1. END BACKNEXT Introduction to e- Commerce Scope of e- Commerce E-Commerce Processes Electronic Payment Processes Section II E-Commerce Applications B2C e- Commerce B2B e-Commerce E-Commerce Marketplaces KEY TERMS Copyright 2005, McGraw-Hill/Irwin, Inc.8-1 Real World Cases Electronic Commerce Systems

2. END BACKNEXT Introduction to e- Commerce Scope of e- Commerce E-Commerce Processes Electronic Payment Processes Section II E-Commerce Applications B2C e- Commerce B2B e-Commerce E-Commerce Marketplaces KEY TERMS Copyright 2005, McGraw-Hill/Irwin, Inc.8-2 Real World Cases Learning Objectives 1.Identify the major categories and trends of e-commerce applications. 2.Identify the essential processes of an e- commerce system, and give examples of how they are implemented in e- commerce applications. 3.Identify and give examples of key factors and Web store requirements needed to succeed in e-commerce. 4.Identify and explain the business value of several types of e-commerce marketplaces. 5.Discuss the benefits and trade-offs of several e-commerce clicks and bricks alternatives.

3. END BACKNEXT Introduction to e- Commerce Scope of e- Commerce E-Commerce Processes Electronic Payment Processes Section II E-Commerce Applications B2C e- Commerce B2B e-Commerce E-Commerce Marketplaces KEY TERMS Copyright 2005, McGraw-Hill/Irwin, Inc.8-3 Real World Cases Electronic Commerce Fundamentals Impact of e-Commerce on Competitive Markets Reliance on Internet and Related Technologies Many Challenges and Opportunities in the Field Real World Case 1- e-Bay, Inc.Real World Case 1- e-Bay, Inc. Click to go to Case 1

4. END BACKNEXT Introduction to e- Commerce Scope of e- Commerce E-Commerce Processes Electronic Payment Processes Section II E-Commerce Applications B2C e- Commerce B2B e-Commerce E-Commerce Marketplaces KEY TERMS Copyright 2005, McGraw-Hill/Irwin, Inc.8-4 Real World Cases Customer Service and Support Product Service and Support Scope of e-Commerce A Wide Range of Business Processes Support E- Commerce Market/ Product Research Market Stimulation Education Terms Negotiation Order Receipt Order Selection and Priority Order Billing/ Payment Mgmt. Order Scheduling/ Fulfillment Delivery Product Discovery Product Evaluation Terms Negotiation Order Placement Order Tracking Order Payment Product Receipt Marketing/DiscoveryTransaction ProcessingService and Support Selling Process Buying Process

5. END BACKNEXT Introduction to e- Commerce Scope of e- Commerce E-Commerce Processes Electronic Payment Processes Section II E-Commerce Applications B2C e- Commerce B2B e-Commerce E-Commerce Marketplaces KEY TERMS Copyright 2005, McGraw-Hill/Irwin, Inc.8-5 Real World Cases Business-to-Customer (B2C) Business-to-Business (B2B) Customer-to-Customer (C2C) Scope of e-Commerce E-Commerce Applications

6. END BACKNEXT Introduction to e- Commerce Scope of e- Commerce E-Commerce Processes Electronic Payment Processes Section II E-Commerce Applications B2C e- Commerce B2B e-Commerce E-Commerce Marketplaces KEY TERMS Copyright 2005, McGraw-Hill/Irwin, Inc.8-6 Real World Cases Example QuickSource Internet Auction QuickSource user submits a request for quote (RFQ) for publication via Internet Web server parses HTTP request, validates user identity and authorization, and processes request Database Servers Firewall Web Server Farm Windows 2000 Datacenter Server cluster SQL Server 2000 Windows 2000 Advanced Server Internet Information Server 5 Transactions and user activity logged for billing and marketing purposes Storage-Area Network Database server updates RFQ status as “published” Windows 2000 Advanced Server cluster J.D. Edwards OneWorld ERP software Siebel Systems e-Business CRM software Application servers notify suppliers of the new RFQ via e- mail Web server sends confirmation to browser 1 2 3 4 5 6 Scope of e-Commerce

7. END BACKNEXT Introduction to e- Commerce Scope of e- Commerce E-Commerce Processes Electronic Payment Processes Section II E-Commerce Applications B2C e- Commerce B2B e-Commerce E-Commerce Marketplaces KEY TERMS Copyright 2005, McGraw-Hill/Irwin, Inc.8-7 Real World Cases e-Commerce Processes Electronic Commerce Technologies Access Control and Security Access Control and Security Access Control Authentication Security Measures Content Management Dynamic Content Generation Data Repository Catalog Management Pricing Calculation Product Configuration Catalog Generation Profiling and Personalizing Profile Management Personalization Behavior Tracking Search Management Content-Based Search Parametric-Based Search Role- and Rule-Based Search Payment Shopping Cart Payment Method Support Payment Verification Workflow Management Buying Process Automation Document Management Rule- and Role-Based Content Routing Event Notification Event-Driven Transaction Messaging Message to e-mail Message Boards Newsgroups Collaboration and Trading Mediation Negotiation Bidding/Auctioning Collaborative Buying Online Community

8. END BACKNEXT Introduction to e- Commerce Scope of e- Commerce E-Commerce Processes Electronic Payment Processes Section II E-Commerce Applications B2C e- Commerce B2B e-Commerce E-Commerce Marketplaces KEY TERMS Copyright 2005, McGraw-Hill/Irwin, Inc.8-8 Real World Cases Bselect Software Gathers and Analyzes the Behavior of Website Visitors e-Commerce Processes

9. END BACKNEXT Introduction to e- Commerce Scope of e- Commerce E-Commerce Processes Electronic Payment Processes Section II E-Commerce Applications B2C e- Commerce B2B e-Commerce E-Commerce Marketplaces KEY TERMS Copyright 2005, McGraw-Hill/Irwin, Inc.8-9 Real World Cases Profiling and Personalizing e-Commerce Processes 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%

10. END BACKNEXT Introduction to e- Commerce Scope of e- Commerce E-Commerce Processes Electronic Payment Processes Section II E-Commerce Applications B2C e- Commerce B2B e-Commerce E-Commerce Marketplaces KEY TERMS Copyright 2005, McGraw-Hill/Irwin, Inc.8-10 Real World Cases Search Management Content and Catalog Management e-Commerce Processes 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

11. END BACKNEXT Introduction to e- Commerce Scope of e- Commerce E-Commerce Processes Electronic Payment Processes Section II E-Commerce Applications B2C e- Commerce B2B e-Commerce E-Commerce Marketplaces KEY TERMS Copyright 2005, McGraw-Hill/Irwin, Inc.8-11 Real World Cases 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

12. END BACKNEXT Introduction to e- Commerce Scope of e- Commerce E-Commerce Processes Electronic Payment Processes Section II E-Commerce Applications B2C e- Commerce B2B e-Commerce E-Commerce Marketplaces KEY TERMS Copyright 2005, McGraw-Hill/Irwin, Inc.8-12 Real World Cases Workflow Management of MS Market Multisupplier Catalog Corporate Catalog Order Form Availability Order Entry Supplier 1 Supplier 2 Supplier n Fulfillment Shipping Accounting Messaging Employee Intranet Procurement 1. Browse Suppliers 2. Find Products 3. Order Items 4. Confirm Order 5. Transmit Order 6. Process Order 7. Order Completed Catalog Content And Workflow Management Approval Workflow Purchase Order Workflow MS Market e-Commerce Processes Microsoft Corporation: e-Commerce Purchasing Processes

13. END BACKNEXT Introduction to e- Commerce Scope of e- Commerce E-Commerce Processes Electronic Payment Processes Section II E-Commerce Applications B2C e- Commerce B2B e-Commerce E-Commerce Marketplaces KEY TERMS Copyright 2005, McGraw-Hill/Irwin, Inc.8-13 Real World Cases Collaboration and Trading Online Communities of Interest B2B e-Commerce Web Portals Dependence on Internet- Based Trading Platforms e-Commerce Processes

14. END BACKNEXT Introduction to e- Commerce Scope of e- Commerce E-Commerce Processes Electronic Payment Processes Section II E-Commerce Applications B2C e- Commerce B2B e-Commerce E-Commerce Marketplaces KEY TERMS Copyright 2005, McGraw-Hill/Irwin, Inc.8-14 Real World Cases 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

15. END BACKNEXT Introduction to e- Commerce Scope of e- Commerce E-Commerce Processes Electronic Payment Processes Section II E-Commerce Applications B2C e- Commerce B2B e-Commerce E-Commerce Marketplaces KEY TERMS Copyright 2005, McGraw-Hill/Irwin, Inc.8-15 Real World Cases CustomerMerchant Request Client Browser Merchant’s Web Server Payment Server Verify Merchant Receive Order Info Receive Payment Info Confirm Order Verify Customer Review Payment Info Authorize or Deny Payment 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 Electronic Payment Processes

16. END BACKNEXT Introduction to e- Commerce Scope of e- Commerce E-Commerce Processes Electronic Payment Processes Section II E-Commerce Applications B2C e- Commerce B2B e-Commerce E-Commerce Marketplaces KEY TERMS Copyright 2005, McGraw-Hill/Irwin, Inc.8-16 Real World Cases Verisign Provides Security Plus… Electronic Payment Processes

17. END BACKNEXT Introduction to e- Commerce Scope of e- Commerce E-Commerce Processes Electronic Payment Processes Section II E-Commerce Applications B2C e- Commerce B2B e-Commerce E-Commerce Marketplaces KEY TERMS Copyright 2005, McGraw-Hill/Irwin, Inc.8-17 Real World Cases E-Commerce Applications and Issues E-Commerce is Here to Stay B2C Applications Brochureware B2B – Website Support then Automating Procurement Systems Real World Case 2- Corporate Express: Click to go to Case 2

18. END BACKNEXT Introduction to e- Commerce Scope of e- Commerce E-Commerce Processes Electronic Payment Processes Section II E-Commerce Applications B2C e- Commerce B2B e-Commerce E-Commerce Marketplaces KEY TERMS Copyright 2005, McGraw-Hill/Irwin, Inc.8-18 Real World Cases B2C and B2B Growth to e-Business Empowerment High Business Value Low Short-Term Strategies Long-Term Strategies Operations Automation High Short-Term Projects Time to Implement Customer Self-Service Procurement Automation Extranets And Exchanges B2B Portal Customer Relationship Management Supply Chain Management Web Storefront & e-Catalog Interactive Marketing Integrated Web Store Self-Service Web Stores B2C Portal e-Business Empowerment B2C B2B e-Commerce Trends

19. END BACKNEXT Introduction to e- Commerce Scope of e- Commerce E-Commerce Processes Electronic Payment Processes Section II E-Commerce Applications B2C e- Commerce B2B e-Commerce E-Commerce Marketplaces KEY TERMS Copyright 2005, McGraw-Hill/Irwin, Inc.8-19 Real World Cases B2C e-Commerce 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

20. END BACKNEXT Introduction to e- Commerce Scope of e- Commerce E-Commerce Processes Electronic Payment Processes Section II E-Commerce Applications B2C e- Commerce B2B e-Commerce E-Commerce Marketplaces KEY TERMS Copyright 2005, McGraw-Hill/Irwin, Inc.8-20 Real World Cases Amazon.Com www.amazon.com eBay www.ebay.com Eddie Bauer www.eddiebauer.com Land’s End www.landsend.com Top Retail Web Sites B2C e-Commerce

21. END BACKNEXT Introduction to e- Commerce Scope of e- Commerce E-Commerce Processes Electronic Payment Processes Section II E-Commerce Applications B2C e- Commerce B2B e-Commerce E-Commerce Marketplaces KEY TERMS Copyright 2005, McGraw-Hill/Irwin, Inc.8-21 Real World Cases E-Commerce Success Factors Selection and Value Performance and Service Look and Feel Advertising and Incentives Personal Attention Community Relationships Security and Reliability B2C e-Commerce

22. END BACKNEXT Introduction to e- Commerce Scope of e- Commerce E-Commerce Processes Electronic Payment Processes Section II E-Commerce Applications B2C e- Commerce B2B e-Commerce E-Commerce Marketplaces KEY TERMS Copyright 2005, McGraw-Hill/Irwin, Inc.8-22 Real World Cases How Traditional and Web Marketing Communications Differ in Supporting the Buying Process… Buying Process Traditional Market Communications Web Market Communications Television Ads General Interest Magazines Buttons Banners Sponsorships Television Ads General Interest Magazines Banners Niche Magazines Collateral Microsites Brochureware Website Point-of-Sale Promotions Direct Marketing Daily Specials Sweepstakes First-time Order Incentives Product Experience Buyers Clubs e-Mail Alerts Newsletters AwarenessConsiderationPreferencePurchaseLoyalty B2C e-Commerce

23. END BACKNEXT Introduction to e- Commerce Scope of e- Commerce E-Commerce Processes Electronic Payment Processes Section II E-Commerce Applications B2C e- Commerce B2B e-Commerce E-Commerce Marketplaces KEY TERMS Copyright 2005, McGraw-Hill/Irwin, Inc.8-23 Real World Cases 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 B2C e-Commerce Amazon.Com: Tops in B2C Retailing

24. END BACKNEXT Introduction to e- Commerce Scope of e- Commerce E-Commerce Processes Electronic Payment Processes Section II E-Commerce Applications B2C e- Commerce B2B e-Commerce E-Commerce Marketplaces KEY TERMS Copyright 2005, McGraw-Hill/Irwin, Inc.8-24 Real World Cases Steps in the Development of a Web Store B2C e-Commerce

25. END BACKNEXT Introduction to e- Commerce Scope of e- Commerce E-Commerce Processes Electronic Payment Processes Section II E-Commerce Applications B2C e- Commerce B2B e-Commerce E-Commerce Marketplaces KEY TERMS Copyright 2005, McGraw-Hill/Irwin, Inc.8-25 Real World Cases Example of Prodigy.Biz Site B2C e-Commerce

26. END BACKNEXT Introduction to e- Commerce Scope of e- Commerce E-Commerce Processes Electronic Payment Processes Section II E-Commerce Applications B2C e- Commerce B2B e-Commerce E-Commerce Marketplaces KEY TERMS Copyright 2005, McGraw-Hill/Irwin, Inc.8-26 Real World Cases NTT/Verio Inc.: Website Management B2C e-Commerce 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

27. END BACKNEXT Introduction to e- Commerce Scope of e- Commerce E-Commerce Processes Electronic Payment Processes Section II E-Commerce Applications B2C e- Commerce B2B e-Commerce E-Commerce Marketplaces KEY TERMS Copyright 2005, McGraw-Hill/Irwin, Inc.8-27 Real World Cases 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 B2B e-Commerce

28. END BACKNEXT Introduction to e- Commerce Scope of e- Commerce E-Commerce Processes Electronic Payment Processes Section II E-Commerce Applications B2C e- Commerce B2B e-Commerce E-Commerce Marketplaces KEY TERMS Copyright 2005, McGraw-Hill/Irwin, Inc.8-28 Real World Cases 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

29. END BACKNEXT Introduction to e- Commerce Scope of e- Commerce E-Commerce Processes Electronic Payment Processes Section II E-Commerce Applications B2C e- Commerce B2B e-Commerce E-Commerce Marketplaces KEY TERMS Copyright 2005, McGraw-Hill/Irwin, Inc.8-29 Real World Cases 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

30. END BACKNEXT Introduction to e- Commerce Scope of e- Commerce E-Commerce Processes Electronic Payment Processes Section II E-Commerce Applications B2C e- Commerce B2B e-Commerce E-Commerce Marketplaces KEY TERMS Copyright 2005, McGraw-Hill/Irwin, Inc.8-30 Real World Cases Example of a B2B Web Portal INTERNET AUCTION REVERSE AUCTION LIVE MARKET SERVER B2B WEB PORTAL 1 CONTENT MANAGER SERVER 2 POST-TRADE MARKET HISTORY SERVER 4 MARKET GENERATOR SERVER 3 BUYERSSELLERS B2B e-Commerce

31. END BACKNEXT Introduction to e- Commerce Scope of e- Commerce E-Commerce Processes Electronic Payment Processes Section II E-Commerce Applications B2C e- Commerce B2B e-Commerce E-Commerce Marketplaces KEY TERMS Copyright 2005, McGraw-Hill/Irwin, Inc.8-31 Real World Cases 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

32. END BACKNEXT Introduction to e- Commerce Scope of e- Commerce E-Commerce Processes Electronic Payment Processes Section II E-Commerce Applications B2C e- Commerce B2B e-Commerce E-Commerce Marketplaces KEY TERMS Copyright 2005, McGraw-Hill/Irwin, Inc.8-32 Real World Cases 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

33. END BACKNEXT Introduction to e- Commerce Scope of e- Commerce E-Commerce Processes Electronic Payment Processes Section II E-Commerce Applications B2C e- Commerce B2B e-Commerce E-Commerce Marketplaces KEY TERMS Copyright 2005, McGraw-Hill/Irwin, Inc.8-33 Real World Cases Alternatives and Benefit Tradeoffs in Selecting an e- Commerce System Spin-Off (Banesandnoble.com) In-House Division (OfficeDepot.com) Strategic Partnership (Rite Aid and Drugstore.com) Joint Venture (KBtoys.com) Separation Integration Greater Focus More Flexibility Access to Venture Funding Established Brand Shared Information Purchasing Leverage Distribution Efficiencies B2B e-Commerce

34. END BACKNEXT Introduction to e- Commerce Scope of e- Commerce E-Commerce Processes Electronic Payment Processes Section II E-Commerce Applications B2C e- Commerce B2B e-Commerce E-Commerce Marketplaces KEY TERMS Copyright 2005, McGraw-Hill/Irwin, Inc.8-34 Real World Cases 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

35. END BACKNEXT Introduction to e- Commerce Scope of e- Commerce E-Commerce Processes Electronic Payment Processes Section II E-Commerce Applications B2C e- Commerce B2B e-Commerce E-Commerce Marketplaces KEY TERMS Copyright 2005, McGraw-Hill/Irwin, Inc.8-35 Real World Cases E-Commerce Channel Development Strategies Clicks and Bricks in e- Commerce

36. END BACKNEXT Introduction to e- Commerce Scope of e- Commerce E-Commerce Processes Electronic Payment Processes Section II E-Commerce Applications B2C e- Commerce B2B e-Commerce E-Commerce Marketplaces KEY TERMS Copyright 2005, McGraw-Hill/Irwin, Inc.8-36 Real World Cases 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 Clicks and Bricks in e- Commerce

37. END BACKNEXT Introduction to e- Commerce Scope of e- Commerce E-Commerce Processes Electronic Payment Processes Section II E-Commerce Applications B2C e- Commerce B2B e-Commerce E-Commerce Marketplaces KEY TERMS Copyright 2005, McGraw-Hill/Irwin, Inc.8-37 Real World Cases Electronic Commerce E-Commerce Issues B2C E-Commerce B2B E-Commerce Summary

38. END BACKNEXT Introduction to e- Commerce Scope of e- Commerce E-Commerce Processes Electronic Payment Processes Section II E-Commerce Applications B2C e- Commerce B2B e-Commerce E-Commerce Marketplaces KEY TERMS Copyright 2005, McGraw-Hill/Irwin, Inc.8-38 Real World Cases KEY TERMS Clicks and Bricks Alternatives E-Commerce Channel E-Commerce Marketplaces a. Auction b. Catalog c. Exchange d. Portal E-Commerce Success Factors E-Commerce Technologies Electronic Commerce a. Business-to-Business b. Business-to-Consumer c. Consumer-to- Consumer Electronic Data Interchange Electronic Funds Transfer Essential e-commerce Processes a. Access Control and Security b. Catalog Management c. Collaboration and Trading d. Content Management e. Electronic Payment Systems f. Event Notification g. Profiling and Personalizing h. Search Management i. Workflow Management Infomediaries Trends in e-commerce Web Store Requirements

39. END BACKNEXT Introduction to e- Commerce Scope of e- Commerce E-Commerce Processes Electronic Payment Processes Section II E-Commerce Applications B2C e- Commerce B2B e-Commerce E-Commerce Marketplaces KEY TERMS Copyright 2005, McGraw-Hill/Irwin, Inc.8-39 Real World Cases Real World Case 1 eBay Inc.: Managing Success in a Dynamic Online Marketplace Click to go to Case 1 Real World Case 2 Corporate Express: The Business Value of Integrating Customer and Supplier Procurement Systems Click to go to Case 2 Optional Case Studies Real World Case 3 E-Trade and Wells Fargo: The Business Case for Clicks and Bricks e-Commerce Real World Case 4 Providence Washington Insurance and Tharco: The Business Value of an Online Customer Interface Click to go to Case 3 Click to go to Case 4

40. END BACKNEXT Introduction to e- Commerce Scope of e- Commerce E-Commerce Processes Electronic Payment Processes Section II E-Commerce Applications B2C e- Commerce B2B e-Commerce E-Commerce Marketplaces KEY TERMS Copyright 2005, McGraw-Hill/Irwin, Inc.8-40 Real World Cases Decision Support Systems Chapter 9

41. END BACKNEXT Introduction to e- Commerce Scope of e- Commerce E-Commerce Processes Electronic Payment Processes Section II E-Commerce Applications B2C e- Commerce B2B e-Commerce E-Commerce Marketplaces KEY TERMS Copyright 2005, McGraw-Hill/Irwin, Inc.8-41 Real World Cases eBay Inc.: Managing Success in a Dynamic Online Marketplace 1- Why has eBay become such a successful, fast growing, and diverse online marketplace? Visit the eBay website to help you answer, and check out their many trading categories, specialty sites, international sites, and other features. Return to Cases Page Return to Chapter 8

42. END BACKNEXT Introduction to e- Commerce Scope of e- Commerce E-Commerce Processes Electronic Payment Processes Section II E-Commerce Applications B2C e- Commerce B2B e-Commerce E-Commerce Marketplaces KEY TERMS Copyright 2005, McGraw-Hill/Irwin, Inc.8-42 Real World Cases Discussion Points Would Include: Buyers/Sellers Feedback Rating System eBay’s Fraud Policy PayPal-Electronic eBay Payments Vortex-Draws Products/Players Expansion into B2C and B2B User Voice in Decisions eBay Inc.: Managing Success in a Dynamic Online Marketplace

43. END BACKNEXT Introduction to e- Commerce Scope of e- Commerce E-Commerce Processes Electronic Payment Processes Section II E-Commerce Applications B2C e- Commerce B2B e-Commerce E-Commerce Marketplaces KEY TERMS Copyright 2005, McGraw-Hill/Irwin, Inc.8-43 Real World Cases 2- Why do you think eBay has become the largest online/offline seller of used cars, and the largest online seller of certain other products, like computers and photo equipment? eBay Inc.: Managing Success in a Dynamic Online Marketplace

44. END BACKNEXT Introduction to e- Commerce Scope of e- Commerce E-Commerce Processes Electronic Payment Processes Section II E-Commerce Applications B2C e- Commerce B2B e-Commerce E-Commerce Marketplaces KEY TERMS Copyright 2005, McGraw-Hill/Irwin, Inc.8-44 Real World Cases Discussion Points Would Include: Kruse International Purchase –Acquire not Start Marketplace –Requires a Different Strategy Include listings-Online AutoTrader.com LLC Arranged Insurance and Warranty Plans Established an Escrow Service Established Shipping/Inspection Services B2C is Similar to C2C Selling eBay Inc.: Managing Success in a Dynamic Online Marketplace

45. END BACKNEXT Introduction to e- Commerce Scope of e- Commerce E-Commerce Processes Electronic Payment Processes Section II E-Commerce Applications B2C e- Commerce B2B e-Commerce E-Commerce Marketplaces KEY TERMS Copyright 2005, McGraw-Hill/Irwin, Inc.8-45 Real World Cases 3- Is eBay’s move from a pure consumer-to-consumer auction marketplace to inviting large and small businesses to sell to consumers and other businesses, sometimes at fixed prices, a good long term strategy? Why or why not? eBay Inc.: Managing Success in a Dynamic Online Marketplace

46. END BACKNEXT Introduction to e- Commerce Scope of e- Commerce E-Commerce Processes Electronic Payment Processes Section II E-Commerce Applications B2C e- Commerce B2B e-Commerce E-Commerce Marketplaces KEY TERMS Copyright 2005, McGraw-Hill/Irwin, Inc.8-46 Real World Cases Discussion Points Would Include: Profitability to eBay eBay’s Meets Shift in Demand eBay Maintains-Voice of the Customer IT Delivers Online System eBay Inc.: Managing Success in a Dynamic Online Marketplace Return to Cases Page Return to Chapter 8

47. END BACKNEXT Introduction to e- Commerce Scope of e- Commerce E-Commerce Processes Electronic Payment Processes Section II E-Commerce Applications B2C e- Commerce B2B e-Commerce E-Commerce Marketplaces KEY TERMS Copyright 2005, McGraw-Hill/Irwin, Inc.8-47 Real World Cases Discussion Points Would Include: Profitability to eBay eBay’s Meets Shift in Demand eBay Maintains-Voice of the Customer IT Delivers Online System Trading Assistants Impact on eBay eBay Inc.: Managing Success in a Dynamic Online Marketplace Return to Cases Page Return to Chapter 8

48. END BACKNEXT Introduction to e- Commerce Scope of e- Commerce E-Commerce Processes Electronic Payment Processes Section II E-Commerce Applications B2C e- Commerce B2B e-Commerce E-Commerce Marketplaces KEY TERMS Copyright 2005, McGraw-Hill/Irwin, Inc.8-48 Real World Cases Corporate Express: The Business Value of Integrating Customer and Supplier Procurement Systems 1- What is the business value to Corporate Express of integrating its systems with the procurement systems of its customers? Return to Cases Page Return to Chapter 8

49. END BACKNEXT Introduction to e- Commerce Scope of e- Commerce E-Commerce Processes Electronic Payment Processes Section II E-Commerce Applications B2C e- Commerce B2B e-Commerce E-Commerce Marketplaces KEY TERMS Copyright 2005, McGraw-Hill/Irwin, Inc.8-49 Real World Cases Corporate Express: The Business Value of Integrating Customer and Supplier Procurement Systems Discussion Points Would Include: Half of 75,000 Daily Orders Electronically Smallest of Corporate Express’ 30,000 Customers –Log onto E-Way –Conduct Purchasing Transactions E-Way Checks Controls Corporate Express Tailors Catalog to User’s Practices Buyer Time/Cost Savings

50. END BACKNEXT Introduction to e- Commerce Scope of e- Commerce E-Commerce Processes Electronic Payment Processes Section II E-Commerce Applications B2C e- Commerce B2B e-Commerce E-Commerce Marketplaces KEY TERMS Copyright 2005, McGraw-Hill/Irwin, Inc.8-50 Real World Cases Corporate Express: The Business Value of Integrating Customer and Supplier Procurement Systems 2- What are the business benefits of Corporate Express’ E-Way Web portal to its smaller customers? Its larger customers?

51. END BACKNEXT Introduction to e- Commerce Scope of e- Commerce E-Commerce Processes Electronic Payment Processes Section II E-Commerce Applications B2C e- Commerce B2B e-Commerce E-Commerce Marketplaces KEY TERMS Copyright 2005, McGraw-Hill/Irwin, Inc.8-51 Real World Cases Corporate Express: The Business Value of Integrating Customer and Supplier Procurement Systems Smaller Companies: Smallest of Corporate Express’ 30,000 Customers –Log onto E-Way –Conduct Purchasing Transactions E-Way Checks Controls Corporate Express Tailors Catalog to User’s Practices Buyer Time/Cost Savings

52. END BACKNEXT Introduction to e- Commerce Scope of e- Commerce E-Commerce Processes Electronic Payment Processes Section II E-Commerce Applications B2C e- Commerce B2B e-Commerce E-Commerce Marketplaces KEY TERMS Copyright 2005, McGraw-Hill/Irwin, Inc.8-52 Real World Cases Corporate Express: The Business Value of Integrating Customer and Supplier Procurement Systems Larger Companies: E-Way Integrated into the Processing Fabric of Company Tailored Buyer’s Catalog Buyer Time/Cost Savings

53. END BACKNEXT Introduction to e- Commerce Scope of e- Commerce E-Commerce Processes Electronic Payment Processes Section II E-Commerce Applications B2C e- Commerce B2B e-Commerce E-Commerce Marketplaces KEY TERMS Copyright 2005, McGraw-Hill/Irwin, Inc.8-53 Real World Cases Corporate Express: The Business Value of Integrating Customer and Supplier Procurement Systems 3- Should every business that has an e-commerce website integrate its systems with the procurement systems of its business customers? Why or why not? Return to Cases Page Return to Chapter 8

54. END BACKNEXT Introduction to e- Commerce Scope of e- Commerce E-Commerce Processes Electronic Payment Processes Section II E-Commerce Applications B2C e- Commerce B2B e-Commerce E-Commerce Marketplaces KEY TERMS Copyright 2005, McGraw-Hill/Irwin, Inc.8-54 Real World Cases Corporate Express: The Business Value of Integrating Customer and Supplier Procurement Systems Discussion Points Would Include: E-Commerce Web Site Integrated System Company Commitment to IT Support Current Customer Base Breakdown Return to Cases Page Return to Chapter 8

55. END BACKNEXT Introduction to e- Commerce Scope of e- Commerce E-Commerce Processes Electronic Payment Processes Section II E-Commerce Applications B2C e- Commerce B2B e-Commerce E-Commerce Marketplaces KEY TERMS Copyright 2005, McGraw-Hill/Irwin, Inc.8-55 Real World Cases Corporate Express: The Business Value of Integrating Customer and Supplier Procurement Systems Discussion Points Would Include: E-Commerce Web Site Integrated System Company Commitment to IT Support Current Customer Base Breakdown Performance and Scalability Issues Return to Cases Page Return to Chapter 8

56. END BACKNEXT Introduction to e- Commerce Scope of e- Commerce E-Commerce Processes Electronic Payment Processes Section II E-Commerce Applications B2C e- Commerce B2B e-Commerce E-Commerce Marketplaces KEY TERMS Copyright 2005, McGraw-Hill/Irwin, Inc.8-56 Real World Cases E-Trade and Wells Fargo: The Business Case for Clicks and Bricks e-Commerce 1- What lessons in business strategy can be applied to development of the e- commerce channels of other companies from the experience of E-Trade? Return to Cases Page

57. END BACKNEXT Introduction to e- Commerce Scope of e- Commerce E-Commerce Processes Electronic Payment Processes Section II E-Commerce Applications B2C e- Commerce B2B e-Commerce E-Commerce Marketplaces KEY TERMS Copyright 2005, McGraw-Hill/Irwin, Inc.8-57 Real World Cases Lessons that Could be Applied Would Include: Diversify With Selective Acquisitions Implement Cost Reduction Programs Business-not Internet- based E-Trade and Wells Fargo: The Business Case for Clicks and Bricks e-Commerce

58. END BACKNEXT Introduction to e- Commerce Scope of e- Commerce E-Commerce Processes Electronic Payment Processes Section II E-Commerce Applications B2C e- Commerce B2B e-Commerce E-Commerce Marketplaces KEY TERMS Copyright 2005, McGraw-Hill/Irwin, Inc.8-58 Real World Cases E-Trade and Wells Fargo: The Business Case for Clicks and Bricks e-Commerce 2- What is the business value of the C.E.O. online wholesale banking portal to Wells Fargo?

59. END BACKNEXT Introduction to e- Commerce Scope of e- Commerce E-Commerce Processes Electronic Payment Processes Section II E-Commerce Applications B2C e- Commerce B2B e-Commerce E-Commerce Marketplaces KEY TERMS Copyright 2005, McGraw-Hill/Irwin, Inc.8-59 Real World Cases Discussion Points Would Include: 25% Internet Recession Growth-Wells Fargo’s C.E.O. Banking Portal Improved Expose Clients-Sign up for More Focused on Customer Want E-Trade and Wells Fargo: The Business Case for Clicks and Bricks e-Commerce

60. END BACKNEXT Introduction to e- Commerce Scope of e- Commerce E-Commerce Processes Electronic Payment Processes Section II E-Commerce Applications B2C e- Commerce B2B e-Commerce E-Commerce Marketplaces KEY TERMS Copyright 2005, McGraw-Hill/Irwin, Inc.8-60 Real World Cases E-Trade and Wells Fargo: The Business Case for Clicks and Bricks e-Commerce 3- What can other companies learn from the successes and mistakes of the Wells Fargo e- commerce system? Return to Cases Page

61. END BACKNEXT Introduction to e- Commerce Scope of e- Commerce E-Commerce Processes Electronic Payment Processes Section II E-Commerce Applications B2C e- Commerce B2B e-Commerce E-Commerce Marketplaces KEY TERMS Copyright 2005, McGraw-Hill/Irwin, Inc.8-61 Real World Cases Lessons Would Include: E-commerce Systems Expensive Internet Systems Allows Cross Selling Learn Customers Wants E-Trade and Wells Fargo: The Business Case for Clicks and Bricks e-Commerce Return to Cases Page

62. END BACKNEXT Introduction to e- Commerce Scope of e- Commerce E-Commerce Processes Electronic Payment Processes Section II E-Commerce Applications B2C e- Commerce B2B e-Commerce E-Commerce Marketplaces KEY TERMS Copyright 2005, McGraw-Hill/Irwin, Inc.8-62 Real World Cases Lessons Would Include: E-commerce Systems Expensive Internet Systems Allows Cross Selling Learn Customers Wants Users Depend on Successful E-commerce Site E-Trade and Wells Fargo: The Business Case for Clicks and Bricks e-Commerce Return to Cases Page

63. END BACKNEXT Introduction to e- Commerce Scope of e- Commerce E-Commerce Processes Electronic Payment Processes Section II E-Commerce Applications B2C e- Commerce B2B e-Commerce E-Commerce Marketplaces KEY TERMS Copyright 2005, McGraw-Hill/Irwin, Inc.8-63 Real World Cases 1- What are the business reasons why even “in a tight budget year, e-commerce projects have not lost their appeal” and are still highly ranked by IT leaders from many companies? Return to Cases Page Providence Washington Insurance and Tharco: The Business Value of an Online Customer Interface

64. END BACKNEXT Introduction to e- Commerce Scope of e- Commerce E-Commerce Processes Electronic Payment Processes Section II E-Commerce Applications B2C e- Commerce B2B e-Commerce E-Commerce Marketplaces KEY TERMS Copyright 2005, McGraw-Hill/Irwin, Inc.8-64 Real World Cases Business Reasons Would Include: Improving Order Taking Tuning the Sales Channel Creating Business Partner Portals Cost Reduction Providence Washington Insurance and Tharco: The Business Value of an Online Customer Interface

65. END BACKNEXT Introduction to e- Commerce Scope of e- Commerce E-Commerce Processes Electronic Payment Processes Section II E-Commerce Applications B2C e- Commerce B2B e-Commerce E-Commerce Marketplaces KEY TERMS Copyright 2005, McGraw-Hill/Irwin, Inc.8-65 Real World Cases 2- What is the business value of Providence Washington’s extranet portal? Of Tharco’s Web-based order processing system? Providence Washington Insurance and Tharco: The Business Value of an Online Customer Interface

66. END BACKNEXT Introduction to e- Commerce Scope of e- Commerce E-Commerce Processes Electronic Payment Processes Section II E-Commerce Applications B2C e- Commerce B2B e-Commerce E-Commerce Marketplaces KEY TERMS Copyright 2005, McGraw-Hill/Irwin, Inc.8-66 Real World Cases Providence Washington’s: Speed Delivery-Weeks to Minutes Automated the Sales ProcessTharco’s: Interactive Web-based Ordering System Cost Savings Reduces Errors Provide Real-time Order System Providence Washington Insurance and Tharco: The Business Value of an Online Customer Interface

67. END BACKNEXT Introduction to e- Commerce Scope of e- Commerce E-Commerce Processes Electronic Payment Processes Section II E-Commerce Applications B2C e- Commerce B2B e-Commerce E-Commerce Marketplaces KEY TERMS Copyright 2005, McGraw-Hill/Irwin, Inc.8-67 Real World Cases 3- What lessons on developing successful e-commerce projects for small businesses can be gained from the information in this case? Providence Washington Insurance and Tharco: The Business Value of an Online Customer Interface

68. END BACKNEXT Introduction to e- Commerce Scope of e- Commerce E-Commerce Processes Electronic Payment Processes Section II E-Commerce Applications B2C e- Commerce B2B e-Commerce E-Commerce Marketplaces KEY TERMS Copyright 2005, McGraw-Hill/Irwin, Inc.8-68 Real World Cases Improved Productivity/ Increased Revenues Check Financial Status of Vendors, etc. Allow Extra Time for Project Completion Providence Washington Insurance and Tharco: The Business Value of an Online Customer Interface Lessons for Small Business Would Include: Return to Cases Page

69. END BACKNEXT Introduction to e- Commerce Scope of e- Commerce E-Commerce Processes Electronic Payment Processes Section II E-Commerce Applications B2C e- Commerce B2B e-Commerce E-Commerce Marketplaces KEY TERMS Copyright 2005, McGraw-Hill/Irwin, Inc.8-69 Real World Cases Improved Productivity/ Increased Revenues Check Financial Status of Vendors, etc. Allow Extra Time for Project Completion Aggressively Market Project Providence Washington Insurance and Tharco: The Business Value of an Online Customer Interface Lessons for Small Business Would Include: Return to Cases Page