eBusiness eCommerce Trends Technologies 1 ICS 622 Internet

e-Business & e-Commerce Trends & Technologies 1 ICS 622 - Internet Technologies & Applications 09 September 2020

Objectives To understand how the Internet and World Wide Web are revolutionizing business processes. To introduce various business models used on the Web. To explore the advantages and disadvantages of creating an online business. To examine marketing, payment, security and legal issues that affect e-businesses. 2 ICS 622 - Internet Technologies & Applications 09 September 2020

Introduction We are in the Age of Knowledge In short history of e-business &commerce; demonstrated that successful e-businesses are those that recognize needs of target audiences and match them with relevant content The terms e-business and e-commerce, often used interchangeably, have different meanings 3 ICS 622 - Internet Technologies & Applications 09 September 2020

E-Commerce and E-Business E-commerce refers to aspects of online business involving exchanges among customers, business partners and vendors. For example, suppliers interact with manufacturers, customers interact with sales representatives &shipment providers interact with distributors E-business encompasses these elements, but also includes operations handled within the business itself For example, production, development, corporate 4 infrastructure and product management are aspects of ebusiness not included under the category of e-commerce. ICS 622 - Internet Technologies & Applications 09 September 2020

E-Commerce and E-Business E-business &e-commerce have increased speed &ease 5 with which business can be transacted, resulting in intense competition among online vendors To remain viable, e-businesses must adjust to evolving technologies, continually integrate new systems and satisfy wide variety of consumers Its customers do not have to go far to buy from competitors Online medium enables people to pay bills, write &cash cheques, trade stocks, take out loans &mortgage homes ICS 622 - Internet Technologies & Applications Money as we now know it has begun to be augmented 09 September 2020

e-Business Models Transition of business into e-business provides many 6 benefits An e-business can offer personalization, effective customer service and streamlined supply-chain management Although “e-commerce” is relatively new, large corporations have used it for decades by networking their computing systems with those of business partners &clients For example, banking industry uses EFT to transfer money In addition, many companies employ EDI ICS 622 - Internet Technologies & Applications 09 September 2020 EDI facilitates standardization of business forms as

Storefront Model One of the most common models used in the Internet Storefront model enables merchants to sell products online by providing a combination of transaction processing, security, online payment and storage In this model buyers and sellers interact directly To conduct storefront e-commerce, merchants must: organize online product catalogs, take orders through their Web sites, accept payments securely, send merchandise to customers and manage customer data 7 09 September 2020 Must also market their sites to potential customers ICS 622 - Internet Technologies & Applications

Shopping-Cart Technology Shopping Cart -most commonly used e-commerce enablers Most web sites that conduct e-business over the 8 Internet today use shopping-cart technology Order-processing technology that allows customers to accumulate items they wish to buy as they browse Support provided by a product catalog, which resides on the merchant server in the form of database The merchant server is the data storage and management system employed by the merchant ICS 622 - Internet Technologies & Applications 09 September 2020 Often, network of computers performs all

Shopping-Cart Technology … A database is a section of the merchant server designed to store and report on large amounts of information For example: database for online clothing retailer would include product specifications as item description, size, availability, shipping information, stock level and on order information. Databases also store customer information, including: names, addresses, credit-card data and past purchases 9 ICS 622 - Internet Technologies & Applications 09 September 2020

Auction Model Web offers wide variety of auction sites to pinpoint lowest prices on available items Auction sites act as forums through which Internet users can assume role of either seller or bidder Sellers can: post items they wish to sell, the minimum prices to sell items and deadlines to close the auctions Bidders may: Search site for items they are seeking, view current bidding activity and place bids—usually in designated increments. 10 ICS 622 - Internet Technologies & Applications 09 September 2020

Auction Model… Reverse-auction model allows buyers to set prices that sellers compete to match, or beat. Faster bidding option available to sellers willing to set reserve prices – minimum selling price Auction unsuccessful if not bid meets reserve price When auction complete, seller and winning bidder notified, and decide on methods of payment and delivery 11 ICS 622 - Internet Technologies & Applications 09 September 2020

Portal Model Portal sites give chance for visitors to find anything 12 they are looking for in one place. Provide news, sports, weather and ability to search Web Search engines are horizontal portals - aggregate information on abroad range of topics. Vertical portals - other portals more specific, offering information pertaining to a single area of interest Online shopping popular feature of many major portals Examples: ICS 622 - Internet Technologies & Applications 09 September 2020 About. com, Altavista. com and Yahoo. com

Name-Your-Price Model Empowers customers by allowing them to state 13 price they are willing to pay for products and services e-businesses that offer this service form partnerships with leaders of industries: travel, lending and retail etc Online business passes customer’s price request to an appropriate industry partner, who decides whether to sell the product or service at stated price Customer whose price is rejected can offer another price If price accepted, customer obligated to make ICS 622 - Internet Technologies & Applications 09 September 2020 purchase

e-Marketing Competition is intense in e-business & commerce world Solid e-marketing strategy can give a company an advantage There are various components of marketing campaign such as: Marketing research, Advertising, Promotions, Branding and Public relations (PR) 14 ICS 622 - Internet Technologies & Applications 09 September 2020

Branding Brand is typically defined as a name, logo or symbol that identifies a company’s products or services Should be unique, recognizable and easy to remember Brand equity includes value of tangible and intangible items, such as: brand’s monetary value over time, customer perceptions and customer loyalty to a company and its products or services Businesses that already have a solid brand may 15 find it easier to transfer their brand to the Internet ICS 622 - Internet Technologies & Applications 09 September 2020 Internet-only businesses must strive to develop a

Marketing Research Can help company develop its marketing mix, includes: product/service details and development, effective pricing, promotion and distribution. Traditionally, marketing research consisted of 16 focus groups, interviews, surveys, questionnaires & secondary research Research can now be performed over the Internet A faster channel through which to find analyze industry, customer & competitor information ICS 622 - Internet Technologies & Applications Internet also provides anonymous setting to hold 09 September 2020

e-Mail Marketing E-mail marketing provide an inexpensive and effective method of targeting potential customers Marketer should define span of people they are targeting including geographic locations & demographic profiles Should determine level of personalization of campaign Personalized direct e-mail targets consumers: Using their names, offering right products at the right time and sending special promotions on basis interests 17 ICS 622 - Internet Technologies & Applications 09 September 2020

e-Mail Marketing … Mailing lists can help marketers target customers through personalized e-mail However, it is important to avoid flooding customers with promotional e-mail. Excessive correspondence can decrease effectiveness of an e-mail campaign 18 ICS 622 - Internet Technologies & Applications 09 September 2020

Promotions Can attract visitors to a site & influence their purchasing Promotions can also be used to increase brand loyalty through reward programs Examples: Frequent-flyer miles, point based rewards, discounts, sweepstakes, free trials, free shipping and e-coupons Promotions are an effective way to establish 19 contact with potential customers; but Important to ensure customers are becoming loyal to company, rather than to promotion/rewards ICS 622 - Internet Technologies & Applications 09 September 2020 program

Electronic Advertising E-business advertising conducted through such 20 media as television, movies, newspapers and magazines and online Establishes & strengthens e-business branding Publication of URLs on mailings, business cards, billboards, printed materials & other media increase brand awareness, bringing more visitors to a site Internet quickly becoming important medium through which to market companies, products and services ICS 622 - Internet Technologies & Applications Online advertising include the placement of links 09 September 2020

Search Engines Search engine is a program that scans Web sites for desired content, listing relevant sites on basis of keywords or other ranking criteria Ranking an important way to bring new visitors to a site Method used by a search engine to rank a site determine how close to the top a site appears on search results Businesses can customize and register their sites to improve their positions in search-engine results 21 ICS 622 - Internet Technologies & Applications 09 September 2020

Online Payments Secure EFT is crucial to e-commerce Methods for conducting online transactions include: Credit-card payments, Digital cash and e-wallets, Smart cards, Micropayments and Electronic bill presentment 22 ICS 622 - Internet Technologies & Applications 09 September 2020

Credit-Card Payment Credit cards are a popular form of online payment Many people resist them because of security 23 concerns Customers fear fraud by merchants and third parties However, most cards, like Visa Master Card & American Express, have features that allow secure online payments To accept credit-card payments, a merchant must have an account with a bank Traditional accounts accept only POS transactions 09 September 2020 ICS 622 - Internet Technologies & Applications However, growth of e-commerce has resulted in

Credit-Card Payment These consist of card-not-present (CNP) transactions For example: When users make credit-card purchases through Internet, they can provide card numbers and expiration dates, but merchant does not see actual cards involved in transactions Merchant account established through either a bank or a third-party service 24 ICS 622 - Internet Technologies & Applications 09 September 2020

Digital Cash and e-Wallets Digital cash is one example of digital currency Stored electronically & can be used to make online electronic payments Digital-cash accounts are similar to traditional bank accounts; consumers deposit money into digital-cash accounts for use in digital transactions Often, digital cash used in conjunction with other payment technologies, such as digital wallets Provides payment alternative for customers with security concerns regarding online credit-card transactions Digital cash also allows people without credit cards to shop online 25 ICS 622 - Internet Technologies & Applications 09 September 2020

Micropayments Merchants required to pay fee for each card transaction Costly when customers purchase inexpensive items Sometimes, cost of item is lower than standard transaction fee, causing merchant to incur losses Micropayments enable ways for nominally priced products and services to be sold profitably over the Web Examples: music, pictures, texts or videos 26 To offer micropayment processing some 09 September 2020 ICS 622 - Internet Technologies & Applications companies form partnerships with telephone

Smart Cards Smart card generally looks like a credit card Can serve many different functions, from authentication to data storage. Most popular are memory cards & microprocessor cards Memory cards are similar to floppy disks Microprocessor cards are similar to small computers, with operating systems, security and storage 27 ICS 622 - Internet Technologies & Applications 09 September 2020

Smart Cards Smart cards also have different interfaces with which they interact with reading devices One type of interface is contact interface, in which a smart card is inserted into a reading device and physical contact between the device and the card is necessary. Alternative is contactless interface: data transferred to a reader via an embedded wireless device in the card, without card and device having to make physical contact 28 ICS 622 - Internet Technologies & Applications 09 September 2020

Legal Issues Internet has posed significant challenges to legal system of many counties For example: file-sharing technology enables widespread copyright infringement while Website personalization mechanisms threaten consumers’ privacy 29 ICS 622 - Internet Technologies & Applications 09 September 2020

Privacy Internet companies collect personal information from users as they navigate through a site Privacy advocates argue that such efforts violate individuals’ privacy rights Online marketers and advertisers disagree, suggesting that recording of user behavior & preferences helps online companies to better serve customers 30 ICS 622 - Internet Technologies & Applications 09 September 2020

31 Privacy … Also affects companies’ relationships with employees Many businesses are implementing systems that regulate employee efficiency in the workplace One of the newest surveillance technologies, keystroke cops, monitors employee activities on corporate and communications equipment. Keystroke software is loaded onto hard drive of an employee’s computer, or can be sent to an unsuspecting employee as an e-mail attachment. Once activated, software registers each keystroke before it appears on the screen. ICS 622 - Internet Technologies & Applications 09 September 2020

SPAM Spamming is sending mass e-mails to people who 32 have not expressed interest in receiving such emails. Today, typical Internet user or e-mailer may receive hundreds of spam e-mails per day Work in progress to construct legislation that puts an end to these unsolicited e-mails Spam has privacy concerns based not only on sheer volume but also the content of the e-mails Consumers and businesses are affected by decrease in e-mail server productivity due to mass e-mails received ICS 622 - Internet Technologies & Applications 09 September 2020

Copyright and Patents Copyright is protection given to author of an original work, including: “literary, dramatic, musical, artistic and intellectual works” Whether the work has been published or not Copyright protects only the expression or form of an idea, not the idea itself. Copyright protection provides incentive to creators of original material by guaranteeing them ownership of their work for a given time 33 ICS 622 - Internet Technologies & Applications 09 September 2020

Copyright and Patents Concerns raised regarding ability of traditional law to protect IP owners from online infringement This is because of the ease with which material can be reproduced on the Internet. To complicate the issue, digital copies are perfect duplicates of digital originals, making it difficult to differentiate authorized copies from pirated ones. One of most heavily debated areas of infringement and protection lies in sharing and distribution of music files (MP 3 s) and movies over Internet 34 ICS 622 - Internet Technologies & Applications 09 September 2020