Description
The ppt explains different ecommerce business models.
e-Commerce
e-Business Defined
According to one consulting firm:
“e-Business refers to all business processes that take place across electronic networks. This includes everything from buying and selling of goods and services through the World Wide Web, to interactive television and a whole host of other emerging technologies. E-Business integrates [Information Technologies] with traditional business processes, introducing efficiencies that cut costs and increase profits.”
2
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)
3
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)
4
History of e-Business
• Business to Consumer
– Amazon.com, Kozmo.com, etc. – Siebel, Kana, etc.
• Business to Business
– Ariba, CommerceOne, Oracle, etc. – WalMart/GE
• Business to Employee
– PeopleSoft, etc.
5
e-Business Today
• Dot-coms are mostly dot-gone, but many of their ideas remain as part of the mainstream • Focus is no longer on replacing physical businesses but on enhancing them • Pace of change has slowed, but the “sanity” of the changes is far greater
6
Major Players, Acronyms, etc.
• Important e-Business players of today:
– Amazon, eBay, Oracle, Microsoft, IBM, Siebel, PeopleSoft
• Key Acronyms
– CRM, ERP, B2B, B2C, P2P, B2E
• Important Magazines
– Business 2.0, Forbes, Fortune, Information Week
7
e-Commerce applications
• • • • • • • Supply chain management Video on demand Remote banking Procurement and purchasing Online marketing and advertisement Home shopping Auctions
8
e-Commerce 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.
9
Types of e-Business
• Business to Consumer (inter-organizational)
– Supplier, inventory, distribution, payment management – Amazon.com, Kozmo.com, etc. – Siebel, Kana, etc.
• Business to Business (intra-organizational)
– Ariba, CommerceOne, Oracle, etc. – WalMart/GE
• Business to Employee/Consumer
– Financial management, purchasing products and information – PeopleSoft, etc.
10
Traditional vs. Electronic Commerce
Source: Schneider and Perry
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
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
13
The process of e-commerce
1. Attract customers
– Advertising, marketing
2. Interact with customers
– Catalog, negotiation
3. Handle and manage orders
– – – – Order capture Payment Transaction Fulfillment (physical good, service good, digital good)
4. React to customer inquiries
– Customer service – Order tracking
14
Web-based E-commerce Architecture
Tier 1 Tier 2 Tier 3 Tier N
INTERNET
DMS
Client
Web Server Application Database Server Server
15
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
e-Commerce
16
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
e-Commerce
17
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
e-Commerce 18
System Design Issues
• Good architectural properties
– – – – – – Functional separation Performance Secure Reliable Available Scalable
e-Commerce
19
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)
e-Commerce
20
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
e-Commerce 21
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
e-Commerce 22
Payment Systems
• Role of payment • Cash
– properties: wide accept, convenient, anonymity, untraceability, no buyer transaction cost
• Online credit card payment
– Secure protocols: SSL, SET
• Internet payment systems
– Electronic cash, digital wallets
• Micro-payments • Wireless devices
e-Commerce 23
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
e-Commerce
24
Other System Components
• • • • • • Taxes Shipping and handling Search engines Data mining Intelligent agents Inventory management, enterprise resource planning (ERP) • Customer relation management (CRM)
e-Commerce
25
Course Outline
• • • • • • • • • Overview of e-commerce The Internet and the WWW E-commerce software building blocks Content creation and management Cryptography Security Payment systems Transaction processing Current and future directions
26
B2C - Brick-and-Click
e-Commerce
27
B2C - Subscription Model
28
B2C - Virtual Malls
e-Comerce
29
B2C - Virtual Merchants
e-Commerce
30
B2C - Catalog Merchants
31
B2B Storefronts
e-Commerce
32
B2B Vertical Markets
e-Commerce
33
B2B Aggregators
e-Commerce
34
B2B Trading Hubs
e-Commerce
35
B2B Post and Browse Markets
e-Commerce
36
B2B Auction Markets
e-Commerce
37
B2B Fully Automated Exchanges
e-Commerce
38
e-Business Vision
• "In a few years' time, there will be no Internet companies - there will just be companies and all companies that will operate in the future, will be Internet companies."
- Andy Grove Chairman, Intel Corp.
39
doc_995350224.pptx
The ppt explains different ecommerce business models.
e-Commerce
e-Business Defined
According to one consulting firm:
“e-Business refers to all business processes that take place across electronic networks. This includes everything from buying and selling of goods and services through the World Wide Web, to interactive television and a whole host of other emerging technologies. E-Business integrates [Information Technologies] with traditional business processes, introducing efficiencies that cut costs and increase profits.”
2
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)
3
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)
4
History of e-Business
• Business to Consumer
– Amazon.com, Kozmo.com, etc. – Siebel, Kana, etc.
• Business to Business
– Ariba, CommerceOne, Oracle, etc. – WalMart/GE
• Business to Employee
– PeopleSoft, etc.
5
e-Business Today
• Dot-coms are mostly dot-gone, but many of their ideas remain as part of the mainstream • Focus is no longer on replacing physical businesses but on enhancing them • Pace of change has slowed, but the “sanity” of the changes is far greater
6
Major Players, Acronyms, etc.
• Important e-Business players of today:
– Amazon, eBay, Oracle, Microsoft, IBM, Siebel, PeopleSoft
• Key Acronyms
– CRM, ERP, B2B, B2C, P2P, B2E
• Important Magazines
– Business 2.0, Forbes, Fortune, Information Week
7
e-Commerce applications
• • • • • • • Supply chain management Video on demand Remote banking Procurement and purchasing Online marketing and advertisement Home shopping Auctions
8
e-Commerce 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.
9
Types of e-Business
• Business to Consumer (inter-organizational)
– Supplier, inventory, distribution, payment management – Amazon.com, Kozmo.com, etc. – Siebel, Kana, etc.
• Business to Business (intra-organizational)
– Ariba, CommerceOne, Oracle, etc. – WalMart/GE
• Business to Employee/Consumer
– Financial management, purchasing products and information – PeopleSoft, etc.
10
Traditional vs. Electronic Commerce
Source: Schneider and Perry
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
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
13
The process of e-commerce
1. Attract customers
– Advertising, marketing
2. Interact with customers
– Catalog, negotiation
3. Handle and manage orders
– – – – Order capture Payment Transaction Fulfillment (physical good, service good, digital good)
4. React to customer inquiries
– Customer service – Order tracking
14
Web-based E-commerce Architecture
Tier 1 Tier 2 Tier 3 Tier N
INTERNET
DMS
Client
Web Server Application Database Server Server
15
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
e-Commerce
16
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
e-Commerce
17
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
e-Commerce 18
System Design Issues
• Good architectural properties
– – – – – – Functional separation Performance Secure Reliable Available Scalable
e-Commerce
19
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)
e-Commerce
20
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
e-Commerce 21
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
e-Commerce 22
Payment Systems
• Role of payment • Cash
– properties: wide accept, convenient, anonymity, untraceability, no buyer transaction cost
• Online credit card payment
– Secure protocols: SSL, SET
• Internet payment systems
– Electronic cash, digital wallets
• Micro-payments • Wireless devices
e-Commerce 23
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
e-Commerce
24
Other System Components
• • • • • • Taxes Shipping and handling Search engines Data mining Intelligent agents Inventory management, enterprise resource planning (ERP) • Customer relation management (CRM)
e-Commerce
25
Course Outline
• • • • • • • • • Overview of e-commerce The Internet and the WWW E-commerce software building blocks Content creation and management Cryptography Security Payment systems Transaction processing Current and future directions
26
B2C - Brick-and-Click
e-Commerce
27
B2C - Subscription Model
28
B2C - Virtual Malls
e-Comerce
29
B2C - Virtual Merchants
e-Commerce
30
B2C - Catalog Merchants
31
B2B Storefronts
e-Commerce
32
B2B Vertical Markets
e-Commerce
33
B2B Aggregators
e-Commerce
34
B2B Trading Hubs
e-Commerce
35
B2B Post and Browse Markets
e-Commerce
36
B2B Auction Markets
e-Commerce
37
B2B Fully Automated Exchanges
e-Commerce
38
e-Business Vision
• "In a few years' time, there will be no Internet companies - there will just be companies and all companies that will operate in the future, will be Internet companies."
- Andy Grove Chairman, Intel Corp.
39
doc_995350224.pptx