Lesson 10-Electronic Commerce

8/2/2019 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

Date post:	05-Apr-2018
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Lesson 10-Electronic Commerce

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