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CIS 342: e-Commerce Applications

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1 CIS 342: e-Commerce Applications
Prof Frye

2 Planning a successful e-business
Identify the customers and/or potential customers Identify the customers’ needs Determine the site’s content Determine the organization of the site’s contents

3 Application concepts Push vs. Pull Technology
E-commerce competitive advantages

4 Components of e-commerce applications
Tools Content Users Tasks

5 Describing Applications/Systems
Application or Package Who What Where & When How Why How Much With Which

6 E-commerce sectors Business-to-Business (B2B)
Business-to-Consumer (B2C) Consumer-to-Business (C2B) Consumer-to-Consumer (C2C) Peer-to-Peer (P2P) Mobile E-Commerce (M-Commerce)

7 B2B Between 2 or more businesses
Yankee group predicts that American B2B commerce will grow 41% annually over the next 5 years. The Gartner Group has estimated that the B2B industry will be a $7.3 trillion worldwide industry by 2004.

8 Top 4 B2B Industries by Volume Increase
Estimated Online Sales Projected Online Sales Increase Industry in 1999 (billions) in 2004 (billions) % Pharmaceutical $ $ ,050 & medical Motor Vehicles ,189 Paper & Office Products ,148 Shipping & Warehouse ,024 Computing & Electronics

9 B2B Markets Horizontal market Vertical market

10 B2B Models Marketplace/Exchange E-Distributor B2B Service Provider
Matchmaker Infomediary Auction Sites Application Service Providers

11 B2B Alliances Industry leaders band together to establish a site
Two Goals to save money and time on purchasing to save money and time on sales

12 Government E-commerce
Government-to-citizen transactions Government-to-government transactions Government-to-business transactions

13 B2C Survey commissioned by “Parade Magazine” found that 85% of Internet users were also Internet shoppers Why do consumers prefer to shop and buy on the Internet?

14 Potential limitations of B2C growth
Home PCs Expensive Technology Complex software interface Sophisticated skill set Cultural attraction of physical markets and traditional shopping experience Global inequality limiting access to telephones and PCs

15 B2C Models Store front or E-tailer model Portal model
Dynamic-pricing model Content Provider model Stock Trading Transaction broker model

16 B2C Models cont. Service Provider model Community Provider model
Gambling Software Sales Perishables Online Bill Presentment and Payment

17 Why do B2C companies fail?
Lack of a solid business model Bad financial planning Inability to compete with larger, better-funded, or better-knows firms

18 Why do B2C companies succeed?
Meet a need Total Service Interaction and Personalization Use of Technology

19 C2C Consumers sell products or services to other consumers
Estimated to be over $5 billion in 2001 Forrester Research forecasts consumer online action market will grow to $19 billion by 2003 Auction model

20 C2B Consumer takes the initiative in the buying and selling relationship to contact the business Smallest and least-developed sector

21 P2P Enables Internet users to share files and computer resources directly without having to go through a central server

22 M-Commerce Use of wireless digital devices to enable web transactions

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