E-CommerceE-Commerce

11

22

E-commerceE-commerce

• Describe E-CommerceDescribe E-Commerce• Identify benefits and risks of E-CommerceIdentify benefits and risks of E-Commerce• Describe E-Commerce business modelsDescribe E-Commerce business models• Describe E-Commerce Security and EncryptionDescribe E-Commerce Security and Encryption• Describe EDI (Electronic Data Interchange)Describe EDI (Electronic Data Interchange)• Describe trends and projections for E-CommerceDescribe trends and projections for E-Commerce• Describe issues related to E-CommerceDescribe issues related to E-Commerce• Describe order and payment processingDescribe order and payment processing• Describe E-Commerce solution optionsDescribe E-Commerce solution options

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What isWhat isE-Commerce?E-Commerce?

The integration of communications, The integration of communications, data management, and security data management, and security technologies to allow individuals and technologies to allow individuals and organizations to exchange information organizations to exchange information related to the sale of goods and related to the sale of goods and services. services.

Major functions of E-Commerce include:Major functions of E-Commerce include:• the buying of goods, the buying of goods, • the selling of goods, and the selling of goods, and • performance of financial transactions on the performance of financial transactions on the

Internet. Internet.

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E-CommerceE-CommerceIssues Issues

Intellectual PropertyIntellectual Property SecuritySecurity FraudFraud TaxationTaxation International CommerceInternational Commerce

55

e-Business solutionse-Business solutions

ERP, CRM, Database

Intranet

Internal Users

Suppliers, public

Mobile Users

Customers

Internet / WWW

Web EDI

66

E-Commerce Advantages E-Commerce Advantages for Businessesfor Businesses

Reduced CostsReduced Costs Increased Customer Increased Customer

SatisfactionSatisfaction More Effective Data More Effective Data

ManagementManagement Potentially Higher SalesPotentially Higher Sales

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E-Commerce Advantages E-Commerce Advantages for Consumersfor Consumers

ConvenienceConvenience Easier Comparison ShoppingEasier Comparison Shopping Wider Selection of GoodsWider Selection of Goods

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E-Commerce RisksE-Commerce Risksfor Businessesfor Businesses

Need for a robust, reliable web Need for a robust, reliable web sitesite

Fraudulent transactionsFraudulent transactions Customer reluctance to Customer reluctance to

purchase onlinepurchase online Increased competitionIncreased competition

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E-Commerce RisksE-Commerce Risksfor Consumersfor Consumers

Possible Security IssuesPossible Security Issues Possible Privacy IssuesPossible Privacy Issues Purchasing from photos & Purchasing from photos &

descriptionsdescriptions Possible difficulty with returnsPossible difficulty with returns

1010

The importanceThe importance

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E-CommerceE-CommerceBusiness ModelsBusiness Models

B2C – Business-to-ConsumerB2C – Business-to-Consumer B2B – Business-to-BusinessB2B – Business-to-Business C2C – Consumer-to-ConsumerC2C – Consumer-to-Consumer B2G – Business-to-GovernmentB2G – Business-to-Government

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Electronic Data Electronic Data Interchange (EDI)Interchange (EDI)

EDI is the transfer of data between EDI is the transfer of data between different companies using networks. different companies using networks.

This facilitates the exchange of standard This facilitates the exchange of standard business documents including purchase business documents including purchase orders and invoices. orders and invoices.

EDI is not new; it has been in existence EDI is not new; it has been in existence since the 1960s. since the 1960s.

Organizations that exchange EDI Organizations that exchange EDI transmissions are called trading partners. transmissions are called trading partners.

Newer technologies such as XML and Web Newer technologies such as XML and Web Services are replacing traditional EDI by Services are replacing traditional EDI by allowing trading partners virtually allowing trading partners virtually unlimited opportunities to customize their unlimited opportunities to customize their information exchange over the Internet.information exchange over the Internet.

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QuestionsQuestions

1.1. Describe three advantages of Describe three advantages of e-commerce for an e-commerce for an entrepreneur just starting a entrepreneur just starting a business.business.

2.2. Describe three risks that Describe three risks that businesses face when businesses face when engaging in e-commerce.engaging in e-commerce.

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Order &Order &Payment ProcessingPayment Processing

E-Commerce Payment Models:E-Commerce Payment Models:• CashCash• CheckCheck• CreditCredit• Smart CardSmart Card• MicropaymentsMicropayments

Credit Card OrderCredit Card OrderProcessing FlowProcessing Flow

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E-CommerceE-CommerceStorefront SolutionsStorefront Solutions

Instant Online StorefrontInstant Online Storefront• Yahoo!, Bigstep, Earthstores, FreeMerchantYahoo!, Bigstep, Earthstores, FreeMerchant

Off-The-Shelf Shopping Cart SoftwareOff-The-Shelf Shopping Cart Software• Miva Merchant, MercantecMiva Merchant, Mercantec

Custom Built SolutionCustom Built Solution• IBM's WebSphere Commerce Suite, Microsoft's Commerce Server IBM's WebSphere Commerce Suite, Microsoft's Commerce Server • Visual Studio.NET, Macromedia Dreamweaver MX, IBM’s Visual Studio.NET, Macromedia Dreamweaver MX, IBM’s

WebSphere Commerce StudioWebSphere Commerce Studio Semi-Custom Built Solutions on a BudgetSemi-Custom Built Solutions on a Budget

E-Commerce add-ons for FrontPage and DreamweaverE-Commerce add-ons for FrontPage and Dreamweaver Paypal order processingPaypal order processing Free shopping cart scriptsFree shopping cart scripts

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QuestionsQuestions1.1. List three payment models commonly used on the List three payment models commonly used on the

Web. Which one is the most popular, why?Web. Which one is the most popular, why?

2.2. Have you purchased online? If so, think of the last Have you purchased online? If so, think of the last item that you purchased. item that you purchased.

1.1. Why did you purchase it online instead of at a store?Why did you purchase it online instead of at a store?2.2. Did you check to see if the transaction was secure? Why Did you check to see if the transaction was secure? Why

or why not? or why not? 3.3. How will your shopping habits be different in the future?How will your shopping habits be different in the future?

3.3. Describe three types of e-commerce solutions Describe three types of e-commerce solutions available. Which provides the easiest entry to e-available. Which provides the easiest entry to e-commerce? Explain.commerce? Explain.

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Application Service ProviderApplication Service Provider

What is ASP?What is ASP?• Application Service ProviderApplication Service Provider• (not the ASP from microsoft)(not the ASP from microsoft)• A company offers individuals or enterprises to A company offers individuals or enterprises to

host their applications or services on this ASP host their applications or services on this ASP company. (low budgets for small companies, company. (low budgets for small companies, outsourcing for large companies)outsourcing for large companies)

Hosting SolutionsHosting Solutions

Mid-High Volume: AmazonMid-High Volume: Amazon

Other:Other:• Servelink.com, CyberSharks.net, Servelink.com, CyberSharks.net,

Hostek.com, LiquidWeb.com, Hostek.com, LiquidWeb.com, Tikios.com(windows-based)Tikios.com(windows-based)

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2020

TerminologyTerminology

Dedicated lineDedicated line –– A point-to-point, hard wire A point-to-point, hard wire connection between two service locations.connection between two service locations.

Leased lineLeased line –– A telecommunications line A telecommunications line dedicated to a particular customer along dedicated to a particular customer along predetermined routers.predetermined routers.

OutsourcingOutsourcing –– The transfer of components The transfer of components or large segments of an internal IT or large segments of an internal IT infrastructure, staff, processes or infrastructure, staff, processes or applications to an external resource such applications to an external resource such as Application service provider (ASP).as Application service provider (ASP).

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Example e-BusinessExample e-Business

Storefront modelStorefront model Auction modelAuction model Portal ModelPortal Model Dynamic Pricing ModelsDynamic Pricing Models B2B ExchangesB2B Exchanges B2B Service ProvidersB2B Service Providers e-Learninge-Learning

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Storefront ModelStorefront Model

The storefront model combines transaction The storefront model combines transaction processing, security, online payment which processing, security, online payment which allows merchants to sell their products to allows merchants to sell their products to the customers on the Web.the customers on the Web.

Many famous storefront model companies Many famous storefront model companies are Business-to-Consumer (B2C) are Business-to-Consumer (B2C) companies.companies.• www.amazon.com

• www.ticketmaster.com Sell ticketsSell tickets

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Storefront ModelStorefront Model

Allow companies to conduct business Allow companies to conduct business 24-24-by-7by-7 (all-day, everyday). (all-day, everyday).

One of the most commonly used model is One of the most commonly used model is ““shopping cartshopping cart””• An order-processing technology that allows An order-processing technology that allows

user to accumulate the shopping list and user to accumulate the shopping list and continue shopping.continue shopping.

• Supported by product catalog, merchant server Supported by product catalog, merchant server and database technology.and database technology.

• www.gap.com• www.icare.com.hk (international) (international)

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Shopping ExampleShopping Example

Go shopping

Shopping cart

Shopping CartsShopping Carts

Templates for shopping carts in dreamweaver at Templates for shopping carts in dreamweaver at ecommercetemplates.com (you host solution) (you host solution)

Many other providers (http://www.fortune3.com)Many other providers (http://www.fortune3.com)

Managed SolutionsManaged Solutions Make your ownMake your own

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Shopping Cart SWShopping Cart SW

Sometimes will also include Product Sometimes will also include Product pages –that are created from pages –that are created from statically entered in product statically entered in product information (not stored in databases)information (not stored in databases)

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Comparisons of Shopping Cart SWComparisons of Shopping Cart SW Search online to see what is popularSearch online to see what is popular Check out wiki page Check out wiki page

(http://en.wikipedia.org/wiki/Comparison_of_shopping_cart_software)

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Free Shopping Cart SWFree Shopping Cart SW Do a searchDo a search Check out Check out www.free-carts.com

PHP: PHP: http://www.opencart.com/• This does cart + product pagesThis does cart + product pages• Install on a Web ServerInstall on a Web Server• As part of install of SW must specify a MySQL database and give the admin As part of install of SW must specify a MySQL database and give the admin

name and a password to it. name and a password to it. • Finish install of OpenCart SW – will include creation the database tables to Finish install of OpenCart SW – will include creation the database tables to

support OpenCartsupport OpenCart• Using Interface of opencart: Setup categories of products, product info Using Interface of opencart: Setup categories of products, product info

with images, etc.with images, etc.

Java: Java: http://www.jadasite.com/

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Shopping Cart Payment Shopping Cart Payment Processing ServicesProcessing Services

Google CheckoutGoogle Checkout PayPallPayPall AmazonpaymentsAmazonpayments Others: (search yourself)- 2checkout.com, Others: (search yourself)- 2checkout.com,

authorize.net, itransact, cyberbit, and moreauthorize.net, itransact, cyberbit, and more Direct Credit Card Direct Credit Card

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Storefront ModelStorefront Model

Another model is Another model is ““online shopping online shopping mallmall”” which provides a wide selection which provides a wide selection of products and services.of products and services.

Customers can purchase items from Customers can purchase items from many stores in a single transaction.many stores in a single transaction.• Offer speed and add convenienceOffer speed and add convenience• www.mall.com• www.shopnow.com• www.e-buy.com.hk

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Shopping Mall ExampleShopping Mall Example

Differentshops

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Auction ModelAuction Model

Internet User can login to the online Internet User can login to the online auction sites, either bidder or seller.auction sites, either bidder or seller.

Sellers post their items and wait for the Sellers post their items and wait for the buyers to bid.buyers to bid.

Auction sites get commission on every Auction sites get commission on every successful auction.successful auction.• E.g. most profitable: E.g. most profitable: www.ebay.com• International: International: auction.timway.com• http://auctions.yahoo.com/

Reverse Auction modelReverse Auction model• Allow buyer to set the price, Allow buyer to set the price, www.epurchasingagent.com

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Auction Model ExampleAuction Model Examplehttp://ebay.com/

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Portal ModelPortal Model Allow visitors to find everything within the Allow visitors to find everything within the

website.website.• Horizontal PortalHorizontal Portal

Wide-ranged of topicsWide-ranged of topics E.g. E.g. www.yahoo.com

• Vertical PortalVertical Portal Offer specific information on a single area of Offer specific information on a single area of

interest.interest. E.g. E.g. www.webmd.com (medical information) (medical information)

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Dynamic Pricing ModelDynamic Pricing Model

Name-your-price Business ModelName-your-price Business Model• Customers choose their price for the products Customers choose their price for the products

or services (or services (www.priceline.com).). Comparison Pricing ModelComparison Pricing Model

• Customers poll some merchants and find the Customers poll some merchants and find the lowest prices (lowest prices (www.bottomdollar.com))

Demand-Sensitive Pricing ModelDemand-Sensitive Pricing Model• Enables customers to get better services and Enables customers to get better services and

prices. (prices. (www.mobshop.com)) Bartering ModelBartering Model

• Exchange items (Exchange items (www.ubarter.com))

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Pricing model examplePricing model example

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Group Pricing ModelGroup Pricing Model

Customers get group pricing if Customers get group pricing if enough purchase the offer (enough purchase the offer (www.groupon.com).).

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B2B ExchangesB2B Exchanges Define as buying, selling, partnering, bartering or Define as buying, selling, partnering, bartering or

trading conducted between two or more business trading conducted between two or more business (B2B).(B2B).

Allow Business to buy, sell, auction, barter and Allow Business to buy, sell, auction, barter and distribute products and services.distribute products and services.

Examples: Examples: • www.ework.com (Exchange employee) (Exchange employee)• www.itoi.com (Industry to Industry) (Industry to Industry)• www.biz2biz.com (Business to Business) (Business to Business)• www.icgcommerce.com, , www.tradeaccess.com

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B2B examplesB2B examples

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B2B Service ProvidersB2B Service Providers

B2B service providers make the B2B B2B service providers make the B2B transactions easier.transactions easier.

These e-Businesses help other businesses These e-Businesses help other businesses improve their policies, procedures, improve their policies, procedures, services and general operations.services and general operations.

Solutions include supply chain Solutions include supply chain management, logistics, procurement.management, logistics, procurement.

www.ariba.com www.freemarkets.com www.liveperson.com

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Chat online?Chat online?

Why?Why? To solve your E-business To solve your E-business problem via the Internet.problem via the Internet.

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Loan OnlineLoan Online

A growing segment of E-commerce.A growing segment of E-commerce. Loan online at a lower rate than Loan online at a lower rate than

other traditional channels.other traditional channels. E-loan E-loan –– www.eloan.com E-credit E-credit –– www.ecredit.com

• Clients Clients –– HP, Intel, other businesses HP, Intel, other businesses Loan direct Loan direct –– www.loansdirect.com

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Recruitment on the WebRecruitment on the Web Effectively job searching on the Web.Effectively job searching on the Web. Improve the recruitment for both employer Improve the recruitment for both employer

and seeker.and seeker. Search International Jobs (Search International Jobs (

www.monster.com)) Focus on computer industry (Focus on computer industry (

www.dice.com)) www.guru.com www.jobdb.com

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Online News ServicesOnline News Services

Web is playing an important role in the Web is playing an important role in the publishing and news industries.publishing and news industries.

The Wall Street Journal (The Wall Street Journal (www.wsj.com)) Articles by leading investment analysts (Articles by leading investment analysts (

www.barrons.com)) Latest sports news (Latest sports news (www.espn.com)) Comprehensive news site (Comprehensive news site (

www.drudgereport.com))

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Recruitment / NewsRecruitment / News

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Online Travel ServicesOnline Travel Services

Customers can bypass the travel Customers can bypass the travel agents.agents.

Allow discount and low fare rate Allow discount and low fare rate online.online.

air-tickets, hostel, and car-rentals.air-tickets, hostel, and car-rentals. ““Last minutesLast minutes”” tickets offer low price. tickets offer low price. www.cheaptickets.com, ,

www.kayak.com, orbitz.com, , orbitz.com, expedia.com, ….www.travelocity.comexpedia.com, ….www.travelocity.com

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Online EntertainmentOnline Entertainment

Multimedia rich websites provide Multimedia rich websites provide Audio and Video, popular music and Audio and Video, popular music and videos are available online for free.videos are available online for free.

Internet Movie DatabaseInternet Movie Database• www.imdb.comwww.imdb.com

www.icast.com, netflix.com, www.icast.com, netflix.com, blockbuster.com,…blockbuster.com,…

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e-Learninge-Learning e-Learning is growing rapidly as the e-Learning is growing rapidly as the

number of Internet users increases.number of Internet users increases. Universities and other training companies Universities and other training companies

offer HQ distance education over the Web.offer HQ distance education over the Web. www.click2learn.comwww.click2learn.com www.saba.comwww.saba.com www.online.uillinois.eduwww.online.uillinois.edu wwwtools.cityu.edu.hkwwwtools.cityu.edu.hk www.polyu.edu.hk/elearningwww.polyu.edu.hk/elearning E-books E-books –– www.xlibris.com www.xlibris.com

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M-CommerceM-Commerce

What is Mobile Commerce?What is Mobile Commerce? Mobile commerce is the term applied Mobile commerce is the term applied

to online financial transactions - to online financial transactions - shopping or the electronic transfer of shopping or the electronic transfer of funds - using a mobile device. funds - using a mobile device.

Mobile commerce transactions are Mobile commerce transactions are being enhanced by developments in being enhanced by developments in the world of mobile communication.the world of mobile communication.

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MasterCard & M-CommerceMasterCard & M-Commerce

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Build an e-Commerce siteBuild an e-Commerce site

Register a Domain nameRegister a Domain name• Search for domain names (InterNIC)Search for domain names (InterNIC)• What is the criteria of selecting a good name?What is the criteria of selecting a good name?

Find a Web HostFind a Web Host• Select the suitable ISPSelect the suitable ISP

Web DevelopersWeb Developers• Hire a web designerHire a web designer• Cut cost and work with the designerCut cost and work with the designer• If your site is easy to use, the customers will If your site is easy to use, the customers will

stay longer and come more frequent.stay longer and come more frequent.

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Web HostingWeb Hosting

It is a very important step in e-It is a very important step in e-Commerce.Commerce.• Good uptime?Good uptime?• Good technical support?Good technical support?• Fast connection to the Net?Fast connection to the Net?• Staffs are knowledgeable about e-Staffs are knowledgeable about e-

Commerce?Commerce?• Compatibility with other e-Commerce Compatibility with other e-Commerce

providers?providers?

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Attract and keep customersAttract and keep customers e-Business Advertisinge-Business Advertising

• Banner AdvertisingBanner Advertising Recently, losing their effectivenessRecently, losing their effectiveness

• Buying and Selling advertisingBuying and Selling advertising You can become a host, or an advertiserYou can become a host, or an advertiser www.valueclick.comwww.valueclick.com

• Webcasting and Interactive AdvertisingWebcasting and Interactive Advertising Use streaming media to broadcast Use streaming media to broadcast

information on the web.information on the web.

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Enterprise Resources Planning Enterprise Resources Planning (ERP)(ERP)

An industrial term defines as the activities An industrial term defines as the activities supported by supported by application softwareapplication software that that helps company to manage the important helps company to manage the important parts of the business.parts of the business.• Product planning, parts purchasing, Product planning, parts purchasing,

maintaining inventories, contacting suppliers, maintaining inventories, contacting suppliers, customer servicing.customer servicing.

Integrated with database (such as Oracle) Integrated with database (such as Oracle) to provide other features, business to provide other features, business process analysis, employee training, process analysis, employee training, ……

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ERP exampleERP example

Finance:How can I help you?

Fulfillment:Yes, Sir?

Inventory:Which item?

Customer Service:We’re ready to help.

I have questions about billing,product availability, shippingand customer service.

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Customer Relationship Customer Relationship Management (CRM)Management (CRM)

All the customer services provided by the All the customer services provided by the company form the CRM.company form the CRM.

CRM includesCRM includes• Call handlingCall handling (in/out calls from customers and (in/out calls from customers and

service representatives)…Nuance service representatives)…Nuance • Sales trackingSales tracking (tracing and recording the sales (tracing and recording the sales

made)made)• Transaction supportTransaction support (the technology used for (the technology used for

transactions)transactions)• Improve customer satisfactionImprove customer satisfaction and maximize and maximize

the profitsthe profits

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Electronic Data Interchange Electronic Data Interchange (EDI)(EDI)

Standard format to exchange Standard format to exchange business data.business data.

EDI message is a string of data that EDI message is a string of data that represents represents ““priceprice””, , ““product numberproduct number””, , ““product nameproduct name””, etc., etc.

EDI message can be encrypted.EDI message can be encrypted. EDI is one form of E-commerce, also EDI is one form of E-commerce, also

include email, fax.include email, fax.

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Electronic Data Interchange Electronic Data Interchange (EDI)(EDI)

http://www.disa.org/http://www.disa.org/

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Get PaidGet Paid

How to you pay on the website?How to you pay on the website?• Credit cardCredit card transactions transactions• CybercashCybercash: www.cybercash.com: www.cybercash.com• PayPal: www.paypal.comPayPal: www.paypal.com• Google CheckoutGoogle Checkout• E-WalletsE-Wallets allows you to keep track your allows you to keep track your

transactions, transactions, www.visa.com/pd/ewallet/main.htmlwww.visa.com/pd/ewallet/main.html

• Digital CashDigital Cash: store your money electrically: store your money electrically www.ecash.comwww.ecash.com

• More complex: B2B Transactions.More complex: B2B Transactions.

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Manage the E-commerce Manage the E-commerce businessbusiness

Have a good communication between the Have a good communication between the business production line (including the business production line (including the customer services team), and the IT customer services team), and the IT development line.development line.

““Online transaction history logOnline transaction history log”” and and ““Historical investment performance Historical investment performance reportsreports”” also helps to decide and plan for also helps to decide and plan for the product and service trend.the product and service trend.

Migration of the traditional trading client Migration of the traditional trading client to the new e-business.to the new e-business.

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Secure the siteSecure the site Customers fear for their online privacy.Customers fear for their online privacy. Make sure all transactions on your e-Make sure all transactions on your e-

commerce site are protected.commerce site are protected. Security is provided by different kind of Security is provided by different kind of

cryptography (encryption, digital cryptography (encryption, digital signatures, digital certificates)signatures, digital certificates)

Sometimes, you may provide your Sometimes, you may provide your personal information for: personal information for: member-only member-only discounts, giveaway, sweepstakes, discounts, giveaway, sweepstakes, couponscoupons. . Beware!Beware!

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Online shopping risksOnline shopping risks

A list of safeguards to keep in mind.A list of safeguards to keep in mind.• Shop with trusted merchants.Shop with trusted merchants.• Read the siteRead the site’’s delivery, return, and privacy s delivery, return, and privacy

policies.policies.• Only enter your details with the URL that Only enter your details with the URL that

begins with begins with https:// https:// and either a locked padlock and either a locked padlock or an unbroken key icon.or an unbroken key icon.

• Be careful not to hit the ORDER NOW button Be careful not to hit the ORDER NOW button more than once.more than once.

• Never send credit card information via e-mail.Never send credit card information via e-mail.• Keep a record of your transactions until Keep a record of your transactions until

shipped.shipped.

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Application Service ProviderApplication Service Provider

What is an Application Service What is an Application Service Provider?Provider?• Deliver and manage applications or Deliver and manage applications or

computer services via the Internet.computer services via the Internet.• Provide a cost-effective solution from an Provide a cost-effective solution from an

outside supplier. (maintenance, upgrades outside supplier. (maintenance, upgrades and customization)and customization)

• It can be a commercial entity, a not-for-It can be a commercial entity, a not-for-profit organization or government profit organization or government related.related.

ASP other namesASP other names

On-demand softwareOn-demand software or or software software as a service (SaaS)as a service (SaaS)..

TYPES:TYPES: A A specialistspecialist or or functionalfunctional ASP delivers a single ASP delivers a single

application, such as credit card payment processing or application, such as credit card payment processing or timesheet services;timesheet services;

A A vertical marketvertical market ASP makes software for a particular ASP makes software for a particular (vertical) market –i.e. medical transcriptions/records;(vertical) market –i.e. medical transcriptions/records;

An An enterpriseenterprise ASP delivers wide set of solutions; ASP delivers wide set of solutions; A A locallocal ASP delivers small business services within a limited ASP delivers small business services within a limited

area.area.

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Using ASP BenefitsUsing ASP Benefits Speed to marketSpeed to market

• ASP has the latest equipment, applications, ready to ASP has the latest equipment, applications, ready to provide market access.provide market access.

Operational freedomOperational freedom• The customer can focus on their core business.The customer can focus on their core business.

Improved performanceImproved performance• ASP provides vast experience on different issues.ASP provides vast experience on different issues.

Financial flexibilityFinancial flexibility• Reduced fixed cost and overall expenditures.Reduced fixed cost and overall expenditures.

Reduced riskReduced risk• Customers can test a new technology with minimal Customers can test a new technology with minimal

impact to their existing system.impact to their existing system.

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ASP AdvantagesASP Advantages

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What kind of application can be What kind of application can be delivered?delivered?

Citrix, GraphOn and SCOCitrix, GraphOn and SCO• The applications run on a central server The applications run on a central server

managed by the ASP, but not the managed by the ASP, but not the applications on the end-user desktop or applications on the end-user desktop or companycompany’’s server.s server.

• Portal means a gateway (starting point), Portal means a gateway (starting point), for a WWW site, it is the starting site for for a WWW site, it is the starting site for user to browse.user to browse.

Portal SoftwarePortal Software

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Choosing ASPChoosing ASP

ShareShared d

ServeServerr

Shared Server Shared Server with Application with Application

Isolation SystemsIsolation Systems

Server Farm Server Farm (Each company (Each company

with its own with its own server)server)

Customer Customer CostCost

LowLow LowLow HighHigh

Initial Initial Customer Customer

InvestmentInvestment

LowLow LowLow HighHigh

Maintainance Maintainance costcost

LowLow ModerateModerate ModerateModerate

Server Server ArchitectureArchitecture

CompComplexlex

ModerateModerate SimpleSimple

Security RiskSecurity Risk HighHigh LowLow ModerateModerate

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SummarySummary

e-Commerce is defined as a company e-Commerce is defined as a company has an online presence.has an online presence.

We have discussed different types of We have discussed different types of e-Commerce models.e-Commerce models.

Discuss the important issues on Discuss the important issues on developing e-Business.developing e-Business.

ASP provides very good supports to ASP provides very good supports to the e-Commerce development.the e-Commerce development.

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ReferencesReferences

www.ecommercetimes.comwww.ecommercetimes.com www.ecommerce-guide.comwww.ecommerce-guide.com