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McGraw-Hill/Irwin Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved.

Electronic Commerce Systems 8 Chapter Electronic Commerce Systems e-Commerce trends e-Commerce processes e-Commerce success factors e-Commerce categories McGraw-Hill/Irwin Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved.

Electronic Commerce More than just buying and selling products online Includes the entire online process of Developing, marketing, selling, delivering, servicing and paying for products and services Transacted on the internetworked global marketplaces of customers With the support of a worldwide network of business partners

Processes involved in E-commerce

E-commerce technologies

Categories of e-Commerce Business-to-Consumer (B2C) – businesses develop attractive electronic marketplaces to sell products and services to consumers Business-to-Business (B2B) – involves both electronic business marketplaces and direct market links between businesses Consumer-to-Consumer (C2C) – online auctions where consumers can buy and sell with each other There is also Business-to-Government (B2G) and e-government applications

Essential e-commerce process architecture Processes are typically used in e-commerce applications but can also be used in internal non-commerce e-business applications

Catalog/content management and workflow example

Event Notification Most e-commerce applications are event-driven Respond to events such as customer’s first website access, payment, delivery Event notification software monitors e-commerce processes Records all relevant events including problem situations Notifies all involved stakeholders

Electronic Payment Processes Web Payment Processes Shopping cart process Credit card payment process Other more complex payment processes Electronic Funds Transfer (EFT) Capture and process money and credit transfers between banks and businesses and their customers

Secure Electronic Payment Example

Securing Electronic Payments Network sniffers Software that recognizes and intercepts credit card number formats Security measures to combat Encrypt (code and scramble) data between customer and merchant Encrypt credit card authorizations Take sensitive information off-line

B2B e-Commerce B2B e-commerce is the wholesale and supply side of the commercial process, where businesses buy, sell, or trade with other businesses. Factors for building a successful retail website also apply to websites for B2B e-commerce.