1. Pertemuan 17 & 18 Electronic Commerce System
Matakuliah : J0454 / Sistem Informasi Manajemen
Tahun : 2006
Versi : 1 / 1
Pertemuan 17 & 18 Electronic Commerce System

2. Learning Outcomes
Pada akhir pertemuan ini, diharapkan mahasiswa
akan mampu :
Mahasiswa akan dapat menunjukkan strategi perencanaan pengembangan layanan e-commerce  C3

3. e-Commerce Fundamental The Scope of e-Commerce
Outline Materi
e-Commerce Fundamental
The Scope of e-Commerce
Essential e-Commerce Processes
E-Commerce Application and Issues
Web Store Requirement
E-Commerce Marketplaces

4. A Wide Range of Business Processes Support E-Commerce
Scope of e-Commerce
A Wide Range of Business Processes Support E-Commerce
Marketing/Discovery
Transaction Processing
Service and Support
Market/
Product
Research
Market
Stimulation
Education
Terms
Negotiation
Order
Receipt
Order
Selection
and Priority
Order
Billing/
Payment
Mgmt.
Order
Scheduling/
Fulfillment
Delivery
Customer
Service and
Support
Selling Process
PATIENTLY ALLOW TIME FOR ANIMATIONS TO WORK
Use the animated graphic above to describe the range of business activities that support e-commerce through the selling and buying process.
Product
Discovery
Product
Evaluation
Terms
Negotiation
Order
Placement
Order
Tracking
Order
Payment
Product
Receipt
Product
Service and
Support
Buying Process

5. Business-to-Customer (B2C) Business-to-Business (B2B)
Scope of e-Commerce
E-Commerce Applications
Business-to-Customer (B2C)
Business-to-Business (B2B)
Customer-to-Customer (C2C)
Describe the e-commerce business applications:
B2C
B2B
C2C

6. Scope of e-Commerce Example QuickSource Internet Auction 1 6 2 5 3 4
QuickSource user submits a request for quote (RFQ) for publication via Internet
Firewall 6
Web server sends confirmation to browser 2
Web server parses HTTP request, validates user identity and authorization, and processes request
Web Server Farm
Database
Servers
Windows 2000 Advanced Server
Internet Information Server 5
Windows 2000 Datacenter Server cluster
SQL Server 2000
PATIENTLY ALLOW TIME FOR ANIMATIONS TO WORK
Use the animated graphic to describe the process of an Internet auction using QuickSource. 5
Application servers notify suppliers of the new RFQ via 3
Database server updates RFQ status as “published” 4
Transactions and user activity logged for billing and marketing purposes
Windows 2000 Advanced Server cluster
J.D. Edwards OneWorld ERP software
Siebel Systems e-Business CRM software
Storage-Area Network

7. Electronic Commerce Technologies Access Control and Security
e-Commerce Processes
Electronic Commerce Technologies
Access Control and Security
Access Control
and Security
Authentication
Security Measures
Content
Management
Dynamic Content
Generation
Data Repository
Collaboration and Trading
Mediation Negotiation
Bidding/Auctioning Collaborative Buying
Online Community
Workflow
Management
Buying Process Automation
Document Management
Rule- and Role-Based Content Routing
Profiling and Personalizing
Profile Management
Personalization
Behavior Tracking
Catalog
Management
Pricing Calculation
Product Configuration
Catalog Generation
PATIENTLY ALLOW TIME FOR ANIMATIONS TO WORK
Use the animated graphic to describe the varied electronic commerce technologies.
Comment as to their access control and security measures.
Event
Notification
Event-Driven Transaction Messaging
Message to Message Boards Newsgroups
Search Management
Content-Based Search
Parametric-Based Search
Role- and Rule-Based Search
Payment
Shopping Cart
Payment Method Support
Payment Verification

8. Bselect Software Gathers and Analyzes the Behavior of Website Visitors
e-Commerce Processes
Bselect Software Gathers and Analyzes the Behavior of Website Visitors
This is a screen shot using Bselect software applied to a bicycle business called Supergo…
the subject of the mini-case on the next slide.

9. Profiling and Personalizing
e-Commerce Processes
Profiling and Personalizing
Be Free and Supergo Bike Shops: Personalizing e-Commerce
Use of Bselect Personalization Application
Profile Information Saved by Key
Tracks Customers Anonymously
Supergo Bike Used Bselect 1 Year
Bselect Suggests Additional Sales
Highly Successful Application
E-Commerce Sales Grew from 33% to 60%
Explain the role of profiling and personalizing in the e-commerce process.
The mini-case on Be Free and Supergo Bike Shops demonstrate how the use of Bselect e-commerce software has been used to dramatically increase sales performance.
The software tracks customer purchases and suggests companion sales.
As a result sales grew from 33% to 60%.

10. Content and Catalog Management
e-Commerce Processes
Search Management
Content and Catalog Management
Cableton Systems: e-Commerce Configuration
Network Equipment Maker with $3 Billion in Sales
e-Sales Configuration Workbench
Guides Customer Through Complex Purchase Processes
60% of Web Orders Used Configurator to Reduce Errors Resulting in Huge Savings
Explain how e-commerce uses software for search management as well as content and catalog management activities.
The Cableton Systems mini-case gives an example using e-sales to manage customer purchases and the result was huge savings due to a reduction in errors in the ordering process.

11. Workflow Management e-Commerce Processes Microsoft Corporation:
e-Commerce Purchasing Processes
MS Market – Internal e-Commerce Purchasing System
Reduced Personnel Used for Purchasing Without Paperwork
High-Volume Low-Dollar Purchases Make Up 70% of Volume but Only 3% of Microsoft’s Accounts Payable
Very Successful Implementation
Describe how e-commerce is impacted by effected workflow management.
The Microsoft mini-case shows the use of MS market to automate large numbers of low dollar purchases with a significant savings.
It was a very successful implementation.
The graphic on the following slide animates the workings of MS market.

12. e-Commerce Processes Microsoft Corporation:
e-Commerce Purchasing Processes
Workflow Management of MS Market
Supplier 1
Supplier 2
Supplier n
Multisupplier
Catalog
Corporate
Order Form
Availability
Order Entry
MS Market
1. Browse Suppliers
2. Find Products
Catalog Content
Management
And Workflow
3. Order Items
4. Confirm Order
PATIENTLY ALLOW TIME FOR ANIMATIONS TO WORK
Continuation of Microsoft mini-case.
Use the animated graphic to explain the steps and stages in the workflow management process.
Employee
Intranet
Procurement
Approval Workflow
Purchase Order
Workflow
5. Transmit Order
6. Process Order
Fulfillment
Shipping
Accounting
Messaging
7. Order Completed

13. Collaboration and Trading Online Communities of Interest
e-Commerce Processes
Collaboration and Trading
Online Communities of Interest
B2B e-Commerce Web Portals
Dependence on Internet-Based Trading Platforms
Explain the importance of collaborative effort in e-commerce.
Describe how on-line communities of interest can efficiently share information.
Describe the use of B2B e-commerce Web portals and how personalization can win strong customer loyalty.

14. Electronic Payment Processes
Web Payment Processes
Electronic Funds Transfer (EFT)
Secure Electronic Payments
Encrypt the Data Customer to Merchant
Encrypt the Data Passing Between Customer and Credit Authorizer
Take Sensitive Information Offline
Describe electronic payment processes.
Emphasize the importance of security in EFT transfer processes.
Describe the varied places where encryption is appropriate and the importance of protecting sensitive information.
The following slide uses an animation to picture the electronic payment process.

15. Electronic Payment Processes
Customer
Merchant
Request
Client
Browser
Merchant’s
Web Server
Verify Merchant
Receive Order Info
Receive Payment Info
Confirm Order
Verify Customer
Review Payment Info
Authorize or Deny Payment
Payment
Server
PATIENTLY ALLOW TIME FOR ANIMATIONS TO WORK
Use the animated graphic to describe electronic payment processes when a transaction is made.
Online Third-Party
Computers with
Links to Multiple
Payment Systems
Credit Cards
VISA
MasterCard
Bank Accounts
Debit Cards
Online Banking
Online Buying
Payflow Pro
1 ClickCharge
Electronic Cash
BillPoint
PayPal
e-Bill Payment
CheckFree
Paytrust

16. Electronic Payment Processes
Verisign Provides Security Plus…
This is a screen shot of the verisign Web site-a firm that provides security plus a number of other services.

17. Short-Term Strategies Operations Automation
e-Commerce Trends
B2C and B2B Growth to e-Business Empowerment
High
Short-Term Strategies
Long-Term Strategies
B2C
Portal
e-Business
Empowerment
Self-Service
Web Stores
Integrated
Web Store
Supply
Chain
Management
B2B
Portal
Customer
Relationship
Management
Business Value
Interactive
Marketing
Extranets
And Exchanges
PATIENTLY ALLOW TIME FOR ANIMATIONS TO WORK
Use the graphic above to track the increases in business value gained in B2C and B2B activities as time goes by ultimately reaching e-business empowerment.
Web Storefront
& e-Catalog
Procurement
Automation
B2C
Customer
Self-Service
B2B
Short-Term Projects
Operations Automation
Low
Time to Implement
High

18. Creating B2C e-Commerce Offer Attractive Products or Services
Attractive Prices
Great Consumer Value
Realistic Forecasts of Profitability
Breakdown of Old Barriers of Time, Distance, and Form
Find Ways to Build Loyalty
Describe the features that will help create effective B2C commerce.
Attractive products, prices, perceived value, etc.
Explain how the Internet breaks down the old barriers of time, distance, and form.

19. Top Retail Web Sites Amazon.Com eBay www.ebay.com Eddie Bauer
B2C e-Commerce
Top Retail Web Sites
Amazon.Com
eBay
Eddie Bauer
Land’s End
The slide shows the top four retail Web sites.
Each Web site is hyperlinked to the respective firm and can be used if the presentation has access to the Web.

20. E-Commerce Success Factors
B2C e-Commerce
E-Commerce Success Factors
Selection and Value
Performance and Service
Look and Feel
Advertising and Incentives
Personal Attention
Community Relationships
Security and Reliability
Lead a discussion on the factors that help to create success in a B2C e-commerce endeavor.
Emphasize the importance of advertising and incentive programs.
Emphasize how personal attention helps to drain some of the anxiety from the Web purchase process.
Emphasis on security.

21. B2C e-Commerce
How Traditional and Web Marketing Communications Differ in Supporting the Buying Process…
Awareness
Consideration
Preference
Purchase
Loyalty
Buying Process
PATIENTLY ALLOW TIME FOR ANIMATIONS TO WORK
Use the animated graphic to show how traditional and Web market communications are similar or different throughout the buying process.
Give examples of each wherever possible.
Traditional
Market
Communications
Television Ads
General Interest Magazines
Television Ads
General Interest Magazines
Niche Magazines
Collateral
Point-of-Sale Promotions
Direct Marketing
Product Experience
Buyers Clubs
Web
Market
Communications
Buttons
Banners
Sponsorships
Banners
Microsites
Brochureware
Website
Daily Specials
Sweepstakes
First-time Order Incentives
Alerts
Newsletters

22. Amazon.Com: Tops in B2C Retailing
B2C e-Commerce
Amazon.Com: Tops in B2C Retailing
One of the Biggest and Best Virtual Retailers
Finally Making Profits
Quick Confirmation and Order Processing
Adding Goods and Services
Wants to be a Next-Generation Retail Commerce Portal
The mini-case on Amazon.com describes the success factors that have led the firm to be one of the top companies in B2C retailing.

23. Steps in the Development of a Web Store
B2C e-Commerce
Steps in the Development of a Web Store
Use the graphic above to discuss the steps in the development of a Web store.
Give examples of each whenever possible.

24. Example of Prodigy.Biz Site
B2C e-Commerce
Example of Prodigy.Biz Site
This is a screen shot of the Prodigybiz.com Website-a firm that specializes in Website services.

25. NTT/Verio Inc.: Website Management
B2C e-Commerce
NTT/Verio Inc.: Website Management
One of the World’s Leading Web Hosting Companies
Offers Complete Services to Web Retailers
Guarantees 99.9% Uptime
24x7 Server Monitoring and Customer Support
Hosts more than 10,000 Web Businesses
The mini-case on NTT/Verio Inc. is another firm offering Web hosting and a wide variety of services.
They guarantee 99.9% uptime with 24x7 server monitoring and customer support.
They host more than 10,000 Web businesses.

26. The Wholesale and Supply Side of the Commercial Process
B2B e-Commerce
The Wholesale and Supply Side of the Commercial Process
Electronic Catalog Systems
Electronic Trading Systems
Electronic Data Interchange
Electronic Funds Transfer
Integrating Supply-Chain Management with Customer Relationship Management
Introduce the concept of B2B commerce.
Explain that it represents the wholesale and supply side of the commercial process.
Explain the electronic systems that support B2B commerce.

27. Cisco Systems: B2B Marketplace Success
B2B e-Commerce
Cisco Systems: B2B Marketplace Success
70% of Product Sales Occur at Their Website
Wide Variety of Service Offerings in the Purchase Process
Regular Customers Linked to Back-End Data Systems
Strong Post-Sale Customer Support
Highly Successful and Widely Used Implementation
The Cisco Systems mini-case describes the firm's implementation of B2B commerce through the use of their Website.
A strong and customer supporting Website now handles 70% of all their product sales.
It was a highly and widely used implementation.

28. e-Commerce Marketplaces
B2B e-Commerce
e-Commerce Marketplaces
One-to-Many
Many-to-One
Some-to-Many
Many-to-Some
Many-to-Many
e-Commerce Portals
Exchanges
Auctions
Market Makers
Infomediaries
Describe the e-commerce market places:
One to Many
Many to One
Some to Many
Many to Some
Many to Many
Explain how e-commerce portals can serve to facilitate these marketplaces.
This discussion continues with a graphic on the next slide.

29. Example of a B2B Web Portal
B2B e-Commerce
Example of a B2B Web Portal
INTERNET
BUYERS
SELLERS
INTERNET
AUCTION
INTERNET
REVERSE AUCTION
B2B WEB PORTAL 1
MARKET GENERATOR
SERVER 3
PATIENTLY ALLOW TIME FOR ANIMATIONS TO WORK
Use the animated graphic to describe the workings of a B2B Web portal.
Cite a real world example if you can.
CONTENT MANAGER
SERVER 2
POST-TRADE MARKET
HISTORY SERVER 4
LIVE MARKET
SERVER

30. B2B e-Commerce
ChemConnect and Heritage Services: Public and Private B2B Exchanges
Public B2B Exchanges
ChemConnect – A Chemical Exchange Online Auction
Much Quicker than any Other Method
Private B2B Exchanges
Heritage Built Private Exchange in their Own Web Portal
Private Exchanges Offer More Control and Automates Processes
The mini-case on ChemConnect and Heritage Services give examples of public and private B2B exchanges. Explain how both can be effective depending upon the individual circumstances.

31. Electronic Data Interchange
B2B e-Commerce
Electronic Data Interchange
EDI an Early Example of IT in e-Commerce
EDI Over the Internet Using Secure VPNs is a Growing Application
Define how an electronic data interchange (EDI) works.
Describe how EDI performs over the Internet using secure virtual private networks.
Use the graphic to explain how a typical EDI works.

32. (Rite Aid and Drugstore.com)
B2B e-Commerce
Alternatives and Benefit Tradeoffs in Selecting an e-Commerce System
Strategic
Partnership
(Rite Aid and Drugstore.com)
Joint
Venture
(KBtoys.com)
In-House
Division
(OfficeDepot.com)
Spin-Off
(Banesandnoble.com)
Separation
Integration
PATIENTLY ALLOW TIME FOR ANIMATIONS TO WORK
Use the animated graphic to compare and contrast the benefit trade-offs in the selection of an e-commerce system.
Greater Focus
More Flexibility
Access to Venture Funding
Established Brand
Shared Information
Purchasing Leverage
Distribution Efficiencies

33. Clicks and Bricks in e-Commerce
e-Commerce Integration
E-Commerce a Part of the Regular Business Plan
Joint Ventures
Strategic Partnerships
Independent Spin-Offs
E-Commerce Channel Choices
Explain what is meant by clicks and bricks in e-commerce integration.
Describe the various alternative channels that might be followed to facilitate e-commerce in a traditional firm (bricks).

34. Clicks and Bricks in e-Commerce
E-Commerce Channel Development Strategies
Use the graphic as a checklist for channel development strategy selection.

35. Clicks and Bricks in e-Commerce
Citigroup: From Failure to Success in e-Commerce Integration Strategies
Launch of e-Citi in 1977
Sought to Attract its Own Customers Electronically Before Someone Else Did
Extremely High Costs and had Numerous Problems and Failures
Formed New Internet Operating Group in 2000
By 2001 Online Customers Were Up 80% and 100 Websites Trimmed to 38 Saving $1 Billion
The Citigroup mini-case demonstrates a colossal failure in e-commerce integration begun in 1977 but after some changes evolved into a highly successful unit.
It required the formation of a new Internet operating group in 2000.
By 2001 on-line customers were up 80% and 100 Websites were trimmed to 38 saving a billion dollars.

36. Electronic Commerce E-Commerce Issues B2C E-Commerce B2B E-Commerce
Summary
Electronic Commerce
E-Commerce Issues
B2C E-Commerce
B2B E-Commerce
The Citigroup mini-case demonstrates a colossal failure in e-commerce integration begun in 1977 but after some changes evolved into a highly successful unit.
It required the formation of a new Internet operating group in 2000.
By 2001 on-line customers were up 80% and 100 Websites were trimmed to 38 saving a billion dollars.

37. Sumber Materi PPT
O’Brien, James A. (2005). Introduction to Information Systems (12th Edition). McGraw – Hill. Bab 8. Official PPT.