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Electronic Commerce CSC1720 – Introduction to Internet Essential Materials Outline Introduction e-Business models How to Build an e-Commerce site Attract and keep customers Get Paid Manage the e-commerce business Secure the site e-Business Implementations

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Electronic commerce l.jpg

Electronic Commerce

CSC1720 – Introduction to Internet

Essential Materials


Outline l.jpg
Outline

  • Introduction

  • e-Business models

  • How to

    • Build an e-Commerce site

    • Attract and keep customers

    • Get Paid

    • Manage the e-commerce business

    • Secure the site

  • e-Business Implementations

  • Application Service Provider (ASP)

All copyrights reserved by C.C. Cheung 2003.


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Questions?

  • What exactly is e-Commerce?

  • What is B2B e-Commerce?

  • Can I start my own e-Commerce site?

  • How do I accept payments by credit card?

  • How do I get customers to visit my site?

  • Do I have to accept credit cards?

  • How to succeed in e-Commerce?

  • Any more questions about e-Commerce?

All copyrights reserved by C.C. Cheung 2003.


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Introduction

  • What is e-Commerce?

    • Electronic Commerce (EC) or “e-Business”

    • Buying and Selling goods or services on the Internet (WWW)

    • What is the latest development? M-Commerce?

  • What is ASP?

    • Application Service Provider

    • Also means Active Server Page (HTML)

    • A company offers individuals or enterprises to host their applications or services on this ASP company. (low budgets for small companies, outsourcing for large companies)

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The importance

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Terminology

  • Dedicated line– A point-to-point, hard wire connection between two service locations.

  • Leased line– A telecommunications line dedicated to a particular customer along predetermined routers.

  • Outsourcing– The transfer of components or large segments of an internal IT infrastructure, staff, processes or applications to an external resource such as Application service provider (ASP).

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e-Business solutions

Customers

ERP, CRM, Database

Internet / WWW

Mobile Users

Web EDI

Intranet

Internal Users

Suppliers, public

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e-Business Models

  • Storefront model

  • Auction model

  • Portal Model

  • Dynamic Pricing Models

  • B2B Exchanges

  • B2B Service Providers

  • e-Learning

All copyrights reserved by C.C. Cheung 2003.


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Storefront Model

  • The storefront model combines transaction processing, security, online payment which allows merchants to sell their products to the customers on the Web.

  • Many famous storefront model companies are Business-to-Consumer (B2C) companies.

    • www.more.com

      • Health and beauty products

    • www.ticketmaster.com

      • Sell tickets

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Storefront Model

  • Allow companies to conduct business 24-by-7 (all-day, everyday).

  • One of the most commonly used model is “shopping cart”

    • An order-processing technology that allows user to accumulate the shopping list and continue shopping.

    • Supported by product catalog, merchant server and database technology.

    • www.amazon.com

    • www.icare.com.hk

All copyrights reserved by C.C. Cheung 2003.


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Shopping Cart Example

Shopping cart

Go shopping

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Shopping Cart Sotware

  • http://www.poorrichard.com/freeinfo/shop.htm

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Storefront Model

  • Another model is “online shopping mall” which provides a wide selection of products and services.

  • Customers can purchase items from many stores in a single transaction.

    • Offer speed and add convenience

    • www.mall.com

    • www.shopnow.com

    • www.e-buy.com.hk

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Shopping Mall Example

Different

shops

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Auction Model

  • Internet User can login to the online auction sites, either bidder or seller.

  • Sellers post their items and wait for the buyers to bid.

  • Auction sites get commission on every successful auction.

    • E.g. most profitable: www.ebay.com

    • HK: auction.timway.com

    • http://hk.auctions.yahoo.com/

  • Reverse Auction model

    • Allow buyer to set the price, www.epurchasingagent.com

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Auction Model Example

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Portal Model

  • Allow visitors to find everything within the website.

    • Horizontal Portal

      • Wide-ranged of topics

      • E.g. www.google.com, www.yahoo.com

    • Vertical Portal

      • Offer specific information on a single area of interest.

      • E.g. www.webmd.com (medical information)

All copyrights reserved by C.C. Cheung 2003.


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Dynamic Pricing Model

  • Name-your-price Business Model

    • Customers choose their price for the products or services (www.priceline.com).

  • Comparison Pricing Model

    • Customers poll some merchants and find the lowest prices (www.bottomdollar.com)

  • Demand-Sensitive Pricing Model

    • Enables customers to get better services and prices. (www.mobshop.com)

  • Bartering Model

    • Exchange items (www.ubarter.com)

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Pricing model example

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B2B Exchanges

  • Define as buying, selling, partnering, bartering or trading conducted between two or more business (B2B).

  • Goldman Sachs has estimated that B2B will generate $1.5 trillion in revenues by 2004.

  • Allow Business to buy, sell, auction, barter and distribute products and services.

  • Examples:

    • www.ework.com (Exchange employee)

    • www.itoi.com (Industry to Industry)

    • www.biz2biz.com (Business to Business)

    • www.icgcommerce.com, www.tradeaccess.com

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B2B examples

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B2B Service Providers

  • B2B service providers make the B2B transactions easier.

  • These e-Businesses help other businesses improve their policies, procedures, services and general operations.

  • Solutions include supply chain management, logistics, procurement.

  • www.ariba.com

  • www.freemarkets.com

  • www.liveperson.com

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Chat online?

  • Why? To solve your E-business problem via the Internet.

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Loan Online

  • A growing segment of E-commerce.

  • Loan online at a lower rate than other traditional channels.

  • E-loan –www.eloan.com

  • E-credit –www.ecredit.com

    • Clients – HP, Intel, other businesses

  • Loan direct –www.loansdirect.com

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Recruitment on the Web

  • Effectively job searching on the Web.

  • Improve the recruitment for both employer and seeker.

  • Search International Jobs (www.monster.com)

  • Focus on computer industry (www.dice.com)

  • www.guru.com

  • www.jobdb.com

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Online News Services

  • Web is playing an important role in the publishing and news industries.

  • The Wall Street Journal (www.wsj.com)

  • Articles by leading investment analysts (www.barrons.com)

  • Latest sports news (www.espn.com)

  • Comprehensive news site (www.drudgereport.com)

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Recruitment / News

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Online Travel Services

  • Customers can bypass the travel agents.

  • Allow discount and low fare rate online.

  • air-tickets, hostel, and car-rentals.

  • “Last minutes” tickets offer low price.

  • www.cheaptickets.com

  • www.travelocity.com

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Online Entertainment

  • Multimedia rich websites provide Audio and Video, popular music and videos are available online for free.

  • Internet Movie Database

    • www.imdb.com

  • www.icast.com

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e-Learning

  • e-Learning is growing rapidly as the number of Internet users increases.

  • Universities and other training companies offer HQ distance education over the Web.

  • www.click2learn.com

  • www.saba.com

  • www.online.uillinois.edu

  • wwwtools.cityu.edu.hk

  • www.polyu.edu.hk/elearning

  • E-books –www.xlibris.com

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M-Commerce

  • What is Mobile Commerce?

  • Mobile commerce is the term applied to online financial transactions - shopping or the electronic transfer of funds - using a mobile device.

  • Mobile commerce transactions are being enhanced by developments in the world of mobile communication.

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MasterCard & M-Commerce

Reference : demo

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Break Time – 15 minutes

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Build an e-Commerce site

  • Register a Domain name

    • Search for domain names (InterNIC)

    • What is the criteria of selecting a good name?

  • Find a Web Host

    • Select the suitable ISP

  • Web Developers

    • Hire a web designer

    • Cut cost and work with the designer

    • If your site is easy to use, the customers will stay longer and come more frequent.

All copyrights reserved by C.C. Cheung 2003.


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Web Hosting

  • It is a very important step in e-Commerce.

    • Good uptime?

    • Good technical support?

    • Fast connection to the Net?

    • Staffs are knowledgeable about e-Commerce?

    • Compatibility with other e-Commerce providers?

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Attract and keep customers

  • e-Business Advertising

    • Banner Advertising

      • Recently, losing their effectiveness

    • Buying and Selling advertising

      • You can become a host, or an advertiser

      • www.valueclick.com

    • Webcasting and Interactive Advertising

      • Use streaming media to broadcast information on the web.

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Enterprise Resources Planning (ERP)

  • An industrial term defines as the activities supported by application software that helps company to manage the important parts of the business.

    • Product planning, parts purchasing, maintaining inventories, contacting suppliers, customer servicing.

  • Integrated with database (such as Oracle) to provide other features, business process analysis, employee training, …

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ERP example

I have questions about billing,

product availability, shipping

and customer service.

Finance:

How can I help you?

Fulfillment:

Yes, Sir?

Inventory:

Which item?

Customer Service:

We’re ready to help.

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Customer Relationship Management (CRM)

  • All the customer services provided by the company form the CRM.

  • CRM includes

    • Call handling (in/out calls from customers and service representatives)

    • Sales tracking (tracing and recording the sales made)

    • Transaction support (the technology used for transactions)

    • Improve customer satisfaction and maximize the profits

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Electronic Data Interchange (EDI)

  • Standard format to exchange business data.

  • EDI message is a string of data that represents “price”, “product number”, “product name”, etc.

  • EDI message can be encrypted.

  • EDI is one form of E-commerce, also include email, fax.

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Electronic Data Interchange (EDI)

  • http://www.disa.org/

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Get Paid

  • How to you pay on the website?

    • Credit card transactions

    • Cybercash: www.cybercash.com

    • E-Wallets allows you to keep track your transactions, www.visa.com/pd/ewallet/main.html

    • Digital Cash: store your money electrically

      • www.ecash.com

    • More complex: B2B Transactions.

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Manage the E-commerce business

  • Have a good communication between the business production line (including the customer services team), and the IT development line.

  • “Online transaction history log” and “Historical investment performance reports” also helps to decide and plan for the product and service trend.

  • Migration of the traditional trading client to the new e-business.

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Secure the site

  • Customers fear for their online privacy.

  • Make sure all transactions on your e-commerce site are protected.

  • Security is provided by different kind of cryptography (encryption, digital signatures, digital certificates)

  • Sometimes, you may provide your personal information for: member-only discounts, giveaway, sweepstakes, coupons. Beware!

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Online shopping risks

  • A list of safeguards to keep in mind.

    • Shop with trusted merchants.

    • Read the site’s delivery, return, and privacy policies.

    • Only enter your details with the URL that begins with https:// and either a locked padlock or an unbroken key icon.

    • Be careful not to hit the ORDER NOW button more than once.

    • Never send credit card information via e-mail.

    • Keep a record of your transactions until shipped.

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HK Government Support

  • http://www.info.gov.hk/digital21/chi/ecommerce/ecom_supp.html

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Application Service Provider

  • What is an Application Service Provider?

    • Deliver and manage applications or computer services via the Internet.

    • Provide a cost-effective solution from an outside supplier. (maintenance, upgrades and customization)

    • It can be a commercial entity, a not-for-profit organization or government related.

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ASP in HK

Reference

http://hk.dir.yahoo.com/Regional/Countries_and_Regions/Hong_Kong/Business_and_Economy/Companies/Electronic_Commerce/

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Using ASP Benefits

  • Speed to market

    • ASP has the latest equipment, applications, ready to provide market access.

  • Operational freedom

    • The customer can focus on their core business.

  • Improved performance

    • ASP provides vast experience on different issues.

  • Financial flexibility

    • Reduced fixed cost and overall expenditures.

  • Reduced risk

    • Customers can test a new technology with minimal impact to their existing system.

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ASP Advantages

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What kind of application can be delivered?

  • Citrix, GraphOn and SCO

    • The applications run on a central server managed by the ASP, but not the applications on the end-user desktop or company’s server.

    • Portal means a gateway (starting point), for a WWW site, it is the starting site for user to browse.

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Portal Software

Video show

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Choosing ASP

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Summary

  • e-Commerce is defined as a company has an online presence.

  • We have discussed different types of e-Commerce models.

  • Discuss the important issues on developing e-Business.

  • ASP provides very good supports to the e-Commerce development.

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Reference: HK Gov.

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References

  • www.ecommercetimes.com

  • ecommerce.internet.com

  • Microsoft TechNet

  • The End.

  • Thank you for your patience!

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