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Ch 9

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Barbara Andress

on 31 December 2013

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Transcript of Ch 9

e-Commerce Systems
Identify the major categories and trends of e-commerce applications.

Identify the essential processes of an e-commerce system, and give examples of how it is implemented in e-commerce applications.
Learning Objectives
Identify and give examples of several key factors and Web store requirements needed to succeed in e-commerce.

Identify and explain the business value of several types of e-commerce marketplaces.

Discuss the benefits and trade0ffs of several e-commerce clicks-and-bricks alternatives.
Learning Objectives
The Scope of e-Commerce
Electronic Commerce – the entire online process of developing, marketing, selling, delivering, servicing, and paying for products and services transacted on networked global marketplaces; more than just buying and selling online

e-Commerce – the online exchange of value; more than just buying and selling on the Internet
I. Introduction to e-Commerce
Includes marketing, discovery, transaction processing, product and customer service process, intranet and extranet access, and customer collaboration

e-Commerce Technologies – involves most information and Internet technologies
II. The Scope of e-Commerce
Categories of e-Commerce

Business-To-Consumer (B2C) e-Commerce – still small when compared with all online commerce
Consumer-To-Consumer (C2C) e-Commerce – online auctions, online advertising of personal products and services
Business-To-Business e-Commerce – most of e-Commerce is here
Business-To-Government (B2G) e-Commerce
II. The Scope of e-Commerce
What is Web 2.0?
What is Web 2.0 not?
What does Web 2.0 provide?
Forrester: Web 2.0 Has a Bright Future
Access Control and Security – secure access between parties to assure trust

Profiling and Personalizing – processes that gather data on you and your behavior to provide personalized service; this may raise ethical issues

Search Management – effective and efficient search processes are required for a good Web site; there are more than 30 different search engines on the Internet
III. Essential e-Commerce Processes
III. Essential e-Commerce Processes
Content and Catalog Management
helps e-commerce firms develop, generate, deliver, and archive text and multimedia data
works with profiling tools
may include product configuration to support customer self-service and mass customization

Workflow Management – ensure proper transactions, decisions, and work activities are performed, and documents distributed correctly
III. Essential e-Commerce Processes
PleoWorld Innvo Labs
Event Notification – monitor all e-commerce processes and record all relevant events; most e-commerce applications are event-driven and respond to things that happen (events)

Collaboration and Trading – a major category of e-commerce; processes consist of collaboration and trading services needed by various stakeholders
III. Essential e-Commerce Processes
What is “an abandoned cart”?
Why might a customer fail to complete a purchase?
What tools encourage a customer to complete the transaction?
e-Commerce Tools to Close the Deal
What was the weakness in the original Website?
How did the new Website improve that?
What other benefits did the new Website provide?
Innvo Labs: Automated e-Commerce Processes
Very complex due to the anonymous nature of electronic transactions

Web Payment Processes – most rely on credit card payment processes
Electronic Funds Transfer (EFT) – a variety of information technologies to capture and process money/credit transfers between banks, businesses, and customers
IV. Electronic Payment Processes
Secure Electronic Payment
Secure Electronic Payments – measures taken to ensure security of information in electronic payments

Encrypt data between customer and merchant

Encrypt data between customer and firm authorizing credit cards

Take sensitive information offline
IV. Electronic Payment Processes
A Secure Electronic Payment System
IV. Electronic Payment Processes
e-commerce has changed how firms do business and is now defining how firms do business
e-Commerce Trends
I. Introduction
Attract potential customers, transact goods and services, build customer loyalty

e-Commerce Success Factors

Selection and Value – attractive products, competitive prices
Performance and Service – easy navigation and purchasing, prompt shipping and delivery
Look and Feel – attractive Website, multimedia catalog
Advertising and Incentives – targeted Webpage advertising, email promotions, discounts, special offers
II. Business-To-Consumer (B2C) e-Commerce
Top Retail Web Sites
Personal Attention – personalized Web pages and product recommendations, email notices, interactive support
Community Relationships – virtual communities and links to related Web sites
Security and Reliability – security of customer information and transactions, trustworthy product information, reliable order fulfillment
Great Customer Communications – easy-to-find contact information, online order status, product support
II. Business-To-Consumer (B2C) e-Commerce
E-Commerce Success Factors
Traditional Vs. Web Market Communications
II. Business-To-Consumer (B2C) e-Commerce
What service does Amazon provide through Facebook?
Why might this be a popular service?
What security issues could be a problem here?
Amazon.com: Partnering and Leveraging Infrastructure
What industry is Stork Craft in?
What partnership did they enter?
How do they market their products?
What benefits did this give them?
Stork Craft Manufacturing Helps Wal-Mart Canada
Most B2C e-commerce ventures are retail businesses on the Web; primary focus is to develop, operate, and manage the Website to attract and maintain customers for repeat sales
Getting Customers to Find You – customers must find you on the Web
Search Engine Optimization (SEO) – focus on improving the number/quality of visitors to a Web site
III. Web Store Requirements
Developing a Web Store
Serving Your Customers – a Web site should help serve customers personally and efficiently so they become loyal customers
Web Cookie File – a file stored on the customer’s computer with details about their visit to your Web site

Managing a Web Store – a Web store must be managed as both a Web site and a retail store
III. Web Store Requirements
What was the historical issue of luxury items?
What was the Net-a-Porter solution?
What issue was lost online and how did they address this?
Luxury Goes Digital: Fashion House Embraces Online Shopping
The wholesale/supply side of e-Commerce
IV. Business-To-Business (B2B) e-Commerce
What business is Avnet in?
What was the problem they faced?
What was the solution?
How has that solution worked out?
Avnet Tears Up the B2B e-Commerce Playbook
One-to-Many – sell-side marketplace – one major supplier dictates products and prices

Many-to-One – buy-side marketplace – many suppliers attempt to sell to one buyer

Some-to-Many – distribution marketplace – many suppliers combine catalogs to attract a larger audience of buyers
V. e-Commerce Marketplaces
B2B e-Commerce
Many-to-Some – procurement marketplace – buyers combine purchasing power to gain lower prices from suppliers

Many-to-Many – auction marketplace – used by many buyers and sellers
V. e-Commerce Marketplaces
A Sample B2B e-Commerce Web Portal
V. e-Commerce Marketplaces
What business is Spectrum Bridge in?
How do they make money in this industry?
What is the problem with this business and how are they trying to get around that problem?
SpecEx.com: B2B Trading of Wireless Spectrum
What are the lessons to be learned from the demise of Borders?
Discuss each lesson and what could have been done differently.
IT Lessons from the Demise of Borders
What did REI do with their Website?
Did it work? If so, how well?
What was the tricky part of making it all work?
REI: Scaling e-Commerce Mountain
Should virtual electronic business be combined with physical operations or kept separate?
e-Commerce Integration – the Internet is just another channel that gets plugged onto the business architecture
Other Clicks and Bricks Strategies – partial integration of e-commerce into the physical business operations, or complete separation of the two
e-Commerce Channel Choices – a marketing/sales channel created to conduct/manage e-commerce activities
VI. Clicks and Bricks in e-Commerce
An Integrated Vs. Separate e-Commerce Business
VI. Clicks and Bricks in e-Commerce
Checklist for Channel Development
Key Term:: E-commerce Channel
Key Term: E-Commerce Marketplaces

Key Term: Auction
Key Term: Catalog
Key Term: Exchange
Key Term: Portal
Key Term: e-commerce Processes
Key Term:: Access Control and Security
Key Term: Collaboration and Trading
Key Term: Content and Catalog Management
Key Term: Electronic Payment Systems
Key Term: Event Notification
Key Term: Profiling and Personalizing
Key Term:
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