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Chap 09 - IT

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52 views15 pages

Chap 09 - IT

Uploaded by

pronab sarker
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Chapter

9
e-Commerce Systems

McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.
Learning Objectives

• 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

9-2
Learning Objectives

• 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

9-3
Access Control and Security

• E-commerce requires mutual trust and


secure access
– User names and passwords
– Encryption key
– Digital certificates and signatures
• Restricted access areas
– Other people’s accounts
– Restricted company data
– Webmaster administration areas

9-4
Profiling and Personalizing

• Profiling captures behavior and choices


– User registration
– Cookie files and tracking software
– User feedback
• Profiling is used for
– Personalized (one-to-one) marketing
– Authenticating identity
– Customer relationship management
– Marketing planning
– Website management

9-5
E-Commerce Success Factors

• Selection and value


• Performance and service
• Look and feel
• Advertising and incentives
• Personal attention (one-to-one marketing)
• Community relationships
• Security and reliability

9-6
Developing a Web Store

• Build a website
– Choose or set up web hosting
– Use simple design tools and templates
– Include a shopping cart and payment support
• Market the website
– Include Web page and e-mail advertising
and promotions
– Exchange advertising with other Web stores
– Register with search engines and directories
– Sign up for affiliate programs

9-7
Serving Your Customers

• Convert visitors into loyal customers


– Develop one-to-one relationship with customers
– Create incentives to encourage registration
– Use Web cookies to identify visitors
– Use tracking services to record and analyze
website behavior and customer preferences
– Create an attractive, friendly, efficient store
– Offer fast order processing and payment
– Notify when orders are processed and shipped
– Provide links to related websites

9-8
Managing a Web Store

• Manage both the business and the website


– Record and analyze traffic, inventory, sales
– Use CRM features to help retain customers
– Link sales, inventory data to accounting
systems
• Operate 24 hours a day, seven day a week
• Protect transactions and customer records
– Use security monitors and firewalls
– Use redundant systems and power sources
– Employ passwords and encryption
– Offer 24-hour tech support

9-9
B2B E-Commerce

• Wholesale and supply side


– Businesses with other businesses
• Relies on multiple technologies
– Catalog systems
– Trading systems
– Data interchange
– Electronic funds transfers

9-10
E-Commerce Marketplaces

• One to Many
– Sell-side marketplaces
– One supplier dictates product offerings and
prices
• Many to One
– Buy-side marketplaces
– Many suppliers bid for the business of a buyer
• Some to Many
– Distribution marketplaces
– Unites suppliers who combine their product
catalogs to attract a larger audience
9-11
E-Commerce Marketplaces

• Many to Some
– Procurement marketplaces
– Unites major buyers who combine catalogs
– More competition
– Lower prices
• Many to Many
– Auction marketplaces
– Dynamically optimizes prices

9-12
Other Clicks and Bricks Strategies

• Partial e-commerce integration


– Joint ventures and strategic partnerships
• Complete separation
– 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
9-13
E-Commerce Channel Choices

• An e-commerce channel is the marketing or


sales channel created by a company for its
e-commerce activities
– No universal strategy or e-commerce channel
choice
– Both e-commerce integration and separation
have major business benefits and shortcomings
– Most businesses are implementing some
measure of clicks and bricks integration

9-14
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?
9-15

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