Electronic Commerce Chapter 8 MSIS 110 Introduction to

Electronic Commerce Chapter 8 MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 1

Principles and Learning Objectives • E-commerce is a new way of conducting business, and as with any other new application of technology, it presents both opportunities for improvement and potential problems. – Identify several advantages of e-commerce. – Outline a multistage model that describes how ecommerce works. – Identify some of the major challenges companies must overcome to succeed in e-commerce. – Identify several e-commerce applications. MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 2

Principles and Learning Objectives • E-commerce requires the careful planning and integration of a number of technology infrastructure components. – Outline the key components of technology infrastructure that must be in place for e-commerce to succeed. – Discuss the key features of the electronic payments systems needed to support e-commerce. MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 3

Principles and Learning Objectives • Users of the new e-commerce technology must take safeguards to protect themselves. – Identify the major issues that represent significant threats to the continued growth of e-commerce. • Organizations must define and execute a strategy to be successful in e-commerce. – Outline the key components of a successful ecommerce strategy. MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 4

An Introduction to Electronic Commerce MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 5

Introduction to Electronic Commerce • Business-to-consumer (B 2 C) e-commerce • Business-to-business (B 2 B) e-commerce • Consumer-to-consumer (C 2 C) e-commerce MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 6

Multistage Model for E-commerce • Search and identification • Selection and negotiation • Purchasing products and services electronically • Product and service delivery • After-sales service MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 7

Multistage Model for E-commerce MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 8

Product and Service Delivery MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 9

E-Commerce Model MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 10

E-Commerce Challenges • Change distribution systems & work processes • Split-case distribution • Integrate web-based order processing with traditional systems MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 11

The E-Commerce Supply Chain • Supply chain management – Demand planning – Supply planning – Demand fulfillment • Increased revenues and decreased costs • Improved customer satisfaction • Inventory reduction across the supply chain MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 12

The E-Commerce Supply Chain MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 13

Supply Chain Management MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 14

Business-to-Business • Allows manufacturers to buy at low price worldwide • Enterprise can sell to a global market MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 15

Global E-Commerce • Steps in localization – recognizing and conforming to the nuances, subtleties, and tastes of local cultures – supporting basic trade laws such as each country’s currency, payment preferences, taxes, and tariffs – ensuring that technological capabilities match local connection speeds MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 16

Global E-Commerce • Determine which global markets make the most sense for selling products or services on-line • Decide whether Web content should be generated or updated centrally or locally MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 17

E-Commerce Applications MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 18

Retail and Wholesale • Electronic retailing • Cybermalls • Wholesale e-commerce: B 2 B MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 19

Manufacturing MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 20

Marketing • Market segmentation • Technology-enabled relationship management MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 21

Investment and Finance • On-line stock trading • On-line banking – Electronic bill presentment MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 22

Investment and Finance MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 23

Investment and Finance MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 24

Technology Infrastructure MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 25

Technology Infrastructure MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 26

Hardware • Storage capacity – Software – Volume of e-commerce transactions • Website hosting MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 27

Web Server Software • Security and identification – Denial of service attack • Web site tracking – Web log file MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 28

Web Server Software • Web site development tools • Retrieving and sending Web pages • Web page construction software – Static Web page – Dynamic Web page MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 29

E-Commerce Software • Catalog management • Product configuration • Shopping cart MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 30

E-Commerce Transaction Processing • Automates transaction processes from order placement to reconciliation • Web traffic data analysis MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 31

Electronic Shopping Cart MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 32

Network and Packet Switching • All e-commerce depends on a type of network to securely transmit data – – Internet Extranet Value-added network (VAN) Virtual private network (VPN) • All approaches rely on packet switching and use routers • Cost, availability, reliability, security, and redundancy must be considered when choosing a network MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 33

Electronic Payment Systems MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 34

Electronic Payment Systems • • • Digital certificate Certificate authority Secure sockets layer (SSL) Electronic cash Electronic wallets Smart, credit, charge, and debit cards MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 35

Threats to E-Commerce MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 36

Threats to E-Commerce • E-commerce incidents • Theft of intellectual property – Patents on business processes MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 37

Fraud • • • On-line auction fraud Spam Pyramid schemes Investment fraud Stock scams MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 38

Invasion of Consumer Privacy • On-line profiling • Clickstream data • Safe harbor principles MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 39

TRUSTe Seal MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 40

BBB On-line Privacy Seal MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 41

How to Protect Your Privacy While On-Line MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 42

Strategies for Successful E-Commerce MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 43

Developing an Effective Web Presence Visitors to a web site should be able to: • Obtain general information about the organization • Obtain financial information for making an investment decision • Learn the organization’s position on social issues • Learn about the products or services that the organization sells MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 44

Putting up a Web Site • Web site hosting services • Storefront brokers MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 45

Building Traffic to Your Web Site • Domain names • Meta tags • Traffic data analysis MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 46

Maintaining and Improving Your Web Site • Be alert to new trends • Be prepared to take advantage of new opportunities • Personalization – Explicit – Implicit MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 47

Summary • E-commerce - enables consumers and companies to gain access to worldwide markets • Electronic retailing (e-tailing) - the direct sale from business-to-consumer through electronic storefronts designed around an electronic catalog and shopping cart model • E-commerce shoppers - must be on constant guard to protect their rights, security, and personal privacy MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 48