E-commerce

Chapter 9pp 284-311

E-CommerceBuyer

1. Search & Identification

3. Purchasing

2. Selection & Negotiation4. Product &

Service Delivery

5. After-sales Service

Traditional Delivery

Electronic Delivery

1. Searching for Products E-Commerce has revolutionized

the way people shop for products.

2. Negotiating a Price Revolutionizing the way product

pricing is determined Reverse Auctions Dutch Auctions

3. Purchasing a Product Revolutionizing how purchases are

processed Completely paperless transaction Instantaneous transfer of funds Real-time reporting

4. Product & Service Delivery

Amazon.com no distribution centers. no fleet of trucks no warehouses no inventory

Buyer

Amazon.com

Internet

Thomson Publishing

UPS$49

$10

$30 $9

Book

Book

5. After-purchase “Service” Customers can track package delivery

online. Orders can be cancel or modified on the

fly. Integration: Help desk will know exactly

what computer you purchased. Online retailers can track your purchase

history and can “help” you search for future products.

Amazing E-Commerce Stories Reuter’s earns over $1 billion in

revenue annually and all they sell is “information” online.

Amazon.com has helped me purchase successful gifts for my wife.

As we speak, online purchases are directly controlling assembly line production for companies like Lockheed Martin.

Evolution of Web Design In the past, Web Design involved

Learning HTML, creating web pages, etc. Today, Web Design involves

Web Programming and Application Integration

Business Modeling and Re-Engineering On-line Marketing and Advertising

Strategy Graphic Design and Digital Media

Career Evolution In the past, there was a great

separation between business and technology

Career Evolution In the past, there was a great

separation Only the large companies developed

custom information systems. Software developers were isolated

from the underlying business processes

Business persons were isolated from the underlying technology.

Career Evolution Because of e-commerce even small

companies develop custom information systems

Thus, there is a greater need for Marketers, Managers, Accountants, and

Financial Analysts who have a strong understand of web technologies.

Computer Scientist, Programmers, and Web Developers who have a strong understanding of business practices and processes.

E-commerce scope There are many aspects to buying

and selling and e-commerce impacts all the processes