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Electronic Commerce Systems

Learning Objectives. Identify the major categories and trends of e-commerce applicationsIdentify the essential processes of an e-commerce system, and give examples of how they are implemented in e-commerce applications.Identify and give examples of several key factors and Web store requirements ne

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Electronic Commerce Systems

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    1. Chapter 8 Electronic Commerce Systems

    2. Learning Objectives Identify the major categories and trends of e-commerce applications Identify the essential processes of an e-commerce system, and give examples of how they are implemented in e-commerce applications. Identify and give examples of several key factors and Web store requirements needed to succeed in e-commerce.

    3. Learning Objectives Identify and explain the business value of several types of e-commerce marketplaces. Discuss the benefits and trade-offs of several e-commerce clicks and bricks alternatives.

    4. Case 1: eBay versus Google and Microsoft: The Competitive Battle for e-Commerce Supremacy eBay enjoyed virtual monopoly in online auction for almost a decade. Now it is facing competition from Google & Microsoft. Analysts think that search and advertising will define the future of e-Commerce. Windows Live Expo is Microsofts competitive weapon in its battle with eBay and Google for the online classifieds market. eBay is addressing these challenges by acquiring companies like Skype, Shopping.com, and other international classified sites.

    5. Case Study Questions Do you agree with Google and Microsoft that eBay is now vulnerable to their assaults via Google Base and Windows Live Expo? Why or why not? What are the major advantages and limitations of Google Base and Windows Live Expo? Which do you prefer, or would you use both? Why? Go to their Internet Web sites and read reviews at other sites to help you answer.

    6. Case Study Questions Are eBays development of Kijiji, acquisition of Skype, alliance with Yahoo, and other acquisitions as noted in this case enough to ward off the competitive assaults of Google and Microsoft? Defend your position.

    7. Real World Internet Activity Go to the Internet to discover the latest developments in eBays auctions performance and its use of its acquisitions in its battle for the online classifieds market with Google and Microsoft. Have any new entrants appeared to seriously challenge these major players, including Craigslist? Which players appear to be the winners and losers in this competition? Defend your position to the class.

    8. Real World Group Activity Personalized online classifieds Web pages that are accessible to others online have a great potential for serious security, privacy, fraud, and spam assaults by online criminals, hackers, and spammers. Use the Internet to research how the companies in this case are protecting users of their products from such assaults. Discuss this issue, your research results, and other steps that users and the companies could take to improve the security of online classifieds.

    9. Electronic Commerce More than just buying and selling products online Includes the entire online process of Developing, marketing, selling, delivering, servicing and paying for products and services Transacted on the internetworked global marketplaces of customers With the support of a worldwide network of business partners

    10. Processes involved in E-commerce

    11. E-commerce technologies

    12. Categories of e-Commerce Business-to-Consumer (B2C) businesses develop attractive electronic marketplaces to sell products and services to consumers Business-to-Business (B2B) involves both electronic business marketplaces and direct market links between businesses Consumer-to-Consumer (C2C) online auctions where consumers can buy and sell with each other There is also Business-to-Government (B2G) and e-government applicationsThere is also Business-to-Government (B2G) and e-government applications

    13. Essential e-commerce process architecture Processes are typically used in e-commerce applications but can also be used in internal non-commerce e-business applicationsProcesses are typically used in e-commerce applications but can also be used in internal non-commerce e-business applications

    14. Access Control and Security E-commerce processes must establish mutual trust and secure access Between the parties in an e-commerce transaction By authenticating users, authorizing access, and enforcing security features

    15. Profiling and Personalizing Gather data on you and your website behavior and choices Build electronic profiles of your characteristics and preferences Profiles are used to recognize you and provide you with a personalized view of the contents of the site with product recommendations and personalized advertising One-to-one marketing strategy

    16. Search Management Search processes that helps customers find the specific product or service they want to evaluate or buy

    17. Content and Catalog Management Content Management software that helps e-commerce companies develop, generate, deliver, update, and archive text data and multimedia information at e-commerce websites Catalog Management software that helps generate and manage catalog content May support customer self-service and mass-customization of products, e.g., Dell Computer configuration management E-commerce content is frequently in the form of multi-media catalogs. So catalog management is a subset of content management.E-commerce content is frequently in the form of multi-media catalogs. So catalog management is a subset of content management.

    18. Workflow Management Software that helps employees electronically collaborate to accomplish structured work tasks within knowledge-based business processes Ensure proper transactions, decisions, and work activities are performed and the correct data and documents are delivered to the right employee, customer, or supplier

    19. Catalog/content management and workflow example

    20. Event Notification Most e-commerce applications are event-driven Respond to events such as customers first website access, payment, delivery Event notification software monitors e-commerce processes Records all relevant events including problem situations Notifies all involved stakeholders

    21. Collaboration and Trading Processes that support the vital collaboration arrangements and trading services Needed by customers, suppliers, and other stakeholders Online communities of interest E-mail, chat, and discussion groups Enhance customer service and build customer loyalty Help support a customer-focused business (refer back to chapter 2)Help support a customer-focused business (refer back to chapter 2)

    22. Electronic Payment Processes Web Payment Processes Shopping cart process Credit card payment process Other more complex payment processes Electronic Funds Transfer (EFT) Capture and process money and credit transfers between banks and businesses and their customers

    23. Secure Electronic Payment Example

    24. Securing Electronic Payments Network sniffers Software that recognizes and intercepts credit card number formats Security measures to combat Encrypt (code and scramble) data between customer and merchant Encrypt credit card authorizations Take sensitive information off-line

    25. Case 2: Entellium, Digg, Peerflix, Zappos, and Jigsaw: Success for Second Movers in e-Commerce For many internet companies, the second-mover advantage seems even more substantial. Entellium is an example of a company that has successfully implemented a second mover strategy on the Web. The second-movers can use the same approach as first mover with better products and services at much lower cost. Another strategy is to use combinations of business models that are successful.

    26. Case Study Questions Is the second-mover advantage always a good business strategy? Defend your answer with examples of the companies in this case. What can a front-runner business do to foil the assaults of second movers? Defend your answer using the examples of the front-runner companies in the case. Do second movers always have the advantage in Web based business success? Why or why not? Evaluate the five strategies given in the case and the companies that used them to help defend your answer.

    27. Real World Internet Activity Use the Internet to research the current business status of all of the many companies in this case. Are the second movers still successfully using their strategies, or have the first movers foiled their attempts? Have new strong players entered the markets of the first and second movers, or have business, economic, or societal developments occurred to change the nature of competition in these markets?

    28. Real World Group Activity Assume you will start an Internet-based business similar to one of those mentioned in this case or another one of your choice. Would you be a first, second, or later mover in the market you select? How would you differentiate yourself from other competitors or prospective new entrants? Share your ideas and attempt to agree on the best Web-based business opportunity of the group.

    29. e-Commerce Trends

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