cmpe 484 - fundamentals of electronic commerce

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CMPE 484 - Fundamentals of Electronic Commerce. Spring 2001 Dr. Ayşe Başar Bener. About the Course. Technical majors Team projects- teams will be assigned Weekly assignments Guest lecturers Web site for course: - PowerPoint PPT Presentation


  • CMPE 484 - Fundamentals of Electronic CommerceSpring 2001Dr. Aye Baar Bener

  • About the CourseTechnical majorsTeam projects- teams will be assignedWeekly assignmentsGuest lecturersWeb site for course: course is run in collaboration with GWU (course code Csi 701)

  • Project RequirementsDesign and Implement an E-businessBusiness PlanComplete architecture: design & implementEach teaminstall a webserverJava servlet moduleMSQL DBMS** for technical lecture, need extra time slot**

  • Sooner or later the internet will become an indispensable part of our lives - resistance is futile. It is here to stay!

  • Essential to E-businessE-BusinessCommunicationCollaborationCommerce

  • What is Communication

    Communication: The building block of a revenue generating e-business activity. It involves the setting up of web-sites on the internet

  • What is CollaborationCollaboration: Is a critical requirement for e-business. Currently, EDI is being used to meet requirements, but clearly, the future belongs to XML or extensible markup language. Emerging needs such as open buying on the internet and open tracking protocol can be embedded in XML

  • What is CommerceCommerce involves a whole gamut of issues including Legal rights of respective trading partners, (more so, if they are from different countries)Exchange of business transactions: between the supplier/s, enterprise and the customer/s

  • What is CommerceMarketing of products and services: The actual marketing/selling on internet took a long time to find acceptance as customers were cagey about the security of financial transactions on the internet

  • Electronic Commerce - DefinitionsModern business methodology that addresses the needs of organizations, merchants, and consumers tocut costs improve quality of goods and servicesincrease speed of service deliveryincrease market sharemodern gold rush

  • Electronic Commerce - DefinitionsCommunicationsdelivery of information, goods/services via phone, computer or other e-meansBusinessapplication of technology to automation of business transactions

  • More DefinitionsServicetool for firms wanted to cut service costs and improve quality of goods and speed of deliveryOn-linecapability of buying an selling on-lineconverts digital inputs to value-added outputs through set of intermediariesNot electronic cash

  • Electronic Commerce - DefinitionsUse of computer networks to search and retrieve information in support of human and corporate decision makingE-commerce is associated with the buying and selling of information, products and services via computer networks Commercialization of the Internetcheap to get goingeasy to reach millions

  • Electronic TransactionsAny transaction is an exchangeSeries of steps that must run to completion so that an exchange can be recordedNot newATM (Automated Teller Machine)Value exchange transactionsnot just digital moneynew ways of working

  • Building BlocksCommon business services for facilitating buying and sellingMessaging and information distributionMultimedia content and network publishingInformation SuperhighwayAny successful e-commerce requires the E-6 the way regular commerce requires the one-way interstate roads

  • Pillars of E-commercePublic policy universal accessprivacyinformation pricingTechnical standardsnature of information publishinguser interfacestransport and compatibility across the network

  • Model for commercial transactionestablishing trustcustomer enters store customer makes prior choicesmerchant and customer trust each othernegotiating a dealpayment and settlementconsummation of online transaction

  • Online commerce integratorshardwaresoftwarenetwork connectionslabor and programming involved for digital storefrontpayment and settlement systems linking online transaction to existing organizational systems

  • Online commerce vs Electronic Payment Systemonline commerce is all encompassingconnected in that people have to pay for stuff

  • CurrencyFunctionmedium of exchangestore of valueBegan in primitive barterIntermediate good trade a for btrade b for cb becomes intermediarymedium of exchange

  • Currencygold was generally medium of exchangeheavypaper replaced coins but paper was redeemable for gold silver certificatesnow trustthree centuries of banking systems

  • Banking SystemsGovernment today has the exclusive right to print moneyToday centralized banking

  • Internet advantageopen systemno ownershipworld wide web capability

  • MYTH

  • Electronic commerce is about a new way of doing business...that will forever change todays businessAgrarian EconomyElectronic EconomyYear 2000+Industrial Economy

  • Evolution of the WebThe impact of this New Electronic Economy is just emergingCro-MagnontoE-Magnon

  • Its all about a new business model... with unique characteristics that changes how companies must think about web enabling their businessCustomer Choice

    Product Breadth and Convergence

    Economic models based on high volume, low margins and high serviceRecognizing new strategies for winning

    Preparing for the onset of buyer value networks

    Transforming to an electronic economy competitor

    Its not about new products. Its about a new business model where the greatest risk is irrelevancy

  • E-commerceE-commerce is buying and selling of products, services, and information via computer networks including the InternetCompanies who do business on the net and/ or who carry their businesses to the netbusiness-to-business: B2Bbusiness-to-consumer: B2Cconsumer to consumer: C2Cconsumer to business: C2BCompanies that provide infrastructure to enable others to do business on the net.

    It is an interactive functioning of Intranets (a real time knowledge based computer network, within the Organization) between two (or several) companies having business relationships. Business on the Net is also possible between individual consumers and organizations, who sell products/services on the Net. To put it in plain English, INTRANETS OF INDIVIDUAL TRADING PARTNERS SHOULD SPEAK TO THE SAME LANGUAGE.

    Getting to COMMUNICATION, this is the building block of a revenue generating E-Business activity. It involves the setting up of Web-sites on the Internet. Web-sites, in turn, are of three types. Static Web-sites: A non-interactive Multimedia brochure, usually implemented with no accompanying market strategy. Does little else except marking ones' presence on the WWW. Since it generates no customer data for further analysis, payback is difficult to determine. HTML programming is a sufficient enough tool to design a static web-site. Self-Service Web-sites: A step ahead of the static ones. These sites interact with the customer, often providing Help-desk oriented solutions and answers to FAQs. They are deployed to collect valuable customer databases through COOKIES. Typically, Self-service sites require a higher degree of investment, both in terms of intellectual resource and Capital. Security policies are a necessary adjunct if on-line transactions are to be carried out. These sites are programmed in HTML and CGI- Tools (PERL, Net.Data, C++). Dynamic Web-sites: Topping the evolutionary scale, Dynamic sites are what E-business is all about. They are an amalgam of databases and Applications. And are usually setup between trading partners, resulting in significantly reduced transacting costs and document turnover time. They provide the highest level of service and are most expensive to implement. Dynamic sites require a very high degree of intra-departmental involvement and carry a substantial risk of failure. Since on-line transactions are a cornerstone of these sites, programming involved is highly advanced. Java, ActiveX, XML and Legacy Modifications are used to design such sites.

    How to go about it: Should your product profile fit into commercial marketing on the Net, it is of paramount importance to find the right Consulting Firm to design and maintain your Website. Go in for someone who already has an international exposure to Direct Selling on Internet. Your consultant MUST EMPLOY the latest market research to advise you on the content and appearance of the site. He should keep in an open mind for future upgrades too. On your part, you should have a certain degree of realism when it comes to Net-selling. There are enough potholes of this virtual road that lead to bankruptcy !