Information Systems - Chapter 9: e-Commerce Systems

Chapter 9e-Commerce SystemsLearning ObjectivesIdentify the major categories and trends of e-commerce applications.Identify the essential processes of an e-commerce system, and give examples of how it is implemented in e-commerce applications.Learning ObjectivesIdentify and give examples of several key factors and Web store requirements needed to succeed in e-commerce.Identify and explain the business value of several types of e-commerce marketplaces.Discuss the benefits and trade0ffs of several e-commerce clicks-and-bricks alternatives.Section 1E-Commerce FundamentalsI. Introduction to e-Commerce Electronic Commerce – the entire online process of developing, marketing, selling, delivering, servicing, and paying for products and services transacted on networked global marketplaces; more than just buying and selling onlinee-Commerce – the online exchange of value; more than just buying and selling on the InternetII. The Scope of e-Commerce Includes marketing, discovery, transaction processing, product and customer service process, intranet and extranet access, and customer collaboratione-Commerce Technologies – involves most information and Internet technologiesII. The Scope of e-Commerce Categories of e-CommerceBusiness-To-Consumer (B2C) e-Commerce – still small when compared with all online commerceConsumer-To-Consumer (C2C) e-Commerce – online auctions, online advertising of personal products and servicesBusiness-To-Business e-Commerce – most of e-Commerce is hereBusiness-To-Government (B2G) e-CommerceIII. Essential e-Commerce ProcessesIV. Electronic Payment Processes Secure Electronic Payments – measures taken to ensure security of information in electronic paymentsEncrypt data between customer and merchantEncrypt data between customer and firm authorizing credit cardsTake sensitive information offlineSection 2e-Commerce Applications and IssuesI. Introductione-Commerce has changed how firms do business and is now defining how firms do businesse-Commerce TrendsII. Business-To-Consumer (B2C) e-CommerceAttract potential customers, transact goods and services, build customer loyaltye-Commerce Success FactorsSelection and Value – attractive products, competitive pricesPerformance and Service – easy navigation and purchasing, prompt shipping and deliveryLook and Feel – attractive Website, multimedia catalogAdvertising and Incentives – targeted Webpage advertising, email promotions, discounts, special offersII. Business-To-Consumer (B2C) e-CommercePersonal Attention – personalized Web pages and product recommendations, email notices, interactive supportCommunity Relationships – virtual communities and links to related Web sitesSecurity and Reliability – security of customer information and transactions, trustworthy product information, reliable order fulfillmentGreat Customer Communications – easy-to-find contact information, online order status, product supportIII. Web Store Requirements Most B2C e-commerce ventures are retail businesses on the Web; primary focus is to develop, operate, and manage the Website to attract and maintain customers for repeat salesGetting Customers to Find You – customers must find you on the WebSearch Engine Optimization (SEO) – focus on improving the number/quality of visitors to a Web siteIII. Web Store Requirements Serving Your Customers – a Web site should help serve customers personally and efficiently so they become loyal customersWeb Cookie File – a file stored on the customer’s computer with details about their visit to your Web siteManaging a Web Store – a Web store must be managed as both a Web site and a retail store