Chapter 9 e-Commerce Systems
McGraw-Hill/Irwin
Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.

 Identify the major categories and trends of ecommerce applications.
 Identify the essential processes of an ecommerce system, and give examples of how it is implemented in e-commerce applications.
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 Identify and give examples of several key factors and Web store requirements needed to succeed in e-commerce.
 Identify and explain the business value of several types of e-commerce marketplaces.
 Discuss the benefits and trade0ffs of several ecommerce clicks-and-bricks alternatives.
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Section 1
E-Commerce Fundamentals
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I. Introduction to e-Commerce
 Electronic Commerce – the entire online process of developing, marketing, selling, delivering, servicing, and paying for products and services transacted on networked global marketplaces; more than just buying and selling online
 e-Commerce – the online exchange of value; more than just buying and selling on the Internet
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II. The Scope of e-Commerce
 Includes marketing, discovery, transaction processing, product and customer service process, intranet and extranet access, and customer collaboration
 e-Commerce Technologies – involves most information and Internet technologies
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II. The Scope of e-Commerce
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II. The Scope of e-Commerce
 Categories of e-Commerce
 Business-To-Consumer (B2C) e-Commerce – still small when compared with all online commerce
 Consumer-To-Consumer (C2C) e-Commerce – online auctions, online advertising of personal products and services
 Business-To-Business e-Commerce – most of e-
Commerce is here
 Business-To-Government (B2G) e-Commerce
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Forrester: Web 2.0 Has a Bright Future
 What is Web 2.0?
 What is Web 2.0 not?
 What does Web 2.0 provide?
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III. Essential e-Commerce Processes
 Access Control and Security – secure access between parties to assure trust
 Profiling and Personalizing – processes that gather data on you and your behavior to provide personalized service; this may raise ethical issues
 Search Management – effective and efficient search processes are required for a good Web site; there are more than 30 different search engines on the Internet
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III. Essential e-Commerce Processes
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III. Essential e-Commerce Processes
 Content and Catalog Management
 helps e-commerce firms develop, generate, deliver, and archive text and multimedia data
 works with profiling tools
 may include product configuration to support customer self-service and mass customization
 Workflow Management – ensure proper transactions, decisions, and work activities are performed, and documents distributed correctly
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III. Essential e-Commerce Processes
 Event Notification – monitor all e-commerce processes and record all relevant events; most e-commerce applications are event-driven and respond to things that happen (events)
 Collaboration and Trading – a major category of e-commerce; processes consist of collaboration and trading services needed by various stakeholders
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e-Commerce Tools to Close the Deal
 What is “an abandoned cart”?
 Why might a customer fail to complete a purchase?
 What tools encourage a customer to complete the transaction?
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Innvo Labs: Automated e-Commerce
Processes
 What was the weakness in the original
Website?
 How did the new Website improve that?
 What other benefits did the new Website provide?
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IV. Electronic Payment Processes
 Very complex due to the anonymous nature of electronic transactions
 Web Payment Processes – most rely on credit card payment processes
 Electronic Funds Transfer (EFT) – a variety of information technologies to capture and process money/credit transfers between banks, businesses, and customers
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IV. Electronic Payment Processes
 Secure Electronic Payments – measures taken to ensure security of information in electronic payments
 Encrypt data between customer and merchant
 Encrypt data between customer and firm authorizing credit cards
 Take sensitive information offline
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IV. Electronic Payment Processes
A Secure Electronic Payment System
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Section 2 e-Commerce Applications and Issues
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I. Introduction
 e-commerce has changed how firms do business and is now defining how firms do business
 e-Commerce Trends
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II. Business-To-Consumer (B2C) e-Commerce
 Attract potential customers, transact goods and services, build customer loyalty
 e-Commerce Success Factors
 Selection and Value – attractive products, competitive prices
 Performance and Service – easy navigation and purchasing, prompt shipping and delivery
 Look and Feel – attractive Website, multimedia catalog
 Advertising and Incentives – targeted Webpage advertising, email promotions, discounts, special offers
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II. Business-To-Consumer (B2C) e-Commerce
 Personal Attention – personalized Web pages and product recommendations, email notices, interactive support
 Community Relationships – virtual communities and links to related Web sites
 Security and Reliability – security of customer information and transactions, trustworthy product information, reliable order fulfillment
 Great Customer Communications – easy-to-find contact information, online order status, product support
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II. Business-To-Consumer (B2C) e-Commerce
Traditional Vs. Web Market
Communications
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Amazon.com
: Partnering and Leveraging
Infrastructure
 What service does Amazon provide through Facebook?
 Why might this be a popular service?
 What security issues could be a problem here?
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Stork Craft Manufacturing Helps Wal-Mart
Canada
 What industry is Stork Craft in?
 What partnership did they enter?
 How do they market their products?
 What benefits did this give them?
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III. Web Store Requirements
 Most B2C e-commerce ventures are retail businesses on the Web; primary focus is to develop, operate, and manage the Website to attract and maintain customers for repeat sales
 Getting Customers to Find You – customers must find you on the Web
 Search Engine Optimization (SEO) – focus on improving the number/quality of visitors to a Web site
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III. Web Store Requirements
 Serving Your Customers – a Web site should help serve customers personally and efficiently so they become loyal customers
 Web Cookie File – a file stored on the customer’s computer with details about their visit to your Web site
 Managing a Web Store – a Web store must be managed as both a Web site and a retail store
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Luxury Goes Digital: Fashion House
Embraces Online Shopping
 What was the historical issue of luxury items?
 What was the Net-a-Porter solution?
 What issue was lost online and how did they address this?
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IV. Business-To-Business (B2B) e-Commerce
 The wholesale/supply side of e-Commerce
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Avnet Tears Up the B2B e-Commerce
Playbook
 What business is Avnet in?
 What was the problem they faced?
 What was the solution?
 How has that solution worked out?
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V. e-Commerce Marketplaces
 One-to-Many – sell-side marketplace – one major supplier dictates products and prices
 Many-to-One – buy-side marketplace – many suppliers attempt to sell to one buyer
 Some-to-Many – distribution marketplace – many suppliers combine catalogs to attract a larger audience of buyers
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V. e-Commerce Marketplaces
 Many-to-Some – procurement marketplace
– buyers combine purchasing power to gain lower prices from suppliers
 Many-to-Many – auction marketplace – used by many buyers and sellers
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V. e-Commerce Marketplaces
A Sample B2B e-Commerce Web Portal
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SpecEx.com
: B2B Trading of Wireless
Spectrum
 What business is Spectrum Bridge in?
 How do they make money in this industry?
 What is the problem with this business and how are they trying to get around that problem?
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VI. Clicks and Bricks in e-Commerce
 Should virtual electronic business be combined with physical operations or kept separate?
 e-Commerce Integration – the Internet is just another channel that gets plugged onto the business architecture
 Other Clicks and Bricks Strategies – partial integration of e-commerce into the physical business operations, or complete separation of the two
 e-Commerce Channel Choices – a marketing/sales channel created to conduct/manage e-commerce activities
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VI. Clicks and Bricks in e-Commerce
An Integrated Vs. Separate e-Commerce
Business
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IT Lessons from the Demise of Borders
 What are the lessons to be learned from the demise of Borders?
 Discuss each lesson and what could have been done differently.
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REI: Scaling e-Commerce Mountain
 What did REI do with their Website?
 Why?
 Did it work? If so, how well?
 What was the tricky part of making it all work?
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