Introduction to E-Commerce

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Introduction to E-Commerce

1. Allows organizations to exchange information relating to the sale of goods and services through the integration of three elements: a. Communications
b. Data management
c. Security capabilities
2. Traditional vs E-commerce
a. Information exchange and processing
b. Authentication and nonrepudiation
c. Customer service
3. E-commerce models
a. Business to customer (B2C)
i. Businessa that conduct business by selling to individual consumers ii. Ex) amazon.com
iii. Selling less amounts of products for a higher price b. Business to business (B2B)
i. The transfer of goods or services between two or more business corporations ii. High sell volume at lower prices
iii. E-market places, virtual communities, electronic billboards c. Business- to- employee
i. Uses and intrabusiness network that allows companies to provide products to their employees d. Business- to- government
i. Tailored to cater for the business needs of different levels of the government e. Consumer- to-business
i. Consumer requests a specific service from a business f. Consumer-to- consumer
i. Electronic exchanges between and among customers ii. Ex) Ebay.com
E-commerce infrastructure and standards
1. E- commerce implementations
a. In-house model
i. Build the website from scratch
ii. More costly
1. implementation then maintenance
iii. can take several months to get the entire operation up and running iv. Allows the organization to customize the website to their exact needs v. Elements needed

1. e-commerce software package
2. redundant internet connection
a. ie, if wifi fails, they have a hard line to keep the website up 3. firewall
4. secure payment feature
5. technical support
vi. offers total control over the site to the business vii. much easier to integrate this model into existing back-end systems b. Instant store model
i. But or rent a software package from a vendor ii. Two main types
1. Online
a. Hosted as part of the service provider’s infrastructure b. The business accesses the application using a web browser c. The service provider manages all upgrades and logical issues maintaining the internet infrastructure d. Can be managed remotely

e. Service provider retains control of the application i. May make it difficult for the business to move or change the site f. Maintenance can be time consuming depending on the speed of their internet connection 2. offline

a. installed on the business’s computing infrastructure b. because the site is on the business’s server, changes to the site can be made quickly and easily c. owner retains control over the site since the own the application d. packages can be difficult and unwieldy to install i. esp w/ business without much technical expertise e. upgrades can be costly

2. online stores
a. bare minimum for an effective retail web site
i. web server
1. a computer and software that hosts the site ii. store administration software for developing and managing online catalogs iii. a shopping cart...
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