Electronic Commerce Systems

By Saba Mustafa

Electronic Commerce Fundamentals

Identify the major categories and trends of e-commerce applications Identify the essential processes of an e-commerce system, and give examples of how they are implemented in e-commerce applications Identify and explain the business value of several types of e-commerce marketplaces Discuss the benefits and trade-offs of several ecommerce clicks and bricks alternatives

Chapter 9 Electronic Commerce Systems

Electronic commerce encompasses the entire online process of Developing Marketing Selling Delivering Servicing Paying for products and services It relies on the Internet and other information technologies to support every step of the process

Chapter 9 Electronic Commerce Systems

Business-to-Consumer (B2C) businesses develop attractive electronic marketplaces to sell products and services to consumers. Business-to-Business (B2B) involves both electronic business marketplaces and direct market links between businesses. Consumer-to-Consumer (C2C) includes auction websites and electronic personal advertising.

Chapter 9 Electronic Commerce Systems

Business-to-Consumer E- Commerce business must develop attractive electronic marketplaces to sell products and services to consumers
E.g. Virtual storefronts, multimedia catalogs, interactive order processing, electronic payment, online customer support

Chapter 9 Electronic Commerce Systems

Categories of e-Commerce

(Contd.)

Business-to-Business This category involves both electronic business marketplaces and direct market links between businesses
E.g. e-commerce catalogue websites for their business consumers & suppliers. B2B e-commerce portals that provide auctions and exchanges marketplace for business. Electronic data interchange (EDI)

Consumer-to-Consumer Online auctions, posting to newspaper sites, personal websites, e-commerce portals

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E-commerce processes must establish mutual trust and secure access between parties User names and passwords Encryption key Digital certificates and signatures Authorized/Restricted access areas Other peoples accounts Restricted company data Webmaster administration areas

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Profiling gathers data on you and your website behavior and choices User registration Cookie files and tracking software User feedback Profiling is used for Personalized (one-to-one) marketing Authenticating identity Customer relationship management Marketing planning Website management

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Search processes help customers find the specific product or service they want E-commerce software packages often include a website search engine A customized search engine may be acquired from companies like Google or Requisite Technology Searches are often on content or by parameters

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Content Management Software Helps develop, generate, deliver, update, and archive text and multimedia information at e-commerce websites Catalog Management Software Helps generate and manage catalog content Catalog and content management software works with profiling tools to personalize content Includes product configuration and mass customization

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E-business and e-commerce workflow management depends on a workflow software engine Contains software model of business processes Workflow models express predefined Sets of business rules Roles of stakeholders Authorization requirements Routing alternative Databases used Task sequences

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Most e-commerce applications are event driven Responds to such things as customers first website visit and payments Monitors all e-commerce processes Records all relevant events, including problem situations Notifies all involved stakeholders Works in conjunction with user-profiling software

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Processes that support vital collaboration arrangements and trading services Needed by customers, suppliers, and other stakeholders Online communities of interest E-mail, chat, discussion groups Enhances customer service Builds loyalty

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Some of the success factors in e-commerce Selection and value Performance and service Look and feel Advertising and incentives Personal attention (one-to-one marketing) Community relationships Security and reliability

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Bricks-and-clicks is a business model by which a company integrates both offline (bricks) and online (clicks) occurrences. It is also known as click-and-mortar or clicks-and-bricks, as well as bricks, clicks and flips, flips referring to catalogs. One example of the bricks-and-clicks model is when a chain of stores allows the user to order products online, but lets them pick up their order at a local store. Success will go to those who can integrate Internet initiatives with traditional operations Merging operations has trade-offs

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Partial e-commerce integration Joint ventures and strategic partnerships Complete separation Spin-off of an independent e-commerce company Barnes and Nobles experience Spin off independent e-commerce company Gained venture capital, entrepreneurial culture, and flexibility Attracted quality management Accelerated decision making

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Questions to ask and answer What audiences are we attempting to reach? What action do we want those audiences to take? Who owns the e-commerce channel within the organization? Is the e-commerce channel planned alongside other channels? Is there a process for generating, approving, releasing, and withdrawing content? Will our brand translate to the new channel? How will we market the channel itself?

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