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

2. Principles of Information Systems, Sixth Edition 2 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

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

4. Principles of Information Systems, Sixth Edition 4 Introduction to Electronic Commerce Most common types of e-commerce: Business-to-consumer (B2C) e- commerce Business-to-business (B2B) e- commerce Consumer-to-consumer (C2C) e- commerce

5. Principles of Information Systems, Sixth Edition 5 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

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

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

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

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

10. Principles of Information Systems, Sixth Edition 10 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

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

12. Principles of Information Systems, Sixth Edition 12 Supply Chain Management

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

14. Principles of Information Systems, Sixth Edition 14 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

15. Principles of Information Systems, Sixth Edition 15 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

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

17. Principles of Information Systems, Sixth Edition 17 Retail and Wholesale Electronic retailing Cybermalls Wholesale e-commerce: B2B

18. Principles of Information Systems, Sixth Edition 18 Manufacturing

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

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

21. Principles of Information Systems, Sixth Edition 21 Investment and Finance

22. Principles of Information Systems, Sixth Edition 22 Investment and Finance

23. Principles of Information Systems, Sixth Edition 23 Technology Infrastructure

24. Principles of Information Systems, Sixth Edition 24 Technology Infrastructure

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

26. Principles of Information Systems, Sixth Edition 26 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

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

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

29. Principles of Information Systems, Sixth Edition 29 Electronic Shopping Cart

30. Principles of Information Systems, Sixth Edition 30 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

31. Principles of Information Systems, Sixth Edition 31 Electronic Payment Systems

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

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

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

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

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

37. Principles of Information Systems, Sixth Edition 37 TRUSTe Seal

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

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

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

41. Principles of Information Systems, Sixth Edition 41 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

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

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

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

45. Principles of Information Systems, Sixth Edition 45 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

46. Principles of Information Systems, Sixth Edition 46 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 e- commerce works. –Identify some of the major challenges companies must overcome to succeed in e-commerce. –Identify several e-commerce applications.

47. Principles of Information Systems, Sixth Edition 47 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.

48. Principles of Information Systems, Sixth Edition 48 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 e- commerce strategy

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