Transcript
Principles of Information Systems, Sixth Edition
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Electronic Commerce
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Chapter Outline
• An Introduction to Electronic Commerce
• E-Commerce Applications• Technology Infrastructure• Electronic Payment Systems• Threats to E-Commerce• Strategies for Successful e-
Commerce
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An Introduction to Electronic Commerce
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Introduction to Electronic Commerce
• Most common types of e-commerce:• Business-to-consumer (B2C) e-
commerce• Business-to-business (B2B) e-
commerce• Consumer-to-consumer (C2C) e-
commerce
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Multistage Model for E-commerce
• 1. Search and identification
• 2. Selection and negotiation
• 3. Purchasing products and services electronically
• 4. Product and service delivery
• 5. After-sales service
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Multistage Model for E-commerce
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Product and Service Delivery
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E-Commerce Model
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E-Commerce Challenges
• Changing distribution systems & work processes
• Split-case distribution• Integrating web-based order processing
with traditional systems
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The E-Commerce Supply Chain
• Supply chain management– Demand planning– Supply planning– Demand fulfillment
• Increased revenues and decreased costs
• Improved customer satisfaction• Inventory reduction across the supply
chain
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The E-Commerce Supply Chain
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Supply Chain Management
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Business-to-Business
• Allows manufacturers to buy at low price worldwide
• Enterprise can sell to a global market
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Global E-Commerce
• Steps in localization– recognizing and conforming to the
nuances, subtleties, and tastes of local cultures
– supporting basic trade laws such as each country’s currency, payment preferences, taxes, and tariffs
– ensuring that technological capabilities match local connection speeds
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Global E-Commerce
• Determine which global markets make the most sense for selling products or services on-line
• Decide whether Web content should be generated or updated centrally or locally
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E-Commerce Applications
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Retail and Wholesale
• Electronic retailing
• Cybermalls
• Wholesale e-commerce: B2B
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Manufacturing
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Marketing
• Market segmentation
• Technology-enabled relationship management
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Investment and Finance
• On-line stock trading
• On-line banking– Electronic bill presentment
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Investment and Finance
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Investment and Finance
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Technology Infrastructure
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Technology Infrastructure
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Hardware
• Storage capacity– Software– Volume of e-commerce
transactions• Website hosting
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Web Server Software
• Security and identification– Denial of service attack
• Web site tracking– Web log file
• Web site development tools• Retrieving and sending Web pages• Web page construction software
– Static Web page– Dynamic Web page
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E-Commerce Software
• Catalog management• Product configuration• Shopping cart
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E-Commerce Transaction Processing
• Automates transaction processes from order placement to reconciliation
• Web traffic data analysis
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Electronic Shopping Cart
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Network and Packet Switching
• All e-commerce depends on a type of network to securely transmit data– Internet– Extranet– Value-added network (VAN)– Virtual private network (VPN)
• All EC approaches rely on packet switching and use routers
• Cost, availability, reliability, security, and redundancy must be considered when choosing a network
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Electronic Payment Systems
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Electronic Payment Systems
• Digital certificates– Certificate authority– Secure sockets layer (SSL)
• Electronic cash• Electronic wallets• Smart, credit, charge, and debit cards
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Threats to E-Commerce
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Threats to E-Commerce
• E-commerce incidents
• Theft of intellectual property– Patents on business processes
• Fraud
• Privacy Issues
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Fraud
• On-line auction fraud
• Spam
• Pyramid schemes
• Investment fraud
• Stock scams
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Invasion of Consumer Privacy
• On-line profiling
• Clickstream data
• Safe harbor principles
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TRUSTe Seal
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BBB On-line Privacy Seal
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How to Protect Your Privacy While On-Line
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Strategies for Successful E-Commerce
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Developing an Effective Web Presence
Visitors to a web site should be able to:
• Obtain general information about the organization
• Obtain financial information for making an investment decision
• Learn the organization’s position on social issues
• Learn about the products or services that the organization sells
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Putting up a Web Site
• Web site hosting services
• Storefront brokers
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Building Traffic to Your Web Site
• Domain names
• Meta tags
• Traffic data analysis
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Maintaining and Improving Your Web Site
• Be alert to new trends
• Be prepared to take advantage of new opportunities
• Personalization
– Explicit
– Implicit
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Summary
• E-commerce - enables consumers and companies to gain access to worldwide markets
• Electronic retailing (e-tailing) - the direct sale from business-to-consumer through electronic storefronts designed around an electronic catalog and shopping cart model
• E-commerce shoppers - must be on constant guard to protect their rights, security, and personal privacy
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Principles and Learning Objectives
• E-commerce is a new way of conducting business, and as with any other new application of technology, it presents both opportunities for improvement and potential problems.– Identify several advantages of e-commerce.– Outline a multistage model that describes how e-
commerce works.– Identify some of the major challenges companies
must overcome to succeed in e-commerce.– Identify several e-commerce applications.
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Principles and Learning Objectives
• E-commerce requires the careful planning and integration of a number of technology infrastructure components.– Outline the key components of technology
infrastructure that must be in place for e-commerce to succeed.
– Discuss the key features of the electronic payments systems needed to support e-commerce.
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Principles and Learning Objectives
• Users of the new e-commerce technology must take safeguards to protect themselves. – Identify the major issues that represent significant
threats to the continued growth of e-commerce.
• Organizations must define and execute a strategy to be successful in e-commerce. – Outline the key components of a successful e-
commerce strategy
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End of Chapter
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