ECommerce Fundamentals and Applications Chapter 11 ConsumerOriented ECommerce

E-Commerce: Fundamentals and Applications Chapter 11 : Consumer-Oriented E-Commerce ________________________________________________________ E-Commerce: Fundamentals and Applications 1 Wiley and the book authors, 2001

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 ________________________________________________________ E-Commerce: Fundamentals and Applications 2 Wiley and the book authors, 2001

Selling of Different Types of “Goods” ________________________________________________________ E-Commerce: Fundamentals and Applications 3 Wiley and the book authors, 2001

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 ________________________________________________________ E-Commerce: Fundamentals and Applications 4 Wiley and the book authors, 2001

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. ________________________________________________________ E-Commerce: Fundamentals and Applications 5 Wiley and the book authors, 2001

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 ________________________________________________________ E-Commerce: Fundamentals and Applications 6 Wiley and the book authors, 2001

Benefits of e-retailing To the Customer § § § convenience better information competitive pricing customization shopping anywhere, anytime ________________________________________________________ E-Commerce: Fundamentals and Applications 7 Wiley and the book authors, 2001

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 ________________________________________________________ E-Commerce: Fundamentals and Applications 8 Wiley and the book authors, 2001

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 ________________________________________________________ E-Commerce: Fundamentals and Applications 9 Wiley and the book authors, 2001

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 ________________________________________________________ E-Commerce: Fundamentals and Applications 10 Wiley and the book authors, 2001

Future of e-retailing Two major trends : § Technologies that help you see and experience the product better §e. g. virtual reality, Java 3 D etc. § 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. ________________________________________________________ E-Commerce: Fundamentals and Applications 11 Wiley and the book authors, 2001

Three-Stage Modeling of Software Engineering Process Analysis Real World Implementation Design Conceptual model Software Structure Model Code Model ________________________________________________________ E-Commerce: Fundamentals and Applications 12 Wiley and the book authors, 2001

The Emergent Business Model as the Basis of Ecommerce 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" ________________________________________________________ E-Commerce: Fundamentals and Applications 13 Wiley and the book authors, 2001

Emergent Business Model for E-Commerce Business Development Old economy business model Emergent (or E-Business model) e-commerce processes ________________________________________________________ E-Commerce: Fundamentals and Applications 14 Wiley and the book authors, 2001

Steps in developing e-commerce system The steps in the analysis, design and development of an ecommerce system: 1. 2. 3. 4. 5. 6. 7. 8. Develop description of existing business model Develop e-business model Develop Requirements Statement Choice of System Architecture and Implementation Platform(s) Carry out design to develop Software Structure Model Develop detailed design Programming and customizing the System Testing and piloting the e-commerce system ________________________________________________________ E-Commerce: Fundamentals and Applications 15 Wiley and the book authors, 2001

PASS n n Publicity Advertisements Sale/services Subscriptions ________________________________________________________ E-Commerce: Fundamentals and Applications 16 Wiley and the book authors, 2001