E-commerce Online exchange of goods and services Includes the exchange of information 1

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3 e-Commerce B2C B2B B2E C2C G2C G2B G2G

4 Capabilities of the Web Global Information Dissemination Integration Mass customization Interactive Communication Collaboration Transactional Support

5 Business Strategies

Components of A Business Model Revenue Model Value Proposition Competitive Environment Marketing Strategy Management Team 6

Other Factors What does the company do? How does the company do it UNIQUELY? In what ways does the company get paid for it? What is the margin per unit sale? 7

Revenue Models Affiliate Marketing Subscription based Transaction Fees Traditional Sales Web Advertising 8

Types of Nets Intranet: Business-to-Employee Training Employee “Directory” Application Integration Online Entry of Data Realtime access to Information Collaboration 9

Extranet: Business-to-Business Business-to-Partners Supply Chain Management Information Timeliness and Accuracy Technology Integration Low Cost-High Value 10

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Internet: Business-to-Consumers Global Information Dissemination Integration Mass Customization Niche Markets Interactive Communication Collaboration Transactional Support 12

13 Stages of B2C e-Commerce

14 Metcalfe’s law Metcalfe’s law makes e-Commerce work  Value of network proportional to n, the number of users: (n 2 - n)/2  Increasing returns to internet users as more join network

The Long Tail 15

Attracting and Retaining Customers 1.The Website should offer something unique. 2.The Website should be aesthetically pleasing. 3.The Website must be easy to use and fast. 16

4.The Website must motivate people to visit, to stay and to return. 5.You must advertise your presence on the Web. 6.You should learn from your Website. 17

Ways to Protect yourself Online 1.Use a secure browser 2.Check the site’s privacy policy 3.Read and understand the refund and shipping policies 4.Keep your personal information private 18

5.Give payment information only to businesses you know and trust 6.Keep records of your online transactions and check your 7.Review your monthly credit card and bank statements 19

Mobile Computing Purchasing Financial Transactions Reserving and/or Booking Entertainment and Information 20

Issues of Concern Privacy and Security of Information: USA Patriot Act Taxation Net Neutrality Censorship 21

Patriot Act View electronic messages permission to view and save messages to and from a person View online transactions Permits roving surveillance Banking regulations new customer identification 22

Taxation Internet Tax Freedom Act of 1998 Use Taxes Streamlined Sales Tax Project 23

Net Neutrality Data sent over the Internet should be routed and handled in a neutral manner, regardless of the content. - Tim Wu,Professor at Columbia University Alternative is to prioritize for particular applications: Should YouTube pay more for the Internet? 24

Censorship Government’s attempt to control Internet traffic China, Iran Australia, Turkey Child Online Protection Act – only part of the population 25

Web 2.0 Integration of interactive features into Web information sharing interoperability user-centered design collaboration 26

Examples hosted services web applications social-networking sites video-sharing sites wikis blogs mashups 27

Pillars Utilizing the web as a platform Harnessing collective intelligence Leveraging the data Implementing innovative web capabilities Use of widgets Collaboration 28

SLATES Search: Finding information through keyword search. Links: Connects information together into a meaningful information ecosystem using the model of the Web, and provides low-barrier social tools. Authoring: The ability to create and update content leads to the collaborative work of many rather than just a few web authors. In wikis, users may extend, undo and redo each other's work. In blogs, posts and the comments of individuals build up over time. Tags: Categorization of content by users adding "tags" - short, usually one-word descriptions = to facilitate searching, without dependence on pre-made categories. Collections of tags created by many users within a single system may be referred to as “folksonomies“ (i.e., folk taxonomies).“ Extensions: Software that makes the Web an application platform as well as a document server. Signals: The use of syndication technology such as RSS to notify users of content changes. 29

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Benefits Reduced costs and risks Tools are easy to use Increased efficiency No need to purchase software updates 31

Costs Loss of control of data and service quality Little or no documentation Little or no training Security and compliance policies cannot be enforced Increased possibility of exposure of data Tools and features may be changed without notice 32

Wikis Website that allows people to post, add, edit, comment and access information Cooperative work – anyone with access can contribute 33