2 Learning ObjectivesIdentify the major categories and trends of e-commerce applicationsIdentify the essential processes of an e-commerce system, and give examples of how they are implemented in e-commerce applicationsIdentify and give examples of key factors and Web store requirements needed to succeed in e-commerce
3 Learning ObjectivesIdentify and explain the business value of several types of e-commerce marketplacesDiscuss the benefits and trade-offs of several e-commerce clicks and bricks alternatives
4 Case 1: KitchenAid & Royal Bank of Canada Companies doing business online must police unauthorized use of brand names, logos, and trademarks to protect their investmentsCompanies such as BrandProtect, MarkMonitor, and NameProtect help companies fight for control of their brands and reputationsBrand protection challenges have grown exponentiallyUsing logos without permission is easy; go to a web site, grab a logo, and put it somewhere else
5 Case Questions Consider your online shopping patterns How much weight do you place on the presence of a name, logo, or other trademark on a Web site when purchasing goods or services?Do you stop to consider whether you may have been misled?How could you tell the difference?
6 Case QuestionsBrian Maynard of KitchenAid notes that development of the Internet changed the problem of brand policingWhat are some of these changes?What challenges can you think of that did not exist in the pre-online world?
7 Case QuestionsThe companies mentioned in the case (Kitchen-Aid, RBC, Disney, Coke) were well established and enjoyed strong brand recognition well before the advent of the InternetDo you think online-only companies face the same problems as they do?
8 Introduction to e-Commerce SellingAccepting paymentsMarketingDeliveringE-commerce encompasses the online process of…ServicingDevelopingInternet and other information technologies support every step of the process
11 Categories of e-Commerce Business-to-Consumer (B2C)Consumer-to-Consumer (C2C)Business-to-Business (B2B)Virtual storefrontMultimedia catalogsInteractive order processingElectronic paymentsOnline customer supportOnline auctionsPosting to newspaper sitesPersonal websitesE-commerce portalsElectronic business marketplacesDirect links between businesses, auctions, and exchanges
13 Access Control and Security E-commerce processes must establish mutual trust, secure access between partiesUser names and passwordsEncryption keyDigital certificates and signaturesRestricted access areasOther people’s accountsRestricted company dataWebmaster administration areas
14 Profiling and Personalizing Profiling gathers data on you and your website behavior and choicesUser registrationCookie files and tracking softwareUser feedbackProfiling is used forPersonalized (one-to-one) marketingAuthenticating identityCustomer relationship managementMarketing planningWebsite management
15 Search ManagementSearch processes help customers find the specific product or service they wantE-commerce software packages often include a website search engineCustomized search engine may be acquired from companies like Google or Requisite TechnologySearches are often on content or by parameters
16 Content and Catalog Management Content Management SoftwareHelps develop, generate, deliver, update, and archive text and multimedia information at e-commerce websitesCatalog Management SoftwareHelps generate and manage catalog contentCatalog and content management software works with profiling tool to personalize contentProduct configuration and mass customization
17 Workflow ManagementE-business & e-commerce management depends on a workflow software engineSoftware model of business processesWorkflow models express predefinedSets of business rulesRoles of stakeholdersAuthorization requirementsRouting alternativesDatabases usedTask sequences
19 Most e-commerce applicants are event driven Event NotificationMost e-commerce applicants are event drivenResponds to customer’s first website visit, payments, and so onMonitors all e-commerce processesRecords all relevant events, including problem situationsNotifies all involved stakeholdersWorks in tandem with user-profiling software
20 Collaboration and Trading Processes support vital collaboration arrangements and trading servicesNeeded by customers, suppliers, and other stakeholders to accomplish e-commerce transactionsOnline communities of interest, chat, discussion groupsEnhances customer serviceBuilds loyalty
21 Electronic Payment Example Complex processesNear-anonymous and electronic nature of transactionsMany security issuesWide variety of debit and credit alternativesFinancial institutions may be part of the processWeb Payment ProcessesShopping cart processCredit card payment processDebit and other more complex processesElectronic Funds Transfer (EFT)Major payment system in banking, retailVariety of information technologies capture and process money and credit card transfersMost point-of-sale terminals in retail stores are networked to bank EFT systems
22 Securing Electronic Payments Network sniffers easily recognize credit card formatsEncrypt data between customer and merchantEncrypt data between customer and financial institutionTake sensitive information off-line
24 Case 3: Driving the “Buzz” on the Web Social networks contain “influentials”Old ThinkingInfluentials drive proactive behavior in othersInfluentials can’t be influenced in a way that accelerates a word-of-mouth campaignNew ThinkingFind embryo trends, then help influentials discover them
25 Case Study QuestionsHow can companies benefit from the “cultural assessments” regularly performed by Mattel?How could the information obtained be used to create business value for those organizations?In spite of disconfirming evidence as to the effectiveness of targeting online opinion leaders, companies are increasing their efforts to identify and contact themWhy do you think this is the case?
26 Case Study QuestionsOne of the participants in the case states that “you want to ride the wave, rather than trying to start one of your own”What does she mean by that?If companies are not starting these “waves,” where are they coming from?
27 B2C E-Commerce Success Factors Selection & valuePerformance and serviceLook and feelAdvertising and incentivesPersonal attentionCommunity relationshipsSecurity and reliabilityGreat consumer communications
30 B2B E-CommerceB2B is the wholesale and supply side of the commercial processBusinesses buy, sell, or trade with other businessesElectronic funds transfersData interchangeRelies on multiple electronic information technologiesTrading systemsCatalog systems
31 E-Commerce Marketplaces One to ManySell-side marketplacesOne supplier dictates product offerings and pricesMany to OneBuy-side marketplacesMany suppliers bid for the business of a buyerSome to ManyDistribution marketplacesUnites suppliers who combine their product catalogs to attract a larger audience
32 E-Commerce Marketplaces Many to SomeProcurement marketplacesUnites major buyers who combine purchasing catalogsAttracts more competition, which lowers pricesMany to ManyAuction marketplacesDynamically optimizes prices
33 B2B E-Commerce Web Portal B2B e-commerce portals offer multiple marketplacesCatalogsExchangesAuctionsOften developed and hosted by third-party market-maker companiesInfomediaries serve as intermediaries in e-business and e-commerce transactions
34 Clicks and BricksSuccess will go to those who can integrate Internet initiatives with traditional operationsMerging operations has trade-offs
35 Integrated vs. Separate e-Business The business case for merging e-commerce with traditional business operationsMove strategic capabilities in traditional operations to the e-commerce businessIntegrate e-commerce into the traditional businessSharing of established brandsSharing of key business informationJoint buying power and distribution efficiencies
36 Other Clicks and Bricks Strategies Partial e-commerce integrationJoint ventures and strategic partnershipsComplete separationSpin-off of an independent e-commerce companyBarnes and Noble’s experience with spin-offGained venture capital, entrepreneurial culture, flexibilityAttracted quality managementAccelerated decision makingFailed to gain market share
37 E-Commerce Channel Choices An e-commerce channel is the marketingor sales channel created by a company for its e-commerce activitiesThere is no universal strategy or e-commerce channel choiceBoth e-commerce integration and separation have major business pros and consMost businesses are implementing some measure of clicks-and-bricks integration
38 E-Commerce Strategy Checklist Questions to ask and answerWhat audiences are we attempting to reach?What action do we want audiences to take?Who owns the e-commerce channel within the organization?Is the e-commerce channel planned alongside other channels?Is there a process for generating, approving, releasing, and withdrawing content?Will our brand translate to the new channel?How will we market the channel itself?
39 Case 2: Entellium, Digg, Peerflix, Zappos, Jigsaw For many Internet companies, the second-mover advantage is substantialSecond-movers can use the same approach as first movers, but with better products and services, at much lower costAnother strategy is to use combinations of successful business models
40 Case Study QuestionsIs the second-mover advantage always a good business strategy?Defend your answer with examples of the companies in this caseWhat can a front-runner business do to foil the assaults of second movers?Defend your answer using examples of the front-runner companies in the caseDo second movers always have the advantage in Web based business success?Evaluate the five strategies in the case, and the companies that used them, to defend your answer