Download Intro to Information Systems

Chapter
8
Electronic Commerce Systems
e-Commerce trends
e-Commerce processes
e-Commerce success factors
e-Commerce categories
McGraw-Hill/Irwin
Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved.
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
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Categories of e-Commerce
 Business-to-Consumer
(B2C) – businesses
develop electronic marketplaces to sell
products and services to consumers
 Business-to-Business (B2B) – involves both
electronic business marketplaces and direct
market links between 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 secure
access by authenticating users and
authorizing access
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Profiling and Personalizing
 Gather
data on you and your website
behavior and choices. Build electronic profiles
of your characteristics and preferences
 One-to-one marketing strategy
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Search Management
 Search
processes that helps customers find
the specific product or service they want to
evaluate or buy
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Content and Catalog
Management
 Content
Management – software that helps
companies develop, generate, deliver, update,
and archive data at e-commerce websites
 Catalog Management – software that helps
generate and manage catalog content
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Workflow Management
 Software
that helps employees electronically
collaborate to accomplish structured work
tasks within knowledge-based business
processes
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Event Notification
 Respond
to events such as customer’s first
website access, payment, delivery and
problem
 Event notification software monitors ecommerce processes
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Collaboration and Trading
 Processes
that support the vital collaboration
arrangements and trading services
 Online communities of interest
 Blog, E-mail, chat, and discussion groups
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Electronic Payment Processes
 Web
Payment Processes
 Shopping cart process
 Credit card payment process
 Electronic
Funds Transfer (EFT)
 Capture and process money and credit
transfers between banks and businesses
and their customers
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Section II
e-Commerce Trends
8-13
e-Commerce Success Factors
 Selection
and Value
 Attractive
product selections, competitive prices,
satisfaction guarantees, and customer support after the
sale
 Performance
and Service
 Fast,
easy navigation, shopping, and purchasing, and
prompt shipping and delivery
 Look
and Feel
 Attractive
web storefront, website shipping areas,
multimedia product catalog pages, and shopping
features
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e-Commerce Success Factors

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Advertising and Incentives
 Targeted web page advertising and e-mail promotions,
discounts and special offers, including advertising at affiliate
sites
e-Commerce Success Factors
 Personal
Attention
 Personal
web pages, personalized product
recommendations, Web advertising and e-mail notices,
and interactive support for all customers
 Community
Relationships
 Virtual
communities of customers, suppliers, company
representatives, and others via newsgroups, chat
rooms, and links to related sites
 Security
and Reliability
 Security
of customer information and website
transactions, trustworthy product information, and
reliable order fulfillment
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Developing a Web Store
 Build
website
 Use
simple website design tools
 Predesigned templates
 Build your own website or use outside contractor
 Market
website to attract visitors and transform them
into loyal customers
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Serving Customers
 Serve
customers by creating user profiles, personal
Web pages and promotions that help develop a oneto-one relationship
 Transact with customers by providing an attractive,
friendly, and efficient Web store
 Support customers with
 Self-help
menus, tutorials, FAQs
 E-mail correspondence with customer service
representatives
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Managing a Web Store
 Manage
both the business and the website
 Record
and analyze traffic, inventory and sales
 Link to accounting system
 Operate
twenty-four hours a day, seven days a week
 Protect transactions 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 of
the commercial process, where businesses buy, sell,
or trade with other businesses.
 Factors for building a successful retail website also
apply to websites for B2B e-commerce.
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e-Commerce Marketplaces
 One
to Many – sell-side marketplaces host one major
supplier who dictates product catalog offerings and
prices
 Many to One – buy-side marketplaces attract many
suppliers that flock to these exchanges to bid on the
business of a major buyer
 Some to Many – distribution marketplaces unite
major suppliers who combine their product catalogs
to attract a larger audience of buyers
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e-Commerce Marketplaces
 Many
to Some – procurement marketplaces unite
major buyers who combine their purchasing catalogs
to attract more suppliers and thus more competition
and lower prices
 Many to Many – auction marketplaces used by many
buyers and sellers that can create a variety of buyers’
or sellers’ auctions to dynamically optimize prices
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e-Commerce Portals
 B2B
e-commerce portal can provide several types of
marketplaces in one site
 Often developed and hosted by third-party marketmaker companies who serve as infomediaries that
bring buyers and sellers together in catalog,
exchange, and auction markets.
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Clicks and Bricks
 Should
we integrate our e-commerce business operations
with 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 company
to conduct and manage its chosen e-commerce
activities
 Issue
is whether the e-commerce channel should be
integrated with traditional sales channel.
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