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 give examples of several key factors and Web store requirements need to succeed in e-commerce
Identify and explain the business value of several types of e-commerce marketplaces
Discuss the benefits and trade-offs of several e-commerce clicks and bricks alternatives
Case 1: KitchenAid and the Royal Bank of Canada
Companies that do business online must police unauthorized use of their brand names, logos and other trademarks to protect their investments.
Companies such as BrandProtect, MarkMonitor, and NameProtect are stepping in to offer companies some artillery in the fight for control of their brands and reputations.
The challenge of brand protection, however, has grown exponentially for companies operating in the online world.
Other type of violation is using logos without permission because it is so easy for someone to go to a company’s web site and grab a logo and put it somewhere else.
Consider your own online shopping patterns. How much weight do you place on the presence of a name or logo or other trademark (such as the KitchenAid silhouette) on a Web site when purchasing goods or services? Do you ever stop to consider whether you may have been misled? How could you tell the difference?
Brian Maynard of KitchenAid notes that the development of the Internet changed the problem of brand policing. What are some of these changes? What new challenges can you think of that did not exist in the preonline world? Provide several examples.
The companies mentioned in the case (e.g., Kitchen-Aid, RBC, Disney, and Coke) were well established and enjoyed strong brand recognition well before the advent of the Internet. Do you think online-only companies face the same problems as they do? Why or why not? Justify the rationale for your answer.
Introduction to e-Commerce
Electronic commerce encompasses the entire online process of
Paying for products and services
It relies on the Internet and other information technologies to support every step of the process
The Scope of e-Commerce 9-
E-Commerce Technologies 9-
Categories of e-Commerce
Virtual storefronts, multimedia catalogs, interactive order processing, electronic payment, online customer support
Electronic business marketplaces, direct links between businesses, auctions and exchanges
Online auctions, posting to newspaper sites, personal websites, e-commerce portals
Essential e-Commerce Architecture 9-
Access Control and Security
E-commerce processes must establish mutual trust and secure access between parties
User names and passwords
Digital certificates and signatures
Restricted access areas
Other people’s accounts
Restricted company data
Webmaster administration areas
Profiling and Personalizing
Profiling gathers data on you and your website behavior and choices
Cookie files and tracking software
Profiling is used for
Personalized (one-to-one) marketing
Customer relationship management
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
Content and Catalog Management
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
E-business and e-commerce workflow manage-ment depends on a workflow software engine
Contains software model of business processes
Workflow models express predefined
Sets of business rules
Roles of stakeholders
Example of Workflow Management 9-
Most e-commerce applications are event driven
Responds to such things as customer’s 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
Collaboration and Trading
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
Electronic Payment Processes
Near-anonymous and electronic nature of transactions
Many security issues
Wide variety of debit and credit alternatives
Financial institutions may be part of the process
Electronic Payment Processes
Web Payment Processes
Shopping cart process
Credit card payment process
Debit and other more complex processes
Electronic Funds Transfer (EFT)
Major payment system in banking, retail
Variety of information technologies capture and process money and credit card transfers
Most point-of-sale terminals in retail stores are networked to bank EFT systems
Often developed and hosted by third-party market-maker companies
Infomediaries serve as intermediaries in e-business and e-commerce transactions
B2B E-Commerce Web Portal 9-
Clicks and Bricks
Success will go to those who can integrate Internet initiatives with traditional operations
Merging operations has trade-offs
The business case for merging e-commerce with traditional business operations
Move strategic capabilities in traditional operations to the e-commerce business
Integrate e-commerce into the traditional business
Sharing of established brands
Sharing of key business information
Joint buying power and distribution efficiencies
Other Clicks and Bricks Strategies
Partial e-commerce integration
Joint ventures and strategic partnerships
Spin-off of an independent e-commerce company
Barnes and Noble’s experience
Spun off independent e-commerce company
Gained venture capital, entrepreneurial culture, and flexibility
Attracted quality management
Accelerated decision making
Failed to gain market share
E-Commerce Channel Choices
An e-commerce channel is the marketing or sales channel created by a company for its e-commerce activities
There is no universal strategy or e-commerce channel choice
Both e-commerce integration and separation have major business benefits and shortcoming
Most businesses are implementing some measure of clicks and bricks integration
E-Commerce Strategy Checklist
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?
Case 3: eBay versus Google and Microsoft:
eBay enjoyed virtual monopoly in online auction for almost a decade.
Now it is facing competition from Google & Microsoft.
Analysts think that search and advertising will define the future of e-Commerce.
Windows Live Expo is Microsoft’s competitive weapon in its battle with eBay and Google for the online classifieds market.
eBay is addressing these challenges by acquiring companies like Skype, Shopping.com, and other international classified sites.
Case Study Questions
Do you agree with Google and Microsoft that eBay is now vulnerable to their assaults via Google Base and Windows Live Expo? Why or why not?
What are the major advantages and limitations of Google Base and Windows Live Expo? Which do you prefer, or would you use both? Why? Go to their Internet Web sites and read reviews at other sites to help you answer.
Case Study Questions
Are eBay’s development of Kijiji, acquisition of Skype, alliance with Yahoo, and other acquisitions as noted in this case enough to ward off the competitive assaults of Google and Microsoft? Defend your position.
Case 4: eBay, Running the Right Play
eBay is one of the fastest-growing companies in history, and business is surging
31 sites around the world
$1.1 billion in international sales in 2004, and growing twice as fast as the domestic market
Half of their 125 million registered users are outside of the United States
eBay keeps a playbook
Several hundred pages of wisdom collected from worldwide managers
Case Study Questions
Why has eBay become such a successful and diverse online marketplace?
What do you think of eBay’s playbook concept? Why do they call it a playbook?
Is eBay’s move into the international arena a good long-term strategy?