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Chapter 6

Chapter 6. E-Commerce. Agenda. What is E-Commerce? Business to Business Business to Customer Business to employee Infrastructure Problems. What is E-Commerce?.

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Chapter 6

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  1. Chapter 6 E-Commerce

  2. Agenda • What is E-Commerce? • Business to Business • Business to Customer • Business to employee • Infrastructure • Problems

  3. What is E-Commerce? “Electronic commerce is the exchange of products, services, information, or money with the support of computers and networks. It is business done on-line.”

  4. Terminology From narrowest to broadest: • E-Shopping • E-Business • E-Commerce • E-Economy • E-Culture

  5. Types of E-Commerce • Business to Business • 80% of dollar volume • $7.29 trillion by 2002 • Business to Customer • 20% of dollar volume • $10 billion by 2002

  6. Benefits • Improve internal operations • Decrease operating expenses • Eliminate middlemen

  7. Internal Operations • Smaller inventory • JIT manufacturing • Customize products • Automatic billing • Electronic collections

  8. Operating expenses • Lower overhead • Location is irrelevant • Eliminate paperwork • Reduce cycle time • Produce greater variety at the same cost

  9. Middlemen • Eliminate transfer costs • Only used when adding value to product or service • Travel Agent? • Stock Broker? • Retail Store?

  10. Amazon.com • On-line book-store • Expanding services • No physical plant • No inventory • Negative asset intensity • Customer pays for books (which they don’t have) up front

  11. Problems • Data & system incompatibility • Privacy • Bandwith • Cybercrime

  12. Data & System Incompatibility • Information glut • Slow to find anything • No standards • No search content consistency • Delivery structure: one to one (customer) not one to many (wholesale)

  13. Bandwith • Twisted copper wire • Analog • Reverting to • Fiber optics • Satellites • Digitization

  14. Cybercrime • Credit cards • Electronic money • Authentication

  15. Agenda • What is E-Commerce? • Business to Business • Business to Customer • Business to employee • Infrastructure • Problems

  16. Channels • Internet • Extranet • Private networks • Electronic data interchange (EDI)

  17. Benefits • Internal process • Business reengineering • Enterprise model • Alliance

  18. Internal Processes • Reduce paper output • Improve accuracy • Increase throughput • Errorless transactions input per day

  19. Reengineering • Reduce cycle time • Order to customer receipt • Reduce in labor costs • Reduce open accounts-receivable days • Cash flow

  20. Enterprise Models • Increase productivity • Increase cash flow • Increase product quality • Increase customer service and satisfaction

  21. Alliances • Increase efficient • Increase market share • Increase profitability

  22. Agenda • What is E-Commerce? • Business to Business • Business to Customer • Business to employee • Infrastructure • Problems

  23. Uses • Direct sales • Product • Service • Information • Brand enhancement • Cross sales

  24. Know You’re There • Critical mass Internet customer growth • Off Internet advertising • TV commercials • Magazines

  25. Finding You • Gateway ads (AOL) • Search engines • Portal sites • Major advertisers

  26. Holding attention • “3 click” rule • Site thickness • Chat rooms • Frequent ask question page • Dark page • Telephone no. • Convenient navigation path

  27. Return Next Time • Satisfaction with first time • Offering something new for next visit

  28. Attributes of an Offer • S. Davis and C. Meyer, Blur (Warner Books, 1999) • Products and services are blending (blurring) • Result is an “offer” • Authors list 10 attributes of a successful offerin future

  29. Offer Attributes • Anytime • Real time • Online • Interactive • Anyplace

  30. Offer Attributes • Learning • Anticipating • Filtering • Customizing • Upgrading

  31. Agenda • What is E-Commerce? • Business to Business • Business to Customer • Business to employee • Infrastructure • Problems

  32. Intranet • Usages • E-mail • Workflow • Education • Communication • Collaboration

  33. Benefits • Productivity • Cost • Knowledge • Convenient

  34. Agenda • What is E-Commerce? • Business to Business • Business to Customer • Business to employee • Infrastructure • Problems

  35. Infrastructure • Networks • Web servers • Supporting tools • Tracking software, database connectivity, electronic form, on-line discussion group, etc. • Internet access components • Protocols, browser • Web page design • Transaction processing system

  36. Agenda • What is E-Commerce? • Business to Business • Business to Customer • Business to Employee • Infrastructure • Problems

  37. Problems - Payment • Security • Privacy • Micropayment • Inconvenience • Imcompatibility

  38. Countermeasures • Encryption & decryption • Private key & public key • Digital signature • Electronic certificates • Secure electronic transaction protocol (SET)

  39. Points to Remember • What is E-Commerce? • Business to Business • Business to Customer • Business to Employee • Infrastructure • Problems

  40. Discussion Questions • What are the impacts of e-commerce on the issues of human, social, and legal? • Does your organization have a e-commerce? What type? • What will it take for the general public (or you) to feel reasonably comfortable with using credit cards over the Internet?

  41. Discussion Questions • What is the future of e-business? • What is the future of e-education?

  42. Assignment • Review technology guides 1,2,4 & chapters 1- 6 • Read chapter 7 • Exam 1 • Group Assignment • Research paper

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