Chapter 11 : Consumer-Oriented

E-Commerce
Week 7
 Outline

 Introduction
 Traditional Retailing and E-retailing
 Benefits of E-retailing
 Key Success Factors
 Models of E-retailing
 Features of E-retailing
 Developing a Consumer-oriented E-commerce
System
 The PASS model

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 Selling of Different Types of “Goods”

"Goods"

Intangible
Tangible
(services)

Physical Digital

Perishable Non-perishable

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 Traditional Retailing Vs. e-retailing

Traditional retailing:
 involves selling to a final customer through a physical outlet

 involves a fairly extensive chain from a manufacturer to

wholesaler to the retailer

Examples of physical outlets:

 malls
 generalized stores
 specialized stores
 franchise stores

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 Traditional Retailing Vs. e-retailing

E-retailing:

 The Internet has allowed a new kind of specialization to emerge.

 Example: lastminute.com -- allows last minute purchases of

travel, gift and entertainment

 New kind of specialization:

 not in a product line but in a class of purchasers and a class of
sellers.

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 Mapping Traditional Retailing -> e-
retailing

 Specialized stores -> specialized e-stores

 Generalized stores -> Generalized e-stores
 Malls -> E-malls
 Franchise stores -> ?
 New form of business : e-broker

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 Benefits of e-retailing

To the Customer

 convenience
 better information
 competitive pricing
 customization
 shopping anywhere, anytime

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 Benefits of e-retailing

To the Business

 global reach
 better customer service
 low capital cost
 mass customization
 targeted marketing
 more value added services
 new forms of specialized stores and niche
marketing

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 Models of e-retailing

There are several models for e-retailing

and these include:

 Specialized e-store
 Generalized e-store
 E-mall
 Direct selling by the manufacturer
 Supplementary distribution channel
 E-broker
 E-services

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 Basic Features of e-retailing systems

Common features of e-retailing web sites include:

 method for selecting your purchases, e.g shopping cart

 mechanism for creating and submitting an order
 secure e-payment facility
 appropriate distribution mechanism
 browsing facility, normally by subject or by category
 searching facility
 mechanism for customer service and feedback

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 Future of e-retailing

Two major trends :

 Technologies that help you see and experience

the product better
e.g. Flash-based or AJAX based Shopping
Carts
 Technologies that help you not to see at all but
use an intelligent agent (or mobile agent) that
does all the shopping tasks for you.

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 The Future in E-Commerce- AJAX

AJAX (Asynchronous JavaScript and XML) :

• AJAX isn’t a new technology- it’s a series of
long-used tools and techniques (JavaScript
and XML) that create a dynamic user
experience.
Some of the popular examples of AJAX are
Google Maps, NetFlix, and the FLICKR Photo
Gallery.

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 The Future in E-Commerce- AJAX
AJAX’s Practical Usage:
• Microsoft has claimed that the created the first example
of AJAX on record- MS Outlook.
• Google is clearly one of the early adopters, with several
examples of the technology, including Google Maps,
Google Suggest, and Gmail, to name just a few
applications.
• Yahoo! is beginning to introduce Ajax controls, and
Amazon has a neat search tool that uses the technique
extensively—moving the sliders for a given facet of a
diamond results in dynamically updated results.
• The greatest advantage AJAX has over other
technologies is the usage of JavaScript, XHTML, XML,
and CSS- all languages that frequently used by web
developers on an “everyday” level.

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 Three-Stage Modeling of
Software Engineering Process

Analysis Implementation
Design
Conceptual
Real World model
Software Code
Structure Model
Model

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 The Emergent Business Model as the Basis of
E-commerce System Development

 In the case of an existing "old economy" business:

 Need a fusion of the "old economy" business with the
new business leading to a metamorphosis of the
business model.
 A new business model "An Emergent Business Model" or
"E-business model"

 Start up without any previous business operations

 Create "An emergent business model" or "E-business
model"

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 Emergent Business Model for
E-Commerce Business Development

Old economy
business model

Emergent
(or E-Business
model)

e-commerce processes

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 Steps in developing e-commerce system

The steps in the analysis, design and development of an e-

commerce system:

1. Develop description of existing business model

2. Develop e-business model
3. Develop Requirements Statement
4. Choice of System Architecture and Implementation
Platform(s)
5. Carry out design to develop Software Structure Model
6. Develop detailed design
7. Programming and customizing the System
8. Testing and piloting the e-commerce system

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 PASS
• Publicity
• Advertisements
• Sale/services
• Subscriptions

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