1. Principles of Information Systems Eighth Edition
Chapter 8
Electronic and Mobile Commerce

2. An Introduction to Electronic Commerce
Electronic commerce: conducting business activities electronically over computer networks
Types of business activities that are strong candidates for conversion to e-commerce
Paper based
Time-consuming
Inconvenient for customers
Principles of Information Systems, Eighth Edition

3. Business-to-Business (B2B) E-Commerce
Subset of e-commerce
All the participants are organizations
Useful tool for connecting business partners in a virtual supply chain to cut resupply times and reduce costs
Principles of Information Systems, Eighth Edition

4. Business-to-Consumer (B2C) E-Commerce
Form of e-commerce in which customers deal directly with an organization and avoid intermediaries
Squeezes costs and inefficiencies out of supply chain
Can lead to higher profits
Can lead to lower prices for consumers
E-commerce via the Internet
Many goods and services are cheaper online
The Internet allows consumers to easily compare prices, features, and value
Principles of Information Systems, Eighth Edition

5. Consumer-to-Consumer (C2C) E-Commerce
Subset of e-commerce that involves consumers selling directly to other consumers
Example: eBay
Customers buy and sell items directly to each other through the site
181 million users buy and sell items valued at more than $44 billion
Other popular online auction Web sites: Craigslist, uBid, Yahoo! Auctions, Onsale, and WeBidz
Principles of Information Systems, Eighth Edition

6. eGovernment
Use of information and communications technology to simplify the sharing of information, speed formerly paper-based processes, and improve the relationship between citizen and government
Forms of eGovernment
Government-to-consumer (G2C)
Government-to-business (G2B)
Government-to-government (G2G)
Principles of Information Systems, Eighth Edition

7. Multistage Model for E-commerce
Figure 8.1: Multistage Model for E-Commerce (B2B and B2C)
Principles of Information Systems, Eighth Edition

8. Multistage Model for E-commerce (continued)
Figure 8.2: Product and Information Flow for HP Printers Ordered over the Web
Principles of Information Systems, Eighth Edition

9. E-Commerce Challenges
Defining an effective e-commerce model and strategy
Community, content, and commerce
Changing distribution systems and work processes to manage shipments of individual units directly to consumers
B2C systems must be able to handle split-case distribution
Integrating Web-based order processing with traditional systems
Principles of Information Systems, Eighth Edition

10. E-Commerce Challenges (continued)
Figure 8.3: Three Basic Components of a Successful E-Commerce Model
Principles of Information Systems, Eighth Edition

11. E-Commerce Challenges (continued)
Figure 8.4: Web-Based Order Processing Must Be Linked to Traditional Back-End Systems
Principles of Information Systems, Eighth Edition

12. An Introduction to Mobile Commerce
Mobile commerce (m-commerce) relies on the use of wireless devices, such as personal digital assistants, cell phones, and smart phones, to place orders and conduct business
Handset manufacturers are working with communications carriers to develop appropriate wireless devices, related technology, and services
Content providers and mobile service providers are working together more closely than ever
Principles of Information Systems, Eighth Edition

13. Technology Needed for Mobile Commerce
Improved interface between the wireless device and its user
Improved network speed
Security
Encryption, digital certificates
Web applications that are accessible for handheld users
Principles of Information Systems, Eighth Edition

14. Technology Needed for Mobile Commerce (continued)
Wireless application protocol (WAP): standard set of specifications for Internet applications that run on handheld, wireless devices
Effectively serves as a Web browser for such devices
Uses the Wireless Markup Language (WML), which is designed for effectively displaying information on small devices
وظيفته الأساسية هي تمكين الاتصال بالإنترنت من خلال [[هاتف نقال
زود متصفح WAP كل الخدمات الأساسية التي يزودها متصفح وب في حاسوب عادي ولكن بطريقة مبسطة تتلاءم مع إمكانيات وحدود الهاتف النقال.
مواقع WAP هي عبارة عن مواقع مكتوبة بلغة 
Principles of Information Systems, Eighth Edition

15. Retail and Wholesale
Electronic retailing (e-tailing): direct sale from business to consumer through electronic storefronts
Electronic storefronts are typically designed around an electronic catalog and shopping cart model
Cybermall: single Web site that offers many products and services at one Internet location
Manufacturing, repair, and operations (MRO) goods and services
Principles of Information Systems, Eighth Edition

16. Investment and Finance
Online stock trading
Online tools for doing research and analysis
Online banking
Customers can check account balances, transfer money among accounts, pay bills, etc.
Electronic bill presentment
Principles of Information Systems, Eighth Edition

17. Anywhere, Anytime Applications of Mobile Commerce
M-commerce devices are ideal for accessing personal information and receiving targeted messages for a particular consumer
Through m-commerce, companies can establish one-to-one marketing relationships with individual consumers anytime and anywhere
The most successful m-commerce applications suit local conditions and people’s habits and preferences
Examples: banking, stock trading, information services, retail, advertisements
Principles of Information Systems, Eighth Edition

18. Advantages of Electronic and Mobile Commerce
Global reach: helps reduce gap between rich and poor countries
Reduces costs: increases speed and accuracy
Speeds the flow of goods and information
Increases accuracy: eliminates human data-entry error
Improves customer service: information about delivery status and ability to meet customer demand
Principles of Information Systems, Eighth Edition

19. Security Methods to increase security
Payment Card Industry security standard
Address Verification System
Card Verification Number technique
Visa’s Advanced Authorization process
Federal Financial Institutions Examination Council’s “Authentication in an Internet Banking Environment” guidelines
Biometric technology
Principles of Information Systems, Eighth Edition

20. Fraud
Phishing: sending bogus messages purportedly from a legitimate institution to pry personal information from customers by convincing them to go to a “spoof” Web site
Click fraud: arises in a pay-per-click online advertising environment when additional clicks are generated beyond those that come from actual, legitimate users
Online auction fraud
Principles of Information Systems, Eighth Edition

21. Lack of Internet Access
Digital divide: difference between people who do and people who don’t have access or capability to use high-quality, modern information and communications technology to improve their standard of living
Exists between:
More and less developed countries
Economic classes
The educated and uneducated
Those who live in cities and those who live in rural areas
Principles of Information Systems, Eighth Edition

22. Return on Investment
The investment required for a large firm to establish and operate a B2B or B2C Web site can be in the millions of dollars
Common problem with determining return on investment: difficult to forecast project costs and benefits
Principles of Information Systems, Eighth Edition

23. Taxation
U.S. Supreme Court ruling: Internet-based merchants must apply sales tax only when buyers live in a state where the company has physical facilities, or “nexus”
Difficult for states to collect sales taxes on Internet purchases
Principles of Information Systems, Eighth Edition

24. Strategies for Successful E-Commerce
Companies must develop effective Web sites that include the following characteristics:
Easy to use
Accomplish the goals of the company
Safe and secure
Affordable to set up and maintain
Principles of Information Systems, Eighth Edition

25. Building Traffic to Your Web Site
Obtain and register a domain name
Make your site search-engine-friendly
Meta tag: special HTML tag that contains keywords representing your site’s content
Keywords are used by search engines to build indexes pointing to your Web site
Web site traffic data analysis software
Adapting Web site design for global consumers
Principles of Information Systems, Eighth Edition

26. Electronic Payment Systems
Digital certificate: attachment to an message or data embedded in a Web page that verifies the identity of a sender or a Web site
Certificate authority (CA): trusted third party that issues digital certificates
Secure Sockets Layer (SSL): communications protocol used to secure sensitive data
Electronic cash: amount of money that is computerized, stored, and used as cash for e-commerce transactions
مرجع مصدق
Principles of Information Systems, Eighth Edition

27. Electronic Payment Systems (continued)
Credit card
Charge card
Debit card
Smart card: a credit card–sized device with an embedded microchip to provide electronic memory and processing capability
Principles of Information Systems, Eighth Edition