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Please discontinue use
of cell phone
and turn off the ringer.
Roots of E-commerce
Overview of Electronic Commerce
E-commerce Applications
Mobile Commerce
E-commerce Implementation

E-commerce
Chapter 8
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E-commerce
E-Commerce refers to systems that support electronically
executed business transactions

Providing kids with a safe
environment earned this
online company more than
12 million active registered
users.
Succeeding with Technology 4
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E-commerce
How do you think
ArcticWays.com has
impacted the life of
villagers in bush
Alaska and benefited
the world?
Succeeding with Technology 4
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E-Commerce
Major e-commerce developments of the last
decade.
Succeeding with Technology > E-Commerce >
Key Terms
E-commerce
Electronic Data Interchange (EDI)
Transaction
Transaction Processing System (TPS)
The Roots of E-commerce
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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.
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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 (MISs) 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 TPSs
that serve
various
functions within
an organization
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Key Terms
Business-to-consumer E-commerce (B2C)
Business-to-business E-commerce (B2B)
Consumer-to-consumer E-commerce (C2C)
Supply Chain Management

Overview of E-commerce
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Types of E-commerce
Business-to-consumer (B2C)
Business-to-business (B2B)
Consumer-to-consumer
(C2C)

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Business-to-business
Sales (in billions)
$11,088 in B2B
$10,759 in B2C
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Buyers Perspective
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Buyers Perspective
Consumer review
Web sites can help
shoppers avoid
purchasing
mistakes and
pressure
manufacturers to
produce better
products.

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

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.
www.farmyardnurseries.co.uk
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Benefits and Challenges
Kodak changed its
image from a film
company to a
picture company by
providing products
and tools for digital
photographers.
www.kodak.com
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Key Terms
E-tail
Electronic Exchange

E-commerce Applications
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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.com
www.nextag.com
www.dealtime.com
www.pricescan.com
www.pricegrabber.com
www.bixrate.com

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Cybermalls
Cybermalls are typically
aligned with popular Web
portals
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.
Online Clearinghouses,
Auctions, and Marketplaces
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.com


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Marketing~ Marketers
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~ Consumers
The Web is used for
unsolicited advertising,
solicited product information,
and market research.

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Marketing
Methods of Web advertising
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Banking, Finance and Investment
Since banks have
moved online,
managing money
has never been
easier.
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Key Terms
M-commerce
Proximity payment system

Mobile Commerce
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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.
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
communications

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

E-commerce Implementation
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E-commerce Implementation
E-commerce implementation
requires investment in:
Infrastructure
Hardware and Networking
Software

E-tailers like Amazon custom
build their Web sites for each
registered visitor.
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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
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E-commerce Host
Office depot contracted IBM
to design and implement its
B2B/B2C system.

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Infrastructure
A business that
uses e-commerce
needs to employ
people who are
technically savvy
and able to
understand how
technology can
assist in meeting
the goals of the
organization.
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Hardware and Networking
Underestimating
the amount of
Web traffic leads
to network stalls
and long wait
times that leave
visitors frustrated.
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Software
Web Server Software
is used to fulfill
requests for Web
pages from browsers.
Web Server Utility
programs provide
statistical information
about server usage
and traffic patterns.
Succeeding with Technology 4
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Building Traffic
3 Cs Approach
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Building Traffic
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Keywords and Search Engines
People discover
many Web sites by
using search
engines. Getting
noticed by search
engines has
become a full-time
job for some
professionals.
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Electronic Payment Systems
Online vendors use payment processing
systems to check credit and arrange for the
transfer of funds.
Succeeding with Technology 4
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Electronic Payment Services~
POPmoney
http://www.cashedge.com/news-events-news-
20090623.php
More on
POPmoney
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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.com
http://www1.landsend.co.jp
http://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.
Encryption uses high-level math functions and
computer algorithms to encode data.

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Chapter 8 Questions?