Introduction to eCommerce
Scope of eCommerce
E-Commerce
Processes
Electronic
Payment
Processes
Section II
E-Commerce
Applications
B2C eCommerce
B2B e-Commerce
E-Commerce
Marketplaces
Electronic
Commerce Systems
Real World Cases
KEY TERMS
BACK NEXT
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
8-1
Learning Objectives
Introduction to eCommerce
Scope of eCommerce
E-Commerce
Processes
Electronic
Payment
Processes
Section II
E-Commerce
Applications
B2C eCommerce
B2B e-Commerce
E-Commerce
Marketplaces
Real World Cases
KEY TERMS
BACK NEXT
END
1. Identify the major categories and trends
of e-commerce applications.
2. Identify the essential processes of an ecommerce system, and give examples of
how they are implemented in ecommerce applications.
3. Identify and give examples of key factors
and Web store requirements needed to
succeed in e-commerce.
4. Identify and explain the business value of
several types of e-commerce
marketplaces.
5. Discuss the benefits and trade-offs of
several e-commerce clicks and bricks
alternatives.
Copyright 2005, McGraw-Hill/Irwin, Inc.
8-2
Introduction to eCommerce
Scope of eCommerce
E-Commerce
Processes
Electronic
Payment
Processes
Section II
E-Commerce
Applications
B2C eCommerce
B2B e-Commerce
E-Commerce
Marketplaces
Real World Cases
KEY TERMS
BACK NEXT
Electronic
Commerce Fundamentals
• Impact of e-Commerce on
Competitive Markets
• Reliance on Internet and
Related Technologies
• Many Challenges and
Opportunities in the Field
• Real World Case 1e-Bay, Inc.
Click to go to
Case 1
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
8-3
Scope of e-Commerce
Introduction to eCommerce
Scope of eCommerce
E-Commerce
Processes
Electronic
Payment
Processes
Section II
E-Commerce
Applications
B2C eCommerce
B2B e-Commerce
E-Commerce
Marketplaces
Real World Cases
KEY TERMS
BACK NEXT
A Wide Range of Business
Processes Support ECommerce
Marketing/Discovery
Market/
Product
Research
Transaction Processing
Market
Terms
Stimulation
Negotiation
Education
Order
Receipt
Service and Support
Order
Selection
and Priority
Order
Billing/
Payment
Mgmt.
Order
Scheduling/
Fulfillment
Delivery
Customer
Service and
Support
Order
Tracking
Order
Payment
Product
Receipt
Product
Service and
Support
Selling Process
Product
Discovery
Product
Evaluation
Terms
Order
Negotiation Placement
Buying Process
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
8-4
Scope of e-Commerce
Introduction to eCommerce
Scope of eCommerce
E-Commerce
Processes
Electronic
Payment
Processes
Section II
E-Commerce
Applications
B2C eCommerce
B2B e-Commerce
E-Commerce
Marketplaces
E-Commerce Applications
• Business-to-Customer
(B2C)
• Business-to-Business
(B2B)
• Customer-to-Customer
(C2C)
Real World Cases
KEY TERMS
BACK NEXT
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
8-5
Scope of e-Commerce
Example QuickSource Internet Auction
Introduction to eCommerce
Scope of eCommerce
E-Commerce
Processes
Electronic
Payment
Processes
Section II
E-Commerce
Applications
B2C eCommerce
B2B e-Commerce
E-Commerce
Marketplaces
1
QuickSource user submits
a request for quote (RFQ)
for publication via Internet
Firewall
2
Web server parses
HTTP request,
validates user
identity and
authorization, and
processes request
• Windows 2000
Advanced
Server
• Windows 2000 • Internet
Datacenter
Information
Server cluster
Server 5
• SQL Server
2000
Database server
updates RFQ status
as “published”
3
4
Storage-Area Network
KEY TERMS
BACK NEXT
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
Web server sends
confirmation to browser
Web Server Farm
Database
Servers
Real World Cases
6
Transactions and
user activity logged
for billing and
marketing purposes
5
Application
servers notify
suppliers of the
new RFQ via email
• Windows 2000
Advanced
Server cluster
• J.D. Edwards
OneWorld ERP
software
• Siebel Systems
e-Business
CRM software
8-6
e-Commerce Processes
Introduction to eCommerce
Scope of eCommerce
E-Commerce
Processes
Electronic
Payment
Processes
Section II
E-Commerce
Applications
B2C eCommerce
B2B e-Commerce
E-Commerce
Marketplaces
Real World Cases
KEY TERMS
BACK NEXT
END
• Electronic Commerce
Technologies
• Access Control and Security
Access Control
and Security
Access Control
Authentication
Security Measures
Content
Management
Dynamic Content
Generation
Data Repository
Profiling and
Personalizing
Profile Management
Catalog
Management
Pricing Calculation
Personalization
Product
Configuration
Behavior Tracking
Search Management
Content-Based
Search
Parametric-Based
Search
Role- and Rule-Based
Search
Collaboration
and Trading
Mediation
Negotiation
Workflow
Management
Buying Process
Automation
Bidding/Auctioning
Collaborative
Buying
Online Community
Document
Management
Rule- and Role-Based
Content Routing
Catalog Generation
Payment
Shopping Cart
Payment Method
Support
Payment
Verification
Copyright 2005, McGraw-Hill/Irwin, Inc.
Event
Notification
Event-Driven
Transaction
Messaging
Message to e-mail
Message Boards
Newsgroups
8-7
e-Commerce Processes
Introduction to eCommerce
Scope of eCommerce
E-Commerce
Processes
Electronic
Payment
Processes
Section II
E-Commerce
Applications
B2C eCommerce
B2B e-Commerce
E-Commerce
Marketplaces
Bselect Software Gathers and
Analyzes the Behavior of
Website Visitors
Real World Cases
KEY TERMS
BACK NEXT
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
8-8
e-Commerce Processes
Introduction to eCommerce
Scope of eCommerce
E-Commerce
Processes
Electronic
Payment
Processes
Section II
E-Commerce
Applications
B2C eCommerce
B2B e-Commerce
E-Commerce
Marketplaces
Real World Cases
KEY TERMS
BACK NEXT
END
Profiling and Personalizing
Be Free and Supergo Bike Shops:
Personalizing e-Commerce
• Use of Bselect Personalization
Application
• Profile Information Saved by Key
• Tracks Customers Anonymously
• Supergo Bike Used Bselect 1 Year
• Bselect Suggests Additional Sales
• Highly Successful Application
• E-Commerce Sales Grew from
33% to 60%
Copyright 2005, McGraw-Hill/Irwin, Inc.
8-9
e-Commerce Processes
Introduction to eCommerce
Scope of eCommerce
E-Commerce
Processes
Electronic
Payment
Processes
Section II
E-Commerce
Applications
B2C eCommerce
B2B e-Commerce
E-Commerce
Marketplaces
Real World Cases
KEY TERMS
BACK NEXT
END
• Search Management
• Content and Catalog
Management
Cableton Systems: e-Commerce
Configuration
• Network Equipment Maker with $3
Billion in Sales
• e-Sales Configuration Workbench
• Guides Customer Through Complex
Purchase Processes
• 60% of Web Orders Used
Configurator to Reduce Errors
Resulting in Huge Savings
Copyright 2005, McGraw-Hill/Irwin, Inc.
8-10
e-Commerce Processes
Introduction to eCommerce
Scope of eCommerce
E-Commerce
Processes
Electronic
Payment
Processes
Section II
E-Commerce
Applications
B2C eCommerce
B2B e-Commerce
E-Commerce
Marketplaces
Real World Cases
KEY TERMS
BACK NEXT
END
Workflow Management
Microsoft Corporation:
e-Commerce Purchasing Processes
• MS Market – Internal eCommerce Purchasing System
• Reduced Personnel Used for
Purchasing Without Paperwork
• High-Volume Low-Dollar
Purchases Make Up 70% of
Volume but Only 3% of
Microsoft’s Accounts Payable
• Very Successful Implementation
Copyright 2005, McGraw-Hill/Irwin, Inc.
8-11
e-Commerce Processes
Workflow Management of MS Market
1. Browse Suppliers
MS Market
2. Find Products
3. Order Items
4. Confirm Order
Employee
Intranet
Procurement
Real World Cases
Multisupplier
Catalog
Corporate
Catalog
Order Form
Availability
Order Entry
5. Transmit Order
6. Process Order
Approval Workflow
Purchase Order
Workflow
Fulfillment
• Shipping
• Accounting
7. Order Completed • Messaging
KEY TERMS
BACK NEXT
Supplier n
Supplier 2
Supplier 1
Catalog Content
And Workflow
Management
Introduction to eCommerce
Scope of eCommerce
E-Commerce
Processes
Electronic
Payment
Processes
Section II
E-Commerce
Applications
B2C eCommerce
B2B e-Commerce
E-Commerce
Marketplaces
Microsoft Corporation:
e-Commerce Purchasing Processes
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
8-12
e-Commerce Processes
Introduction to eCommerce
Scope of eCommerce
E-Commerce
Processes
Electronic
Payment
Processes
Section II
E-Commerce
Applications
B2C eCommerce
B2B e-Commerce
E-Commerce
Marketplaces
Collaboration and Trading
Online Communities of
Interest
B2B e-Commerce Web
Portals
Dependence on InternetBased Trading Platforms
Real World Cases
KEY TERMS
BACK NEXT
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
8-13
Electronic Payment
Processes
Introduction to eCommerce
Scope of eCommerce
E-Commerce
Processes
Electronic
Payment
Processes
Section II
E-Commerce
Applications
B2C eCommerce
B2B e-Commerce
E-Commerce
Marketplaces
Real World Cases
KEY TERMS
BACK NEXT
END
Electronic Payment Processes
Web Payment Processes
Electronic Funds Transfer (EFT)
Secure Electronic Payments
• Encrypt the Data Customer to
Merchant
• Encrypt the Data Passing
Between Customer and Credit
Authorizer
• Take Sensitive Information
Offline
Copyright 2005, McGraw-Hill/Irwin, Inc.
8-14
Electronic Payment
Processes
Introduction to eCommerce
Scope of eCommerce
E-Commerce
Processes
Electronic
Payment
Processes
Section II
E-Commerce
Applications
B2C eCommerce
B2B e-Commerce
E-Commerce
Marketplaces
Customer
Merchant
Request
Client
Browser
•Verify Merchant
•Receive Order Info
•Receive Payment Info
•Confirm Order
Merchant’s
Web Server
Payment
Server
•Verify Customer
•Review Payment Info
•Authorize or Deny Payment
Online Third-Party
Computers with
Links to Multiple
Payment Systems
Real World Cases
KEY TERMS
BACK NEXT
END
Credit Cards Bank Accounts Online Buying e-Bill Payment Electronic Cash
VISA
Debit Cards
Payflow Pro
CheckFree
BillPoint
MasterCard Online Banking 1 ClickCharge Paytrust
PayPal
Copyright 2005, McGraw-Hill/Irwin, Inc.
8-15
Electronic Payment
Processes
Introduction to eCommerce
Scope of eCommerce
E-Commerce
Processes
Electronic
Payment
Processes
Section II
E-Commerce
Applications
B2C eCommerce
B2B e-Commerce
E-Commerce
Marketplaces
Verisign Provides Security Plus…
Real World Cases
KEY TERMS
BACK NEXT
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
8-16
E-Commerce
Applications and Issues
Introduction to eCommerce
Scope of eCommerce
E-Commerce
Processes
Electronic
Payment
Processes
Section II
E-Commerce
Applications
B2C eCommerce
B2B e-Commerce
E-Commerce
Marketplaces
Real World Cases
KEY TERMS
BACK NEXT
END
•
•
•
•
E-Commerce is Here to Stay
B2C Applications
Brochureware
B2B – Website Support then
Automating Procurement
Systems
Real World Case 2Corporate Express:
Copyright 2005, McGraw-Hill/Irwin, Inc.
Click to go to
Case 2
8-17
e-Commerce Trends
Introduction to eCommerce
Scope of eCommerce
E-Commerce
Processes
Electronic
Payment
Processes
Section II
E-Commerce
Applications
B2C eCommerce
B2B e-Commerce
E-Commerce
Marketplaces
B2C and B2B Growth to
e-Business Empowerment
High
Short-Term Strategies
Long-Term Strategies
Self-Service
Web Stores
Integrated
Web Store
Business
Value
Supply
Chain
Management
Customer
Relationship
Management
Interactive
Marketing
e-Business
Empowerment
B2C
Portal
B2B
Portal
Extranets
And Exchanges
Web Storefront
& e-Catalog
Procurement
Automation
B2C
Customer
Self-Service
B2B
Real World Cases
Short-Term Projects
KEY TERMS
BACK NEXT
Low
Operations Automation
Time to Implement
High
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
8-18
B2C e-Commerce
Introduction to eCommerce
Scope of eCommerce
E-Commerce
Processes
Electronic
Payment
Processes
Section II
E-Commerce
Applications
B2C eCommerce
B2B e-Commerce
E-Commerce
Marketplaces
Real World Cases
KEY TERMS
BACK NEXT
END
Creating B2C e-Commerce
• Offer Attractive Products or
Services
• Attractive Prices
• Great Consumer Value
• Realistic Forecasts of
Profitability
• Breakdown of Old Barriers
of Time, Distance, and Form
• Find Ways to Build Loyalty
Copyright 2005, McGraw-Hill/Irwin, Inc.
8-19
B2C e-Commerce
Introduction to eCommerce
Scope of eCommerce
E-Commerce
Processes
Electronic
Payment
Processes
Section II
E-Commerce
Applications
B2C eCommerce
B2B e-Commerce
E-Commerce
Marketplaces
Real World Cases
KEY TERMS
BACK NEXT
END
Top Retail Web Sites
• Amazon.Com
www.amazon.com
• eBay
www.ebay.com
• Eddie Bauer
www.eddiebauer.com
• Land’s End
www.landsend.com
Copyright 2005, McGraw-Hill/Irwin, Inc.
8-20
B2C e-Commerce
Introduction to eCommerce
Scope of eCommerce
E-Commerce
Processes
Electronic
Payment
Processes
Section II
E-Commerce
Applications
B2C eCommerce
B2B e-Commerce
E-Commerce
Marketplaces
Real World Cases
KEY TERMS
BACK NEXT
END
E-Commerce Success Factors
• Selection and Value
• Performance and Service
• Look and Feel
• Advertising and
Incentives
• Personal Attention
• Community Relationships
• Security and Reliability
Copyright 2005, McGraw-Hill/Irwin, Inc.
8-21
B2C e-Commerce
Introduction to eCommerce
Scope of eCommerce
E-Commerce
Processes
Electronic
Payment
Processes
Section II
E-Commerce
Applications
B2C eCommerce
B2B e-Commerce
E-Commerce
Marketplaces
How Traditional and Web
Marketing Communications
Differ in Supporting the
Buying Process…
Buying Process
Awareness
Consideration
Preference
Purchase
Loyalty
• Television Ads
Traditional
• General Interest
Market
Communications Magazines
• Television Ads
• General Interest
Magazines
• Niche Magazines
• Collateral
• Point-of-Sale
Promotions
• Direct Marketing
• Product
Experience
• Buyers Clubs
Web
• Buttons
Market
• Banners
Communications • Sponsorships
• Banners
• Microsites
• Brochureware
• Website
• Daily Specials
• Sweepstakes
• First-time Order
Incentives
• e-Mail Alerts
• Newsletters
Real World Cases
KEY TERMS
BACK NEXT
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
8-22
B2C e-Commerce
Introduction to eCommerce
Scope of eCommerce
E-Commerce
Processes
Electronic
Payment
Processes
Section II
E-Commerce
Applications
B2C eCommerce
B2B e-Commerce
E-Commerce
Marketplaces
Real World Cases
KEY TERMS
BACK NEXT
END
Amazon.Com: Tops in B2C
Retailing
• One of the Biggest and Best
Virtual Retailers
• Finally Making Profits
• Quick Confirmation and
Order Processing
• Adding Goods and Services
• Wants to be a NextGeneration Retail Commerce
Portal
Copyright 2005, McGraw-Hill/Irwin, Inc.
8-23
B2C e-Commerce
Introduction to eCommerce
Scope of eCommerce
E-Commerce
Processes
Electronic
Payment
Processes
Section II
E-Commerce
Applications
B2C eCommerce
B2B e-Commerce
E-Commerce
Marketplaces
Steps in the Development of
a Web Store
Real World Cases
KEY TERMS
BACK NEXT
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
8-24
B2C e-Commerce
Introduction to eCommerce
Scope of eCommerce
E-Commerce
Processes
Electronic
Payment
Processes
Section II
E-Commerce
Applications
B2C eCommerce
B2B e-Commerce
E-Commerce
Marketplaces
Example of Prodigy.Biz Site
Real World Cases
KEY TERMS
BACK NEXT
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
8-25
B2C e-Commerce
Introduction to eCommerce
Scope of eCommerce
E-Commerce
Processes
Electronic
Payment
Processes
Section II
E-Commerce
Applications
B2C eCommerce
B2B e-Commerce
E-Commerce
Marketplaces
Real World Cases
KEY TERMS
BACK NEXT
END
NTT/Verio Inc.: Website
Management
• One of the World’s Leading
Web Hosting Companies
• Offers Complete Services to
Web Retailers
• Guarantees 99.9% Uptime
• 24x7 Server Monitoring and
Customer Support
• Hosts more than 10,000 Web
Businesses
Copyright 2005, McGraw-Hill/Irwin, Inc.
8-26
B2B e-Commerce
Introduction to eCommerce
Scope of eCommerce
E-Commerce
Processes
Electronic
Payment
Processes
Section II
E-Commerce
Applications
B2C eCommerce
B2B e-Commerce
E-Commerce
Marketplaces
Real World Cases
KEY TERMS
BACK NEXT
END
• The Wholesale and Supply
Side of the Commercial
Process
• Electronic Catalog Systems
• Electronic Trading Systems
• Electronic Data Interchange
• Electronic Funds Transfer
• Integrating Supply-Chain
Management with Customer
Relationship Management
Copyright 2005, McGraw-Hill/Irwin, Inc.
8-27
B2B e-Commerce
Introduction to eCommerce
Scope of eCommerce
E-Commerce
Processes
Electronic
Payment
Processes
Section II
E-Commerce
Applications
B2C eCommerce
B2B e-Commerce
E-Commerce
Marketplaces
Real World Cases
KEY TERMS
BACK NEXT
END
Cisco Systems: B2B Marketplace
Success
• 70% of Product Sales Occur at
Their Website
• Wide Variety of Service Offerings
in the Purchase Process
• Regular Customers Linked to
Back-End Data Systems
• Strong Post-Sale Customer
Support
• Highly Successful and Widely
Used Implementation
Copyright 2005, McGraw-Hill/Irwin, Inc.
8-28
B2B e-Commerce
Introduction to eCommerce
Scope of eCommerce
E-Commerce
Processes
Electronic
Payment
Processes
Section II
E-Commerce
Applications
B2C eCommerce
B2B e-Commerce
E-Commerce
Marketplaces
Real World Cases
KEY TERMS
BACK NEXT
END
e-Commerce Marketplaces
–One-to-Many
–Many-to-One
–Some-to-Many
–Many-to-Some
–Many-to-Many
• e-Commerce Portals
• Exchanges
• Auctions
• Market Makers
• Infomediaries
Copyright 2005, McGraw-Hill/Irwin, Inc.
8-29
B2B e-Commerce
Introduction to eCommerce
Scope of eCommerce
E-Commerce
Processes
Electronic
Payment
Processes
Section II
E-Commerce
Applications
B2C eCommerce
B2B e-Commerce
E-Commerce
Marketplaces
Example of a B2B Web Portal
INTERNET
BUYERS
INTERNET
AUCTION
SELLERS
INTERNET
REVERSE AUCTION
1
B2B WEB PORTAL
2
CONTENT MANAGER
SERVER
3
MARKET GENERATOR
SERVER
4
POST-TRADE MARKET
HISTORY SERVER
Real World Cases
LIVE MARKET
SERVER
KEY TERMS
BACK NEXT
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
8-30
B2B e-Commerce
Introduction to eCommerce
Scope of eCommerce
E-Commerce
Processes
Electronic
Payment
Processes
Section II
E-Commerce
Applications
B2C eCommerce
B2B e-Commerce
E-Commerce
Marketplaces
Real World Cases
KEY TERMS
BACK NEXT
END
ChemConnect and Heritage
Services: Public and Private B2B
Exchanges
• Public B2B Exchanges
• ChemConnect – A Chemical
Exchange Online Auction
• Much Quicker than any Other
Method
• Private B2B Exchanges
• Heritage Built Private Exchange
in their Own Web Portal
• Private Exchanges Offer More
Control and Automates Processes
Copyright 2005, McGraw-Hill/Irwin, Inc.
8-31
B2B e-Commerce
Introduction to eCommerce
Scope of eCommerce
E-Commerce
Processes
Electronic
Payment
Processes
Section II
E-Commerce
Applications
B2C eCommerce
B2B e-Commerce
E-Commerce
Marketplaces
Electronic Data Interchange
• EDI an Early Example of IT
in e-Commerce
• EDI Over the Internet Using
Secure VPNs is a Growing
Application
Real World Cases
KEY TERMS
BACK NEXT
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
8-32
B2B e-Commerce
Introduction to eCommerce
Scope of eCommerce
E-Commerce
Processes
Electronic
Payment
Processes
Section II
E-Commerce
Applications
B2C eCommerce
B2B e-Commerce
E-Commerce
Marketplaces
Real World Cases
Alternatives and Benefit
Tradeoffs in Selecting an eCommerce System
Separation
•Greater
Focus
•More
Flexibility
•Access to
Venture
Funding
Strategic
Spin-Off
Partnership
(Banesandnoble.com) (Rite Aid and
Drugstore.com)
KEY TERMS
BACK NEXT
Joint
Venture
In-House
Division
(KBtoys.com) (OfficeDepot.com)
Integration
•Established
Brand
•Shared
Information
•Purchasing
Leverage
•Distribution
Efficiencies
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
8-33
Introduction to eCommerce
Scope of eCommerce
E-Commerce
Processes
Electronic
Payment
Processes
Section II
E-Commerce
Applications
B2C eCommerce
B2B e-Commerce
E-Commerce
Marketplaces
Real World Cases
KEY TERMS
BACK NEXT
END
Clicks and Bricks in eCommerce
e-Commerce Integration
• E-Commerce a Part of
the Regular Business
Plan
• Joint Ventures
• Strategic Partnerships
• Independent Spin-Offs
E-Commerce Channel
Choices
Copyright 2005, McGraw-Hill/Irwin, Inc.
8-34
Introduction to eCommerce
Scope of eCommerce
E-Commerce
Processes
Electronic
Payment
Processes
Section II
E-Commerce
Applications
B2C eCommerce
B2B e-Commerce
E-Commerce
Marketplaces
Clicks and Bricks in eCommerce
E-Commerce Channel
Development Strategies
Real World Cases
KEY TERMS
BACK NEXT
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
8-35
Clicks and Bricks in eCommerce
Introduction to eCommerce
Scope of eCommerce
E-Commerce
Processes
Electronic
Payment
Processes
Section II
E-Commerce
Applications
B2C eCommerce
B2B e-Commerce
E-Commerce
Marketplaces
Real World Cases
KEY TERMS
BACK NEXT
END
Citigroup: From Failure to Success in
e-Commerce Integration Strategies
• Launch of e-Citi in 1977
• Sought to Attract its Own
Customers Electronically Before
Someone Else Did
• Extremely High Costs and had
Numerous Problems and Failures
• Formed New Internet Operating
Group in 2000
• By 2001 Online Customers Were
Up 80% and 100 Websites
Trimmed to 38 Saving $1 Billion
Copyright 2005, McGraw-Hill/Irwin, Inc.
8-36
Summary
Introduction to eCommerce
Scope of eCommerce
E-Commerce
Processes
Electronic
Payment
Processes
Section II
E-Commerce
Applications
B2C eCommerce
B2B e-Commerce
E-Commerce
Marketplaces
• Electronic Commerce
• E-Commerce Issues
• B2C E-Commerce
• B2B E-Commerce
Real World Cases
KEY TERMS
BACK NEXT
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
8-37
KEY TERMS
Introduction to eCommerce
Scope of eCommerce
E-Commerce
Processes
Electronic
Payment
Processes
Section II
E-Commerce
Applications
B2C eCommerce
B2B e-Commerce
E-Commerce
Marketplaces
Real World Cases
Clicks and Bricks
Alternatives
E-Commerce Channel
E-Commerce Marketplaces
a. Auction
b. Catalog
c. Exchange
d. Portal
E-Commerce Success
Factors
E-Commerce Technologies
Electronic Commerce
a. Business-to-Business
b. Business-to-Consumer
c. Consumer-toConsumer
Electronic Data
Interchange
KEY TERMS
BACK NEXT
Electronic Funds Transfer
Essential e-commerce
Processes
a. Access Control and
Security
b. Catalog Management
c. Collaboration and
Trading
d. Content Management
e. Electronic Payment
Systems
f. Event Notification
g. Profiling and
Personalizing
h. Search Management
i. Workflow
Management
Infomediaries
Trends in e-commerce
Web Store Requirements
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
8-38
Optional Case Studies
Real World Case 1
Introduction to eCommerce
Scope of eCommerce
E-Commerce
Processes
Electronic
Payment
Processes
Section II
E-Commerce
Applications
B2C eCommerce
B2B e-Commerce
E-Commerce
Marketplaces
Real World Cases
KEY TERMS
BACK NEXT
END
eBay Inc.: Managing Success in
a Dynamic Online Marketplace
Click to go to
Case 1
Real World Case 2
Corporate Express: The Business
Value of Integrating Customer and
Supplier Procurement Systems
Click to go to
Case 2
Real World Case 3
E-Trade and Wells Fargo: The
Business Case for Clicks and
Bricks e-Commerce
Click to go to
Case 3
Real World Case 4
Providence Washington Insurance
and Tharco: The Business Value of
an Online Customer Interface
Copyright 2005, McGraw-Hill/Irwin, Inc.
Click to go to
Case 4
8-39
Introduction to eCommerce
Scope of eCommerce
E-Commerce
Processes
Electronic
Payment
Processes
Section II
E-Commerce
Applications
B2C eCommerce
B2B e-Commerce
E-Commerce
Marketplaces
Real World Cases
Decision Support
Systems
Chapter 9
KEY TERMS
BACK NEXT
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
8-40
Introduction to eCommerce
Scope of eCommerce
E-Commerce
Processes
Electronic
Payment
Processes
Section II
E-Commerce
Applications
B2C eCommerce
B2B e-Commerce
E-Commerce
Marketplaces
eBay Inc.: Managing
Success in a Dynamic Online
Marketplace
1- Why has eBay become such a
successful, fast growing, and
diverse online marketplace? Visit
the eBay website to help you
answer, and check out their
many trading categories,
specialty sites, international sites,
and other features.
Return to
Chapter 8
Real World Cases
KEY TERMS
BACK NEXT
Return to
Cases Page
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
8-41
Introduction to eCommerce
Scope of eCommerce
E-Commerce
Processes
Electronic
Payment
Processes
Section II
E-Commerce
Applications
B2C eCommerce
B2B e-Commerce
E-Commerce
Marketplaces
Real World Cases
KEY TERMS
BACK NEXT
END
eBay Inc.: Managing
Success in a Dynamic Online
Marketplace
Discussion Points Would Include:
• Buyers/Sellers Feedback
Rating System
• eBay’s Fraud Policy
• PayPal-Electronic eBay
Payments
• Vortex-Draws
Products/Players
• Expansion into B2C and B2B
• User Voice in Decisions
Copyright 2005, McGraw-Hill/Irwin, Inc.
8-42
Introduction to eCommerce
Scope of eCommerce
E-Commerce
Processes
Electronic
Payment
Processes
Section II
E-Commerce
Applications
B2C eCommerce
B2B e-Commerce
E-Commerce
Marketplaces
Real World Cases
KEY TERMS
BACK NEXT
eBay Inc.: Managing
Success in a Dynamic Online
Marketplace
2- Why do you think eBay has
become the largest
online/offline seller of used
cars, and the largest online
seller of certain other
products, like computers and
photo equipment?
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
8-43
Introduction to eCommerce
Scope of eCommerce
E-Commerce
Processes
Electronic
Payment
Processes
Section II
E-Commerce
Applications
B2C eCommerce
B2B e-Commerce
E-Commerce
Marketplaces
Real World Cases
KEY TERMS
BACK NEXT
END
eBay Inc.: Managing
Success in a Dynamic Online
Marketplace
Discussion Points Would Include:
• Kruse International Purchase
– Acquire not Start Marketplace
– Requires a Different Strategy
• Include listings-Online
AutoTrader.com LLC
• Arranged Insurance and Warranty
Plans
• Established an Escrow Service
• Established Shipping/Inspection
Services
• B2C is Similar to C2C Selling
Copyright 2005, McGraw-Hill/Irwin, Inc.
8-44
Introduction to eCommerce
Scope of eCommerce
E-Commerce
Processes
Electronic
Payment
Processes
Section II
E-Commerce
Applications
B2C eCommerce
B2B e-Commerce
E-Commerce
Marketplaces
Real World Cases
KEY TERMS
BACK NEXT
eBay Inc.: Managing
Success in a Dynamic Online
Marketplace
3- Is eBay’s move from a pure
consumer-to-consumer
auction marketplace to
inviting large and small
businesses to sell to
consumers and other
businesses, sometimes at fixed
prices, a good long term
strategy? Why or why not?
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
8-45
Introduction to eCommerce
Scope of eCommerce
E-Commerce
Processes
Electronic
Payment
Processes
Section II
E-Commerce
Applications
B2C eCommerce
B2B e-Commerce
E-Commerce
Marketplaces
eBay Inc.: Managing
Success in a Dynamic Online
Marketplace
Discussion Points Would Include:
• Profitability to eBay
• eBay’s Meets Shift in Demand
• eBay Maintains-Voice of the
Customer
• IT Delivers Online System
Return to
Chapter 8
Real World Cases
KEY TERMS
BACK NEXT
Return to
Cases Page
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
8-46
Introduction to eCommerce
Scope of eCommerce
E-Commerce
Processes
Electronic
Payment
Processes
Section II
E-Commerce
Applications
B2C eCommerce
B2B e-Commerce
E-Commerce
Marketplaces
Real World Cases
eBay Inc.: Managing
Success in a Dynamic Online
Marketplace
Discussion Points Would Include:
• Profitability to eBay
• eBay’s Meets Shift in Demand
• eBay Maintains-Voice of the
Customer
• IT Delivers Online System
• Trading Assistants
Impact on eBay
Return to
Chapter 8
KEY TERMS
BACK NEXT
Return to
Cases Page
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
8-47
Introduction to eCommerce
Scope of eCommerce
E-Commerce
Processes
Electronic
Payment
Processes
Section II
E-Commerce
Applications
B2C eCommerce
B2B e-Commerce
E-Commerce
Marketplaces
Corporate Express: The
Business Value of Integrating
Customer and Supplier
Procurement Systems
1- What is the business value to
Corporate Express of integrating
its systems with the procurement
systems of its customers?
Return to
Chapter 8
Real World Cases
KEY TERMS
BACK NEXT
Return to
Cases Page
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
8-48
Introduction to eCommerce
Scope of eCommerce
E-Commerce
Processes
Electronic
Payment
Processes
Section II
E-Commerce
Applications
B2C eCommerce
B2B e-Commerce
E-Commerce
Marketplaces
Real World Cases
KEY TERMS
BACK NEXT
END
Corporate Express: The
Business Value of Integrating
Customer and Supplier
Procurement Systems
Discussion Points Would Include:
• Half of 75,000 Daily Orders
Electronically
• Smallest of Corporate Express’
30,000 Customers
– Log onto E-Way
– Conduct Purchasing Transactions
• E-Way Checks Controls
• Corporate Express Tailors Catalog to
User’s Practices
• Buyer Time/Cost Savings
Copyright 2005, McGraw-Hill/Irwin, Inc.
8-49
Introduction to eCommerce
Scope of eCommerce
E-Commerce
Processes
Electronic
Payment
Processes
Section II
E-Commerce
Applications
B2C eCommerce
B2B e-Commerce
E-Commerce
Marketplaces
Corporate Express: The
Business Value of Integrating
Customer and Supplier
Procurement Systems
2- What are the business benefits
of Corporate Express’ E-Way
Web portal to its smaller
customers? Its larger customers?
Real World Cases
KEY TERMS
BACK NEXT
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
8-50
Introduction to eCommerce
Scope of eCommerce
E-Commerce
Processes
Electronic
Payment
Processes
Section II
E-Commerce
Applications
B2C eCommerce
B2B e-Commerce
E-Commerce
Marketplaces
Real World Cases
KEY TERMS
BACK NEXT
END
Corporate Express: The
Business Value of Integrating
Customer and Supplier
Procurement Systems
Smaller Companies:
• Smallest of Corporate Express’
30,000 Customers
– Log onto E-Way
– Conduct Purchasing
Transactions
• E-Way Checks Controls
• Corporate Express Tailors
Catalog to User’s Practices
• Buyer Time/Cost Savings
Copyright 2005, McGraw-Hill/Irwin, Inc.
8-51
Introduction to eCommerce
Scope of eCommerce
E-Commerce
Processes
Electronic
Payment
Processes
Section II
E-Commerce
Applications
B2C eCommerce
B2B e-Commerce
E-Commerce
Marketplaces
Real World Cases
KEY TERMS
BACK NEXT
Corporate Express: The
Business Value of Integrating
Customer and Supplier
Procurement Systems
Larger Companies:
• E-Way Integrated into the
Processing Fabric of
Company
• Tailored Buyer’s Catalog
• Buyer Time/Cost Savings
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
8-52
Introduction to eCommerce
Scope of eCommerce
E-Commerce
Processes
Electronic
Payment
Processes
Section II
E-Commerce
Applications
B2C eCommerce
B2B e-Commerce
E-Commerce
Marketplaces
Real World Cases
Corporate Express: The
Business Value of Integrating
Customer and Supplier
Procurement Systems
3- Should every business that
has an e-commerce website
integrate its systems with the
procurement systems of its
business customers? Why or
why not?
Return to
Chapter 8
KEY TERMS
BACK NEXT
Return to
Cases Page
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
8-53
Introduction to eCommerce
Scope of eCommerce
E-Commerce
Processes
Electronic
Payment
Processes
Section II
E-Commerce
Applications
B2C eCommerce
B2B e-Commerce
E-Commerce
Marketplaces
Corporate Express: The
Business Value of Integrating
Customer and Supplier
Procurement Systems
Discussion Points Would Include:
• E-Commerce Web Site
Integrated System
• Company Commitment to IT
Support
• Current Customer Base
Breakdown
Return to
Chapter 8
Real World Cases
KEY TERMS
BACK NEXT
Return to
Cases Page
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
8-54
Introduction to eCommerce
Scope of eCommerce
E-Commerce
Processes
Electronic
Payment
Processes
Section II
E-Commerce
Applications
B2C eCommerce
B2B e-Commerce
E-Commerce
Marketplaces
Real World Cases
KEY TERMS
BACK NEXT
END
Corporate Express: The
Business Value of Integrating
Customer and Supplier
Procurement Systems
Discussion Points Would Include:
• E-Commerce Web Site
Integrated System
• Company Commitment to IT
Support
• Current Customer Base
Breakdown
• Performance and
Scalability Issues
Return to
Chapter 8
Return to
Cases Page
Copyright 2005, McGraw-Hill/Irwin, Inc.
8-55
Introduction to eCommerce
Scope of eCommerce
E-Commerce
Processes
Electronic
Payment
Processes
Section II
E-Commerce
Applications
B2C eCommerce
B2B e-Commerce
E-Commerce
Marketplaces
Real World Cases
E-Trade and Wells Fargo: The
Business Case for Clicks and
Bricks e-Commerce
1- What lessons in business
strategy can be applied to
development of the ecommerce channels of
other companies from the
experience of E-Trade?
KEY TERMS
BACK NEXT
Return to
Cases Page
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
8-56
Introduction to eCommerce
Scope of eCommerce
E-Commerce
Processes
Electronic
Payment
Processes
Section II
E-Commerce
Applications
B2C eCommerce
B2B e-Commerce
E-Commerce
Marketplaces
Real World Cases
E-Trade and Wells Fargo: The
Business Case for Clicks and
Bricks e-Commerce
Lessons that Could be Applied
Would Include:
• Diversify With Selective
Acquisitions
• Implement Cost Reduction
Programs
• Business-not Internetbased
KEY TERMS
BACK NEXT
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
8-57
Introduction to eCommerce
Scope of eCommerce
E-Commerce
Processes
Electronic
Payment
Processes
Section II
E-Commerce
Applications
B2C eCommerce
B2B e-Commerce
E-Commerce
Marketplaces
E-Trade and Wells Fargo: The
Business Case for Clicks and
Bricks e-Commerce
2- What is the business value
of the C.E.O. online
wholesale banking portal to
Wells Fargo?
Real World Cases
KEY TERMS
BACK NEXT
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
8-58
Introduction to eCommerce
Scope of eCommerce
E-Commerce
Processes
Electronic
Payment
Processes
Section II
E-Commerce
Applications
B2C eCommerce
B2B e-Commerce
E-Commerce
Marketplaces
Real World Cases
KEY TERMS
BACK NEXT
END
E-Trade and Wells Fargo: The
Business Case for Clicks and
Bricks e-Commerce
Discussion Points Would Include:
• 25% Internet Recession
Growth-Wells Fargo’s
• C.E.O. Banking Portal
Improved
• Expose Clients-Sign up for
More
• Focused on Customer
Want
Copyright 2005, McGraw-Hill/Irwin, Inc.
8-59
Introduction to eCommerce
Scope of eCommerce
E-Commerce
Processes
Electronic
Payment
Processes
Section II
E-Commerce
Applications
B2C eCommerce
B2B e-Commerce
E-Commerce
Marketplaces
E-Trade and Wells Fargo: The
Business Case for Clicks and
Bricks e-Commerce
3- What can other
companies learn from the
successes and mistakes of
the Wells Fargo ecommerce system?
Real World Cases
KEY TERMS
BACK NEXT
Return to
Cases Page
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
8-60
Introduction to eCommerce
Scope of eCommerce
E-Commerce
Processes
Electronic
Payment
Processes
Section II
E-Commerce
Applications
B2C eCommerce
B2B e-Commerce
E-Commerce
Marketplaces
E-Trade and Wells Fargo: The
Business Case for Clicks and
Bricks e-Commerce
Lessons Would Include:
• E-commerce Systems
Expensive
• Internet Systems Allows
Cross Selling
• Learn Customers Wants
Real World Cases
KEY TERMS
BACK NEXT
Return to
Cases Page
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
8-61
Introduction to eCommerce
Scope of eCommerce
E-Commerce
Processes
Electronic
Payment
Processes
Section II
E-Commerce
Applications
B2C eCommerce
B2B e-Commerce
E-Commerce
Marketplaces
Real World Cases
KEY TERMS
BACK NEXT
END
E-Trade and Wells Fargo: The
Business Case for Clicks and
Bricks e-Commerce
Lessons Would Include:
• E-commerce Systems
Expensive
• Internet Systems Allows
Cross Selling
• Learn Customers Wants
• Users Depend on
Successful E-commerce
Site
Return to
Cases Page
Copyright 2005, McGraw-Hill/Irwin, Inc.
8-62
Introduction to eCommerce
Scope of eCommerce
E-Commerce
Processes
Electronic
Payment
Processes
Section II
E-Commerce
Applications
B2C eCommerce
B2B e-Commerce
E-Commerce
Marketplaces
Real World Cases
Providence Washington
Insurance and Tharco: The
Business Value of an Online
Customer Interface
1- What are the business
reasons why even “in a tight
budget year, e-commerce
projects have not lost their
appeal” and are still highly
ranked by IT leaders from
many companies?
KEY TERMS
BACK NEXT
Return to
Cases Page
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
8-63
Introduction to eCommerce
Scope of eCommerce
E-Commerce
Processes
Electronic
Payment
Processes
Section II
E-Commerce
Applications
B2C eCommerce
B2B e-Commerce
E-Commerce
Marketplaces
Real World Cases
KEY TERMS
BACK NEXT
Providence Washington
Insurance and Tharco: The
Business Value of an Online
Customer Interface
Business Reasons Would Include:
• Improving Order Taking
• Tuning the Sales
Channel
• Creating Business
Partner Portals
• Cost Reduction
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
8-64
Introduction to eCommerce
Scope of eCommerce
E-Commerce
Processes
Electronic
Payment
Processes
Section II
E-Commerce
Applications
B2C eCommerce
B2B e-Commerce
E-Commerce
Marketplaces
Providence Washington
Insurance and Tharco: The
Business Value of an Online
Customer Interface
2- What is the business value of
Providence Washington’s
extranet portal? Of Tharco’s
Web-based order processing
system?
Real World Cases
KEY TERMS
BACK NEXT
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
8-65
Introduction to eCommerce
Scope of eCommerce
E-Commerce
Processes
Electronic
Payment
Processes
Section II
E-Commerce
Applications
B2C eCommerce
B2B e-Commerce
E-Commerce
Marketplaces
Real World Cases
KEY TERMS
BACK NEXT
END
Providence Washington
Insurance and Tharco: The
Business Value of an Online
Customer Interface
Providence Washington’s:
• Speed Delivery-Weeks to
Minutes
• Automated the Sales Process
Tharco’s:
• Interactive Web-based Ordering
System
• Cost Savings
• Reduces Errors
• Provide Real-time Order System
Copyright 2005, McGraw-Hill/Irwin, Inc.
8-66
Introduction to eCommerce
Scope of eCommerce
E-Commerce
Processes
Electronic
Payment
Processes
Section II
E-Commerce
Applications
B2C eCommerce
B2B e-Commerce
E-Commerce
Marketplaces
Providence Washington
Insurance and Tharco: The
Business Value of an Online
Customer Interface
3- What lessons on developing
successful e-commerce
projects for small businesses
can be gained from the
information in this case?
Real World Cases
KEY TERMS
BACK NEXT
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
8-67
Introduction to eCommerce
Scope of eCommerce
E-Commerce
Processes
Electronic
Payment
Processes
Section II
E-Commerce
Applications
B2C eCommerce
B2B e-Commerce
E-Commerce
Marketplaces
Providence Washington
Insurance and Tharco: The
Business Value of an Online
Customer Interface
Lessons for Small Business Would Include:
• Improved Productivity/
Increased Revenues
• Check Financial Status of
Vendors, etc.
• Allow Extra Time for Project
Completion
Real World Cases
KEY TERMS
BACK NEXT
Return to
Cases Page
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
8-68
Introduction to eCommerce
Scope of eCommerce
E-Commerce
Processes
Electronic
Payment
Processes
Section II
E-Commerce
Applications
B2C eCommerce
B2B e-Commerce
E-Commerce
Marketplaces
Real World Cases
Providence Washington
Insurance and Tharco: The
Business Value of an Online
Customer Interface
Lessons for Small Business Would Include:
• Improved Productivity/
Increased Revenues
• Check Financial Status of
Vendors, etc.
• Allow Extra Time for Project
Completion
• Aggressively Market Project
KEY TERMS
BACK NEXT
Return to
Cases Page
END
Copyright 2005, McGraw-Hill/Irwin, Inc.
8-69