E-commerce

Succeeding with Technology

E-commerce

Roots of E-commerce Overview of Electronic Commerce E-commerce Applications Mobile Commerce E-commerce Implementation

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Chapter 8

Succeeding with Technology

E-commerce

E-Commerce refers to systems that support electronically executed business transactions

Although e-commerce covers all forms of electronic transactions, it is typically used in reference to Internet-based transactions.

Succeeding with Technology

E-commerce

www.arcticways.com

How do you think ArcticWays.com has impacted the life of villagers in bush Alaska and benefited the world?

Food for thought and discussion…

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7.1

The Roots of E-commerce

• E-commerce• Electronic Data Interchange (EDI)• Transaction• Transaction Processing System (TPS)

Key Terms

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E-commerce History

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Electronic Data Interchange (EDI)

EDI uses private communications networks called value-added networks (vans) to transmit standardized transaction between partners and suppliers. Many EDI

applications are moving from VANs to the Internet

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A Transaction Processing System (TPS) is an information system that supports and records transactions.

A transaction is an exchange or transfer of goods, services, or funds

Transaction Processing

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Transaction Processing

Data collected in Transaction Processing Systems feeds into more sophisticated Management Information Systems (MIS’s) to provide useful information.

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Transaction Processing Cycle

1. Data Collection

2. Data Editing

3. Data Correction

4. Data Manipulation

5. Data Storage

6. Data Output

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Transaction Processing Systems

There are a variety of TPS’s that serve various functions within an organization.

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7.2

Overview of E-commerce

• Business-to-consumer E-commerce (B2C)• Business-to-business E-commerce (B2B)• Consumer-to-consumer E-commerce (C2C)• Supply Chain Management

Key Terms

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Types of E-commerce

Business-to-consumer (B2C) Business-to-business (B2B) Consumer-to-consumer (C2C)

Which is used most?

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B2B Rules!

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Buyer’s PerspectiveConsider how these activities are supported in e-commerce.

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Seller’s Perspective

Market Research Product/Service Production Marketing and advertising Payment support Delivery After-sales

support

Consider how these activities are supported in e-commerce.

Supply Chain Management

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Benefits and Challenges

Farmyard Nurseries -Taking the business online expanded its market from primarily local customers to customers all around the world.

Consider how this must have effected operations.

www.farmyardnurseries.co.uk

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Benefits and Challenges

In order to save its technology-threatened business, Kodak changed its image from a film company to a digital picture company.

www.kodak.com

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7.3

E-commerce Applications

• E-tail• Electronic Exchange

Key Terms

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Retail E-Commerce

E-tailing has dramatically influenced the way people shop by providing customers with product information and the ability to comparison shop.

www.mysimon.comwww.nextag.comwww.dealtime.comwww.pricescan.comwww.pricegrabber.com

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Online Clearinghouses, Auctions, and Marketpaces

Online clearinghouses, Web auctions, and marketplaces provide a platform for businesses and individuals to sell their products and belongings. www.ubid.com

www.ebay.com

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B2B Global Supply Management Global supply chain management (GSM) provides

methods for businesses to find the best deals on the global market for raw materials, and supplies needed to manufacture their products. www.ariba.com

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Electronic Exchanges

An electronic exchange is an industry specific Web resource created to provide a convenient centralized platform for B2B e-commerce among manufacturers, suppliers and customers.

www.covisint.comwww.worldwideretailexchange.org

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Marketing

The Web is used for unsolicited advertising, solicited product information, and market research.

The Web empowers marketers (www.doubleclick.com) …

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Marketing

The Web is used for unsolicited advertising, solicited product information, and market research.

…andconsumers.

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Banking, Finance, and Investment

Many banking, finance and investment transactions now occur online.

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7.4

Mobile Commerce

• M-commerce• Proximity payment system

Key Terms

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M-commerce

M-commerce is a form of e-commerce that takes place over wireless mobile devices such as handheld computers and cell phones. www.luckymag.com

Popular m-commerce products and services include ring tones, games, music, videos, messaging services, etc.

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M-commerce Technology

Wireless Application Protocol (WAP) used to create m-commerce applications.

Wireless Markup Languages (WML) used to create Web pages and applications for small displays.

Infrared and Bluetooth for close range, device-to-device communications.

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M-commerce Delivery

Through cell phone service provider

Over the mobile Web Through SMS Texting Through short-range wireless

data communictaions

U.S. wireless music market to surge to $1.2 billion by 2009.

GPS technology will lead to location-based m-commerce applications.

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Proximity payment systems

Proximity payment systems make use of Infrared, Near Field Communication (NFC), or RFID technologies to support contactless payments using a cell phone.

www.vivotech.com/products/vivo_wallet

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7.5

E-commerce Implementation

• E-commerce host• Web services• E-cash• Smart card• Digital Certificate• Encryption

Key Terms

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E-commerce Host

An e-commerce host is a company that takes on some or all of the responsibility of setting up and maintaining an e-commerce system for a business or organization.

$49.95 per month

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E-commerce Host

Office depot contracted IBM to design and implement its B2B/B2C system.

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E-commerce Implementation

E-commerce implementation requires investment in:InfrastructureHardware and NetworkingSoftware

E-tailers like Amazon custom build their Web sites for each registered visitor.

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Web Services

Web services are programs that automate tasks by communicating with each other over the Web.

www.w3.org/2002/ws/http://en.wikipedia.org/wiki/Web_service http://msdn.microsoft.com/webservices/http://java.sun.com/webservices/

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Building Traffic 3 C’s – Content, Community, & Commerce

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Payment Systems

Credit card transactions

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Payment Systems

E-cash is a Web service that provides a private and secure method of transferring funds from a bank account or credit card to online vendors or individuals for e-commerce transactions.

www.paypal.com

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International Markets

Through a process called localization, companies hire international Web developers to assist with translating Web site content into different languages for different cultures.

www.landsend.comhttp://www1.landsend.co.jphttp://www1.landsend.de

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Security Issues

Identity Verification A digital certificate is a type of electronic business

card that is attached to Internet transaction data to verify the sender of the data. [www.verisign.com]

Encryption uses high-level math functions and computer algorithms to encode data.

Cardswipe Keyboard

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Chapter 8 Questions?

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