E-Commerce

1
Chapter 6

• E-Commerce

2
Agenda

• What is E-Commerce?
• Business to Business
• Business to Customer
• Business to employee
• Infrastructure
• Problems

3
What is E-Commerce?

• Electronic commerce is the exchange of products,
  services, information, or money with the support
  of computers and networks. It is business done
  on-line.

4
Terminology

• From narrowest to broadest
• E-Shopping
• E-Business
• E-Commerce
• E-Economy
• E-Culture

5
Types of E-Commerce

• Business to Business
• 80 of dollar volume
• 7.29 trillion by 2002
• Business to Customer
• 20 of dollar volume
• 10 billion by 2002

6
Benefits

• Improve internal operations
• Decrease operating expenses
• Eliminate middlemen

7
Internal Operations

• Smaller inventory
• JIT manufacturing
• Customize products
• Automatic billing
• Electronic collections

8
Operating expenses

• Lower overhead
• Location is irrelevant
• Eliminate paperwork
• Reduce cycle time
• Produce greater variety at the same cost

9
Middlemen

• Eliminate transfer costs
• Only used when adding value to product or service
• Travel Agent?
• Stock Broker?
• Retail Store?

10
Amazon.com

• On-line book-store
• Expanding services
• No physical plant
• No inventory
• Negative asset intensity
• Customer pays for books (which they dont have)
  up front

11
Problems

• Data system incompatibility
• Privacy
• Bandwith
• Cybercrime

12
Data System Incompatibility

• Information glut
• Slow to find anything
• No standards
• No search content consistency
• Delivery structure one to one (customer) not one
  to many (wholesale)

13
Bandwith

• Twisted copper wire
• Analog
• Reverting to
• Fiber optics
• Satellites
• Digitization

14
Cybercrime

• Credit cards
• Electronic money
• Authentication

15
Agenda

• What is E-Commerce?
• Business to Business
• Business to Customer
• Business to employee
• Infrastructure
• Problems

16
Channels

• Internet
• Extranet
• Private networks
• Electronic data interchange (EDI)

17
Benefits

• Internal process
• Business reengineering
• Enterprise model
• Alliance

18
Internal Processes

• Reduce paper output
• Improve accuracy
• Increase throughput
• Errorless transactions input per day

19
Reengineering

• Reduce cycle time
• Order to customer receipt
• Reduce in labor costs
• Reduce open accounts-receivable days
• Cash flow

20
Enterprise Models

• Increase productivity
• Increase cash flow
• Increase product quality
• Increase customer service and satisfaction

21
Alliances

• Increase efficient
• Increase market share
• Increase profitability

22
Agenda

• What is E-Commerce?
• Business to Business
• Business to Customer
• Business to employee
• Infrastructure
• Problems

23
Uses

• Direct sales
• Product
• Service
• Information
• Brand enhancement
• Cross sales

24
Know Youre There

• Critical mass Internet customer growth
• Off Internet advertising
• TV commercials
• Magazines

25
Finding You

• Gateway ads (AOL)
• Search engines
• Portal sites
• Major advertisers

26
Holding attention

• 3 click rule
• Site thickness
• Chat rooms
• Frequent ask question page
• Dark page
• Telephone no.
• Convenient navigation path

27
Return Next Time

• Satisfaction with first time
• Offering something new for next visit

28
Attributes of an Offer

• S. Davis and C. Meyer,
• Blur (Warner Books, 1999)
• Products and services are
• blending (blurring)
• Result is an offer
• Authors list 10 attributes of a successful offer
  in future

29
Offer Attributes

• Anytime
• Real time
• Online
• Interactive
• Anyplace

30
Offer Attributes

• Learning
• Anticipating
• Filtering
• Customizing
• Upgrading

31
Agenda

• What is E-Commerce?
• Business to Business
• Business to Customer
• Business to employee
• Infrastructure
• Problems

32
Intranet

• Usages
• E-mail
• Workflow
• Education
• Communication
• Collaboration

33
Benefits

• Productivity
• Cost
• Knowledge
• Convenient

34
Agenda

• What is E-Commerce?
• Business to Business
• Business to Customer
• Business to employee
• Infrastructure
• Problems

35
Infrastructure

• Networks
• Web servers
• Supporting tools
• Tracking software, database connectivity,
  electronic form, on-line discussion group, etc.
• Internet access components
• Protocols, browser
• Web page design
• Transaction processing system

36
Agenda

• What is E-Commerce?
• Business to Business
• Business to Customer
• Business to Employee
• Infrastructure
• Problems

37
Problems - Payment

• Security
• Privacy
• Micropayment
• Inconvenience
• Imcompatibility

38
Countermeasures

• Encryption decryption
• Private key public key
• Digital signature
• Electronic certificates
• Secure electronic transaction protocol (SET)

39
Points to Remember

• What is E-Commerce?
• Business to Business
• Business to Customer
• Business to Employee
• Infrastructure
• Problems

40
Discussion Questions

• What are the impacts of e-commerce on the issues
  of human, social, and legal?
• Does your organization have a e-commerce? What
  type?
• What will it take for the general public (or you)
  to feel reasonably comfortable with
  using credit cards over the Internet?

41
Discussion Questions

• What is the future of e-business?
• What is the future of e-education?

42
Assignment

• Review technology guides 1,2,4 chapters 1- 6
• Read chapter 7
• Exam 1
• Group Assignment
• Research paper