Electronic Commerce

1
Electronic Commerce

• CSC1720 Introduction to Internet
• Essential Materials

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Outline

• Introduction
• e-Business models
• How to
• Build an e-Commerce site
• Attract and keep customers
• Get Paid
• Manage the e-commerce business
• Secure the site
• e-Business Implementations
• Application Service Provider (ASP)

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Questions?

• What exactly is e-Commerce?
• What is B2B e-Commerce?
• Can I start my own e-Commerce site?
• How do I accept payments by credit card?
• How do I get customers to visit my site?
• Do I have to accept credit cards?
• How to succeed in e-Commerce?
• Any more questions about e-Commerce?

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Introduction

• What is e-Commerce?
• Electronic Commerce (EC) or e-Business
• Buying and Selling goods or services on the
  Internet (WWW)
• What is the latest development? M-Commerce?
• What is ASP?
• Application Service Provider
• Also means Active Server Page (HTML)
• A company offers individuals or enterprises to
  host their applications or services on this ASP
  company. (low budgets for small companies,
  outsourcing for large companies)

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The importance
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Terminology

• Dedicated line A point-to-point, hard wire
  connection between two service locations.
• Leased line A telecommunications line dedicated
  to a particular customer along predetermined
  routers.
• Outsourcing The transfer of components or large
  segments of an internal IT infrastructure, staff,
  processes or applications to an external resource
  such as Application service provider (ASP).

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e-Business solutions
Customers
ERP, CRM, Database
Internet / WWW
Mobile Users
Web EDI
Intranet
Internal Users
Suppliers, public
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e-Business Models

• Storefront model
• Auction model
• Portal Model
• Dynamic Pricing Models
• B2B Exchanges
• B2B Service Providers
• e-Learning

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Storefront Model

• The storefront model combines transaction
  processing, security, online payment which allows
  merchants to sell their products to the customers
  on the Web.
• Many famous storefront model companies are
  Business-to-Consumer (B2C) companies.
• www.more.com
• Health and beauty products
• www.ticketmaster.com
• Sell tickets

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Storefront Model

• Allow companies to conduct business 24-by-7
  (all-day, everyday).
• One of the most commonly used model is shopping
  cart
• An order-processing technology that allows user
  to accumulate the shopping list and continue
  shopping.
• Supported by product catalog, merchant server and
  database technology.
• www.amazon.com
• www.icare.com.hk

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Shopping Cart Example
Shopping cart
Go shopping
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Shopping Cart Sotware

• http//www.poorrichard.com/freeinfo/shop.htm

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Storefront Model

• Another model is online shopping mall which
  provides a wide selection of products and
  services.
• Customers can purchase items from many stores in
  a single transaction.
• Offer speed and add convenience
• www.mall.com
• www.shopnow.com
• www.e-buy.com.hk

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Shopping Mall Example
Different shops
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Auction Model

• Internet User can login to the online auction
  sites, either bidder or seller.
• Sellers post their items and wait for the buyers
  to bid.
• Auction sites get commission on every successful
  auction.
• E.g. most profitable www.ebay.com
• HK auction.timway.com
• http//hk.auctions.yahoo.com/
• Reverse Auction model
• Allow buyer to set the price, www.epurchasingagent
  .com

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Auction Model Example
http//hk.auctions.yahoo.com/
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Portal Model

• Allow visitors to find everything within the
  website.
• Horizontal Portal
• Wide-ranged of topics
• E.g. www.google.com, www.yahoo.com
• Vertical Portal
• Offer specific information on a single area of
  interest.
• E.g. www.webmd.com (medical information)

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Dynamic Pricing Model

• Name-your-price Business Model
• Customers choose their price for the products or
  services (www.priceline.com).
• Comparison Pricing Model
• Customers poll some merchants and find the lowest
  prices (www.bottomdollar.com)
• Demand-Sensitive Pricing Model
• Enables customers to get better services and
  prices. (www.mobshop.com)
• Bartering Model
• Exchange items (www.ubarter.com)

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Pricing model example
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B2B Exchanges

• Define as buying, selling, partnering, bartering
  or trading conducted between two or more business
  (B2B).
• Goldman Sachs has estimated that B2B will
  generate 1.5 trillion in revenues by 2004.
• Allow Business to buy, sell, auction, barter and
  distribute products and services.
• Examples
• www.ework.com (Exchange employee)
• www.itoi.com (Industry to Industry)
• www.biz2biz.com (Business to Business)
• www.icgcommerce.com, www.tradeaccess.com

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B2B examples
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B2B Service Providers

• B2B service providers make the B2B transactions
  easier.
• These e-Businesses help other businesses improve
  their policies, procedures, services and general
  operations.
• Solutions include supply chain management,
  logistics, procurement.
• www.ariba.com
• www.freemarkets.com
• www.liveperson.com

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Chat online?

• Why? To solve your E-business problem via the
  Internet.

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Loan Online

• A growing segment of E-commerce.
• Loan online at a lower rate than other
  traditional channels.
• E-loan www.eloan.com
• E-credit www.ecredit.com
• Clients HP, Intel, other businesses
• Loan direct www.loansdirect.com

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Recruitment on the Web

• Effectively job searching on the Web.
• Improve the recruitment for both employer and
  seeker.
• Search International Jobs (www.monster.com)
• Focus on computer industry (www.dice.com)
• www.guru.com
• www.jobdb.com

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Online News Services

• Web is playing an important role in the
  publishing and news industries.
• The Wall Street Journal (www.wsj.com)
• Articles by leading investment analysts
  (www.barrons.com)
• Latest sports news (www.espn.com)
• Comprehensive news site (www.drudgereport.com)

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Recruitment / News
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Online Travel Services

• Customers can bypass the travel agents.
• Allow discount and low fare rate online.
• air-tickets, hostel, and car-rentals.
• Last minutes tickets offer low price.
• www.cheaptickets.com
• www.travelocity.com

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Online Entertainment

• Multimedia rich websites provide Audio and Video,
  popular music and videos are available online for
  free.
• Internet Movie Database
• www.imdb.com
• www.icast.com

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e-Learning

• e-Learning is growing rapidly as the number of
  Internet users increases.
• Universities and other training companies offer
  HQ distance education over the Web.
• www.click2learn.com
• www.saba.com
• www.online.uillinois.edu
• wwwtools.cityu.edu.hk
• www.polyu.edu.hk/elearning
• E-books www.xlibris.com

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M-Commerce

• What is Mobile Commerce?
• Mobile commerce is the term applied to online
  financial transactions - shopping or the
  electronic transfer of funds - using a mobile
  device.
• Mobile commerce transactions are being enhanced
  by developments in the world of mobile
  communication.

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MasterCard M-Commerce
Reference demo
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Break Time 15 minutes
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Build an e-Commerce site

• Register a Domain name
• Search for domain names (InterNIC)
• What is the criteria of selecting a good name?
• Find a Web Host
• Select the suitable ISP
• Web Developers
• Hire a web designer
• Cut cost and work with the designer
• If your site is easy to use, the customers will
  stay longer and come more frequent.

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Web Hosting

• It is a very important step in e-Commerce.
• Good uptime?
• Good technical support?
• Fast connection to the Net?
• Staffs are knowledgeable about e-Commerce?
• Compatibility with other e-Commerce providers?

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Attract and keep customers

• e-Business Advertising
• Banner Advertising
• Recently, losing their effectiveness
• Buying and Selling advertising
• You can become a host, or an advertiser
• www.valueclick.com
• Webcasting and Interactive Advertising
• Use streaming media to broadcast information on
  the web.

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Enterprise Resources Planning (ERP)

• An industrial term defines as the activities
  supported by application software that helps
  company to manage the important parts of the
  business.
• Product planning, parts purchasing, maintaining
  inventories, contacting suppliers, customer
  servicing.
• Integrated with database (such as Oracle) to
  provide other features, business process
  analysis, employee training,

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ERP example
I have questions about billing, product
availability, shipping and customer service.
Finance How can I help you?
Fulfillment Yes, Sir?
Inventory Which item?
Customer Service Were ready to help.
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Customer Relationship Management (CRM)

• All the customer services provided by the company
  form the CRM.
• CRM includes
• Call handling (in/out calls from customers and
  service representatives)
• Sales tracking (tracing and recording the sales
  made)
• Transaction support (the technology used for
  transactions)
• Improve customer satisfaction and maximize the
  profits

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Electronic Data Interchange (EDI)

• Standard format to exchange business data.
• EDI message is a string of data that represents
  price, product number, product name, etc.
• EDI message can be encrypted.
• EDI is one form of E-commerce, also include
  email, fax.

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Electronic Data Interchange (EDI)

• http//www.disa.org/

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Get Paid

• How to you pay on the website?
• Credit card transactions
• Cybercash www.cybercash.com
• E-Wallets allows you to keep track your
  transactions, www.visa.com/pd/ewallet/main.html
• Digital Cash store your money electrically
• www.ecash.com
• More complex B2B Transactions.

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Manage the E-commerce business

• Have a good communication between the business
  production line (including the customer services
  team), and the IT development line.
• Online transaction history log and Historical
  investment performance reports also helps to
  decide and plan for the product and service
  trend.
• Migration of the traditional trading client to
  the new e-business.

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Secure the site

• Customers fear for their online privacy.
• Make sure all transactions on your e-commerce
  site are protected.
• Security is provided by different kind of
  cryptography (encryption, digital signatures,
  digital certificates)
• Sometimes, you may provide your personal
  information for member-only discounts, giveaway,
  sweepstakes, coupons. Beware!

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Online shopping risks

• A list of safeguards to keep in mind.
• Shop with trusted merchants.
• Read the sites delivery, return, and privacy
  policies.
• Only enter your details with the URL that begins
  with https// and either a locked padlock or an
  unbroken key icon.
• Be careful not to hit the ORDER NOW button more
  than once.
• Never send credit card information via e-mail.
• Keep a record of your transactions until shipped.

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HK Government Support

• http//www.info.gov.hk/digital21/chi/ecommerce/eco
  m_supp.html

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Application Service Provider

• What is an Application Service Provider?
• Deliver and manage applications or computer
  services via the Internet.
• Provide a cost-effective solution from an outside
  supplier. (maintenance, upgrades and
  customization)
• It can be a commercial entity, a not-for-profit
  organization or government related.

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ASP in HK
Reference http//hk.dir.yahoo.com/Regional/Countri
es_and_Regions/Hong_Kong/Business_and_Economy/Comp
anies/Electronic_Commerce/
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Using ASP Benefits

• Speed to market
• ASP has the latest equipment, applications, ready
  to provide market access.
• Operational freedom
• The customer can focus on their core business.
• Improved performance
• ASP provides vast experience on different issues.
• Financial flexibility
• Reduced fixed cost and overall expenditures.
• Reduced risk
• Customers can test a new technology with minimal
  impact to their existing system.

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ASP Advantages
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What kind of application can be delivered?

• Citrix, GraphOn and SCO
• The applications run on a central server managed
  by the ASP, but not the applications on the
  end-user desktop or companys server.
• Portal means a gateway (starting point), for a
  WWW site, it is the starting site for user to
  browse.

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Portal Software
Video show
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Choosing ASP
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Summary

• e-Commerce is defined as a company has an online
  presence.
• We have discussed different types of e-Commerce
  models.
• Discuss the important issues on developing
  e-Business.
• ASP provides very good supports to the e-Commerce
  development.

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Reference HK Gov.
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References

• www.ecommercetimes.com
• ecommerce.internet.com
• Microsoft TechNet
• The End.
• Thank you for your patience!