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Electronic Commerce CSC1720 – Introduction to Internet Essential Materials.

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1 Electronic Commerce CSC1720 – Introduction to Internet Essential Materials

2 CSC1720 – Introduction to InternetAll copyrights reserved by C.C. Cheung 2003.2 Outline Introduction Introduction e-Business models e-Business models How to How to –Build an e-Commerce site –Attract and keep customers –Get Paid –Manage the e-commerce business –Secure the site e-Business Implementations e-Business Implementations Application Service Provider (ASP) Application Service Provider (ASP)

3 CSC1720 – Introduction to InternetAll copyrights reserved by C.C. Cheung 2003.3 Questions? What exactly is e-Commerce? What exactly is e-Commerce? What is B2B e-Commerce? What is B2B e-Commerce? Can I start my own e-Commerce site? Can I start my own e-Commerce site? How do I accept payments by credit card? How do I accept payments by credit card? How do I get customers to visit my site? How do I get customers to visit my site? Do I have to accept credit cards? Do I have to accept credit cards? How to succeed in e-Commerce? How to succeed in e-Commerce? Any more questions about e-Commerce? Any more questions about e-Commerce?

4 CSC1720 – Introduction to InternetAll copyrights reserved by C.C. Cheung 2003.4 Introduction What is e-Commerce? What is e-Commerce? –Electronic Commerce (EC) or “ e-Business ” –Buying and Selling goods or services on the Internet (WWW) –What is the latest development? M-Commerce? What is ASP? What is ASP? –Application Service Provider –Also means Active Server Page (HTML) –A company offers individuals or enterprises to host their applications or services on this ASP company. (low budgets for small companies, outsourcing for large companies)

5 CSC1720 – Introduction to InternetAll copyrights reserved by C.C. Cheung 2003.5 The importance

6 CSC1720 – Introduction to InternetAll copyrights reserved by C.C. Cheung 2003.6 Terminology Dedicated line – A point-to-point, hard wire connection between two service locations. Dedicated line – A point-to-point, hard wire connection between two service locations. Leased line – A telecommunications line dedicated to a particular customer along predetermined routers. Leased line – A telecommunications line dedicated to a particular customer along predetermined routers. Outsourcing – The transfer of components or large segments of an internal IT infrastructure, staff, processes or applications to an external resource such as Application service provider (ASP). Outsourcing – The transfer of components or large segments of an internal IT infrastructure, staff, processes or applications to an external resource such as Application service provider (ASP).

7 CSC1720 – Introduction to InternetAll copyrights reserved by C.C. Cheung 2003.7 e-Business solutions ERP, CRM, Database Intranet Internal Users Suppliers, public Mobile Users Customers Internet / WWW Web EDI

8 CSC1720 – Introduction to InternetAll copyrights reserved by C.C. Cheung 2003.8 e-Business Models Storefront model Storefront model Auction model Auction model Portal Model Portal Model Dynamic Pricing Models Dynamic Pricing Models B2B Exchanges B2B Exchanges B2B Service Providers B2B Service Providers e-Learning e-Learning

9 CSC1720 – Introduction to InternetAll copyrights reserved by C.C. Cheung 2003.9 Storefront Model The storefront model combines transaction processing, security, online payment which allows merchants to sell their products to the customers on the Web. The storefront model combines transaction processing, security, online payment which allows merchants to sell their products to the customers on the Web. Many famous storefront model companies are Business-to-Consumer (B2C) companies. Many famous storefront model companies are Business-to-Consumer (B2C) companies. –www.more.com www.more.com Health and beauty products Health and beauty products –www.ticketmaster.com www.ticketmaster.com Sell tickets Sell tickets

10 CSC1720 – Introduction to InternetAll copyrights reserved by C.C. Cheung 2003.10 Storefront Model Allow companies to conduct business 24-by- 7 (all-day, everyday). Allow companies to conduct business 24-by- 7 (all-day, everyday). One of the most commonly used model is “ shopping cart ” One of the most commonly used model is “ shopping cart ” –An order-processing technology that allows user to accumulate the shopping list and continue shopping. –Supported by product catalog, merchant server and database technology. –www.amazon.com www.amazon.com –www.icare.com.hk www.icare.com.hk

11 CSC1720 – Introduction to InternetAll copyrights reserved by C.C. Cheung 2003.11 Shopping Cart Example Go shopping Shopping cart

12 CSC1720 – Introduction to InternetAll copyrights reserved by C.C. Cheung 2003.12 Shopping Cart Sotware http://www.poorrichard.com/freeinfo/shop.htm http://www.poorrichard.com/freeinfo/shop.htm http://www.poorrichard.com/freeinfo/shop.htm

13 CSC1720 – Introduction to InternetAll copyrights reserved by C.C. Cheung 2003.13 Storefront Model Another model is “ online shopping mall ” which provides a wide selection of products and services. Another model is “ online shopping mall ” which provides a wide selection of products and services. Customers can purchase items from many stores in a single transaction. Customers can purchase items from many stores in a single transaction. –Offer speed and add convenience –www.mall.com www.mall.com –www.shopnow.com www.shopnow.com –www.e-buy.com.hk www.e-buy.com.hk

14 CSC1720 – Introduction to InternetAll copyrights reserved by C.C. Cheung 2003.14 Shopping Mall Example Different shops

15 CSC1720 – Introduction to InternetAll copyrights reserved by C.C. Cheung 2003.15 Auction Model Internet User can login to the online auction sites, either bidder or seller. Internet User can login to the online auction sites, either bidder or seller. Sellers post their items and wait for the buyers to bid. Sellers post their items and wait for the buyers to bid. Auction sites get commission on every successful auction. Auction sites get commission on every successful auction. –E.g. most profitable: www.ebay.com www.ebay.com –HK: auction.timway.com auction.timway.com –http://hk.auctions.yahoo.com/ http://hk.auctions.yahoo.com/ Reverse Auction model Reverse Auction model –Allow buyer to set the price, www.epurchasingagent.com www.epurchasingagent.com

16 CSC1720 – Introduction to InternetAll copyrights reserved by C.C. Cheung 2003.16 Auction Model Example http://hk.auctions.yahoo.com/

17 CSC1720 – Introduction to InternetAll copyrights reserved by C.C. Cheung 2003.17 Portal Model Allow visitors to find everything within the website. Allow visitors to find everything within the website. –Horizontal Portal Wide-ranged of topics Wide-ranged of topics E.g. www.google.com, www.yahoo.com E.g. www.google.com, www.yahoo.comwww.google.comwww.yahoo.comwww.google.comwww.yahoo.com –Vertical Portal Offer specific information on a single area of interest. Offer specific information on a single area of interest. E.g. www.webmd.com (medical information) E.g. www.webmd.com (medical information)www.webmd.com

18 CSC1720 – Introduction to InternetAll copyrights reserved by C.C. Cheung 2003.18 Dynamic Pricing Model Name-your-price Business Model Name-your-price Business Model –Customers choose their price for the products or services (www.priceline.com). www.priceline.com Comparison Pricing Model Comparison Pricing Model –Customers poll some merchants and find the lowest prices (www.bottomdollar.com) www.bottomdollar.com Demand-Sensitive Pricing Model Demand-Sensitive Pricing Model –Enables customers to get better services and prices. (www.mobshop.com) www.mobshop.com Bartering Model Bartering Model –Exchange items (www.ubarter.com) www.ubarter.com

19 CSC1720 – Introduction to InternetAll copyrights reserved by C.C. Cheung 2003.19 Pricing model example

20 CSC1720 – Introduction to InternetAll copyrights reserved by C.C. Cheung 2003.20 B2B Exchanges Define as buying, selling, partnering, bartering or trading conducted between two or more business (B2B). Define as buying, selling, partnering, bartering or trading conducted between two or more business (B2B). Goldman Sachs has estimated that B2B will generate $1.5 trillion in revenues by 2004. Goldman Sachs has estimated that B2B will generate $1.5 trillion in revenues by 2004. Allow Business to buy, sell, auction, barter and distribute products and services. Allow Business to buy, sell, auction, barter and distribute products and services. Examples: Examples: –www.ework.com (Exchange employee) www.ework.com –www.itoi.com (Industry to Industry) www.itoi.com –www.biz2biz.com (Business to Business) www.biz2biz.com –www.icgcommerce.com, www.tradeaccess.com www.icgcommerce.comwww.tradeaccess.comwww.icgcommerce.comwww.tradeaccess.com

21 CSC1720 – Introduction to InternetAll copyrights reserved by C.C. Cheung 2003.21 B2B examples

22 CSC1720 – Introduction to InternetAll copyrights reserved by C.C. Cheung 2003.22 B2B Service Providers B2B service providers make the B2B transactions easier. B2B service providers make the B2B transactions easier. These e-Businesses help other businesses improve their policies, procedures, services and general operations. These e-Businesses help other businesses improve their policies, procedures, services and general operations. Solutions include supply chain management, logistics, procurement. Solutions include supply chain management, logistics, procurement. www.ariba.com www.ariba.com www.ariba.com www.freemarkets.com www.freemarkets.com www.freemarkets.com www.liveperson.com www.liveperson.com www.liveperson.com

23 CSC1720 – Introduction to InternetAll copyrights reserved by C.C. Cheung 2003.23 Chat online? Why? To solve your E-business problem via the Internet. Why? To solve your E-business problem via the Internet.

24 CSC1720 – Introduction to InternetAll copyrights reserved by C.C. Cheung 2003.24 Loan Online A growing segment of E-commerce. A growing segment of E-commerce. Loan online at a lower rate than other traditional channels. Loan online at a lower rate than other traditional channels. E-loan – www.eloan.com E-loan – www.eloan.comwww.eloan.com E-credit – www.ecredit.com E-credit – www.ecredit.comwww.ecredit.com –Clients – HP, Intel, other businesses Loan direct – www.loansdirect.com Loan direct – www.loansdirect.comwww.loansdirect.com

25 CSC1720 – Introduction to InternetAll copyrights reserved by C.C. Cheung 2003.25 Recruitment on the Web Effectively job searching on the Web. Effectively job searching on the Web. Improve the recruitment for both employer and seeker. Improve the recruitment for both employer and seeker. Search International Jobs (www.monster.com) Search International Jobs (www.monster.com)www.monster.com Focus on computer industry (www.dice.com) Focus on computer industry (www.dice.com)www.dice.com www.guru.com www.guru.com www.guru.com www.jobdb.com www.jobdb.com www.jobdb.com

26 CSC1720 – Introduction to InternetAll copyrights reserved by C.C. Cheung 2003.26 Online News Services Web is playing an important role in the publishing and news industries. Web is playing an important role in the publishing and news industries. The Wall Street Journal (www.wsj.com) The Wall Street Journal (www.wsj.com)www.wsj.com Articles by leading investment analysts (www.barrons.com) Articles by leading investment analysts (www.barrons.com)www.barrons.com Latest sports news (www.espn.com) Latest sports news (www.espn.com)www.espn.com Comprehensive news site (www.drudgereport.com) Comprehensive news site (www.drudgereport.com)www.drudgereport.com

27 CSC1720 – Introduction to InternetAll copyrights reserved by C.C. Cheung 2003.27 Recruitment / News

28 CSC1720 – Introduction to InternetAll copyrights reserved by C.C. Cheung 2003.28 Online Travel Services Customers can bypass the travel agents. Customers can bypass the travel agents. Allow discount and low fare rate online. Allow discount and low fare rate online. air-tickets, hostel, and car-rentals. air-tickets, hostel, and car-rentals. “ Last minutes ” tickets offer low price. “ Last minutes ” tickets offer low price. www.cheaptickets.com www.cheaptickets.com www.cheaptickets.com www.travelocity.com www.travelocity.com www.travelocity.com

29 CSC1720 – Introduction to InternetAll copyrights reserved by C.C. Cheung 2003.29 Online Entertainment Multimedia rich websites provide Audio and Video, popular music and videos are available online for free. Multimedia rich websites provide Audio and Video, popular music and videos are available online for free. Internet Movie Database Internet Movie Database –www.imdb.com www.imdb.com www.icast.com www.icast.com www.icast.com

30 CSC1720 – Introduction to InternetAll copyrights reserved by C.C. Cheung 2003.30 e-Learning e-Learning is growing rapidly as the number of Internet users increases. e-Learning is growing rapidly as the number of Internet users increases. Universities and other training companies offer HQ distance education over the Web. Universities and other training companies offer HQ distance education over the Web. www.click2learn.com www.click2learn.com www.click2learn.com www.saba.com www.saba.com www.saba.com www.online.uillinois.edu www.online.uillinois.edu www.online.uillinois.edu wwwtools.cityu.edu.hk wwwtools.cityu.edu.hk wwwtools.cityu.edu.hk www.polyu.edu.hk/elearning www.polyu.edu.hk/elearning www.polyu.edu.hk/elearning E-books – www.xlibris.com E-books – www.xlibris.comwww.xlibris.com

31 CSC1720 – Introduction to InternetAll copyrights reserved by C.C. Cheung 2003.31 M-Commerce What is Mobile Commerce? What is Mobile Commerce? Mobile commerce is the term applied to online financial transactions - shopping or the electronic transfer of funds - using a mobile device. Mobile commerce is the term applied to online financial transactions - shopping or the electronic transfer of funds - using a mobile device. Mobile commerce transactions are being enhanced by developments in the world of mobile communication. Mobile commerce transactions are being enhanced by developments in the world of mobile communication.

32 CSC1720 – Introduction to InternetAll copyrights reserved by C.C. Cheung 2003.32 MasterCard & M-Commerce ReferenceReference : demo

33 CSC1720 – Introduction to InternetAll copyrights reserved by C.C. Cheung 2003.33 Break Time – 15 minutes

34 CSC1720 – Introduction to InternetAll copyrights reserved by C.C. Cheung 2003.34 Build an e-Commerce site Register a Domain name Register a Domain name –Search for domain names (InterNIC) –What is the criteria of selecting a good name? Find a Web Host Find a Web Host –Select the suitable ISP Web Developers Web Developers –Hire a web designer –Cut cost and work with the designer –If your site is easy to use, the customers will stay longer and come more frequent.

35 CSC1720 – Introduction to InternetAll copyrights reserved by C.C. Cheung 2003.35 Web Hosting It is a very important step in e- Commerce. It is a very important step in e- Commerce. –Good uptime? –Good technical support? –Fast connection to the Net? –Staffs are knowledgeable about e- Commerce? –Compatibility with other e-Commerce providers?

36 CSC1720 – Introduction to InternetAll copyrights reserved by C.C. Cheung 2003.36 Attract and keep customers e-Business Advertising e-Business Advertising –Banner Advertising Recently, losing their effectiveness Recently, losing their effectiveness –Buying and Selling advertising You can become a host, or an advertiser You can become a host, or an advertiser www.valueclick.com www.valueclick.com www.valueclick.com –Webcasting and Interactive Advertising Use streaming media to broadcast information on the web. Use streaming media to broadcast information on the web.

37 CSC1720 – Introduction to InternetAll copyrights reserved by C.C. Cheung 2003.37 Enterprise Resources Planning (ERP) An industrial term defines as the activities supported by application software that helps company to manage the important parts of the business. An industrial term defines as the activities supported by application software that helps company to manage the important parts of the business. –Product planning, parts purchasing, maintaining inventories, contacting suppliers, customer servicing. Integrated with database (such as Oracle) to provide other features, business process analysis, employee training, … Integrated with database (such as Oracle) to provide other features, business process analysis, employee training, …

38 CSC1720 – Introduction to InternetAll copyrights reserved by C.C. Cheung 2003.38 ERP example Finance: How can I help you? Fulfillment: Yes, Sir? Inventory: Which item? Customer Service: We ’ re ready to help. I have questions about billing, product availability, shipping and customer service.

39 CSC1720 – Introduction to InternetAll copyrights reserved by C.C. Cheung 2003.39 Customer Relationship Management (CRM) All the customer services provided by the company form the CRM. All the customer services provided by the company form the CRM. CRM includes CRM includes –Call handling (in/out calls from customers and service representatives) –Sales tracking (tracing and recording the sales made) –Transaction support (the technology used for transactions) –Improve customer satisfaction and maximize the profits

40 CSC1720 – Introduction to InternetAll copyrights reserved by C.C. Cheung 2003.40 Electronic Data Interchange (EDI) Standard format to exchange business data. Standard format to exchange business data. EDI message is a string of data that represents “ price ”, “ product number ”, “ product name ”, etc. EDI message is a string of data that represents “ price ”, “ product number ”, “ product name ”, etc. EDI message can be encrypted. EDI message can be encrypted. EDI is one form of E-commerce, also include email, fax. EDI is one form of E-commerce, also include email, fax.

41 CSC1720 – Introduction to InternetAll copyrights reserved by C.C. Cheung 2003.41 Electronic Data Interchange (EDI) http://www.disa.org/ http://www.disa.org/ http://www.disa.org/

42 CSC1720 – Introduction to InternetAll copyrights reserved by C.C. Cheung 2003.42 Get Paid How to you pay on the website? How to you pay on the website? –Credit card transactions –Cybercash: www.cybercash.com www.cybercash.com –E-Wallets allows you to keep track your transactions, www.visa.com/pd/ewallet/main.html www.visa.com/pd/ewallet/main.html –Digital Cash: store your money electrically www.ecash.com www.ecash.com www.ecash.com –More complex: B2B Transactions.

43 CSC1720 – Introduction to InternetAll copyrights reserved by C.C. Cheung 2003.43 Manage the E-commerce business Have a good communication between the business production line (including the customer services team), and the IT development line. Have a good communication between the business production line (including the customer services team), and the IT development line. “ Online transaction history log ” and “ Historical investment performance reports ” also helps to decide and plan for the product and service trend. “ Online transaction history log ” and “ Historical investment performance reports ” also helps to decide and plan for the product and service trend. Migration of the traditional trading client to the new e-business. Migration of the traditional trading client to the new e-business.

44 CSC1720 – Introduction to InternetAll copyrights reserved by C.C. Cheung 2003.44 Secure the site Customers fear for their online privacy. Customers fear for their online privacy. Make sure all transactions on your e- commerce site are protected. Make sure all transactions on your e- commerce site are protected. Security is provided by different kind of cryptography (encryption, digital signatures, digital certificates) Security is provided by different kind of cryptography (encryption, digital signatures, digital certificates) Sometimes, you may provide your personal information for: member-only discounts, giveaway, sweepstakes, coupons. Beware! Sometimes, you may provide your personal information for: member-only discounts, giveaway, sweepstakes, coupons. Beware!

45 CSC1720 – Introduction to InternetAll copyrights reserved by C.C. Cheung 2003.45 Online shopping risks A list of safeguards to keep in mind. A list of safeguards to keep in mind. –Shop with trusted merchants. –Read the site ’ s delivery, return, and privacy policies. –Only enter your details with the URL that begins with https:// and either a locked padlock or an unbroken key icon. https:// –Be careful not to hit the ORDER NOW button more than once. –Never send credit card information via e-mail. –Keep a record of your transactions until shipped.

46 CSC1720 – Introduction to InternetAll copyrights reserved by C.C. Cheung 2003.46 HK Government Support http://www.info.gov.hk/digital21/chi/ecommerce/ecom_supp.html http://www.info.gov.hk/digital21/chi/ecommerce/ecom_supp.html

47 CSC1720 – Introduction to InternetAll copyrights reserved by C.C. Cheung 2003.47 Application Service Provider What is an Application Service Provider? What is an Application Service Provider? –Deliver and manage applications or computer services via the Internet. –Provide a cost-effective solution from an outside supplier. (maintenance, upgrades and customization) –It can be a commercial entity, a not-for- profit organization or government related.

48 CSC1720 – Introduction to InternetAll copyrights reserved by C.C. Cheung 2003.48 ASP in HK Reference http://hk.dir.yahoo.com/Regional/Countries_and_Regions/Hong_ Kong/Business_and_Economy/Companies/Electronic_Commerce/

49 CSC1720 – Introduction to InternetAll copyrights reserved by C.C. Cheung 2003.49 Using ASP Benefits Speed to market Speed to market –ASP has the latest equipment, applications, ready to provide market access. Operational freedom Operational freedom –The customer can focus on their core business. Improved performance Improved performance –ASP provides vast experience on different issues. Financial flexibility Financial flexibility –Reduced fixed cost and overall expenditures. Reduced risk Reduced risk –Customers can test a new technology with minimal impact to their existing system.

50 CSC1720 – Introduction to InternetAll copyrights reserved by C.C. Cheung 2003.50 ASP Advantages

51 CSC1720 – Introduction to InternetAll copyrights reserved by C.C. Cheung 2003.51 What kind of application can be delivered? Citrix, GraphOn and SCO Citrix, GraphOn and SCO –The applications run on a central server managed by the ASP, but not the applications on the end-user desktop or company ’ s server. –Portal means a gateway (starting point), for a WWW site, it is the starting site for user to browse.

52 CSC1720 – Introduction to InternetAll copyrights reserved by C.C. Cheung 2003.52 Portal Software Video show

53 CSC1720 – Introduction to InternetAll copyrights reserved by C.C. Cheung 2003.53 Choosing ASP Shared Server Shared Server with Application Isolation Systems Server Farm (Each company with its own server) Customer Cost LowLowHigh Initial Customer Investment LowLowHigh Maintainance cost LowModerateModerate Server Architecture Compl ex ModerateSimple Security Risk HighLowModerate

54 CSC1720 – Introduction to InternetAll copyrights reserved by C.C. Cheung 2003.54 Summary e-Commerce is defined as a company has an online presence. e-Commerce is defined as a company has an online presence. We have discussed different types of e-Commerce models. We have discussed different types of e-Commerce models. Discuss the important issues on developing e-Business. Discuss the important issues on developing e-Business. ASP provides very good supports to the e-Commerce development. ASP provides very good supports to the e-Commerce development.

55 CSC1720 – Introduction to InternetAll copyrights reserved by C.C. Cheung 2003.55 Reference: HK Gov.

56 CSC1720 – Introduction to InternetAll copyrights reserved by C.C. Cheung 2003.56 References www.ecommercetimes.com www.ecommercetimes.com www.ecommercetimes.com ecommerce.internet.com ecommerce.internet.com ecommerce.internet.com Microsoft TechNet Microsoft TechNet Microsoft TechNet Microsoft TechNet The End. The End. Thank you for your patience! Thank you for your patience!


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