Electronic Commerce Systems

By Saba Mustafa

Electronic Commerce Fundamentals

    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 explain the business value of several types of e-commerce marketplaces Discuss the benefits and trade-offs of several ecommerce clicks and bricks alternatives Chapter 9 Electronic Commerce Systems 3 .

  Electronic commerce encompasses the entire online process of ◦ Developing ◦ Marketing ◦ Selling ◦ Delivering ◦ Servicing ◦ Paying for products and services It relies on the Internet and other information technologies to support every step of the process Chapter 9 Electronic Commerce Systems 4 .

   Business-to-Consumer (B2C) – businesses develop attractive electronic marketplaces to sell products and services to consumers. Consumer-to-Consumer (C2C) – includes auction websites and electronic personal advertising. Business-to-Business (B2B) – involves both electronic business marketplaces and direct market links between businesses. Chapter 9 Electronic Commerce Systems 5 .

g. Virtual storefronts. interactive order processing. multimedia catalogs. Business-to-Consumer ◦ E.Commerce business must develop attractive electronic marketplaces to sell products and services to consumers  E. online customer support Chapter 9 Electronic Commerce Systems 6 . electronic payment.

personal websites. posting to newspaper sites.g.) Business-to-Business ◦ This category involves both electronic business marketplaces and direct market links between businesses  E.  B2B e-commerce portals that provide auctions and exchanges marketplace for business.  Electronic data interchange (EDI)  Consumer-to-Consumer ◦ Online auctions. e-commerce catalogue websites for their business consumers & suppliers.Categories of e-Commerce  (Contd. e-commerce portals .

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  E-commerce processes must establish mutual trust and secure access between parties ◦ User names and passwords ◦ Encryption key ◦ Digital certificates and signatures Authorized/Restricted access areas ◦ Other people’s accounts ◦ Restricted company data ◦ Webmaster administration areas Chapter 9 Electronic Commerce Systems 11 .

  Profiling gathers data on you and your website behavior and choices ◦ User registration ◦ Cookie files and tracking software ◦ User feedback Profiling is used for ◦ Personalized (one-to-one) marketing ◦ Authenticating identity ◦ Customer relationship management ◦ Marketing planning ◦ Website management Chapter 9 Electronic Commerce Systems 12 .

 Search processes help customers find the specific product or service they want ◦ E-commerce software packages often include a website search engine ◦ A customized search engine may be acquired from companies like Google or Requisite Technology ◦ Searches are often on content or by parameters Chapter 9 Electronic Commerce Systems 13 .

update. and archive text and multimedia information at e-commerce websites Catalog Management Software ◦ Helps generate and manage catalog content Catalog and content management software works with profiling tools to personalize content ◦ Includes product configuration and mass customization Chapter 9 Electronic Commerce Systems 14 .   Content Management Software ◦ Helps develop. deliver. generate.

  E-business and e-commerce workflow management depends on a workflow software engine ◦ Contains software model of business processes Workflow models express predefined ◦ Sets of business rules ◦ Roles of stakeholders ◦ Authorization requirements ◦ Routing alternative ◦ Databases used ◦ Task sequences Chapter 9 Electronic Commerce Systems 15 .

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 Most e-commerce applications are event driven ◦ Responds to such things as customer’s first website visit and payments ◦ Monitors all e-commerce processes ◦ Records all relevant events. including problem situations ◦ Notifies all involved stakeholders ◦ Works in conjunction with user-profiling software Chapter 9 Electronic Commerce Systems 17 .

  Processes that support vital collaboration arrangements and trading services ◦ Needed by customers. and other stakeholders Online communities of interest ◦ E-mail. suppliers. discussion groups ◦ Enhances customer service ◦ Builds loyalty Chapter 9 Electronic Commerce Systems 18 . chat.

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 Some of the success factors in e-commerce ◦ Selection and value ◦ Performance and service ◦ Look and feel ◦ Advertising and incentives ◦ Personal attention (one-to-one marketing) ◦ Community relationships ◦ Security and reliability Chapter 9 Electronic Commerce Systems 21 .

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as well as bricks. but lets them pick up their order at a local store. flips referring to catalogs. It is also known as click-and-mortar or clicks-and-bricks. Success will go to those who can integrate Internet initiatives with traditional operations ◦ Merging operations has trade-offs   Chapter 9 Electronic Commerce Systems 23 . clicks and flips. One example of the bricks-and-clicks model is when a chain of stores allows the user to order products online. Bricks-and-clicks is a business model by which a company integrates both offline (bricks) and online (clicks) occurrences.

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and flexibility ◦ Attracted quality management ◦ Accelerated decision making Chapter 9 Electronic Commerce Systems 25 . entrepreneurial culture.   Partial e-commerce integration ◦ Joint ventures and strategic partnerships Complete separation ◦ Spin-off of an independent e-commerce company Barnes and Noble’s experience ◦ Spin off independent e-commerce company ◦ Gained venture capital.

 Questions to ask and answer ◦ What audiences are we attempting to reach? ◦ What action do we want those audiences to take? ◦ Who owns the e-commerce channel within the organization? ◦ Is the e-commerce channel planned alongside other channels? ◦ Is there a process for generating. approving. and withdrawing content? ◦ Will our brand translate to the new channel? ◦ How will we market the channel itself? Chapter 9 Electronic Commerce Systems 26 . releasing.