Electronic Commerce Chapter 8 Principles of Information Systems

Electronic Commerce Chapter 8 Principles of Information Systems, Sixth Edition 1

Chapter 8 Outline • An Introduction to Electronic Commerce • E-Commerce Applications • Technology Infrastructure • Electronic Payment Systems • Threats to E-Commerce • Strategies for Successful e. Commerce Principles of Information Systems, Sixth Edition 2

An Introduction to Electronic Commerce Principles of Information Systems, Sixth Edition 3

Introduction to Electronic Commerce • Most common types of e-commerce: • Business-to-consumer (B 2 C) ecommerce • Business-to-business (B 2 B) ecommerce • Consumer-to-consumer (C 2 C) ecommerce Principles of Information Systems, Sixth Edition 4

Multistage Model for E-commerce • 1. Search and identification • 2. Selection and negotiation • 3. Purchasing products and services electronically • 4. Product and service delivery • 5. After-sales service Principles of Information Systems, Sixth Edition 5

Multistage Model for E-commerce Principles of Information Systems, Sixth Edition 6

Product and Service Delivery Principles of Information Systems, Sixth Edition 7

E-Commerce Model Principles of Information Systems, Sixth Edition 8

E-Commerce Challenges • Changing distribution systems & work processes • Split-case distribution • Integrating web-based order processing with traditional systems Principles of Information Systems, Sixth Edition 9

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 Principles of Information Systems, Sixth Edition 10

The E-Commerce Supply Chain Principles of Information Systems, Sixth Edition 11

Supply Chain Management Principles of Information Systems, Sixth Edition 12

Business-to-Business • Allows manufacturers to buy at low price worldwide • Enterprise can sell to a global market Principles of Information Systems, Sixth Edition 13

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 Principles of Information Systems, Sixth Edition 14

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 Principles of Information Systems, Sixth Edition 15

E-Commerce Applications Principles of Information Systems, Sixth Edition 16

Retail and Wholesale • Electronic retailing • Cybermalls • Wholesale e-commerce: B 2 B Principles of Information Systems, Sixth Edition 17

Manufacturing Principles of Information Systems, Sixth Edition 18

Marketing • Market segmentation • Technology-enabled relationship management Principles of Information Systems, Sixth Edition 19

Investment and Finance • On-line stock trading • On-line banking – Electronic bill presentment Principles of Information Systems, Sixth Edition 20

Investment and Finance Principles of Information Systems, Sixth Edition 21

Investment and Finance Principles of Information Systems, Sixth Edition 22

Technology Infrastructure Principles of Information Systems, Sixth Edition 23

Technology Infrastructure Principles of Information Systems, Sixth Edition 24

Hardware • Storage capacity – Software – Volume of e-commerce transactions • Website hosting Principles of Information Systems, Sixth Edition 25

Web Server Software • Security and identification – Denial of service attack • Web site tracking – Web log file • Web site development tools • Retrieving and sending Web pages • Web page construction software – Static Web page – Dynamic Web page Principles of Information Systems, Sixth Edition 26

E-Commerce Software • Catalog management • Product configuration • Shopping cart Principles of Information Systems, Sixth Edition 27

E-Commerce Transaction Processing • Automates transaction processes from order placement to reconciliation • Web traffic data analysis Principles of Information Systems, Sixth Edition 28

Electronic Shopping Cart Principles of Information Systems, Sixth Edition 29

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 EC approaches rely on packet switching and use routers • Cost, availability, reliability, security, and redundancy must be considered when choosing a network Principles of Information Systems, Sixth Edition 30

Electronic Payment Systems Principles of Information Systems, Sixth Edition 31

Electronic Payment Systems • Digital certificates – Certificate authority – Secure sockets layer (SSL) • Electronic cash • Electronic wallets • Smart, credit, charge, and debit cards Principles of Information Systems, Sixth Edition 32

Threats to E-Commerce Principles of Information Systems, Sixth Edition 33

Threats to E-Commerce • E-commerce incidents • Theft of intellectual property – Patents on business processes • Fraud • Privacy Issues Principles of Information Systems, Sixth Edition 34

Fraud • • • On-line auction fraud Spam Pyramid schemes Investment fraud Stock scams Principles of Information Systems, Sixth Edition 35

Invasion of Consumer Privacy • On-line profiling • Clickstream data • Safe harbor principles Principles of Information Systems, Sixth Edition 36

TRUSTe Seal Principles of Information Systems, Sixth Edition 37

BBB On-line Privacy Seal Principles of Information Systems, Sixth Edition 38

How to Protect Your Privacy While On-Line Principles of Information Systems, Sixth Edition 39

Strategies for Successful E-Commerce Principles of Information Systems, Sixth Edition 40

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 Principles of Information Systems, Sixth Edition 41

Putting up a Web Site • Web site hosting services • Storefront brokers Principles of Information Systems, Sixth Edition 42

Building Traffic to Your Web Site • Domain names • Meta tags • Traffic data analysis Principles of Information Systems, Sixth Edition 43

Maintaining and Improving Your Web Site • Be alert to new trends • Be prepared to take advantage of new opportunities • Personalization – Explicit – Implicit Principles of Information Systems, Sixth Edition 44

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 Principles of Information Systems, Sixth Edition 45

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. Principles of Information Systems, Sixth Edition 46

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 ecommerce to succeed. – Discuss the key features of the electronic payments systems needed to support ecommerce. Principles of Information Systems, Sixth Edition 47

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 Principles of Information Systems, Sixth Edition 48

End of Chapter 8 Principles of Information Systems, Sixth Edition 49