Download - Lesson 10-Electronic Commerce
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Electronic Commerce
Electronic commerce encompasses the entireonline process of developing, marketing,selling, delivering, servicing, and paying forproducts and services.
Basic categories of business and technologyplatforms for e-commerce marketplacesinclude: B2C, B2B, C2C.
Many e-business enterprises are moving towardoffering full-service B2C and B2B e-commerceportals supported by integrated customer-focused processes and internetworked supply
chains.
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Electronic commerce
B2C e-Commerce: Businesses typically sellproducts and services to consumers at e-commerce websites that provide attractiveWeb pages, multimedia catalogs, interactive
order processing, secure electronic paymentsystems, and online customer support. B2B e-Commerce: Business-to-business
applications of e-commerce involve electroniccatalog, exchange, and auction marketplaces
that use Internet, intranet, and extranetwebsites and portals to unite buyers andsellers.
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E-C0mmerce Applications
RETAIL AND WHOLE SALE :
Electronic retailing (e-tailing )is the direct sale offrom business to consumer through electronic
storefronts ,which are typically designed aroundfamiliar electronic catalogues and the shopping cartmodel.e.g. Wall Mart, Sears ,Amazon .com There arethousands of electronic web sites selling every thing
from soup to nuts Cybermall :A single web site that offers many
products and services at one location
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B to C
An internet cyber mall pulls together multiple buyersand sellers into one virtual place easily reachablethrough a Web browser
Some giant Electronic retailers have given theircustomers the facility to order online and pick up theitems from the store.
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B to B
MANUFACTURING:
One approach take by many manufacturers to raiseprofitability and improve customer service is to move
their supply chain operations on to the internet .Here they can form an Electronic Exchange to joinwith competitors and suppliers alike usingcomputers and Web sites to buy and sell goods ,
trade market information and run back officeoperations such as inventory control)
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B to B
With such an exchange , the business center is not aphysical building but a network based location where
business interactions occur. This approach hasgreatly speeded up the movement of raw materials,and finished goods among all the members of the
business community, thus reducing the amount ofinventory that has to be maintained.
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B to B
Private exchanges Owned and operated by a singlecompany.
Public exchanges : are owned and operated by
industry groups .
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MARKETING:: The nature of the web allows firms togather much more information about customer
behavior and preferences
Market segmentation : The identification of specificmarkets to target them with advertising messages
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Technology enabled relation ship management: Theuse of detailed information about a customers
behavior , preferences, needs and buying patterns ,to set prices , negotiate terms , tailor promotions ,add product features. And otherwise customize theentire relationship with the customer
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INVESTMENT AND FINANACE :
On line stock trading
On line banking : On line customers
1. can check balances of their savings2.Checking and loan accounts
3.Transfer money among accounts
4.Can pay their bills ( Electronic bill payment)
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AUCTIONS
1. Forward auction : Bid a price for an article . Articlesold to the highest bidder
2.Reverse auction : Buyer invites prices from severalsuppliers for supply of an item . The lowest biddergets the supply order
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Electronic Payment systems
A key component in the e-business infrastructure
Current e-commerce technology relies on useridentification and encryption to safeguard businesstransaction
Authentication technologies are used to confirm theidentity of the user
Digital certificate :An attachment to the e-mail messageor data embedded in a web page that verifies the Data of
the sender. Certificate Authority: (CA) A trusted third party that
issues a digital certificate
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2.Authentication systems: Determines if the personhe or she claims to be
To prevent theft of credit card numbers and banking
information, Secure Socket Protocol) SSL protocol isused
1.To secure the sensitive data
2.Authenticate the server
3.Determine the encryption
Prevents sniffers from intercepting the data
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Methods of payment
Electronic cash : An amount of money stored in thecomputer and used as cash for e- commercetransaction.
Providers :InternetCash, Mondex, Visa Cash, VeriSign
Electronic wallet :A computerized stored value thatholds credit card information, electronic cash, owner
identification and address information . Thisinformation is provided at the e-commerce check outcounter
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Smart , credit , Charge , debit cards
Credit card : Buy now pay latter
Debit card : Buy now , Pay now
Smart card : A credit card sized device with anembedded microchip to provide electronic memoryand processing capabilities- very secure
Charge card : No preset spending limits. The entireamount charged to the card at the end of the billingperiod. Do not involve lines of credit and do notaccumulate interest charges
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Technology Infrastructure for E- Commerce
Hardware: Web server hardware
Web server software: for performing a number offundamental services including
1. Security and identification 2. Retrieving and sending Web Pages
3. Web site tracking
4. Web site development 5. Web page construction
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High speed connection to network
Value added networks
Virtual private networks
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E-Commerce software
Catalogue management software :Software thatautomates the process of creating a real timeinteractive catalogue and delivering customizedcontent to users screen
Product configuration software : Software used by abuyer to build a product they need on line.
Electronic shopping cart : A model used by many e-
commerce sites to track the items selected topurchase , allowing shoppers to view what is in theircart , add new items to it and remove items from it
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E- commerce transaction processing software:Software that provides the basic connection betweenthe participants in the e- economy, enablingcommunication between trading partners , regardless of their technical infrastructure
Web site traffic data analysis software : Software thatprocesses and analyzes data from the WEB log file to
provide useful information to improve Web siteperformance
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Electronic store front software
Cyber malls
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Advantages of E- Commerce
Reduce transaction costs
Speed flow of goods and information
Improve level of customer service
Enable close coordination among manufacturerssuppliers and customers
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Multistage model for Ecommerce
1. Search and identification
2. Selection and negotiation
3. Purchasing products and services electronically
4. Product and service delivery5. After Sales service
C S M k t l
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e-Commerce Success Marketplaces
Many to One Many to Many
One to Many
Some to Many
Many to Some
Marketplaces
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e-Commerce Success Factors
Selection & Value
Performance & Service
Look & Feel
Advertising & Incentives
Personal Attention
Community Relationships
Security & Reliability
Some Key
Factorsfor Successin E-commerce