END BACKNEXT Introduction to e- Commerce Scope of e- Commerce E-Commerce Processes Electronic Payment Processes Section II E-Commerce Applications B2C.

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Introduction to e-CommerceScope of e-CommerceE-Commerce ProcessesElectronic Payment ProcessesSection IIE-Commerce ApplicationsB2C e-CommerceB2B e-CommerceE-Commerce Marketplaces

KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 8-1

Real World Cases

E-Commerce Success FactorsE-Commerce Success Factors• Selection and Value• Performance and Service• Look and Feel• Advertising and

Incentives• Personal Attention• Community Relationships• Security and Reliability

B2C e-CommerceB2C e-Commerce

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Real World Cases

How Traditional and Web Marketing Communications Differ in Supporting the Buying Process…

Buying Process

TraditionalMarket

Communications

WebMarket

Communications

•Television Ads•General Interest Magazines

•Buttons•Banners•Sponsorships

•Television Ads•General Interest Magazines

•Banners

•Niche Magazines•Collateral

•Microsites•Brochureware•Website

•Point-of-Sale Promotions

•Direct Marketing

•Daily Specials•Sweepstakes•First-time Order Incentives

•Product Experience

•Buyers Clubs

•e-Mail Alerts•Newsletters

Awareness Consideration Preference Purchase Loyalty


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Real World Cases

• One of the Biggest and Best Virtual Retailers

• Finally Making Profits• Quick Confirmation and

Order Processing• Adding Goods and Services• Wants to be a Next-

Generation Retail Commerce Portal

B2C e-CommerceB2C e-CommerceAmazon.Com: Tops in B2C Amazon.Com: Tops in B2C

Retailing Retailing

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Real World Cases

Steps in the Development of a Steps in the Development of a Web StoreWeb Store


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Real World Cases

Example of Prodigy.Biz SiteExample of Prodigy.Biz SiteB2C e-CommerceB2C e-Commerce

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Real World Cases

NTT/Verio Inc.: Website NTT/Verio Inc.: Website ManagementManagement


• One of the World’s Leading Web Hosting Companies

• Offers Complete Services to Web Retailers

• Guarantees 99.9% Uptime• 24x7 Server Monitoring and

Customer Support• Hosts more than 10,000 Web

Businesses

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Real World Cases

• The Wholesale and Supply Side of the Commercial Process

• Electronic Catalog Systems• Electronic Trading Systems• Electronic Data Interchange• Electronic Funds Transfer• Integrating Supply-Chain

Management with Customer Relationship Management

B2B e-CommerceB2B e-Commerce

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Real World Cases

B2B e-CommerceB2B e-CommerceCisco Systems: B2B Marketplace Cisco Systems: B2B Marketplace

SuccessSuccess• 70% of Product Sales Occur at

Their Website • Wide Variety of Service Offerings

in the Purchase Process• Regular Customers Linked to

Back-End Data Systems• Strong Post-Sale Customer

Support• Highly Successful and Widely Used

Implementation

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Real World Cases

B2B e-CommerceB2B e-Commercee-Commerce Marketplacese-Commerce Marketplaces–One-to-Many–Many-to-One–Some-to-Many–Many-to-Some–Many-to-Many

• e-Commerce Portals• Exchanges• Auctions• Market Makers• Infomediaries

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Real World Cases

Example of a B2B Web Portal

INTERNETINTERNET

INTERNETAUCTION

REVERSE AUCTION

LIVE MARKETSERVER

B2B WEB PORTAL1

CONTENT MANAGERSERVER

2 POST-TRADE MARKETHISTORY SERVER

4

MARKET GENERATORSERVER

3

BUYERS SELLERS


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Real World Cases

B2B e-CommerceB2B e-CommerceChemConnect and Heritage Services: ChemConnect and Heritage Services: Public and Private B2B ExchangesPublic and Private B2B Exchanges

• Public B2B Exchanges• ChemConnect – A Chemical

Exchange Online Auction• Much Quicker than any Other

Method• Private B2B Exchanges• Heritage Built Private Exchange

in their Own Web Portal• Private Exchanges Offer More

Control and Automates Processes

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Real World Cases

B2B e-CommerceB2B e-CommerceElectronic Data InterchangeElectronic Data Interchange

• EDI an Early Example of IT in e-Commerce

• EDI Over the Internet Using Secure VPNs is a Growing Application

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Real World Cases

Alternatives and Benefit Alternatives and Benefit Tradeoffs in Selecting an e-Tradeoffs in Selecting an e-Commerce System Commerce System

Spin-Off

(Banesandnoble.com)

In-HouseDivision

(OfficeDepot.com)

StrategicPartnership

(Rite Aid and Drugstore.com)

JointVenture

(KBtoys.com)Separation Integration

•Greater Focus

•More Flexibility

•Access to Venture Funding

•Established Brand

•Shared Information

•Purchasing Leverage

•Distribution Efficiencies


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Real World Cases

Clicks and Bricks in e-Clicks and Bricks in e-CommerceCommerce

e-Commerce Integration• E-Commerce a Part of

the Regular Business Plan

• Joint Ventures• Strategic Partnerships• Independent Spin-OffsE-Commerce Channel

Choices

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Real World Cases

E-Commerce Channel Development StrategiesE-Commerce Channel Development Strategies


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Real World Cases

Citigroup: From Failure to Success in Citigroup: From Failure to Success in e-Commerce Integration Strategiese-Commerce Integration Strategies

• Launch of e-Citi in 1977• Sought to Attract its Own Customers

Electronically Before Someone Else Did

• Extremely High Costs and had Numerous Problems and Failures

• Formed New Internet Operating Group in 2000

• By 2001 Online Customers Were Up 80% and 100 Websites Trimmed to 38 Saving $1 Billion


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Real World Cases

• Electronic Commerce• E-Commerce Issues• B2C E-Commerce• B2B E-Commerce

SummarySummary

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Real World Cases

KEY TERMSKEY TERMSClicks and Bricks

AlternativesE-Commerce ChannelE-Commerce Marketplaces

a. Auctionb. Catalogc. Exchanged. Portal

E-Commerce Success Factors

E-Commerce TechnologiesElectronic Commerce

a. Business-to-Businessb. Business-to-Consumerc. Consumer-to-Consumer

Electronic Data Interchange

Electronic Funds TransferEssential e-commerce

Processesa. Access Control and Securityb. Catalog Managementc. Collaboration and Tradingd. Content Managemente. Electronic Payment Systemsf. Event Notificationg. Profiling and Personalizingh. Search Managementi. Workflow Management

InfomediariesTrends in e-commerceWeb Store Requirements

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Real World Cases

Real World Case 1 eBay Inc.: Managing Success in a Dynamic Online Marketplace

Click to go toCase 1

Real World Case 2 Corporate Express: The Business Value of Integrating Customer and Supplier Procurement Systems


Optional Case StudiesOptional Case Studies

Real World Case 3 E-Trade and Wells Fargo: The Business Case for Clicks and Bricks e-Commerce

Real World Case 4 Providence Washington Insurance and Tharco: The Business Value of an Online Customer Interface



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Real World Cases

Decision Support Systems

Chapter 9

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Real World Cases

eBay Inc.: Managing eBay Inc.: Managing Success in a Dynamic Online Success in a Dynamic Online

MarketplaceMarketplace

1- Why has eBay become such a 1- Why has eBay become such a successful, fast growing, and successful, fast growing, and diverse online marketplace? Visit diverse online marketplace? Visit the eBay website to help you the eBay website to help you answer, and check out their answer, and check out their many trading categories, many trading categories, specialty sites, international sites, specialty sites, international sites, and other features.and other features.

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Return toChapter 8

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Real World Cases

Discussion Points Would Include: Discussion Points Would Include: • Buyers/Sellers Feedback

Rating System • eBay’s Fraud Policy• PayPal-Electronic eBay

Payments• Vortex-Draws

Products/Players • Expansion into B2C and B2B• User Voice in Decisions



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Real World Cases

2- Why do you think eBay has 2- Why do you think eBay has become the largest become the largest

online/offline seller of used online/offline seller of used cars, and the largest online cars, and the largest online

seller of certain other seller of certain other products, like computers and products, like computers and

photo equipment?photo equipment?



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Discussion Points Would Include: Discussion Points Would Include: • Kruse International Purchase

– Acquire not Start Marketplace– Requires a Different Strategy

• Include listings-Online AutoTrader.com LLC

• Arranged Insurance and Warranty Plans

• Established an Escrow Service• Established Shipping/Inspection

Services• B2C is Similar to C2C Selling



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3- Is eBay’s move from a pure 3- Is eBay’s move from a pure consumer-to-consumer consumer-to-consumer auction marketplace to auction marketplace to inviting large and small inviting large and small

businesses to sell to businesses to sell to consumers and other consumers and other

businesses, sometimes at fixed businesses, sometimes at fixed prices, a good long term prices, a good long term

strategy? Why or why not? strategy? Why or why not?



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Real World Cases

Discussion Points Would Include: Discussion Points Would Include: • Profitability to eBay• eBay’s Meets Shift in

Demand• eBay Maintains-Voice of the

Customer• IT Delivers Online System



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Real World Cases

Discussion Points Would Include: Discussion Points Would Include: • Profitability to eBay• eBay’s Meets Shift in

Demand• eBay Maintains-Voice of the

Customer• IT Delivers Online System• Trading Assistants

Impact on eBay



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Return toChapter 8

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Real World Cases

Corporate Express: The Corporate Express: The Business Value of Integrating Business Value of Integrating

Customer and Supplier Customer and Supplier Procurement Systems Procurement Systems

1- What is the business value to 1- What is the business value to Corporate Express of integrating Corporate Express of integrating its systems with the procurement its systems with the procurement systems of its customers?systems of its customers?

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Real World Cases



Discussion Points Would Include: Discussion Points Would Include: • Half of 75,000 Daily Orders

Electronically• Smallest of Corporate Express’

30,000 Customers– Log onto E-Way– Conduct Purchasing Transactions

• E-Way Checks Controls• Corporate Express Tailors Catalog

to User’s Practices• Buyer Time/Cost Savings

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2- What are the business benefits 2- What are the business benefits of Corporate Express’ E-Way of Corporate Express’ E-Way Web portal to its smaller Web portal to its smaller customers? Its larger customers?customers? Its larger customers?

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Smaller Companies:Smaller Companies:• Smallest of Corporate Express’

30,000 Customers– Log onto E-Way– Conduct Purchasing Transactions

• E-Way Checks Controls• Corporate Express Tailors

Catalog to User’s Practices• Buyer Time/Cost Savings

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Larger Companies:Larger Companies:• E-Way Integrated into the

Processing Fabric of Company

• Tailored Buyer’s Catalog • Buyer Time/Cost Savings

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Real World Cases



3- Should every business that 3- Should every business that has an e-commerce website has an e-commerce website integrate its systems with the integrate its systems with the procurement systems of its procurement systems of its business customers? Why or business customers? Why or why not? why not?

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Return toChapter 8

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Discussion Points Would Include: Discussion Points Would Include: • E-Commerce Web Site

Integrated System• Company Commitment to IT

Support• Current Customer Base

Breakdown

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Return toChapter 8

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Real World Cases



Discussion Points Would Include: Discussion Points Would Include: • E-Commerce Web Site

Integrated System• Company Commitment to IT

Support• Current Customer Base

Breakdown• Performance and

Scalability Issues Return toCases Page

Return toChapter 8

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Real World Cases

E-Trade and Wells Fargo: E-Trade and Wells Fargo: The Business Case for Clicks The Business Case for Clicks

and Bricks e-Commerce and Bricks e-Commerce

1- What lessons in business 1- What lessons in business strategy can be applied to strategy can be applied to

development of the e-development of the e-commerce channels of commerce channels of

other companies from the other companies from the experience of E-Trade?experience of E-Trade?

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Lessons that Could be Applied Lessons that Could be Applied Would Include: Would Include:

• Diversify With Selective Acquisitions

• Implement Cost Reduction Programs

• Business-not Internet-based



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Real World Cases



2- What is the business value 2- What is the business value of the C.E.O. online of the C.E.O. online

wholesale banking portal to wholesale banking portal to Wells Fargo?Wells Fargo?

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Real World Cases

Discussion Points Would Include: Discussion Points Would Include: • 25% Internet Recession

Growth-Wells Fargo’s • C.E.O. Banking Portal

Improved • Expose Clients-Sign up for

More • Focused on Customer

Want



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3- What can other 3- What can other companies learn from the companies learn from the successes and mistakes of successes and mistakes of

the Wells Fargo e-the Wells Fargo e-commerce system?commerce system?

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Real World Cases

Lessons Would Include: Lessons Would Include: • E-commerce Systems

Expensive• Internet Systems Allows

Cross Selling • Learn Customers Wants



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Real World Cases

Lessons Would Include: Lessons Would Include: • E-commerce Systems

Expensive• Internet Systems Allows

Cross Selling • Learn Customers Wants• Users Depend on

Successful E-commerce Site



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Real World Cases

1- What are the business 1- What are the business reasons why even “in a tight reasons why even “in a tight

budget year, e-commerce budget year, e-commerce projects have not lost their projects have not lost their appeal” and are still highly appeal” and are still highly ranked by IT leaders from ranked by IT leaders from

many companies?many companies?Return to

Cases Page

Providence Washington Providence Washington Insurance and Tharco: The Insurance and Tharco: The Business Value of an Online Business Value of an Online

Customer Interface Customer Interface

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Real World Cases

Business Reasons Would Include: Business Reasons Would Include: • Improving Order Taking

• Tuning the Sales Channel

• Creating Business Partner Portals

• Cost Reduction



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Real World Cases

2- What is the business value of 2- What is the business value of Providence Washington’s Providence Washington’s

extranet portal? Of Tharco’s extranet portal? Of Tharco’s Web-based order processing Web-based order processing

system?system?



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Real World Cases

Providence Washington’s:Providence Washington’s:• Speed Delivery-Weeks to

Minutes• Automated the Sales ProcessTharco’s:Tharco’s:• Interactive Web-based Ordering

System• Cost Savings• Reduces Errors• Provide Real-time Order System



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Real World Cases

3- What lessons on developing 3- What lessons on developing successful e-commerce successful e-commerce

projects for small businesses projects for small businesses can be gained from the can be gained from the

information in this case?information in this case?



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Real World Cases

• Improved Productivity/ Increased Revenues

• Check Financial Status of Vendors, etc.

• Allow Extra Time for Project Completion


Customer Interface Customer Interface Lessons for Small Business Would Include: Lessons for Small Business Would Include:

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Real World Cases

• Improved Productivity/ Increased Revenues

• Check Financial Status of Vendors, etc.

• Allow Extra Time for Project Completion

• Aggressively Market Project


Customer Interface Customer Interface Lessons for Small Business Would Include: Lessons for Small Business Would Include:

Return toCases Page

END BACKNEXT Introduction to e- Commerce Scope of e- Commerce E-Commerce Processes Electronic Payment Processes Section II E-Commerce Applications B2C.

Documents

e commerce scope of

web store b2c ecommerce

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