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Objectives
Define e-commerce and understand its role as a transaction processing system List the three types of e-commerce, and explain how e-commerce supports the stages of the buying process and methods of marketing and selling Discuss several examples of e-commerce applications and services
Objectives
Define m-commerce, and describe several mcommerce services List the components of an e-commerce system, and explain how they function together to provide e-commerce services
Chapter Content
The Roots of E-Commerce Overview of Electronic Commerce E-Commerce Applications Mobile Commerce E-Commerce Implementation
Electronic Commerce
Electronic commerce (e-commerce)
Systems that support electronically executed business transactions The fundamental purpose of e-commerce is to execute transactions
Electronic Commerce
Electronic commerce (e-commerce)
Electronic Commerce
E-Commerce History
EDI
Uses private communications networks (VANs) to transmit standardized transaction data between business partners and suppliers
Internet
Provided the ideal platform for conducting EDI transactions
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E-Commerce History
Transaction Processing
Transaction
An exchange involving goods or services
Batch processing
Transactions are collected over time and processed together in batches useful in situations where transactions take place away from the computer system
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Data editing
Checking the validity of data entered
Data correction
Implemented if an error is found in the entered data
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Data storage
Altering databases to reflect the transaction
Data output
Receipts, picking lists, and other documents
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Purchasing system
Supports the purchase of goods and raw materials from suppliers
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Types of E-Commerce
Business-to-consumer e-commerce (B2C)
Connects individual consumers with sellers , cutting out the middleman E.g. Amazon.com
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Types of E-Commerce
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Challenges
Established businesses must alter systems and business practices Security, privacy, reliability: E-commerce can survive only if all involved can trust the system Social concerns
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E-Commerce Applications
E-Commerce
Playing an increasingly important role in our personal and professional lives Allows us to discover new and interesting products Allows us to find better deals Used to monitor bank accounts and transfer electronic funds
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E-tailing options
Set up an electronic storefront Lease space in a cybermall
Web site that allows users to browse through a wide variety of products offered by several different retailers
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Online Clearing Houses, Web Auctions, and Marketplaces Provide a platform for businesses and individuals to sell their products and belongings
www.ubid.com
Provides a method for manufacturers to liquidate stock and consumers to find a good deal
eBay.com
Most popular auction/marketplace
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Electronic exchange
an industry-specific Web resource created to provide a convenient centralized platform for B2B e-commerce among manufacturers, suppliers, and customers Promotes cooperation between competing companies
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Marketing
Web is used for
Unsolicited advertising
Banner: A rectangular area embedded in the Web page content for advertising, often across the top of the page
Market research
Traditionally done by interviewing customers Market segmentation divides customer opinions based on various criteria E-commerce allows market segmentation to take place on an individual level
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Marketing
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Online brokerages
Able to execute trades fast, within seconds
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Mobile Commerce
M-Commerce Technology
Technologies and standards
Wireless Application Protocol (WAP)
a communication standard used by developers to create mcommerce applications
Using Short Message Service (SMS) text messaging or Multimedia Messaging Service (MMS) Using short-range wireless technology, such as infrared
Proximity payment system
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E-Commerce Implementation
Implementing e-commerce
Requires large investment and expertise
E-Commerce host
A company that takes on some or all of the responsibility of setting up and maintaining an ecommerce system for a business or organization
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Infrastructure
E-Commerce requires significant infrastructure changes Businesses must have employees who are technically savvy B2C e-commerce
Often connects manufacturers directly with consumers, cutting out the middleman
Infrastructure
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Software
Web Server Software
Responds to requests for Web pages
E-Commerce Software
Supports e-commerce activities Includes catalog management, electronic shopping cart, and payment software
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Software
Web Site Design Tools
What-you-see-is-what-you-get (WYSIWYG) applications or wizards
Graphics Applications
Design and create graphic elements of Web sites
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Software
Web services
Programs that automate tasks by communicating with each other over the Web Systems developers can provide tools for automating trivial or repetitive tasks Important in transaction processing
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Building Traffic
The 3Cs Approach
Content, community, and commerce
Building Traffic
Marketing
Online advertising methods include banner ads, popup ads, and e-mail market segmentation: customer opinions are divided into demographic variables such as race, gender, income, education, and age to determine which segment a product appeals to most
Building Traffic
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E-cash benefits
Privacy - hides account information from vendors Convenient if seller cannot process a credit card
Smartcards
Credit cards with embedded microchips that can store and process
data and can be used as electronic wallets
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International Markets
Internet users of all nationalities will have access to your products First consideration of a global e-commerce strategy
Visitors of all nationalities and cultures should feel comfortable while viewing your Web content
Costly approach
Create multiple versions of your Web site, each in a different language
Once the international market is won over, e-tailer faces other challenges
Foreign Currency, shipping, national taxes
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Summary
E-Commerce
Systems that support electronically executed transactions
Summary
Retail Web sites
Allow consumers to comparison shop
Mobile commerce
A form of e-commerce that takes place over wireless mobile devices
E-Commerce
Requires investment in networking, hardware, and a wide variety of software Requires changes in infrastructure
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