E-Commerce

HFE 651 Presentation Brenee Burns Ping Gai May 23, 2000

Contents
E-Commerce Strategies Business Models Do Business Online E-Commerce Technologies Security, Encryption, & Web Ethics E-Commerce Trend Questions

E-Commerce Strategies
Offer a Great Customer Experience to increase customer loyalty
40% of online job applicants cant figure out how to apply online 62% of online shoppers had given up at least once while looking for products 42% of users had turned to traditional channels to make their purchase

E-Commerce Strategies
Customer Experience Gap
when the web does not offer the experience the customer wants focus on the difference between what the customer wants and what the customer gets

E-Commerce Strategies
Valuing the Customer
great customer experience makes it quicker for the customer to buy from the website customer relationship is valuable customer can achieve their goal from the website then it is more likely for the customer to revisit the site in the future

E-Commerce Strategies
In todays fast economy satisfying customers is no longer enough- must produce long term customer loyalty to have continued success Build relationships with customers and treating each one as an individual-loyalty strategies are essential

E-markets of buyers and sellers can cost effectively drive the right customers to your business

Business Models
Business-to-customer Model (B2C)
sell books, CDs, news, information, airline tickets, computers, stocks, Amazon, eBuy, eTrade, CDnow, Dell, ...

Business-to-business Model (B2B)

a channel for business to sell and pay for goods and services among themselves networking hardwares, automobile parts, computer servers, Cisco, Ford, ...

Business Models
Bokerage Advertising Informediary Merchant Manufacture Community Subscription

Business Models
Brokerage Model
Market-makers: Bring buyers and sellers together and facilitate transactions. Makes money by charging a fee for each transaction it enables.

Business Models
Advertising Model
An extension of traditional media broadcasting model. The banner ads may be the major or sole source of revenue for a website

Business Models
Infomediary
collecting and selling data about consumers and their buying habits offer users free staffs in exchange for detailed information about their surfing and purchasing habits. Registration

Business Models
Manufacture Model
Allow manufactures to reach buyers directly and thereby compress the distribution channel. Efficiency, improved user service, better understanding of user preference.

Business Models
Community Model
based on user loyalty. Users have a high investment in both time and emotion in the sites. Having users who visit continually offers adverting, infomediary, or specialized portal opportunities.

Business Models
Subscription Model
Users pay for access to the sites. High value-added contents is essential Wall St. Journal

Do Business Online
A business plan
Customer Merchandising

Sales service
Promotions Transaction processing Fulfillment Post-sales service Marketing data and analysis Brand

Build An Online Shop

Domain Server Software Webpages Maintenance and update

Build An Online Shop

Make the page unique. Keep the design simple.

Create an easy-to-navigate Web site.

Keep the content fresh. Promote your business -- online and offline. Connect with your customers.

Worst Examples of E-Commerce

Reflect.com: Required new-user survey puts site design ahead of the customer experience BMG.com: Intimidating, unexplained warning message could scare away customers Marthastewart.com: Allows out-of-stock items to be placed in shopping carts

Century21.com: Wastes home page real estate on unrelated promotions

REI.com: Ineffective "shop by brand" feature Bloomingale's: Unnecessarily wordy checkout page Gloss.com: Magazine-style layout doesn't serve the shopping experience

Ninewest.com: Extra step to sale price impedes impulse buying

Goodhome.com: Unintuitive horizontal scrolling RedEnvelope.com: Extra steps in the buying process

Worst Examples of E-Commerce

Boo.com Overdesigned site impedes shopping Note: In May 2000, Boo.com announced it was going out of business

OfficeMax.com Registration feature could turn away firsttime shoppers

Levi's Flagship product hidden by graphics and promos Note: Levi's is no longer selling products from its Web site

Women.com Shopping feature frustrates with empty categories

Do Business Online
Transactions
Taxes Shipping Pay Security

E-Commerce Technologies
To take advantage of the opportunities in E-commerce it is important to have these skills:
HTML DHTML XML JAVA ASP JAVA Script

Security, Encryption, & Web Ethics

Who is affected?
In past it use to be only large companies with proprietary issues Today, stock exchange and even sports on the web Bank accounts, medical records, credit history are a few arenas that must be concerned with secruity

Encryption is the process that transforms information into some secret form to prevent unauthorized individuals from using the data should they acquire it.

Security, Encryption, & Web Ethics

Why is there a concern?
Increase in secruity because PC are used more often ie. Recreation, home, email, newsgroups, online shopping, ecommerce, and mobile phones People will become more reliant on computer based resources If confidential information is tampered with from companies, the company will lose its credibility and thus loose its customers

Security, Encryption, & Web Ethics

Object of IT Secruity
Confidentiality Integrity

Security, Encryption, & Web Ethics

Confidentiality
strict controls implemented to ensure only certain person who need access to database will have access protecting and using passwords limiting resources an employee has access to

Security, Encryption, & Web Ethics

Integrity
loss of integrity can result from human error, intentional tampering, or even catastrophic events Efforts must be taken to ensure the accuracy and soundness of data at all time Internet Fraud
online credit cards customer trusting the company they do business with online auctions, sweepstakes & price offers travel offers, scholarship scams etc.

Security, Encryption, & Web Ethics

Secruity Methods that are used whenever the Internet & Corporate Networks intersect:
Routers Firewalls Intrusion Detection Systems (IDSs)

Security, Encryption, & Web Ethics

Routers
are network traffic-managing devices that routes traffic intended for the servers or networks they are attached

Firewalls
insulates a private network from a public network using carefully established controls on the types of request they will route through to the private network for processing and fulfillment

Security, Encryption, & Web Ethics

Intrusion Detection System (IDSs)
Attempts to detect an intruder breaking into your system or legitimate user misusing system resources. Operates constantly, working in the background and only notifies you when it detects suspicious or illegal activity

Trend of E-commerce
Expanded ECM Deployment Customer-Centric Corporate Restructuring Free Extends into B-to-B Space Wireless Applications Become More Common ASP's Capabilities Expand Dynamic Pricing Reaches Most Industries Privacy Concerns Increase Merger &Acquisition Activity Escalates B-to-B Growth Continues its Dramatic Pace

References

Peter S.Cohen, Net Prpfit, Jossey-Bass Publishers,19998 http://www.webmonkey.com http://www.zdnet.com/Ecommerce http://www.zonaresearch.com http://ecommerce.internet. http://www.fraud.com
Six Tips for Building a Successful Homepage, By Andrew Beebe,, Working Solo, Inc. http://www.cnet.com http://www.msn.com

http://ecommerce.about.com/smallbusiness/ecommerce/
http://www.bigstep.com http://www.Ecomm.com

Questions?