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Electronic Commerce Systems

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Section I

Electronic Commerce Fundamentals

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e-Commerce
 e-Commerce

the entire online process of developing, marketing, selling, delivering, servicing, and paying for products and services transacted on internetworked, global marketplaces of customers, with the support of a worldwide network of business partners.  Three basic categories  Business-to-Consumer (B2C)  Business-to-Business (B2B)  Consumer-to-Consumer (C2C)
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 Encompasses

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Essential e-Commerce Processes

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Essential e-Commerce Processes
 1.

Access control and security  2. Profiling and personalizing  One-to-one marketing strategy  Profile management, personalization, and behavior tracking  Personalized view of the website based on  Personal data & web site behavior & choices  Using adaptive relationship marketing, an algorithm in a program that automatically creates and continually modifies a user’s profile based on his/her clicks during browsal  Companies like DoubleClick.com record and analyze details of web shoppers’ behaviors and preferences
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Essential e-Commerce Processes (continued)

 3.

Search management  Content-based search  Helps customers find the specific product or service they want  Parametric-based search  Above, below, or between a range of values for multiple properties of a product  Role- or rule-based search  Roles are like job functions, dictating access or certain privileges  read/write privileges for network administrator, role  Rules based on sets of rules

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Essential e-Commerce Processes (continued)

 4.

and 5. Content and catalog management  Works with profiling tools to personalize the content of the website and create an online catalog of merchandise  6. Payment  Later (in a few slides)  Slide entitled “Electronic Payment Processes”  7. Workflow management  Help employees to electronically collaborate to accomplish tasks within a knowledge-based business process  so that proper transactions are performed and documents are routed to the right employees
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Role of catalog/content management and workflow management in a web-based procurement process (Microsoft)

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Essential e-Commerce Processes (continued)

 8.

Event notification  Notifies those concerned when an event occurs that might affect their status in a transaction (e.g. email notification of a sale)  9. Collaboration and training  Supports the collaboration arrangements & trading services needed by customers, suppliers, & other stakeholders  Communities of interest  Chat rooms and discussion groups for employees
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Electronic Payment System

Electronic Payment Processes
 Secure

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electronic payments  Addresses vulnerability to network sniffers  Sniffers: software that recognizes credit card number format  Encrypt data passing between customer and merchant  Encrypt the data passing between the customer and the company authorizing the credit card transaction  Secure Socket Layer (SSL) (encryption)  Digital Wallet (add-on to the web browser)  Encrypts credit card data so that only the bank that authorizes credit card transactions for the merchant gets to see it  VeriSign.com provides authentication services

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Small Business Ecommerce Portals
 Microsoft

Small Business Center  Microsoft.com/smallbusiness  A small business ecommerce portal  Offers advice and service for small businesses moving online  View all services

http://www.microsoft.com/smallbusiness/online/services/all.mspx

 Other  Yahoo

Small Business http://smallbusiness.yahoo.com/  PVAMU COB SBDC: http://www.wallercountysbdc.org/
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 Google

AdWords  https://adwords.google.com/  Learn more: Sign-up demo

Small Business: More Help

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http://services.google.com/marketing/links/US-HA-CMBNINE2/?sourceid=ASO&subid=US-HA-Froogle

 Connects

with new customers at the precise moment when they're looking for a your company’s products or services  Allows a company to create its own ads, choose keywords to help match its ads to its audience and pay only when someone clicks on them  These are sponsored ads you see when you Google!
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Section II

E-Commerce Applications and Issues

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e-Commerce Application Trends (continued)

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Business-to-Business e-Commerce
The

wholesale and supply side of the commercial process Businesses buy, sell, or trade with other businesses Includes… Electronic catalog systems Electronic trading systems (e.g. exchange and auction portals) Electronic data interchange Electronic funds transfer
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Clicks and Bricks Strategies
Companies have a spectrum of alternatives when deciding upon an integrated or separate ecommerce business

KBtoys.com is 80% owned by KB Toys Rite Aid owns 25% of Drugstore.com

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Case: eBay and Marketplaces, p. 323-324
SWOT

Analysis What is social capital? Capital which flows from social relationships or things like memberships in a club, trust, reputation, and social norms that allow people to do more work. It is behind eBay’s success.

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Midterm
Midterm

review

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