E-Commerce

HFE 651 Presentation

Brenee Burns
Ping Gai
May 23, 2000

Contents

E-Commerce Strategies
Business Models
Do Business Online
E-Commerce Technologies
Security, Encryption, & Web Ethics
E-Commerce Trend
Questions

E-Commerce Strategies
Offer a Great Customer Experience to
increase customer loyalty
40% of online job applicants cant figure out
how to apply online
62% of online shoppers had given up at least
once while looking for products
42% of users had turned to traditional channels
to make their purchase

E-Commerce Strategies
Customer Experience Gap
when the web does not offer the experience the
customer wants
focus on the difference between what the
customer wants and what the customer gets

E-Commerce Strategies
Valuing the Customer
great customer experience makes it quicker for
the customer to buy from the website
customer relationship is valuable
customer can achieve their goal from the
website then it is more likely for the customer
to revisit the site in the future

E-Commerce Strategies
In todays fast economy satisfying customers is no
longer enough- must produce long term customer
loyalty to have continued success
Build relationships with customers and treating
each one as an individual-loyalty strategies are
essential
E-markets of buyers and sellers can cost
effectively drive the right customers to your
business

Business Models
Business-to-customer Model (B2C)
sell books, CDs, news, information, airline tickets,
computers, stocks,
Amazon, eBuy, eTrade, CDnow, Dell, ...

Business-to-business Model (B2B)

a channel for business to sell and pay for goods and services
among themselves
networking hardwares, automobile parts, computer servers,

Cisco, Ford, ...

Business Models

Bokerage
Advertising
Informediary
Merchant
Manufacture
Community
Subscription

Business Models
Brokerage Model
Market-makers: Bring buyers and sellers
together and facilitate transactions.
Makes money by charging a fee for each
transaction it enables.

Business Models
Advertising Model
An extension of traditional media broadcasting
model.
The banner ads may be the major or sole source
of revenue for a website

Business Models
Infomediary
collecting and selling data about consumers and
their buying habits
offer users free staffs in exchange for detailed
information about their surfing and purchasing
habits.
Registration

Business Models
Manufacture Model
Allow manufactures to reach buyers directly
and thereby compress the distribution channel.
Efficiency, improved user service, better
understanding of user preference.

Business Models
Community Model
based on user loyalty. Users have a high
investment in both time and emotion in the
sites.
Having users who visit continually offers
adverting, infomediary, or specialized portal
opportunities.

Business Models
Subscription Model
Users pay for access to the sites.
High value-added contents is essential
Wall St. Journal

Do Business Online
A business plan
Customer
Merchandising
Sales service
Promotions
Transaction processing
Fulfillment
Post-sales service
Marketing data and analysis
Brand

Build An Online Shop

Domain
Server
Software
Webpages
Maintenance and update

Build An Online Shop

Make the page unique.
Keep the design simple.
Create an easy-to-navigate Web site.
Keep the content fresh.
Promote your business -- online and
offline.
Connect with your customers.

Worst Examples of E-Commerce

Reflect.com: Required new-user survey puts site design ahead of the customer
experience

BMG.com: Intimidating, unexplained warning message could scare away customers

Marthastewart.com: Allows out-of-stock items to be placed in shopping carts

Century21.com: Wastes home page real estate on unrelated promotions

REI.com: Ineffective "shop by brand" feature

Bloomingale's: Unnecessarily wordy checkout page

Gloss.com: Magazine-style layout doesn't serve the shopping experience

Ninewest.com: Extra step to sale price impedes impulse buying

Goodhome.com: Unintuitive horizontal scrolling

RedEnvelope.com: Extra steps in the buying process

Worst Examples of E-Commerce

Boo.com Overdesigned site impedes shopping
Note: In May 2000, Boo.com announced it was going out of
business
OfficeMax.com Registration feature could turn away firsttime shoppers

Levi's Flagship product hidden by graphics and promos

Note: Levi's is no longer selling products from its Web site

Women.com Shopping feature frustrates with empty

categories

Do Business Online
Transactions

Taxes
Shipping
Pay
Security

E-Commerce Technologies
To take advantage of the opportunities in
E-commerce it is important to have these skills:

HTML
DHTML
XML
JAVA
ASP
JAVA Script

Security, Encryption, & Web

Ethics
Who is affected?
In past it use to be only large companies with
proprietary issues
Today, stock exchange and even sports on the web
Bank accounts, medical records, credit history are a
few arenas that must be concerned with secruity

Encryption is the process that transforms

information into some secret form to prevent
unauthorized individuals from using the data
should they acquire it.

Security, Encryption, & Web

Ethics
Why is there a concern?
Increase in secruity because PC are used more
often ie. Recreation, home, email, newsgroups,
online shopping, ecommerce, and mobile phones
People will become more reliant on computer
based resources
If confidential information is tampered with from
companies, the company will lose its credibility
and thus loose its customers

Security, Encryption, & Web

Ethics
Object of IT Secruity
Confidentiality
Integrity

Security, Encryption, & Web

Ethics
Confidentiality
strict controls implemented to ensure only
certain person who need access to database will
have access
protecting and using passwords
limiting resources an employee has access to

Security, Encryption, & Web

Ethics
Integrity
loss of integrity can result from human error,
intentional tampering, or even catastrophic events
Efforts must be taken to ensure the accuracy and
soundness of data at all time
Internet Fraud

online credit cards

customer trusting the company they do business with
online auctions, sweepstakes & price offers
travel offers, scholarship scams etc.

Security, Encryption, & Web

Ethics
Secruity Methods that are used whenever
the Internet & Corporate Networks
intersect:
Routers
Firewalls
Intrusion Detection Systems (IDSs)

Security, Encryption, & Web

Ethics
Routers
are network traffic-managing devices that routes
traffic intended for the servers or networks they
are attached

Firewalls
insulates a private network from a public
network using carefully established controls on
the types of request they will route through to the
private network for processing and fulfillment

Security, Encryption, & Web

Ethics
Intrusion Detection System (IDSs)
Attempts to detect an intruder breaking into
your system or legitimate user misusing system
resources. Operates constantly, working in the
background and only notifies you when it
detects suspicious or illegal activity

Trend of E-commerce

Expanded ECM Deployment

Customer-Centric Corporate Restructuring
Free Extends into B-to-B Space
Wireless Applications Become More Common
ASP's Capabilities Expand
Dynamic Pricing Reaches Most Industries
Privacy Concerns Increase
Merger &Acquisition Activity Escalates
B-to-B Growth Continues its Dramatic Pace

References

Peter S.Cohen, Net Prpfit, Jossey-Bass Publishers,19998

http://www.webmonkey.com
http://www.zdnet.com/Ecommerce
http://www.zonaresearch.com
http://ecommerce.internet.
http://www.fraud.com

Six Tips for Building a Successful Homepage, By Andrew Beebe,, Working Solo, Inc.

http://www.cnet.com

http://www.msn.com

http://ecommerce.about.com/smallbusiness/ecommerce/

http://www.bigstep.com

http://www.Ecomm.com

Questions?