Principles of Information Systems,

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

Principles of Information Systems,
Sixth Edition
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.

Principles of Information Systems,
Sixth Edition
An Introduction to
Electronic Commerce
Principles of Information Systems,
Sixth Edition
Introduction to Electronic Commerce
Business-to-consumer (B2C) e-commerce
Business-to-business (B2B) e-commerce
Consumer-to-consumer (C2C) e-commerce


Principles of Information Systems,
Sixth Edition
Multistage Model for E-commerce
Search and identification
Selection and negotiation
Purchasing products and services
electronically
Product and service delivery
After-sales service
Principles of Information Systems,
Sixth Edition
Multistage Model for E-commerce
Principles of Information Systems,
Sixth Edition
Product and Service Delivery
Principles of Information Systems,
Sixth Edition
E-Commerce Model
Principles of Information Systems,
Sixth Edition
E-Commerce Challenges
Change distribution systems & work processes
Split-case distribution
Integrate web-based order processing with
traditional systems

Principles of Information Systems,
Sixth Edition
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
Principles of Information Systems,
Sixth Edition
The E-Commerce Supply Chain
Principles of Information Systems,
Sixth Edition
Supply Chain Management
Principles of Information Systems,
Sixth Edition
Business-to-Business
Allows manufacturers to buy at low price
worldwide
Enterprise can sell to a global market

Principles of Information Systems,
Sixth Edition
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
countrys currency, payment preferences,
taxes, and tariffs
ensuring that technological capabilities match
local connection speeds

Principles of Information Systems,
Sixth Edition
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

Principles of Information Systems,
Sixth Edition
E-Commerce Applications
Principles of Information Systems,
Sixth Edition
Retail and Wholesale
Electronic retailing
Cybermalls
Wholesale e-commerce: B2B
Principles of Information Systems,
Sixth Edition
Manufacturing
Principles of Information Systems,
Sixth Edition
Marketing
Market segmentation
Technology-enabled relationship
management

Principles of Information Systems,
Sixth Edition
Investment and Finance
On-line stock trading

On-line banking
Electronic bill presentment


Principles of Information Systems,
Sixth Edition
Investment and Finance
Principles of Information Systems,
Sixth Edition
Investment and Finance
Principles of Information Systems,
Sixth Edition
Technology Infrastructure
Principles of Information Systems,
Sixth Edition
Technology Infrastructure
Principles of Information Systems,
Sixth Edition
Hardware
Storage capacity
Software
Volume of e-commerce transactions

Website hosting

Principles of Information Systems,
Sixth Edition
Web Server Software
Security and identification
Denial of service attack

Web site tracking
Web log file

Principles of Information Systems,
Sixth Edition
Web Server Software
Web site development tools
Retrieving and sending Web pages
Web page construction software
Static Web page
Dynamic Web page

Principles of Information Systems,
Sixth Edition
E-Commerce Software
Catalog management
Product configuration
Shopping cart

Principles of Information Systems,
Sixth Edition
E-Commerce Transaction Processing
Automates transaction processes from order
placement to reconciliation

Web traffic data analysis

Principles of Information Systems,
Sixth Edition
Electronic Shopping Cart
Principles of Information Systems,
Sixth Edition
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 approaches rely on packet switching and use
routers
Cost, availability, reliability, security, and
redundancy must be considered when choosing
a network

Principles of Information Systems,
Sixth Edition
Electronic Payment
Systems
Principles of Information Systems,
Sixth Edition
Electronic Payment Systems
Digital certificate
Certificate authority
Secure sockets layer (SSL)
Electronic cash
Electronic wallets
Smart, credit, charge, and debit cards



Principles of Information Systems,
Sixth Edition
Threats to E-Commerce
Principles of Information Systems,
Sixth Edition
Threats to E-Commerce
E-commerce incidents
Theft of intellectual property
Patents on business processes
Principles of Information Systems,
Sixth Edition
Fraud
On-line auction fraud
Spam
Pyramid schemes
Investment fraud
Stock scams
Principles of Information Systems,
Sixth Edition
Invasion of Consumer Privacy
On-line profiling
Clickstream data
Safe harbor principles
Principles of Information Systems,
Sixth Edition
TRUSTe Seal
Principles of Information Systems,
Sixth Edition
BBB On-line Privacy Seal
Principles of Information Systems,
Sixth Edition
How to Protect Your Privacy
While On-Line
Principles of Information Systems,
Sixth Edition
Strategies for Successful
E-Commerce
Principles of Information Systems,
Sixth Edition
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 organizations position on social
issues
Learn about the products or services that the
organization sells

Principles of Information Systems,
Sixth Edition
Putting up a Web Site
Web site hosting services
Storefront brokers

Principles of Information Systems,
Sixth Edition
Building Traffic to Your Web Site
Domain names
Meta tags
Traffic data analysis


Principles of Information Systems,
Sixth Edition
Maintaining and Improving Your
Web Site
Be alert to new trends
Be prepared to take advantage of new
opportunities
Personalization
Explicit
Implicit

Principles of Information Systems,
Sixth Edition
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