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E-Commerce 3/8/2001 송준화 김수면 E-commerce Emerging model of new selling and merchandising tools in which buyers are able to participate in all phases of a purchase decision, while stepping through those processes electronically rather than in a physical store or by phone Merits

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e commerce

E-Commerce

3/8/2001

송준화

김수면

e commerce2
E-commerce

Emerging model of new selling and merchandising tools in which buyers are able to participate in all phases of a purchase decision, while stepping through those processes electronically rather than in a physical store or by phone

Network Computing Laboratory

merits
Merits
  • Lower price & bigger margin
  • Improved economic efficiency
  • Internet-scale market place
  • Only fingertip at anytime anywhere

Network Computing Laboratory

models
Models
  • How to classify?
    • Type of business
      • E-tailer, B2B, e-mail, hub
    • Type of products
      • Physical goods, services, digital products
    • Revenue-generating models
      • Sales, subscription, advertisement
    • And much more…

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a classification
A Classification

e-commerce

model

Utility

Brokerage

Advertising

Subscription

Infomediary

Community

Merchant

Affliate

Manufacturer

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brokerage
Brokerage
  • Market makers
    • bring buyers and sellers together
    • facilitate transactions
    • B2B, B2C, C2C
    • sub-categories
      • market exchange - MetalSite
      • buyer aggregator - Accompany
      • metamediary - HotDispatch
      • auction broker - eBay
      • reverse auction - Priceline
      • search agent - MySimon

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advertising
Advertising
  • Extension of the traditional media broadcasting model
    • provides content and services
    • mixed with advertising in the form of banner ads
    • sub-category
      • generalized portal – Yahoo!
      • personalized portal – My.Yahoo!
      • attention/incentive marketing - CyberGold
      • free model - FreeMerchant
      • bargain discounter – Buy.com

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infomediary
Infomediary
  • Data about consumer and their habits are extremely valuable
    • that information is carefully analyzed
    • used to target marketing campaigns
    • offer users some free in exchange
      • sub-category
        • recommender system - ePinions
        • registeration model – NYTimes.com

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merchant
Merchant
  • Classic Wholesalers and retailers
    • sales may be based on list prices
    • or through auction
      • sub-category
        • virtual merchant – Amazon
        • catalog merchant - Levenger

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slide10
ETC
  • Manufacturer
    • Intel, Apple
  • Affiliate
    • BeFree
  • Community
    • Guru
  • Subscription
    • Slate
  • Utility
    • SoftLock

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trends

Jan.Rank

Dec.Rank

Web Site

ProjectedBuyers(000)

OverallReach(%)

UniqueUsers(000)

Buy Rate(%)

1

1

amazon.com

2,330

23.6

22,934

10.2

2

2

barnesandnoble.com

638

7.2

6,998

9.1

3

9

ticketmaster.com

636

5.6

5,473

11.6

4

7

half.com

567

8.7

8,396

6.8

5

4

jcpenney.com

545

4.1

3,967

13.7

6

10

drugstore.com

322

2.5

2,473

13.0

7

5

walmart

286

5.7

5,491

5.2

8

3

cdnow.com

263

7.2

6,959

3.8

9

--

shopintuit.com

245

1.4

1,358

18.1

10

6

sears.com

215

3.2

3,070

7.0

Trends

Top E-Tailers of January 2001

February 19, 2001 PC Data Online

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services
Services
  • Customer’s perspective
    • locate and purchase a desired good or service
    • only virtual store
  • Merchant’s perspective
    • generate higher revenues than the merchant would achieve without the system
    • All of the same process of off-line & additonal functions of an e-commerce must be in place

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3 step to complete online selling
3-step to complete online selling
  • Step One
    • Develop a content site (i.e., as opposed to a database-driven catalog) and handle transactions off-line.
  • Advantages
    • Simple Web sites can be developed easily and quickly at low cost
  • Disadvantages
    • This limits Internet function to promotion; no revenue opportunity is involved

Network Computing Laboratory

3 step to complete online selling14
3-step to complete online selling
  • Step Two
    • Develop an on-line catalog and handle transactions off-line.
  • Advantages
    • No need for sophisticated technology is involved; the catalog can manage large product assortment.
  • Disadvantages
    • Catalog building adds expense, without the possibility of reducing expense through on-line transactions.

Network Computing Laboratory

3 step to complete online selling15
3-step to complete online selling
  • Step Three
    • Develop an on-line catalog and handle transactions on-line.
  • Advantages
    • This can manage large product assortment and complete sales at lower cost.
  • Disadvantages
    • Catalog building is expensive, and on-line transaction management requires sophisticated technology.

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it resources
IT resources
  • Software architecture
  • Hardware architecture
  • Protocols and network topology
  • Payment services
  • Performance management and capability-planning procedure
  • Security procedures and mechanisms

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software architecure
Software architecure
  • Various software servers
    • HTTP servers
    • Application servers
    • Database servers
    • Middleware
    • Operating systems

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hardware architecture
Hardware architecture
  • Various H/W
    • Computer systems
    • I/O sub systems
    • Crypto accelerators
    • Firewalls
    • Routers
    • Load balancers

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slide19
ETC
  • Protocols & network topology
    • A site’s connectivity to an ISP
    • Set of protocols used
      • TCP/IP, HTTP, SSL, S-HTTP
  • Payment services
    • Various type of payment
      • SET,Digital checks,e-cash
  • Peformance management
    • “eight-second rule”
  • Security procedures and mechanism
    • Mutual authentication
    • Protection of the customers’ information

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e commerce hosting services
E-Commerce Hosting Services
  • Provide e-commerce capability for customers
    • Customer .vs. Clients
  • Management of network and servers
  • Hosting infrastructure
    • Scalability
    • Quality of services

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ehs continued
EHS (continued)
  • EHS’ Task
    • Creation of standard environment for storefronts & add sites
    • Secure transaction environment
    • Order processing: extraction and communication
    • Authorization of credit & clear payments
    • Site activity reports
    • Billing system
  • Customer’s task
    • Responsible for contents
      • Creation and hosting of web sites, catalog info, self integration requirements, etc

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ehs task categories
EHS: task categories
  • Site setup and configuration:
    • planning, system architecture, installation, etc
  • Customer enablement and support
    • Store setup, catalog maintenance, store maintenance, order management, shopper management, reporting
  • Site administration and operation
    • Systems management, site maintenance, billing, reporting, and customer service support
  • Back-end tasks
    • Payment processing, tax calculation, and order routing

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ehs continued23
EHS (continued)

Web Servers

and now

Transaction Servers

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ehs continued24
EHS (continued)
  • Customers tend to develop their Web presence in stages
    • Simple Web presence    Revenue generation

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ehs a system perspective
EHS: a system perspective
  • Single web site: no on-line transactions, probably with email.
  • Single storefront
  • Mall
  • Multihome
  • On-site content + transaction server: on-site non-DB storefront and transaction server
  • Off-site content + transaction server: off-site non-DB storefront

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components of ehs
Components of EHS
  • Web site construction tool
  • Web site hosting and publishing
  • Transaction server
    • Handle credit- and debit-card transactions
    • API’s for receive, approve, deposit, refund, etc
    • Authorization requests, recording, settlement of transaction info with merchant, credit card company, & clients
  • Security products and services
    • SET: secure electronic transactions by VISA & Mastercard
  • Payment systems
    • Records of transactions for reconciliation and reporting, etc

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ehs continued27
EHS (continued)
  • Commerce Enabler
    • Cash register function
    • Outsourced solution for security
    • Backend payment infrastructure
  • Commerce Service Provider
    • Provide end-to-end commerce services
      • Content creation, hosting, payment processing, integration, performance, customization, etc, etc.

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