E-commerce Roots of E-commerce Overview of Electronic Commerce Chapter 8 E-commerce Roots of E-commerce Overview of Electronic Commerce E-commerce Applications Mobile Commerce E-commerce Implementation Please discontinue use of cell phone and turn off ringer

E-commerce E-Commerce refers to systems that support electronically executed business transactions Although e-commerce covers all forms of electronic transactions, it is typically used in reference to Internet-based transactions.

E-commerce Food for thought and discussion… www.arcticways.com How do you think ArcticWays.com has impacted the life of villagers in bush Alaska and benefited the world?

7.1 The Roots of E-commerce Electronic Data Interchange (EDI) Transaction Transaction Processing System (TPS) Key Terms

E-commerce History

Electronic Data Interchange (EDI) EDI uses private communications networks called value-added networks (vans) to transmit standardized transaction between partners and suppliers. Many EDI applications are moving from VANs to the Internet

Transaction Processing A transaction is an exchange or transfer of goods, services, or funds A Transaction Processing System (TPS) is an information system that supports and records transactions.

Transaction Processing Data collected in Transaction Processing Systems feeds into more sophisticated Management Information Systems (MIS’s) to provide useful information.

Transaction Processing Cycle Data Collection Data Editing Data Correction Data Manipulation Data Storage Data Output

Transaction Processing Systems There are a variety of TPS’s that serve various functions within an organization.

7.2 Overview of E-commerce Business-to-consumer E-commerce (B2C) Business-to-business E-commerce (B2B) Consumer-to-consumer E-commerce (C2C) Supply Chain Management Key Terms

Types of E-commerce Business-to-consumer (B2C) Business-to-business (B2B) Consumer-to-consumer (C2C) Which is used most?

B2B Rules!

Buyer’s Perspective Consider how these activities are supported in e-commerce.

Seller’s Perspective Market Research Product/Service Production Consider how these activities are supported in e-commerce. Market Research Product/Service Production Marketing and advertising Payment support Delivery After-sales support Supply Chain Management

Benefits and Challenges Farmyard Nurseries - Taking the business online expanded its market from primarily local customers to customers all around the world. Consider how this must have effected operations. www.farmyardnurseries.co.uk

Benefits and Challenges In order to save its technology-threatened business, Kodak changed its image from a film company to a digital picture company. www.kodak.com

7.3 E-commerce Applications E-tail Electronic Exchange Key Terms

Retail E-Commerce E-tailing has dramatically influenced the way people shop by providing customers with product information and the ability to comparison shop. www.mysimon.com www.nextag.com www.dealtime.com www.pricescan.com www.pricegrabber.com

Online Clearinghouses, Auctions, and Marketpaces Online clearinghouses, Web auctions, and marketplaces provide a platform for businesses and individuals to sell their products and belongings. www.ubid.com www.ebay.com

B2B Global Supply Management Global supply chain management (GSM) provides methods for businesses to find the best deals on the global market for raw materials, and supplies needed to manufacture their products. www.ariba.com

Electronic Exchanges An electronic exchange is an industry specific Web resource created to provide a convenient centralized platform for B2B e-commerce among manufacturers, suppliers and customers. www.covisint.com www.worldwideretailexchange.org

Marketing The Web is used for unsolicited advertising, solicited product information, and market research. The Web empowers marketers (www.doubleclick.com) …

Marketing The Web is used for unsolicited advertising, solicited product information, and market research. …and consumers.

Banking, Finance, and Investment Many banking, finance and investment transactions now occur online.

7.4 Mobile Commerce M-commerce Proximity payment system Key Terms

M-commerce M-commerce is a form of e-commerce that takes place over wireless mobile devices such as handheld computers and cell phones. www.luckymag.com Popular m-commerce products and services include ring tones, games, music, videos, messaging services, etc.

M-commerce Technology Wireless Application Protocol (WAP) used to create m-commerce applications. Wireless Markup Languages (WML) used to create Web pages and applications for small displays. Infrared and Bluetooth for close range, device-to-device communications.

M-commerce Delivery Through cell phone service provider Over the mobile Web Through SMS Texting Through short-range wireless data communictaions U.S. wireless music market to surge to $1.2 billion by 2009. GPS technology will lead to location-based m-commerce applications.

Proximity payment systems Proximity payment systems make use of Infrared, Near Field Communication (NFC), or RFID technologies to support contactless payments using a cell phone. www.vivotech.com/products/vivo_wallet

7.5 E-commerce Implementation E-commerce host Web services E-cash Smart card Digital Certificate Encryption Key Terms

E-commerce Host An e-commerce host is a company that takes on some or all of the responsibility of setting up and maintaining an e-commerce system for a business or organization. $49.95 per month

E-commerce Host Office depot contracted IBM to design and implement its B2B/B2C system.

E-commerce Implementation E-commerce implementation requires investment in: Infrastructure Hardware and Networking Software E-tailers like Amazon custom build their Web sites for each registered visitor.

Web Services Web services are programs that automate tasks by communicating with each other over the Web. www.w3.org/2002/ws/ http://en.wikipedia.org/wiki/Web_service http://msdn.microsoft.com/webservices/ http://java.sun.com/webservices/

Building Traffic 3 C’s – Content, Community, & Commerce

Payment Systems Credit card transactions

Payment Systems E-cash is a Web service that provides a private and secure method of transferring funds from a bank account or credit card to online vendors or individuals for e-commerce transactions. www.paypal.com

International Markets www.landsend.com http://www1.landsend.co.jp http://www1.landsend.de Through a process called localization, companies hire international Web developers to assist with translating Web site content into different languages for different cultures.

Security Issues Identity Verification Cardswipe Keyboard Identity Verification A digital certificate is a type of electronic business card that is attached to Internet transaction data to verify the sender of the data. [www.verisign.com] Encryption uses high-level math functions and computer algorithms to encode data.

Chapter 8 Questions? Don’t forget to turn your phone on!!