1. HCS 212: Introduction to MIS
Felex Madzikanda
Department of Computer Science and Information Systems
Midlands State University

2. Electronic Commerce Systems
Chapter 6
Electronic Commerce Systems

3. Electronic Commerce Systems
For e-business enterprises in the age of internet, e-commerce is more than just buying and selling products online. Instead, it encompasses the entire online process of developing, marketing, selling, delivery, servicing and paying for products and services transacted on internetworked, global marketplaces of customers, with the support of a world wide network of business partners.
E-commerce systems rely on the resources of the internet, intranets, extranets and other technologies to support every step of this process

4. Electronic Commerce Systems
Types of e-commerce
B2C
Businesses must develop attractive electronic marketplaces to entice and sell products and services to consumers. E.g many companies offer e-commerce websites that provide virtual storefronts and multimedia catalogues, interactive order processing, secure electronic payment systems and online customer support

5. Electronic Commerce Systems
B2B
Involves both e-business marketplaces and direct market links between businesses e.g many companies offer secure internet and extranets e-commerce catalogue websites for their business customers and suppliers
They rely on EDI via the internet or extranets for computer to computer exchange of e-commerce documents with business customers and suppliers

6. Electronic Commerce Systems
The huge success of online auctions like ebay, where consumers(as well as businesses) can buy and sell with each other in an auction process at an auction website
Personal websites are also an important form of C2C e-commerce

7. Electronic Commerce Systems
Essential e-commerce processes
Access Control and Security
E-commerce processes must establish mutual trust and secure access between the parties in an e-commerce transaction by authenticating users, authorising access and enforcing security features

8. Electronic Commerce Systems
Profiling and Personalizing
Profiling processes gather data on you and your website behaviour and choices and build electronic profiles of your characteristics and preferences
User profiles are developed using profiling tools such as user registration, cookie files, website behaviour tracking softwares and feedback

9. Electronic Commerce Systems
Search Management
Search engines may use a combination of search techniques, including searches based on content, parameters or between a range of values for multiple properties of a product

10. Electronic Commerce Systems
Content and Catalogue Management
Content management software helps e-commerce companies develop,generate, deliver, update and archive text data, and multimedia information at e-commerce websites.
Content and catalogue management may be expanded to include product configuration e.g Dell uses configuration software to sell ‘ build to order computers to their online customers

11. Electronic Commerce Systems
Workflow Management
Many of the business processes in e-commerce applications can be managed and partially automated with the help of workflow management software
Workflow systems ensure that the proper transactions, decisions, and work activities are performed, and the correct data and documents are routed to the right employees, customers, suppliers and other business stakeholders

12. Electronic Commerce Systems
Event Notification
Most e-commerce applications are event driven systems that respond to a multitude of events – from a new customers first website access, to payment and delivery processes
Event notification is very important to notify customers, suppliers, employees etc on status.

13. Electronic Commerce Systems
Collaborating and Trading
It supports the virtual collaboration arrangements and trading services needed by customers, suppliers and other stakeholders to accomplish e-commerce transactions
The essential collaboration among business trading partners in e-commerce may also be provided by internet based trading services

14. Electronic Commerce Systems
Electronic payment
Payment processes are not simple, because of the near-anonymous electronic nature of transactions taking place between the networked computer systems and buyers and sellers and the many security issues involved
It is also complex because of wide variety of debit and credit alternatives and financial institutions and intermediaries that may be part of the process.

15. Electronic Commerce Systems
B2C Electronic Payment System
E-commerce typically use an electronic shopping cart process, which enables customers to select products from website catalogue displays and put them temporarily in a virtual shopping basket for later checkout and processing

16. Electronic Commerce Systems

17. Electronic Commerce Systems
Secure Electronic Payments
Credit card information is vulnerable to interception by network sniffers
Several basic security measures are being used to solve this security problem
Encrypt data passing between the customer and merchant
Encrypt the data passing between the customer and the company authorising the credit card transactions
Take sensitive information offline
Secure Electronic Transaction

18. Electronic Commerce Systems
E-Commerce Success Factors
Basic fact of internet retailing is that:
All retail websites are on the same location
No site is closer to its web customers
Competitors offering similar goods are one click away
This makes it vital that businesses find ways to build customer satisfaction, loyalty and relationships, so customers keep coming back to their websites

19. Electronic Commerce Systems
Selection and Value
Attractive product selections
Competitive prices
Satisfaction guarantees
Customer support after sales
Examples include how to choose section and money back guarantees

20. Electronic Commerce Systems
Performance and Service
Fast and easy navigation
Prompt shipping and delivery
E.g sufficient server power and network capacity to support website traffic

21. Electronic Commerce Systems
Look and Feel
Attractive web store fronts, website shopping areas
Multimedia products catalogue pages and shopping features
Most retail e-commerce sites let customers browse product sections, select, drop in a cart and checkout

22. Electronic Commerce Systems
Advertising and Incentives
Targeted webpage advertising and promotion
Discounts and special offers
Advertising at affiliate sites

23. Electronic Commerce Systems
Personal Attention
Personal webpages
Personalised product recommendations
Web advertising and notices
Interactive support for customers

24. Electronic Commerce Systems
Community Relationships
Virtual communities of customers, suppliers, company reps, and others via newsgroups and chat rooms
Links to related sites

25. Electronic Commerce Systems
Security and Reliability
Security of customer information and website transactions
Trustworthy product information
Reliable order fulfilment
Having your orders shipped as you requested, in the time frame promised, and with good customer support are other measures of a merchant reliability