Chapter 9 eCommerce Systems Section 1 ECommerce Fundamentals

Chapter 9 e-Commerce Systems

Section 1 E-Commerce Fundamentals 2

I. Introduction to e-Commerce v. Electronic Commerce – the entire online process of developing, marketing, selling, delivering, servicing, and paying for products and services transacted on networked global marketplaces; more than just buying and selling online ve-Commerce Technologies – involves most information and Internet technologies 3

II. The Scope of e-Commerce 4

II. The Scope of e-Commerce v Categories of e-Commerce v. Business-To-Consumer (B 2 C) e-Commerce – still small when compared with all online commerce v. Consumer-To-Consumer (C 2 C) e-Commerce – online auctions, online advertising of personal products and services v. Business-To-Business e-Commerce – most of e. Commerce is here v. Business-To-Government (B 2 G) e-Commerce 5

III. Essential e-Commerce Processes 6

III. Essential e-Commerce Processes v Access Control and Security – secure access between parties to assure trust v Profiling and Personalizing – processes that gather data on you and your behavior to provide personalized service; this may raise ethical issues v Search Management – effective and efficient search processes are required for a good Web site; there are more than 30 different search engines on the Internet 7

III. Essential e-Commerce Processes v Content and Catalog Management vhelps e-commerce firms develop, generate, deliver, and archive text and multimedia data vworks with profiling tools vmay include product configuration to support customer self-service and mass customization v Workflow Management – ensure proper transactions, decisions, and work activities are performed, and documents distributed correctly 8

III. Essential e-Commerce Processes v Event Notification – monitor all e-commerce processes and record all relevant events; most e-commerce applications are event-driven and respond to things that happen (events) v Collaboration and Trading – a major category of e-commerce; processes consist of collaboration and trading services needed by various stakeholders 9

IV. Electronic Payment Processes v Very complex due to the anonymous nature of electronic transactions v Web Payment Processes – most rely on credit card payment processes v Electronic Funds Transfer (EFT) – a variety of information technologies to capture and process money/credit transfers between banks, businesses, and customers 10

IV. Electronic Payment Processes v Secure Electronic Payments – measures taken to ensure security of information in electronic payments v. Encrypt data between customer and merchant v. Encrypt data between customer and firm authorizing credit cards v. Take sensitive information offline 11

IV. Electronic Payment Processes A Secure Electronic Payment System 12

Section 2 e-Commerce Applications and Issues 13

I. Introduction v e-commerce has changed how firms do business and is now defining how firms do business v e-Commerce Trends 14

II. Business-To-Consumer (B 2 C) e-Commerce v Attract potential customers, transact goods and services, build customer loyalty ve-Commerce Success Factors v. Selection and Value – attractive products, competitive prices v. Performance and Service – easy navigation and purchasing, prompt shipping and delivery v. Look and Feel – attractive Website, multimedia catalog v. Advertising and Incentives – targeted Webpage advertising, email promotions, discounts, special offers 15

II. Business-To-Consumer (B 2 C) e-Commerce v. Personal Attention – personalized Web pages and product recommendations, email notices, interactive support v. Community Relationships – virtual communities and links to related Web sites v. Security and Reliability – security of customer information and transactions, trustworthy product information, reliable order fulfillment v. Great Customer Communications – easy-to-find contact information, online order status, product support 16

II. Business-To-Consumer (B 2 C) e-Commerce Traditional Vs. Web Market Communications 17

III. Web Store Requirements v. Getting Customers to Find You – customers must find you on the Web Search Engine Optimization (SEO) – focus on improving the number/quality of visitors to a Web site v. Web Cookie File – a file stored on the customer’s computer with details about their visit to your Web site 18

V. e-Commerce Marketplaces A Sample B 2 B e-Commerce Web Portal 19

VI. Clicks and Bricks in e-Commerce v Should virtual electronic business be combined with physical operations or kept separate? ve-Commerce Integration – the Internet is just another channel that gets plugged onto the business architecture v. Other Clicks and Bricks Strategies – partial integration of e-commerce into the physical business operations, or complete separation of the two ve-Commerce Channel Choices – a marketing/sales channel created to conduct/manage e-commerce activities 20

VI. Clicks and Bricks in e-Commerce An Integrated Vs. Separate e-Commerce Business 21