Case Study on E-Commerce - EBay & Google

8/11/2019 Case Study on E-Commerce - EBay & Google

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Information System Strategy

Case Study

e-Commerce trends

e-Commerce processes

e-Commerce success factors

e-Commerce categories

Electronic Commerce

Systems


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Learning Objectives

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

2. Identify the essential processes of an e-commerce

system, and give examples of how they areimplemented in e-commerce applications.

3. Identify and give examples of several key factorsand Web store requirements needed to succeed in

e-commerce.

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Learning Objectives

4. Identify and explain the business value of severaltypes of e-commerce marketplaces.

5. Discuss the benefits and trade-offs of several e-

commerce clicks and bricks alternatives.

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Case 1 eBay: Running the Right Playin the Right Company

eBay has 31 sites around the world

They generated $1.1 billion in 2004 sales, 46% ofeBays overall trading revenues

Playbook: collective wisdom of eBays worldwidemanagers

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Electronic Commerce

More than just buying and selling products online

Includes the entire online process of

Developing, marketing, selling, delivering, servicing

and paying for products and services Transacted on the internetworked global marketplaces

of customers

With the support of a worldwide network of business

partners

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Processes involved in E-commerce

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E-commerce technologies

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Categories of e-Commerce

Business-to-Consumer (B2C)businesses developattractive electronic marketplaces to sell productsand services to consumers

Business-to-Business (B2B)involves both electronicbusiness marketplaces and direct market linksbetween businesses

Consumer-to-Consumer (C2C)online auctions

where consumers can buy and sell with each other

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Essential e-commerce process

architecture

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Access Control and Security

E-commerce processes must establish mutual trustand secure access

Between the parties in an e-commerce transaction

By authenticating users, authorizing access, andenforcing security features

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Profiling and Personalizing

Gather data on you and your website behavior andchoices

Build electronic profiles of your characteristics and

preferencesProfiles are used to recognize you and provide you

with a personalized view of the contents of the sitewith product recommendations and personalized

advertisingOne-to-one marketingstrategy

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Search Management

Search processes that helps customers find thespecific product or service they want to evaluate orbuy

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Content and CatalogManagement

Content Managementsoftware that helps e-commerce companies develop, generate, deliver,update, and archive text data and multimedia

information at e-commerce websitesCatalog Managementsoftware that helps generate

and manage catalog content

May support customer self-service and mass-customization of products, e.g., Dell Computerconfiguration management

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Workflow Management

Software that helps employees electronicallycollaborate to accomplish structured work taskswithin knowledge-based business processes

Ensure proper transactions, decisions, and workactivities are performed and the correct data anddocuments are delivered to the right employee,customer, or supplier

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Catalog/content management

and workflow example

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Event Notification

Most e-commerce applications are event-driven

Respond to events such as customers first websiteaccess, payment, delivery

Event notification software monitors e-commerceprocesses

Records all relevant events including problemsituations

Notifies all involved stakeholders

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Collaboration and Trading

Processes that support the vital collaborationarrangements and trading services

Needed by customers, suppliers, and other

stakeholdersOnline communities of interest

E-mail, chat, and discussion groups

Enhance customer service and build customer loyalty

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Electronic Payment Processes

Web PaymentProcesses

Shopping cart process

Credit card payment process

Other more complex payment processesElectronic Funds Transfer (EFT)

Capture and process money and credit transfersbetween banks and businesses and their customers

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Secure Electronic Payment

Example

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Securing Electronic Payments

Network sniffers

Software that recognizes and intercepts credit cardnumber formats

Security measures to combat Encrypt (code and scramble) data between customer

and merchant

Encrypt credit card authorizations

Take sensitive information off-line

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Group/Case Study Questions

1. Why has eBay become such a successful anddiverse online marketplace? Visit the eBay websiteto help with your answer, and check out the many

trading categories, specialty sites, and otherfeatures.

2. What do you think of eBays playbook concept?Why do they call it a playbook?

3. Is eBays move into the international arena a goodlong-term strategy? Why or why not?

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Group Internet Activity

eBay is aggressively, and successfully, moving into

new international markets. Using the Internet,

See if you can find one or two of eBays international

sites. How do they differ from the eBay site in North

America?

Can you find products that are unique to the

international site? How about services and features?

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The eBay playbook is designed to assist in makingthe decisions necessary to tailor eBays presence tothe unique nature of an international arena. In mostcases, however, the playbook cannot tell them whatto expect when moving into a new country. In smallgroups,

Brainstorm some of the challenges of opening an eBay

site in a new country. Pick a country and see if you can imagine the playbook

for that new market.

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Case 2: Google and OthersIn search of the Future

The search engine has become the Internets killerapp

Selling ads linked to search results has become agrowth business

Demand for new ways of searching digitalinformation

Goal: Extract information from databases, Web pages,

documents, or audio and video clips automatically Recognize names, dates and dollar amounts

Find the relationships among them

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e-Commerce Trends

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Source: Adapted from Jonathan Rosenoer, Douglas Armstrong, and J. Russell Gates, The Clickable Corporation:

Successful Strategies for Capturing the Internet Advantage (New York: The Free Press, 1999), p. 24.


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e-Commerce Success Factors

Selection and Value

Attractive product selections, competitive prices,satisfaction guarantees, and customer support after thesale

Performance and Service

Fast, easy navigation, shopping, and purchasing, andprompt shipping and delivery

Look and FeelAttractive web storefront, website shipping areas,

multimedia product catalog pages, and shoppingfeatures

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Advertising and Incentives

Targeted web page advertising and e-mail promotions,discounts and special offers, including advertising at affiliatesites

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Personal Attention Personal web pages, personalized product

recommendations, Web advertising and e-mail notices,and interactive support for all customers

Community RelationshipsVirtual communities of customers, suppliers, company

representatives, and others via newsgroups, chatrooms, and links to related sites

Security and Reliability Security of customer information and website

transactions, trustworthy product information, andreliable order fulfillment

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Web Store Requirements

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Developing a Web Store

Buildwebsite

Use simple website design tools

Predesigned templates

Build your own website or use outside contractorMarketwebsite to attract visitors and transform them

into loyal customers

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Serving Customers

Servecustomers by creating user profiles, personalWeb pages and promotions that help develop a one-to-one relationship

Transactwith customers by providing an attractive,friendly, and efficient Web store

Supportcustomers with

Self-help menus, tutorials, FAQs

E-mail correspondence with customer servicerepresentatives

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Managing a Web Store

Manageboth the business and the website

Record and analyze traffic, inventory and sales

Link to accounting system

Operatetwenty-four hours a day, seven days a weekProtecttransactions and customer records, use

firewalls, and repel hacker attacks

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B2B e-Commerce

B2B e-commerce is the wholesale and supply side ofthe commercial process, where businesses buy, sell,or trade with other businesses.

Factors for building a successful retail website alsoapply to websites for B2B e-commerce.

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e-Commerce Marketplaces

One to Manysell-side marketplaces host one majorsupplier who dictates product catalog offerings andprices

Many to Onebuy-side marketplaces attract manysuppliers that flock to these exchanges to bid on thebusiness of a major buyer

Some to Manydistribution marketplaces unite

major suppliers who combine their product catalogsto attract a larger audience of buyers

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e-Commerce Marketplaces

Many to Someprocurement marketplaces unitemajor buyers who combine their purchasing catalogsto attract more suppliers and thus more competitionand lower prices

Many to Manyauction marketplaces used by manybuyers and sellers that can create a variety of buyersor sellers auctions to dynamically optimize prices

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e-Commerce Portals

B2B e-commerce portal can provide several types ofmarketplaces in one site

Often developed and hosted by third-party market-

maker companies who serve as infomediaries thatbring buyers and sellers together in catalog,exchange, and auction markets.

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B2B e-Commerce Web Portal

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Clicks and Bricks

Should we integrate our e-commerce business operationswith our traditional physical business operations

Or should we keep them separate?

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e-Commerce Channel

The marketing or sales channel created by a companyto conduct and manage its chosen e-commerceactivities

Issue is whether the e-commerce channel should beintegrated with traditional sales channel.

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Checklist for Channel


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Checklist for ChannelDevelopment

What audiences are attempting to reach?

What action do we want these audiences to take?

Learn about us, give us information, make an inquiry,

to buy something from website, or buy through anotherchannel?

Who owns the e-commerce channel within theorganization?

Is the e-commerce channel planned alongside otherchannels?

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Checklist for Channel


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Checklist for ChannelDevelopment

Do we have a process for generating, approving,releasing, and withdrawing content?

Will our brands translate to the new channel or will

they require modification?How will we market the channel itself?

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Group/Case Study Questions

1. What lessons on developing successful e-commerceprojects can be gained from the information in thiscase?

2.Why can human beings still do much better atassessing the relevance of a website thansophisticated search engines? What are the modernsearch engines failing to include?

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Search engines exist for just about any type of Internetsearch you may wish to conduct. The big ones likeGoogle, Yahoo, and MSN are commonly used. Usingthe Internet,

See if you can find some lesser-known search engines.

What are their special features and benefits?

Why arent more people using them?

Check out www.kartoo.com to see a unique approachto Internet search.

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Advertisers have learned that running banner ads onwebsites is profitable despite the fact that most websurfers claim they do not like to see them. In smallgroups,

Brainstorm ways in which advertisers can takeadvantage of the Internet by providing advertising anInternet surfer might want to see. In other words, howcan Internet advertising be more targeted and relevant?

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Documents

Case Study on E-Commerce - EBay & Google