Web Commerce

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Web Commerce

  1. 1. Web Commerce Rev 7/20/07 rdm
  2. 2. Objectives <ul><li>Define e-commerce and understand its role as a transaction processing system </li></ul><ul><li>Define the three types of e-commerce and mobile commerce, listing the benefits and challenges associated with each </li></ul><ul><li>Discuss several examples of how e-commerce and mobile commerce are being used to provide services </li></ul><ul><li>List the components of an e-commerce system and explain how they function together to provide e-commerce services </li></ul>
  3. 3. Types of E-commerce <ul><li>Business-to-consumer e-commerce (B2C) </li></ul><ul><ul><li>Connects individual consumers with sellers </li></ul></ul><ul><li>Business-to-business e-commerce (B2B) </li></ul><ul><ul><li>Supports business transactions across private networks, the Internet, and the Web </li></ul></ul><ul><li>Consumer-to-consumer e-commerce (C2C) </li></ul><ul><ul><li>Connects individual sellers with people shopping for used items </li></ul></ul>
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  7. 7. E-commerce from the Seller’s Perspective <ul><li>Sellers business practices </li></ul><ul><ul><li>Market research to identify customer needs and behavior (Omniture) </li></ul></ul><ul><ul><li>Manufacturing products or supplying services that meet customer needs </li></ul></ul><ul><ul><li>Marketing and advertising to make customers aware of available products and services </li></ul></ul>
  8. 8. E-commerce from the Seller’s Perspective (Continued) <ul><li>Sellers business practices </li></ul><ul><ul><li>Providing a method for acquiring payments </li></ul></ul><ul><ul><li>Making arrangements for delivery of the product </li></ul></ul><ul><ul><li>Providing after-sales support </li></ul></ul>
  9. 9. M-commerce Technology <ul><li>Mobile commerce (m-commerce) </li></ul><ul><ul><li>E-commerce that takes place over wireless mobile devices </li></ul></ul><ul><li>Technologies and standards </li></ul><ul><ul><li>Wireless Application Protocol (WAP) </li></ul></ul><ul><ul><li>Wireless Markup Language (WML) </li></ul></ul><ul><ul><li>Bluetooth </li></ul></ul>
  10. 10. Benefits and Challenges of E-commerce <ul><li>Buyers enjoy the convenience of shopping from their desktop </li></ul><ul><li>B2C e-commerce </li></ul><ul><ul><li>Levels the playing field between large and small businesses </li></ul></ul><ul><li>Challenges </li></ul><ul><ul><li>Established businesses must alter systems and business practices </li></ul></ul><ul><ul><li>Social concerns </li></ul></ul>
  11. 11. E-Commerce Applications <ul><li>E-tailing provides customers with </li></ul><ul><ul><li>Product information </li></ul></ul><ul><ul><li>The ability to comparison shop </li></ul></ul><ul><li>E-tailing options </li></ul><ul><ul><li>Set up an electronic storefront </li></ul></ul><ul><ul><li>Lease space in a cybermall </li></ul></ul>
  12. 12. Online Clearing Houses, Web Auctions, and Marketplaces <ul><li>Provide a platform for businesses and individuals to sell their products and belongings </li></ul><ul><li>Online clearinghouses </li></ul><ul><ul><li>Manufacturers can liquidate stock </li></ul></ul><ul><ul><li>Consumers can find a good deal </li></ul></ul>
  13. 13. Online Clearing Houses, Web Auctions, and Marketplaces (Continued) <ul><li>Most popular auction/marketplace </li></ul><ul><ul><li>eBay.com </li></ul></ul><ul><li>Auction houses </li></ul><ul><ul><li>Usually only accept limited liability for problems that buyers or sellers may experience </li></ul></ul>
  14. 14. B2B Global Supply Management and Electronic Exchanges <ul><li>Global supply management (GSM) </li></ul><ul><ul><li>Businesses can find the best deals on the global market </li></ul></ul><ul><li>Electronic exchange </li></ul><ul><ul><li>Provides convenient centralized platform for B2B e-commerce </li></ul></ul><ul><ul><li>Normally industry specific </li></ul></ul><ul><ul><li>Promotes cooperation between competing companies </li></ul></ul>
  15. 15. Marketing <ul><li>Web is used for </li></ul><ul><ul><li>Unsolicited advertising </li></ul></ul><ul><ul><li>Access to product information through business Web sites </li></ul></ul><ul><ul><li>Market research </li></ul></ul>
  16. 16. M-commerce Applications <ul><li>M-commerce between Cell Phone and Web </li></ul><ul><ul><li>Applications accessible with mobile Web browser </li></ul></ul><ul><li>M-commerce through SMS Text Messaging </li></ul><ul><ul><li>Texting can be used to order merchandise </li></ul></ul><ul><ul><li>Mobile spam over SMS texting is raising concerns in the United Kingdom </li></ul></ul><ul><li>M-commerce through Short-Range Wireless Data Communications </li></ul><ul><ul><li>Smart phones with Bluetooth technology </li></ul></ul>
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  18. 18. E-Commerce Implementation <ul><li>Implementing e-commerce </li></ul><ul><ul><li>Requires expertise </li></ul></ul><ul><ul><li>May require large investment </li></ul></ul><ul><li>E-commerce host </li></ul><ul><ul><li>Business that takes responsibility for setting up and maintaining an e-commerce system </li></ul></ul>
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  20. 20. Infrastructure <ul><li>E-commerce </li></ul><ul><ul><li>Requires significant infrastructure changes </li></ul></ul><ul><li>Changes may be required in </li></ul><ul><ul><li>Personnel, manufacturing processes, storage, shipping, information systems, etc. </li></ul></ul><ul><li>Organizations expanding to the Web </li></ul><ul><ul><li>All areas of business are affected </li></ul></ul><ul><ul><ul><li>Manufacturing, finance, sales, customer service </li></ul></ul></ul>
  21. 21. Hardware and Networking <ul><li>Underestimating the amount of Web traffic </li></ul><ul><ul><li>Leads to network stalls and long wait times </li></ul></ul><ul><li>Typical e-commerce Web site </li></ul><ul><ul><li>Employs one or more server computers and a high-speed Internet connection </li></ul></ul><ul><li>Outsourcing to a Web hosting company </li></ul><ul><ul><li>Can operate 24 hours a day, 7 days a week </li></ul></ul>
  22. 22. Software <ul><li>Web Server Software </li></ul><ul><ul><li>Responds to requests for Web pages </li></ul></ul><ul><li>Web Server Utility Programs </li></ul><ul><ul><li>Provide statistical information about server usage and Web site traffic patterns (i.e. Omniture) </li></ul></ul><ul><li>E-commerce Software </li></ul><ul><ul><li>Supports e-commerce activities </li></ul></ul><ul><ul><li>Includes catalog management, electronic shopping cart, and payment software </li></ul></ul>
  23. 23. Software (Continued) <ul><li>Web Site Design Tools </li></ul><ul><ul><li>What see is what you-get (WYSIWYG) applications or wizards </li></ul></ul><ul><li>Graphics Applications </li></ul><ul><ul><li>Design and create graphic elements of Web sites </li></ul></ul><ul><li>Web Site Development Tools </li></ul><ul><ul><li>Application programming interfaces (API’s) </li></ul></ul><ul><ul><ul><li>Allow software engineers to develop Web-driven programs </li></ul></ul></ul>
  24. 24. Software (Continued) <ul><li>Web services </li></ul><ul><ul><li>Programs that automate tasks by communicating with each other over the Web </li></ul></ul><ul><ul><li>Systems developers can provide tools for automating trivial or repetitive tasks </li></ul></ul><ul><ul><li>Important in transaction processing </li></ul></ul>
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  26. 26. Building Traffic <ul><li>The 3Cs Approach </li></ul><ul><ul><li>Content, community, and commerce </li></ul></ul><ul><li>Keywords and Search Engines </li></ul><ul><ul><li>Choose name and product names that best describe business purpose and features </li></ul></ul><ul><ul><li>Select descriptive domain names </li></ul></ul><ul><ul><li>Business-related keywords can be listed in the HTML meta tag </li></ul></ul>
  27. 27. Building Traffic (Continued) <ul><li>Partnerships </li></ul><ul><ul><li>Online e-tailers often form partnerships and advertise each other’s Web sites </li></ul></ul><ul><li>Marketing </li></ul><ul><ul><li>Online advertising methods include banner ads, pop-up ads, and e-mail </li></ul></ul><ul><ul><li>Offline advertising methods include magazines, newspapers, radio, and television </li></ul></ul>
  28. 28. Electronic Payment Systems <ul><li>Electronic cash (e-cash or digital cash) </li></ul><ul><ul><li>Provides a private and secure method of transferring funds </li></ul></ul><ul><ul><li>PayPal </li></ul></ul><ul><ul><ul><li>Best-known e-cash provider </li></ul></ul></ul><ul><li>E-cash benefits </li></ul><ul><ul><li>Privacy - hides account information from vendors </li></ul></ul><ul><ul><li>Convenient if seller cannot process a credit card </li></ul></ul>
  29. 29. Electronic Payment Systems (Continued) <ul><li>Electronic wallet, or e-wallet </li></ul><ul><ul><li>Encrypts and stores credit-card information, e-cash information, etc., securely on your computer </li></ul></ul><ul><li>Smartcards </li></ul><ul><ul><li>Credit cards with embedded microchips </li></ul></ul>
  30. 30. International Markets <ul><li>Internet users of all nationalities will have access to your products </li></ul><ul><li>First consideration of a global e-commerce strategy </li></ul><ul><ul><li>Visitors of all nationalities and cultures should feel comfortable while viewing your Web content </li></ul></ul><ul><li>Costly approach </li></ul><ul><ul><li>Create multiple versions of your Web site, each in a different language </li></ul></ul>
  31. 31. E-commerce Security Issues <ul><li>Digital certificate </li></ul><ul><ul><li>A type of electronic business card </li></ul></ul><ul><ul><li>Attached to Internet transaction data </li></ul></ul><ul><ul><li>Verifies the sender of the data </li></ul></ul><ul><ul><li>Provided by certification authorities </li></ul></ul><ul><ul><li>Encryption </li></ul></ul><ul><ul><ul><li>Uses high-level mathematical functions and computer algorithms to encode data </li></ul></ul></ul>
  32. 32. E-commerce Security Issues (Continued) <ul><li>Digital certificates combined with Secure Sockets Layer (SSL) technology </li></ul><ul><ul><li>Allow for encrypted communications to occur </li></ul></ul><ul><li>Spoofing </li></ul><ul><ul><li>Used to impersonate others on the Internet </li></ul></ul>
  33. 33. E-commerce Security Issues (Continued) <ul><li>Denial of Service Attacks </li></ul><ul><ul><li>Use many computers to request Web pages from the same Web server, at the same time </li></ul></ul><ul><ul><li>Zombie computers </li></ul></ul><ul><ul><ul><li>Computers that are either hacked into or under the influence of a virus or worm </li></ul></ul></ul>
  34. 34. Business Resumption Planning <ul><li>Takes into account </li></ul><ul><ul><li>Every conceivable disaster that could negatively impact the system </li></ul></ul><ul><li>Goal </li></ul><ul><ul><li>To protect data and keep key systems operational until order is resumed </li></ul></ul>
  35. 35. What’s New in E-Commerce? <ul><li>Phishing Threatens the Future of E-commerce </li></ul><ul><ul><li>Phishing scams involve hackers that use e-mail and Web sites to impersonate an authentic business in an effort to get unsuspecting customers to type in personal and private information. </li></ul></ul>
  36. 36. What’s New in E-Commerce? <ul><li>The Rise of the Mobile Web </li></ul><ul><ul><li>Web access can be added to most cell phone services for only a few dollars per month </li></ul></ul><ul><ul><li>.mobile and .phone </li></ul></ul><ul><ul><li>iPhone </li></ul></ul>
  37. 37. What’s New in E-Commerce? <ul><li>Mobile Commerce Comes of Age </li></ul><ul><ul><li>Most cell phones include a menu area for shopping </li></ul></ul><ul><ul><ul><li>Verizon’s “Get It Now” </li></ul></ul></ul><ul><li>RFID-reading Cell Phones </li></ul><ul><ul><li>Royal Philips Electronics researchers are working on RFID-reader technology for cell phones. </li></ul></ul>
  38. 38. Summary <ul><li>E-commerce </li></ul><ul><ul><li>Systems that support electronically executed transactions </li></ul></ul><ul><li>Transaction processing system (TPS) </li></ul><ul><ul><li>Supports and records transactions </li></ul></ul><ul><li>Three main types of e-commerce </li></ul><ul><ul><li>Business-to-consumer (B2C) </li></ul></ul><ul><ul><li>Business-to-business (B2B) </li></ul></ul><ul><ul><li>Consumer-to-consumer (C2C) </li></ul></ul><ul><li>Mobile commerce, or m-commerce </li></ul><ul><ul><li>Takes place over wireless mobile devices </li></ul></ul>
  39. 39. Summary (Continued) <ul><li>Retail Web sites </li></ul><ul><ul><li>Allow consumers to comparison shop </li></ul></ul><ul><li>E-commerce </li></ul><ul><ul><li>Makes market research easier and less intrusive </li></ul></ul><ul><ul><li>Requires investment in networking, hardware, and a wide variety of software </li></ul></ul><ul><ul><li>Requires changes in infrastructure </li></ul></ul><ul><li>Hardware and networking services for e-commerce </li></ul><ul><ul><li>Must be robust and trustworthy </li></ul></ul>

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