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See all Premium member Presentation Transcript Slide 1: 3/9/01 EMTM 553 1 Insup Lee Department of Computer and Information Science University of Pennsylvania firstname.lastname@example.org www.cis.upenn.edu/~lee Slide 2: 3/9/01 EMTM 553 2 Presentation on E-commerce Submitted to- NEELESH JAIN SIR Respected Electronic Commerce (E-Commerce) : 3/9/01 EMTM 553 3 Electronic Commerce (E-Commerce) Commerce refers to all the activities the purchase and sales of goods or services. Marketing, sales, payment, fulfillment, customer service Electronic commerce is doing commerce with the use of computers, networks and commerce-enabled software (more than just online shopping) .Electronic commerce, commonly known as (electronic marketing) e-commerce or eCommerce, consists of the buying and selling of products or services over electronic systems such as the Internet and other computer networks. The Brief History : 3/9/01 EMTM 553 4 Brief History 1970s: Electronic Funds Transfer (EFT) Used by the banking industry to exchange account information over secured networks Late 1970s and early 1980s: Electronic Data Interchange (EDI) for e-commerce within companies Used by businesses to transmit data from one business to another 1990s: the World Wide Web on the Internet provides easy-to-use technology for information publishing and dissemination Cheaper to do business (economies of scale) Enable diverse business activities (economies of scope) Slide 5: 3/9/01 EMTM 553 5 Process E-commerce E-commerce applications : 3/9/01 EMTM 553 6 E-commerce applications Supply chain management Video on demand Remote banking Procurement and purchasing Online marketing and advertisement Home shopping Auctions contents : contents 3/9/01 EMTM 553 7 Part I Planning E-commerce Initiatives Part II Strategies for developing e-commerce Web sites Part III Managing Electronic Commerce Initiatives Slide 8: 3/9/01 EMTM 553 8 .A successful business plan should include activities that: Identify objectives Link objectives to business strategy Planning E-commerce Initiatives Ecommerce infrastructure : 3/9/01 EMTM 553 9 Ecommerce infrastructure Information superhighway infrastructure Internet, LAN, WAN, routers, etc. telecom, cable TV, wireless, etc. Messaging and information distribution infrastructure HTML, XML, e-mail, HTTP, etc. Common business infrastructure Security, authentication, electronic payment, directories, catalogs, etc. The Main Elements of E-commerce : 3/9/01 EMTM 553 10 The Main Elements of E-commerce Consumer shopping on the Web, called B2C (business to consumer) Transactions conducted between businesses on the Web, call B2B (business to business) Transactions and business processes that support selling and purchasing activities on the Web Supplier, inventory, distribution, payment management Financial management, purchasing products and information Advantages of Electronic Commerce : 3/9/01 EMTM 553 11 Advantages of Electronic Commerce Increased sales Reach narrow market segments in geographically dispersed locations Create virtual communities Decreased costs Handling of sales inquiries Providing price quotes Determining product availability Being in the space Disadvantages of Electronic Commerce : 3/9/01 EMTM 553 12 Disadvantages of Electronic Commerce Loss of ability to inspect products from remote locations Rapid developing pace of underlying technologies Difficult to calculate return on investment Cultural and legal impediments The process of e-commerce : 3/9/01 EMTM 553 13 The process of e-commerce Attract customers Advertising, marketing Interact with customers Catalog, negotiation Handle and manage orders Order capture Payment Transaction Fulfillment (physical good, service good, digital good) React to customer inquiries Customer service Order tracking Slide 14: 3/9/01 EMTM 553 14 Objectives businesses strife to achieve using e-commerce include: .Increase sales in existing markets .Launching out into new markets .Improve service to existing customers .Identifying new vendors .Coordinating more efficiently with existing vendors More effective recruiting Identifying Objectives Web-based E-commerce Architecture : 3/9/01 EMTM 553 15 Web-based E-commerce Architecture Client Tier 1 Web Server Tier 3 Tier 2 Tier N Application Server Database Server DMS Slide 16: 3/9/01 EMTM 553 16 .Vary with the size of the organisation, for example: .companies might want to build a Web site to encourage customers to do business using existing channels. A site offering only product or service information is less costly do design and implement .Larger companies that might want to build sites that offer transaction handling, bidding, communication and other capabilities have to pay much more Types of Objectives SMART Objectives : SMART Objectives Objectives must be: Specific Measurable Achievable Results-based Time-bound Slide 18: 3/9/01 EMTM 553 18 Slide 19: 3/9/01 EMTM 553 19 Real process of Ecommerce Example of Objectives : Example of Objectives Linking Objectives to Business Strategy (III) : Linking Objectives to Business Strategy (III) E-commerce can inspire businesses to partake in activities such as: Purchase products and services Manage supply chains Operate auctions Build virtual communities However, these can not be done in an ad hoc manner. It is important to measure the benefit and cost of each activity Measuring Benefit : Measuring Benefit Some benefits are tangible and easy to measure, for example increase sales, decrease cost Others are intangible thus difficult to measure, for example increased customer satisfaction Managers need to try to set objectives that are measurable even for intangible benefits E.g. increased customer satisfaction might be measured by counting the number of first-time customers who return to the Web site and buy Measuring Benefit (I) : Measuring Benefit (I) Measuring Benefit (II) : Measuring Benefit (II) Managing Cost : Managing Cost IT projects are often difficult to estimate and control E.g. web development technologies change rapidly, thus it is difficult for managers to estimate cost These cost include hardware and software Even though hardware cost tend to decrease, new software often demands new hardware, thus increase cost Change Management : Change Management Every project involves change Change management is the process of helping employees cope with change Change management techniques include Communicating the need for change Inclusion in the change decision process Inclusion in the planning for the change Post-Implementation Audits : Post-Implementation Audits A formal review of a project after it is up and running Managers compare the the objectives, performance specifications, cost estimates, and scheduled delivery dates plans with the actuals Slide 28: 3/9/01 EMTM 553 28 28 Regulations Administrations Policies Telecommunications (fixed & mobile) Computer Mass Coms Technologies Legislations INTERNET * Refer to Table 1 in hand-out Other Roles : Other Roles Web programmers Design and write code for Web site Web graphics designers A person trained in art, layout, composition and understands how Web pages are constructed Content creators Write original content Content managers/editors Purchase existing material and adapt it Application Specialist : Application Specialist Maintain accounting, human resources, and logistics software Must maintain e-commerce software, e.g. catalogs, payment processing Account Manager : Account Manager Keeps track of multiple Web sites in use by a project Or keeps track of projects that will combine to make a larger Web site The account manager supervises the location of specific Web pages and related software installations as they are moved from test, to demonstration, to production In smaller companies they handle the project and account management functions Project Manager : Project Manager Specific training or skills in tracking costs and accomplishing project goals Certification might be useful (e.g. Project Management Institute) or MBA Skills in the use of project management software Staffing for E-Commerce : Staffing for E-Commerce The internal team must determine the staffing needs for the e-commerce initiatives The general areas of staffing required are: Business, project and account managers Application specialists Web programmers and graphic designers Content creators, managers or editors Customer service System, and database administration Network operations New Methods for implementing Partial Outsourcing : New Methods for implementing Partial Outsourcing In the past five years new ways of implementing partial outsourcing have been creating Incubators Fast venturing Internal Incubators : Internal Incubators Internal incubators are incubators that are set up by a company (using internal staff), e.g. Kodak internal venturing program of the 1980s Most of these were unsuccessful because employees found it difficult to maintain an entrepreneurial spirit when what ever they developed would be taken away and controlled by the parent company Incubators (I) : Incubators (I) When the company grows and can obtain venture capital financing or can publicly offer stock, the Incubator sells all or part of its interest and re-invests in a new incubator candidate Example: Idealab (www.idealab.com/) was one of the first Internet incubators and helped www.carsdirect.com/home Incubators : Incubators A company that offers start-up companies a physical location with offices, accounts and legal assistance, computers, and Internet connections at a very low monthly cost Some also offer seed money, management advice an marketing assistance In exchange the company gives 10-50% ownership of the company to the Incubator Selecting a Web Hosting Service (I) : Selecting a Web Hosting Service (I) The most important factors to use when evaluating a hosting service are: Functionality Reliability Bandwidth and server scalability Security Backup and disaster recovery Cost Selecting a Web Hosting Service : Selecting a Web Hosting Service The internal team should be responsible for selecting the ISP to host the site For smaller e-commerce projects teams can consult an ISP dictionary (for ISPs, web hosting services or ASPs (application service provider)) Larger companies should use consultants or other firms that rate service providers Strategies For Developing E-commerce Web Sites (II) : Strategies For Developing E-commerce Web Sites (II) 1992 – Present Full Range of Automated Business Processes Transaction processing, plus Personalisation Interactive capabilities Frequently updated content Customer relationship Management tools Strategies For Developing E-commerce Web Sites (I) : Strategies For Developing E-commerce Web Sites (I) 1996 – 1999 Transaction Processing Static brochures plus Complete product catalog Shopping cart Secure payment processing Other information queries Shipment tracking Strategies For Developing E-commerce Web Sites : Strategies For Developing E-commerce Web Sites 1994-1996 Static Brochures Contact information Logos and or other branding Some product information Financial statements ROI Problems : ROI Problems If managers rely only on ROI incorrect decision may be made Due to biases towards short term cost and benefits rather than long term ROI Hidden Benefits Example : ROI Hidden Benefits Example CISCO systems created an on-line customer forum to discuss product issues The intended benefits were to Reduce customer service costs Increase customer satisfaction regarding the availability of product information Additional (hidden) benefit Cisco engineers were able to get feedback on new products Return On Investment (ROI) : Return On Investment (ROI) Return on Investment techniques measure the amount of income (return) that will be provided by a specific expenditure ROI requires that all costs are stated in a dollar amount ROI focuses on benefits that can be predicted Many benefits are often hidden ROI tends to emphasize short-term benefits over long term benefits Comparing Benefits to Costs : Comparing Benefits to Costs Identify benefits Identify costs Determine value of benefits Determine value of costs Compare value of benefits to value of cost Change Management : Change Management Every project involves change Change management is the process of helping employees cope with change Change management techniques include Communicating the need for change Inclusion in the change decision process Inclusion in the planning for the change Web Site Costs : Web Site Costs The cost required for a large company to build an entry-level e-commerce site is $1 million 79% is labour cost 10% software cost 11% hardware cost Source: International Data Corporation and Gartner Inc. Change Management (I) : Change Management (I) If change is not properly managed, employees feel Uncomfortable Inadequate Stressed which leads to reduced work performance Unable to do the job properly Powerless Linking Objectives to Business Strategy (II) : Linking Objectives to Business Strategy (II) E-commerce can inspire businesses to partake in activities such as: Build brands Enhance existing marketing programs Sell products and services Sell advertising Develop a better understanding of the customer’s need Improve after sales support and service Linking Objectives to Business Strategy (I) : Linking Objectives to Business Strategy (I) Businesses can use downstream strategies to improve the value that the business provides to customers Or can pursue upstream strategies that focus on reducing cost or generating value by working with suppliers or inbound shipping and freight service providers Linking Objectives to Business Strategy : Linking Objectives to Business Strategy After identifying objectives a company must identify business strategies that will help to realise these objectives E.g. a small company’s object might be to become a global player within a year and as a result one of its activities is to build a brand E-commerce Technologies : 3/9/01 EMTM 553 53 E-commerce Technologies Internet Mobile technologies Web architecture Component programming Data exchange Multimedia Search engines Data mining Intelligent agents Access security Cryptographic security Watermarking Payment systems Infrastructure for E-commerce : 3/9/01 EMTM 553 54 Infrastructure for E-commerce The Internet system of interconnected networks that spans the globe routers, TCP/IP, firewalls, network infrastructure, network protocols The World Wide Web (WWW) part of the Internet and allows users to share information with an easy-to-use interface Web browsers, web servers, HTTP, HTML Web architecture Client/server model N-tier architecture; e.g., web servers, application servers, database servers, scalability E-Commerce Software : 3/9/01 EMTM 553 55 E-Commerce Software Content Transport pull, push, web-caching, MIME Server Components CGI, server-side scripting Programming Clients Sessions and Cookies Object Technology CORBA, COM, Java Beans/RMI Technology of Fulfillment of Digital Goods Secure and fail-safe delivery, rights management System Design Issues : 3/9/01 EMTM 553 56 System Design Issues Good architectural properties Functional separation Performance (load balancing, web caching) Secure Reliable Available Scalable Creating and Managing Content : 3/9/01 EMTM 553 57 Creating and Managing Content What the customer see Static vs. dynamic content Different faces for different users Tools for creating content Multimedia presentation Integration with other media Data interchange HTML, XML (Extensible Markup Language) Cryptography : 3/9/01 EMTM 553 58 Cryptography Keeping secrets Privacy: interceptor cannot use information Authentication: sender’s identity cannot be forged Integrity: data cannot be altered Non-repudiation: sender cannot deny sending How to evaluate cryptography Secret key (symmetric) cryptography; e.g., DES Public key (asymmetric) cryptosystems; e.g, RSA Digital signatures, digital certificates Key management; e.g., PKI Security : 3/9/01 EMTM 553 59 Security Concerns about security Client security issues Server security issues Security policy, risk assessment Authentication methods Something you know: passwords Something you have: smart card Something you are: biometrics Firewalls, proxy servers, intrusion detection Denial of service (DOS) attacks, viruses, worms Payment Systems : 3/9/01 EMTM 553 60 Payment Systems Role of payment Cash properties: wide accept, convenient, anonymity, untraceability, no buyer transaction cost Online credit card payment, Smart Cards Secure protocols: SSL, SET Internet payment systems Electronic cash, digital wallets Micro-payments Wireless devices Transactions Processing : 3/9/01 EMTM 553 61 Transactions Processing Transactions and e-commerce Overview of transaction processing Transaction processing in e-commerce Keeping business records, audit, backup High-availability systems Replication and scaling Implementation Other System Components : 3/9/01 EMTM 553 62 Other System Components Taxes Shipping and handling Search engines Data mining Intelligent agents Inventory management, enterprise resource planning (ERP) Customer relation management (CRM) Course Outline : 3/9/01 EMTM 553 63 Course Outline Overview of e-commerce The Internet and the WWW E-commerce software building blocks and tools Scalability, high-performance servers, web caching Basic cryptography Security, watermarking, firewalls Payment systems Current and future directions Slide 64: 3/9/01 EMTM 553 64 Life cycle Slide 65: 3/9/01 65 Presentation on E-commerce Submitted by- .Vishvnath pratap singh dhakare .Sudhir kumar pandey You do not have the permission to view this presentation. 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