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1. Principles of Information Systems,
Sixth Edition
1
Electronic Commerce
Chapter 8

2. Principles of Information Systems,
Sixth Edition
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Chapter 8 Outline
• An Introduction to Electronic
Commerce
• E-Commerce Applications
• Technology Infrastructure
• Electronic Payment Systems
• Threats to E-Commerce
• Strategies for Successful e-
Commerce

3. Principles of Information Systems,
Sixth Edition
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An Introduction to
Electronic Commerce

4. Principles of Information Systems,
Sixth Edition
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Introduction to Electronic Commerce
• Most common types of e-commerce:
• Business-to-consumer (B2C) e-
commerce
• Business-to-business (B2B) e-
commerce
• Consumer-to-consumer (C2C) e-
commerce

5. Principles of Information Systems,
Sixth Edition
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Multistage Model for E-commerce
• 1. Search and identification
• 2. Selection and negotiation
• 3. Purchasing products and
services electronically
• 4. Product and service delivery
• 5. After-sales service

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Multistage Model for E-commerce

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Product and Service Delivery

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E-Commerce Model

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E-Commerce Challenges
• Changing distribution systems & work
processes
• Split-case distribution
• Integrating web-based order processing
with traditional systems

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The E-Commerce Supply Chain
• Supply chain management
– Demand planning
– Supply planning
– Demand fulfillment
• Increased revenues and decreased
costs
• Improved customer satisfaction
• Inventory reduction across the supply
chain

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The E-Commerce Supply Chain

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Supply Chain Management

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Business-to-Business
• Allows manufacturers to buy at low price
worldwide
• Enterprise can sell to a global market

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Global E-Commerce
• Steps in localization
– recognizing and conforming to the
nuances, subtleties, and tastes of
local cultures
– supporting basic trade laws such as
each country’s currency, payment
preferences, taxes, and tariffs
– ensuring that technological
capabilities match local connection
speeds

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Global E-Commerce
• Determine which global markets make
the most sense for selling products or
services on-line
• Decide whether Web content should be
generated or updated centrally or locally

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E-Commerce Applications

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Retail and Wholesale
• Electronic retailing
• Cybermalls
• Wholesale e-commerce: B2B

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Manufacturing

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Sixth Edition
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Marketing
• Market segmentation
• Technology-enabled relationship
management

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Investment and Finance
• On-line stock trading
• On-line banking
– Electronic bill presentment

21. Principles of Information Systems,
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Investment and Finance

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Investment and Finance

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Technology Infrastructure

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Technology Infrastructure

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Hardware
• Storage capacity
–Software
–Volume of e-commerce
transactions
• Website hosting

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Web Server Software
• Security and identification
– Denial of service attack
• Web site tracking
– Web log file
• Web site development tools
• Retrieving and sending Web pages
• Web page construction software
– Static Web page
– Dynamic Web page

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E-Commerce Software
• Catalog management
• Product configuration
• Shopping cart

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E-Commerce Transaction Processing
• Automates transaction processes from
order placement to reconciliation
• Web traffic data analysis

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Electronic Shopping Cart

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Network and Packet Switching
• All e-commerce depends on a type of
network to securely transmit data
– Internet
– Extranet
– Value-added network (VAN)
– Virtual private network (VPN)
• All EC approaches rely on packet
switching and use routers
• Cost, availability, reliability, security, and
redundancy must be considered when
choosing a network

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Electronic Payment
Systems

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Electronic Payment Systems
• Digital certificates
– Certificate authority
– Secure sockets layer (SSL)
• Electronic cash
• Electronic wallets
• Smart, credit, charge, and debit cards

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Threats to E-Commerce

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Threats to E-Commerce
• E-commerce incidents
• Theft of intellectual property
– Patents on business processes
• Fraud
• Privacy Issues

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Fraud
• On-line auction fraud
• Spam
• Pyramid schemes
• Investment fraud
• Stock scams

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Invasion of Consumer Privacy
• On-line profiling
• Clickstream data
• Safe harbor principles

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TRUSTe Seal

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BBB On-line Privacy Seal

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How to Protect Your Privacy
While On-Line

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Strategies for Successful
E-Commerce

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Developing an Effective Web Presence
Visitors to a web site should be able to:
• Obtain general information about the
organization
• Obtain financial information for
making an investment decision
• Learn the organization’s position on
social issues
• Learn about the products or services
that the organization sells

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Sixth Edition
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Putting up a Web Site
• Web site hosting services
• Storefront brokers

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Sixth Edition
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Building Traffic to Your Web Site
• Hey, Connections!
I am honored to
declare that I have
successfully
completed Infiniti
E-Retail India Pvt
Ltd
I’m happy to share my wonderful
experience and I successfully completed
my my 2 months internship as a Marketing
Intern at
Looking forward to utilizing all the
knowledge and experience gained for
future roles!

44. Principles of Information Systems,
Sixth Edition
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Maintaining and Improving
Your Web Site
Hello Everyone!!
I'm glad to share that I have
Successfully completed intership
program and received project
completion certificate from Wipro.
I'm thankful to my mentor Surekha
Rajeshwari Ma'am for the guidance
during intership.
Thank you Wipro for giving me this

45. Principles of Information Systems,
Sixth Edition
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Summary
• E-commerce - enables consumers and
companies to gain access to worldwide
markets
• Electronic retailing (e-tailing) - the
direct sale from business-to-consumer
through electronic storefronts designed
around an electronic catalog and
shopping cart model
• E-commerce shoppers - must be on
constant guard to protect their rights,
security, and personal privacy

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Principles and Learning Objectives
• E-commerce is a new way of conducting
business, and as with any other new application
of technology, it presents both opportunities for
improvement and potential problems.
– Identify several advantages of e-commerce.
– Outline a multistage model that describes how e-
commerce works.
– Identify some of the major challenges companies
must overcome to succeed in e-commerce.
– Identify several e-commerce applications.

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Principles and Learning Objectives
• E-commerce requires the careful
planning and integration of a number of
technology infrastructure components.
– Outline the key components of technology
infrastructure that must be in place for e-
commerce to succeed.
– Discuss the key features of the electronic
payments systems needed to support e-
commerce.

48. Principles of Information Systems,
Sixth Edition
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Principles and Learning Objectives
• Users of the new e-commerce technology must
take safeguards to protect themselves.
– Identify the major issues that represent significant
threats to the continued growth of e-commerce.
• Organizations must define and execute a
strategy to be successful in e-commerce.
– Outline the key components of a successful e-
commerce strategy

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End of Chapter 8