapted from Edward Robinson. Unite major buyers who combine their purchasing catalogs to attract more suppliers and thus more competition and lower prices. They must be able to answer this important question – ―Should we integrate our e-commerce virtual business operations with our traditional physical business operations. Business value of using B2B ecommerce infomediary companies include: . An auction website for business-to-business auctions or products and services.
Businesses of any size can now buy at business-to-business e-commerce marketplaces. pp. Examples: VerticalNet and Works. simpler. Anatoly Sachenko
E-COMMERCE MARKETPLACES: [Figure 5. Many B2B e-commerce portals provide several types of marketplaces. Examples: the auto industry's Covisint and energy industry's Pantellos. Unite major suppliers who combine their product catalogs to attract a larger audience of buyers. accurate purchasing information. A number of e-commerce marketplaces are used by businesses today. Businesses can negotiate or bid for better prices from a larger pool of vendors . . Attract many suppliers that flock to these exchanges to bid on the business of a major buyer like GE or AT&T.com.
What audiences are we attempting to reach? 2. to buy something from our site. releasing.Prof. Is the e-commerce channel planned alongside other channels? 5. strategic partnership. attract quality management. Who owns the e-commerce channel within the organization? 4. joint venture. to give us information about themselves. and in-house division. and accelerate decision-making. or type of business. Stress to students: · That there is no universal clicks and bricks e-commerce strategy for every company.22]
A Checklist for Channel Development 1. catalog sales. approving. What action do we want those audiences to take?—to learn about us. to give us information about themselves.
Clicks and Bricks Alternatives: Companies have a number of alternatives such as spin off. Complete separation via the spin-off of an independent e-commerce company. approving. releasing. to make an inquiry. · Deciding on a clicks and bricks strategy depends heavily on whether or not a company’s unique business operations provide strategic capabilities and resources to successfully support integration with an e-commerce venture. to buy something through another channel? 3. · Both e-commerce integration and separation have major business benefits and shortcomings. Anatoly Sachenko
. to buy something through another channel? · Who owns the e-commerce channel within the organization? · Is the e-commerce channel planned alongside other channels? · Do we have a process for generating. to buy something from our site. Do we have a process for generating. industry. to make an enquiry. and withdrawing content? 6. Benefits and challenges of a completely separate clicks and bricks strategy: · Access to venture capital funding.) is a major consideration in developing its e-commerce strategy. direct sales. etc. and withdrawing content? · Will our brands translate to the new channel or will they require inflection? · How will we market the channel itself? An e-commerce channel is the marketing or sales channel created by a company to conduct and manage its chosen e-commerce activities. Will our brands translate to the new channel or will they require modification? 7. E-Commerce Channel An e-commerce channel is the marketing or sales channel created by a company to conduct and manage its chosen e-commerce activities. maintain a high degree of business flexibility. KEY TERMS AND CONCEPTS . How will we market the channel itself?
Some of the key questions that the management of companies must answer in making the clicks and bricks decision and developing the resulting e-commerce channel include: · What audiences are we attempting to reach? · What action do we want those audiences to take? – learn about us. How this e-commerce channel is integrated with a company’s traditional sales channels (retail/wholesale outlets. create an entrepreneurial culture. e-Commerce Channel Choices: [Figure 7.
performance and service. exchange.Consumer-to-Consumer: The buying and selling. intranets. and security and reliability. services. Electronic Commerce Companies today are participating in or sponsoring three basic categories of electronic commerce applications: business-to-consumer. E-Commerce Portal E-commerce portals are developed and hosted by third-party market maker companies who serve as infomediaries that bring buyers and sellers together in catalog. E-Commerce Catalog E-commerce catalog is a high-speed web-trading site. exchange. catalog management. which offers electronic catalog shopping and ordering for products. exchange.Business-to-Consumer: This category of electronic commerce involves both electronic business marketplaces and directs market links between businesses. payment. interface services. Electronic Commerce . and consumer-to-consumer e-commerce. intranet. Electronic Commerce . marketing and servicing. look and feel. workflow management. content management. secure messaging. and other networks. which are offered by many suppliers in an industry. brokerage and data management. E-Commerce Auction e-commerce auction is an auction website which allows consumers (and businesses) to buy and sell with each other in an auction process. personal attention.Prof. search management. and other business partners. and collaboration and
. Electronic Commerce .Business-to-Business: In this form of electronic commerce. event notification. between an internetworked enterprise and its prospects. and network infrastructure. E-Commerce Exchange E-commerce exchange is a high-speed platform where buyers and sellers can interact to negotiate prices for products and services. consortiums of organizations. or third-party intermediaries providing electronic catalog. extranets. suppliers. customers. and auction markets. and delivery and payment of products. E-Commerce Technologies: Electronic commerce can be viewed as depending on six layers of technology: application services. business-to-business. businesses must develop attractive electronic marketplaces to entice and sell products and services to customers. community relationships. middleware services. and auction markets. and extranet websites and portals hosted by individual companies. E-Commerce Sectors The organizing of present and potential online services and products into six major e-commerce sectors that companies have chosen or can choose to operate in as they formulate their e-commerce strategies. profiling and personalizing. and auction markets to unite buyers and sellers to accomplish e-commerce transactions. advertising and incentives. and information over the Internet. Includes C2C e-commerce websites and portals for catalog. E-Commerce Success Factors: Some of the key factors for success in e-commerce include: selection and value. Anatoly Sachenko
E-Commerce Marketplaces Internet. Electronic Funds Transfer: The development of banking and payment systems that transfer funds electronically instead of using cash or paper documents such as checks. Essential e-Commerce Processes: The essential e-commerce processes required for the successful operation and management of e-commerce activities include: Access control and security.
Essential e-Commerce Processes – Content Management Content management software helps e-commerce companies develop. Essential e-Commerce Processes – Profiling and Personalizing Profiling is used to gather data on customers and their website behaviour and choices to build an electronic profile of their characteristics and preferences. or working for a business that is primarily engaged in electronic commerce on the Internet? O Why do you think there have been so many business failures among ―dot-com‖ companies that were devoted only to retail e-commerce?
. customers. Essential e-Commerce Processes – Workflow Management Workflow systems ensure that the proper transactions. Generating and managing catalog content is a major subset of content management. These profiles are used to recognize the customer as an individual user in order to create a one-to-one marketing strategy. deliver. DISCUSSION QUESTIONS
O Do you agree that most businesses should engage in electronic commerce on the Internet? O Are you interested in investing in. Essential e-Commerce Processes – Catalog Management E-commerce content frequently takes the form of multimedia catalogs of product information. and enforcing security features. serving. Business-to-Business (B2B). and multimedia information at e-commerce websites. and managing the Web store in order for it to be a successful e-commerce business. Anatoly Sachenko
trading. Web Store Requirement Essential Web store requirements necessary to implement to support a successful retail business on the Web including building. and Consumer-to-Consumer (C2C). owning. And achieve text data. Essential e-Commerce Processes – Electronic Payment Systems: Alternative cash or credit payment methods using various electronic technologies to pay for products and services in electronic commerce. and work activities are performed. generate. managing. Trends in e-Commerce Some of the trends in e-commerce applications include Business-to-Consumer (B2C). and other stakeholders to accomplish e-commerce transactions. Essential e-Commerce Processes – Search Management Efficient and effective search processes provide a top e-commerce website capability that helps customers find the specific product or service they want to evaluate or buy. Essential e-Commerce Processes – Event Notification Most e-commerce applications are event-driven systems that respond to a multitude of events. Essential e-Commerce Processes – Collaboration and Trading The major category of e-commerce processes are those that support the vital collaboration arrangements and trading services needed by customers. including unexpected changes or problem situations. and the correct data and documents are routed to the right employees. and other business stakeholders. Infomediaries: Infomediaries are companies that serve as intermediaries in e-business and e-commerce transactions.Prof. suppliers. and update. authorizing access. decisions.
V. Essential e-commerce Processes – Access Control and Security E-commerce processes must establish mutual trust and secure access between the parties in an e-commerce transaction by authenticating users. Event notification software works with workflow management software to monitor all e-commerce processes and record all relevant events. suppliers.
com? Wal-Mart? Any business?
. which of the business requirements listed in this chapter would you primarily do yourself. Do you agree? What are the ethical implications? O All corporate procurement should be accomplished in e-commerce auction marketplaces. Do you agree? O If you were starting an e-commerce web store. and which would you outsource to a Web development or hosting company? O Which of the e-commerce clicks and bricks alternatives discussed in this chapter would you recommend to Barnes & Noble? Amazon. instead of using B2B websites that feature fixed-price catalogs or negotiated prices. Anatoly Sachenko
O Do the e-commerce success factors discussed in the chapter guarantee success for an ecommerce business venture? O What else could go wrong & how would you confront those challenges? O If personalizing a customer’s website experience is a key success factor. then electronic profiling processes to track visitor website behavior are necessary.Prof.