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strategy technologies

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E-C ommerce David Whiteley/McGraw -Hill, 2000 1

Chapter 15: The elements of e-Commerce

Aesth

etIc

Ef f e

ct

In

novation

Eas

eof

Use

Per

f or

mance

Search

Company

Cu stomer

Prod uct

Negotiation

Order

Af ter -sales

Comm unity

Payment

Delivery


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E lementsThe basic eleme ts:

e -S ho o a S erver User (customer) with a web Browser

I ter et co ectio

dditio al issues:VisibilityEase o f Use

rder rocessi

li e ayme tsS ecurityDelivery S ystems

f ter -S ales


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E lements

Internet

e-Shop

Store Systems

Customer

Browser Sear ch

Orders Payment

Delivery Af ter Sales


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e-VisibilityGetti the site oticed a d the o li e customersvisiti the store.

Ways o f advertisi a web rese ce a d etticustomers i throu h the door i clude:

S ite ameCo ve tio al dvertisi

ortalsMallsS earch Eng inesLinks

erso nal Recomme ndatio ns


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e-Visibility site nameThe surest way o f f inding a site is the url.

If the url is memorable the n the site is made:amazo n.com

se nsible sim le site name ca n be guessed byusers:

britishairways.com


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e-Visibility conventional advertising

An irony o f e -Commerce sites is the a are nt ur geto advertise them throu gh co nve ntional media.

Conve ntional advertisi ng of Inter net addresses hasa three f old e ff ect:

It boosts the ima ge o f the or ga nisatio n it givesa n air o f moder nity a nd high-tech;It lets the customer know that the or ga nisatio n has I nter net f acilities;

It ca n give users access via the url.


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e-Visibility mallsAn Inter net sho i ng mall models itsel f on the America n

sho i ng mall, a lot o f sho s, u nder o ne roo f with a leasa ntsho i ng atmos here.

The i nte ntion is to ge nerate i nterest a nd thus trade f or all thesho s.

An Inter net mall ca n rovide commo n services. ossibilitiesinclude:

S hared advertisi ng .Commo n f acilities.e -Cash.Commo n customer f iles.

The drawbac k of joining a mall is that, as f or a ny good retaillocatio n, the re nts ca n be hi gh.


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e-Visibility search enginesA search e ng ine is a sta ndard way to f ind a ny Inter net site a nd that

includes e -S ho s.

Finding a s eci f ic e -Commerce site may or may not be easy - asuccess f ul e -S ho could do with a eari ng in that to te n list o f hits.

The search e ng ines i ndex the web by:

Manual i ndexi ng ;Automatic I ndexi ng (web crawlers).

Crawlers loo k at:The < TITLE> ta g is a rime tar get.The is also chec ked a nd ma ny other as ects o f the site a nd its use,

Also o ne ca n as k the search e ng ine to list the site.

ote, the best o f the search e ng ines list o nly about 15% o f inter netsites.


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e-Visibility linksOnline adverts o n the web are also li nks to the site

hy ertext li nks.

Links are i ncluded o n a variety o f other sites with avariety o f deals bei ng do ne.


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e-Visibility personal recommendations

S atis f ied customers will boo kmar k the site, comebac k to the site a gain a nd recomme nd it to their

f riends ossibly the best way o f getti ng busi ness.


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The e-Shope -S ho s come i n all sha es a nd sizes.

They ra ng e f rom:A f ew sim le web a ges f or a local cra f tsma nCom lex sites o ff eri ng services that i nclude o nlineorderi ng a nd ayme nt

The f ull service e -S tore needs: a n exte nsive ra ng e o f f acilities;these i nclude:

Com a ny inf ormatio nCustomer re gistratio nDynamic web a gesS ite i ndexes a nd search f acilitiesOnline order e ntry a nd ayme nt systemsS o histicated security rotectio n systemsAf ter sales service a nd su ort

Feedbac k systems


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The e-Shop online information

Trust is a n issue o n the I nter net a nd it is not a n issue that is li kely to go away.

Trust ca n be e ng e ndered by:Bra nd name a nd tradi ng record.A site that gives a ro f essio nal ima ge.The i nclusio n of com a ny inf ormatio n.

All of this does not rove that a site is ge nuine but itca n reassure ote ntial customers.


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The e-Shop customer registration

e -C ommerce customers have to give their su liersdetails about themselves. It is less i nf ormatio n tha n would be required to o e n a ba nk accou nt but moretha n is normally needed to buy some cor nf lakes.

roviding this i nf ormatio n raises rivacy issues:Will the i nf ormatio n be ut to other uses?Will the e -Ve ndor com ile a customer ro f ile?Is the i nf ormatio n secure?

The co ntext i n which the e -C ommerce ve ndor as ksf or this i nf ormatio n is also im orta nt:

Customer re gistratio n rior to usi ng the siteCustomer details o nly whe n a n order is laced.


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The e-Shop site navigationif a site is not designed with usability in mind,

people will be frustrated with the site. People that are frustrated with the site dont bookmark, dont buy, dont revisit, and wont tell other people about the site.

(Rhodoes, 1999)

S ite navi gatio n is aided by:A site i ndex;

A site search e ng ine;Logical seque ncing of f acilities with clear li nks tothe next sta ge i n a ny rocess.


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The e-Shop product databaseThe use o f a roduct database f acilitates:

U dati ng of roducts a nd their attributesCommo n data f or e -S ho a nd bac k off ice

a nd requires the co nstructio n of the web a geon the f ly.

Exam les are:The Online Boo kshoThe Airline Website(inte grated with the airli ne boo king system)


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The e-Shop online ordersThe most commo n a nalo gy is a sho i ng bas ket i n the UK a nd a sho i ng cart i n the U S .

Ta ng ible goods are (electro nically) laced i n thebas ket a nd chec ked -out whe n sho i ng iscom lete.

For services, such as a n airline boo king , the searchrocess is also the sho i ng rocess a nd the

customer acce ts or rejects the resulti ng ro osal(s).


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O nline paymentsOp tions f or o nline payme nt are:

Credit CardsDebit CardsS tored Value Cardse -C ashDelayed ayme nts

ote, i n a sho p there is a n excha ng e o f value online it is pay now a nd ho pe that the goods arrivelater.


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O nline Payments credit cardsOp tions f or o nline payme nt:

The most commo n way o f paying f or a n e -C ommerce tra nsactio n is with a credit card.The o nline use o f credit cards is a n exte nsio n of the customer not prese nt (CNP ) protocol

which is i ntrinsically less secure tha n theco nve ntional use.

P ote ntial problems i nclude:

Fraudule nt Use o f Credit CardsInterce p tion of Credit Card DetailsRemote S tora ge o f Credit Card Details


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O nline PaymentsD ebit Cards

S imilar to Credit Cards but less secure.

Stored Value CardsNot widely used f raud limited to value o n card

requires a card reader.

e-CashS uitable f or small payme nts as yet noge nerally acce p ted scheme.

D elayed PaymentsO ff-line payme nts - limited acce p ta nce normally delays tra nsactio n.


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D elivery of Goods (e- fulfilment)

For the delivery sta ge o f the trade cycle the tas k of delivery is tra ns f erred f rom the retail customer tothe ve ndor a nd the ve ndor ge nerally f inds itnecessary to recou p those costs as deliverychar ges.

Delivery issues:cost p icking , posti ng a nd pac ka gingtrust will the ri ght goods be se nt?security does someo ne have to be at home to

acce p t delivery?

Online grocery deliveries wor k to boo ked deliveryslots o f te n a day or two later.


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A fter Sales Adva nta ges:

Online ma nuals a nd dia gn osticsOnline S upp ort

P roblem areas:Retur n of goods


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Internet e-Commerce SecurityS ecurity breaches ca n occur o n:

The customer side im perso natio n.The I nter net hac king , etc.The ve ndor side i na pp ropriate or disho nesttrade.


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Internet e-Commerce SecurityThe four pillars of secure e-Commerce:

Authe nticatio n:The se nder o f a docume nt must be ide ntif ied precisely a ndwithout a ny possibility o f f raud;

Conf ide ntiality:

The co nte nts o f a messa ge may not be sca nn ed byunauthorised parties;

Inte grity:Cha ng es made i n messa ges without accordi ng remar ksmust be im possible;

Non-Re pudiatio n:The se nder o f a messa ge is directly co nn ected to theco nte nts o f the messa ge (a nd the reci p ient ca nn ot de nythat the messa ge was received).


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Security - encryptionEn cry p tion is the co nversio n of data i nto a code sothat it ca nn ot be read by u nauthorised users.

The data is co nverted i nto the code by the se nder a nd the n decoded by the receiver.

Moder n e ncry p tion methods use a n e ncry p tion algorithm a nd a bi nary number that is the key. Themai n op tions are:

S ecret key system

P ublic key / private key system.

En cry p tion should be used f or tra nsmissio n but alsof or customer data o n the e -Ve ndors server.


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Security Secure Sockets Layer (SSL)

The sta ges are:The ve ndor tra nsmits the public key ( ka) to theinte nding customer's web browser.

The customers browser ge nerates a secret key(kc) f or the sessio n.

The customers browser e ncryp ts the secret key(kc), usi ng the public key ( ka) a nd tra nsmits it tothe ve ndor.

The ve ndor decodes the messa ge usi ng aprivate key ( kb) a nd now has the secret key ( kc).

Further i ntercha ng es betwee n the customersbrowser a nd the ve ndors server ca n now bee ncoded a nd decoded usi ng the secret key ( kc).


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Security digital signatures

A digital si gn ature is used to authe nticate these nder o f the messa ge a nd to chec k the i nte grity o f the messa ge, i.e. that it has not bee n altered i n tra nsit.


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Chapter 15 Ex ercise 1

S elect two cate gories o f goods, f or exam p legroceries a nd boo ks, a nd list the adva nta ges a nddisadva nta ges to you o f orderi ng these products

online. The lists ca n be com pared across a grou p of stude nts a nd the di ff ere nces a nalysed.


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Chapter 15 Ex ercise 2Use the Web S ite Evaluatio n Model a nd theassociated questio ns f rom S ectio n 15.7 to evaluatea cou p le o f web sites.

For this evaluatio n use two web sites f rom the samesector, possibly o ne o f the sectors used i n Exercise 1.

Com pare the results o f the two evaluatio ns a ndcom pute a n overall score f or each o f the sites.

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