MIS Chapter 9 - E-Commerce systems PDF

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Management of Information system lecture notes. based on Introduction to information system 16th edition, Marakas O'Brien ...

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Chapter 9: Ecommerce System Part 1 Introduction Electronic Commerce: the entire online process of developing, marketing, selling, delivery, servicing, and paying for products and services transacted on networked global marketplace; more than just buying and selling online. E-commerce: the online exchange of values, more than just buying and selling online. The scope of e-commerce:  Marketing  Discovery  Transaction processing  Product and customer service process  Intranet and extranet access o Customers and suppliers use extranet to access inventory databases o Use of intranet to access customer relationship management by Sales and Customer Service Rep.  Customer collaboration o In product development via email exchange and internet newsgroup.

Scope of E-commerce 1. 2. 3. 4.

Categories of e-commerce B2C: business to consumer; still small when compared to with all online commerce. C2C: consumer to consumer; online auctions, online advertising of personal products and services. B2B: business-to-business; most of e-commerce is here B2G: business-to-government.

Essential e-commerce processes 1. Access control and security: securing access between parties to assure trust. 2. Profiling and personalizing: processes that gather data on you and your behavior to provide personalized service 3. Search management: effective and efficient search processes are required for a good Web site 4. Content and catalog management: o Helps ecommerce firms develop, generate, deliver, and archive text and multimedia data o Works with profiling tools o May include product configuration to support customer self-service and mass customization. 5. Workflow management: o ensure proper transactions, decisions, and work activities are performed, and documents distributed correctly. It depends on a workflow software engine containing software models of the business processes to be accomplished 6. Event notification: monitors all ecommerce processes and records all relevant facts.

7. Collaboration and trading: major category of ecommerce, processes consist of collaboration and trading services needed by various stakeholders.

Electronic payment process A complex ecosystem involving various partners from banking sector, telecommunication, information technology, and regulatory. Web payment process:  B2C relies mostly on credit card payment processes  B2B relies on a complex payment processes based on the use of purchase orders  Both use shopping carts.

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Electronic funds transfer: a variety of information technology used to capture and process money/credit transfers between banks, businesses, and customers. E.g. ATMs, Paypal, POS. Network sniffers: recognizes CC number formats. Secure Electronic Payments – measures taken to ensure security of information in electronic payments o o o

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Encrypt data between customer and merchant Encrypt data between customer and firm authorizing credit cards Take sensitive information offline Companies also use SSL: secure socket layer Digital wallet: adds a security software module to your browser. It encrypts your CC and only the bank can decrypt it and tell you if the merchant is approved or not. Secure electronic transaction (SET): encrypts a digital envelope of digital certificates specifying the payment details of each transaction.

Part 2: e-commerce applications and issues  

B2C e-commerce Purpose: to attract potential customers, transact goods and services, build customer loyalty. E-commerce success factors: 1. Selection and value: attractive products, competitive prices. 2. Performance and service: easy navigation and purchasing, prompt shipping and delivery 3. Look and feel: attractive website, multimedia catalog. 4. Advertising and incentives: targeted Webpage advertising, email promotions, discounts, special offers 5. Personal attention: personalized webpages and product recommendations, email notices, and interactive support. 6. Community relationships: virtual communities and links to related websites. 7. Security and reliability : security of customer information and transactions, trustworthy product information, and reliable order fulfillment. 8. Great customer communication: easy-to-find contact info. Online order status, product support.

Webstore requirement: 1. Getting customers to find you on the web a. Search engine optimization: focuses on improving the number/quality of visitors to a website. i. Black Hat SEO: degrades both the relevance of search results and user experience of search engines.  Link farms: a group of websites is set so that hyperlinks lead to every other website in the group.  Keyword stuffing: web page is loaded with keywords in the meta tags or content. ii. White Hat SEO: requires a series of tools that constantly look at keywords and variants of search terms for specific items and then assist in the optimization of various pages on a website. 2. Servicing your customers. a. Web cookie file: a file stored on your computer with details on your website visit. b. Customer support 3. Managing a webstore: a Web store must be managed as both a Web site and a retail store

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Business-to-business e-commerce: The wholesale side of e-commerce. Businesses buy, sell, or trade with other businesses. Businesses are integrating their ecommerce systems with their e-business systems for supply chain management, customer relationship management, online transaction processing and accounting and business information systems. E-commerce marketplaces One to many: sell-side marketplace  One major supplier dictates products and prices. Many to one: buy-side marketplace  Many suppliers attempt to sell to one buyer. Some to many: distribution marketplace  Many suppliers combine catalogs to attract a larger audience of buyers. Many-to -some: procurement marketplace  Buyers combine purchasing power to gain lower prices from suppliers. Many-to-many: action marketplace  Used by many buyers and sellers. Infomediaries are companies that serve as intermediaries in e-business and ecommerce transactions. They bring buyers and sellers together. Bricks and clicks: a business model within a company that integrates both bricks (offline) and clicks (online) presences....