1. 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

2. 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.

3. 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?

4. 7.1 The Roots of E-commerce
Electronic Data Interchange (EDI)
Transaction
Transaction Processing System (TPS)
Key Terms

5. E-commerce History

6. 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

7. 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.

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

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

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

11. 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

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

13. B2B Rules!

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

15. 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

16. 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.

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

18. 7.3 E-commerce Applications
E-tail
Electronic Exchange
Key Terms

19. Retail E-Commerce
E-tailing has dramatically influenced the way people shop by providing customers with product information and the ability to comparison shop.

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

21. 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.

22. 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.

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

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

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

26. 7.4 Mobile Commerce
M-commerce
Proximity payment system
Key Terms

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

28. 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.

29. 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.

30. 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.

31. 7.5 E-commerce Implementation
E-commerce host
Web services
E-cash
Smart card
Digital Certificate
Encryption
Key Terms

32. 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

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

34. 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.

35. Web Services
Web services are programs that automate tasks by communicating with each other over the Web.

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

37. Payment Systems
Credit card transactions

38. 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.

39. International Markets
Through a process called localization, companies hire international Web developers to assist with translating Web site content into different languages for different cultures.

40. 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. [
Encryption uses high-level math functions and computer algorithms to encode data.

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