McGraw-Hill/Irwin © 2002 The McGraw-Hill Companies, Inc. All rights reserved. C H A P T E R Haag Cummings McCubbrey Third Edition 5 Electronic Commerce

McGraw-Hill/Irwin © 2002 The McGraw-Hill Companies, Inc. All rights reserved. Haag Cummings McCubbrey Third Edition the growth of e-commerce business to consumer models options for business to business role of government e-commerce payment systems issues of security and privacy Knowledge Workers Checklist

McGraw-Hill/Irwin © 2002 The McGraw-Hill Companies, Inc. All rights reserved. Haag Cummings McCubbrey Third Edition business to business B2B business to consumer B2C consumer to business C2B consumer to consumer C2C E-commerce commerce accelerated & enhanced by IT major types:

McGraw-Hill/Irwin © 2002 The McGraw-Hill Companies, Inc. All rights reserved. Haag Cummings McCubbrey Third Edition E-Commerce Internationally North America has most users Europe & Asia are close Africa, Middle East & Latin America are far behind global digital divide

McGraw-Hill/Irwin © 2002 The McGraw-Hill Companies, Inc. All rights reserved. Haag Cummings McCubbrey Third Edition speed and convenience instantaneous price changes integrated call centers broadband is coming Advantages of B2C E-Commerce

McGraw-Hill/Irwin © 2002 The McGraw-Hill Companies, Inc. All rights reserved. Haag Cummings McCubbrey Third Edition Alternative B2C Channels e-tailer pure plays clicks-and-mortar M-commerce interactive chat

McGraw-Hill/Irwin © 2002 The McGraw-Hill Companies, Inc. All rights reserved. Haag Cummings McCubbrey Third Edition Success Factors for B2C commodity-like items work well digital products work best customer attraction & retention –registering with search engines –banner ads –viral marketing –use of affiliates –existing customers

McGraw-Hill/Irwin © 2002 The McGraw-Hill Companies, Inc. All rights reserved. Haag Cummings McCubbrey Third Edition More Success Factors the importance of merchandising you must execute well pick your sector carefully watch the competition

McGraw-Hill/Irwin © 2002 The McGraw-Hill Companies, Inc. All rights reserved. Haag Cummings McCubbrey Third Edition streamlining acquisitions –direct materials –indirect materials (MRO) –services –EDI –next-generation EDI B2B

McGraw-Hill/Irwin © 2002 The McGraw-Hill Companies, Inc. All rights reserved. Haag Cummings McCubbrey Third Edition EDI computer to computer exchange standard business documents standard data formats

McGraw-Hill/Irwin © 2002 The McGraw-Hill Companies, Inc. All rights reserved. Haag Cummings McCubbrey Third Edition Next Generation EDI easier to set up and use easier for small companies makes use of the Internet XML will be important

McGraw-Hill/Irwin © 2002 The McGraw-Hill Companies, Inc. All rights reserved. Haag Cummings McCubbrey Third Edition B2B Marketplace MRO hubs yield managers online exchanges catalog hubs

McGraw-Hill/Irwin © 2002 The McGraw-Hill Companies, Inc. All rights reserved. Haag Cummings McCubbrey Third Edition Intranets and Extranets Intranet –with-in organization use Extranet –customers & suppliers, too

McGraw-Hill/Irwin © 2002 The McGraw-Hill Companies, Inc. All rights reserved. Haag Cummings McCubbrey Third Edition Government’s Role telecommunications infrastructure rates adoption of EC procurement providing services to citizens

McGraw-Hill/Irwin © 2002 The McGraw-Hill Companies, Inc. All rights reserved. Haag Cummings McCubbrey Third Edition E-Commerce Payments financial EDI credit cards & smart cards EBPP

McGraw-Hill/Irwin © 2002 The McGraw-Hill Companies, Inc. All rights reserved. Haag Cummings McCubbrey Third Edition necessary for consumer confidence digital signatures intrusion detection firewalls E-Commerce Security

McGraw-Hill/Irwin © 2002 The McGraw-Hill Companies, Inc. All rights reserved. Haag Cummings McCubbrey Third Edition personalized marketing vs. individual privacy rights five core privacy principles EU has privacy laws US does not (yet) E-Commerce Privacy

McGraw-Hill/Irwin © 2002 The McGraw-Hill Companies, Inc. All rights reserved. Haag Cummings McCubbrey Third Edition Summary e-commerce has changed the way businesses operates types of e-commerce - B2B, B2C, C2B, C2C the global digital divide is an issue of concern much has been learned about effective B2C e- commerce B2B takes many forms and is still evolving governments play a key role in facilitating e- commerce various methods exist for e-commerce payments security and privacy are major issues