Business and Employment

woebegoneidealInternet και Εφαρμογές Web

18 Νοε 2013 (πριν από 3 χρόνια και 10 μήνες)

95 εμφανίσεις

E
-
Commerce

Mays M. Khawaldeh

1

Business Processes and Relationships

Networks and Infrastructure

TRANSACTION

Payment

Procurement

Shipping

Web Design

Order Processing

Inventory Management

Sales and Support

Marketing and Advertising

Market

Intelligence

and

Planning

Loyal and

Satisfied

Customers

Business and Employment

E
-
Commerce

E
-
Commerce

Mays M. Khawaldeh

2

What is E
-
Commerce ?


The process of distributing, buying, selling, marketing, and servicing of products or
services over electronic systems such as the Internet and other computer networks.



Both

financial and informational
electronically mediated transactions between an
organization and any third
-
party it deals with (Chaffey, 2002).



Electronic commerce typically involves people using a worldwide network of
computers


the Internet


to conduct business. This network can be accessed
using devices such as computers, handheld (wireless) devices and mobile
phones




Subdivided into three categories:


business to business or B2B (Cisco),


business to consumer or B2C (Amazon),


consumer to consumer or C2C (eBay).

E
-
Commerce

Mays M. Khawaldeh

3

E
-
Commerce Emerging


In the early
1970
's e
-
commerce emerged with the birth of two technologies:
Electronic Data Interchange and Electronic Funds Transfer. These technologies
allowed companies to exchange commercial documents electronically.


In the
1980
's the introduction of technologies such as credit cards, automatic teller
machines (ATMs), and telephone banking spread e
-
commerce to new levels. When
the internet was made public by the United States military, e
-
commerce reached
unprecedented heights.


Advertisements on websites began to pop up, and by
1995
, it was ordinary for a
company to gain a significant amount of revenue from internet advertisements.



Today, e
-
commerce is an unavoidable part of our lives. Companies like Amazon and
Ebay that have revenues of more than ten billion dollars annually have more than a
million customers every year. The amount of sales generated by such websites
according to Forrester Research is
12.2
billion dollars.


E
-
Commerce

Mays M. Khawaldeh

4

Business Transaction Models


Business
-
to
-
consumer (B
2
C)


Commercial transactions are between an organization and
consumers


Business
-
to
-
business (B
2
B)


Commercial transactions are between an organization and
other organizations


Consumer
-
to
-
consumer (C
2
C)


Informational or financial transactions are between
consumers, but usually mediated through a business site


Consumer
-
to
-
business (C
2
B)


Consumers approach the business with an offer


E
-
Commerce

Mays M. Khawaldeh

5

Strategic Directions Through The Internet

1.
Market penetration
.


The Internet can be used to sell more existing products into existing markets.
This can be achieved by using the power of the Internet for advertising
products to increase awareness of products and the profile of a company
amongst potential customers in an existing market.

2.
Market development
.


the Internet is used to sell into new markets, taking advantage of the low
cost of advertising internationally without the necessity for a supporting sales
infrastructure in the customers’ country.

3.
Product development
.


New products or services are developed which can be delivered by the
Internet. These are typically information products such as market reports
which can be purchased using electronic commerce. This is innovative use
of the Internet.

4.
Diversification
.


In this sector, new products are developed which are sold into new markets.


E
-
Commerce

Mays M. Khawaldeh

6

Opportunities for using the Internet, extranets and
intranets to support

marketing functions

Intranet and extranet

Internet

Level of management

Internal data analysis

Management information

Marketing information

Database

Operations efficiency

Business planning

Monitoring and control

Simulations

Business intelligence (data
warehouses)

Environmental scanning

Competitor analysis

Market analysis

Customer analysis

Supply chain management

Strategic decision making

Strategic

Electronic mail

Data warehousing

Relationship marketing

Conferencing

Training

Technology information

Product/service information

Customer service

Internet trading

Sponsorship

Advertising/promotions

Direct marketing

Public relations

Distribution/logistics

Workgroups

Marketing research

Publishing

Tactical and operational

E
-
Commerce

Mays M. Khawaldeh

7

Internet Usefulness on Marketing


Smith and Chaffey (
2001
) note that Internet technology can be used
to support these aims as follows:


Identifying

the Internet be used for marketing research to find out customers
needs and wants


Anticipating


the Internet provides an additional channel by which customers can
access information and make purchases.


Satisfying


a key success factor in e
-
marketing is achieving customer
satisfaction through the electronic channel.


E
-
commerce
Market

(E
-
Market)

Buyer

Seller

E
-
Commerce

Mays M. Khawaldeh

8

Business Innovation and the Internet

E
-
Commerce

Mays M. Khawaldeh

9

Reasons for connecting to the Internet by
business size
(Sensis, May
2004
)

E
-
Commerce

Mays M. Khawaldeh

10

Essential applications for the Internet
(Sensis, May
2004
)

E
-
Commerce

Mays M. Khawaldeh

11

Teleshopping


Teleshopping occurs when a customer telephones a
free toll number and orders a product.


To buy consumer products over the Internet or by
way of television using a telephone connection or an
interactive cable.


BBC World Service


http://www.bbc.co.uk/worldservice/learningenglish/radio/specials/
1412
_weekender/ram_files/t
eleshopping.ram


E
-
Commerce

Mays M. Khawaldeh

12

Online Shopping


the use of the Internet and related digital technologies to achieve marketing
objectives and support the modern marketing concept. These technologies
include the Internet media and other digital media such as wireless mobile
media, cable and satellite.


Internet marketing:


The application of the Internet and related digital technologies in conjunction with
traditional communications to achieve marketing objectives.


E
-
Commerce

Mays M. Khawaldeh

13

Online Shopping


Internet marketing is the use of the internet to advertise and sell
goods and services.


Forms of online marketing include banner advertising, pay per
click advertising, email marketing, blog marketing, search engine
marketing, affiliate marketing, and interactive advertising.


Although online marketing allows companies to provide
consumers with a profuse amount of online ads, excessive
internet marketing has resulted in adverse effects such as
spamming and annoying pop ups that don't seem to go away.


E
-
Commerce

Mays M. Khawaldeh

14

Data Mining


Data mining (also known as Knowledge
-
Discovery in
Databases, KDD) is the process of systematically
searching large volumes of data. Data mining has
evolved enormously in recent years with the surge in
computer science. Data mining relates to the topic of
e
-
commerce because consumers often search, or
'data mine,' for useful data that could help in their
search for the product they are looking for. Today,
data mining for product information is most
commonly done on the internet using search
engines like Google and Yahoo.


E
-
Commerce

Mays M. Khawaldeh

15

Foundation of Data Mining


Massive data collection


Powerful multiprocessor computers


Data mining algorithms


E
-
Commerce

Mays M. Khawaldeh

16

Steps in the Evolution of Data Mining

Characteristics

Product Providers

Enabling Technologies

Business Question

Evolutionary Step

Retrospective,
static data
delivery

IBM, CDC

Computers, tapes, disks

"What was my total revenue in
the last five years?"

Data Collection

(1960s)

Retrospective,
dynamic data
delivery at record
level

Oracle, Sybase,
Informix, IBM,
Microsoft

Relational databases
(RDBMS), Structured
Query Language (SQL),
ODBC

"What were unit sales in New
England last March?"

Data Access

(1980s)

Retrospective,
dynamic data
delivery at
multiple levels

Pilot, Comshare,
Arbor, Cognos,
Microstrategy

On
-
line analytic processing
(OLAP), multidimensional
databases, data warehouses

"What were unit sales in New
England last March? Drill
down to Boston."

Data Warehousing &

Decision Support

(1990s)

Prospective,
proactive
information
delivery

Pilot, Lockheed,
IBM, SGI,
numerous startups
(nascent industry)

Advanced algorithms,
multiprocessor computers,
massive databases

"What

s likely to happen to
Boston unit sales next month?
Why?"

Data Mining

(Emerging Today)

E
-
Commerce

Mays M. Khawaldeh

17

Scope of Data Mining


Automated prediction of trends and
behaviors



Automates the process of finding predictive
information in large databases


Automated discovery of previously
unknown patterns


Sweeps through databases and identify previously
hidden patterns in one step


E
-
Commerce

Mays M. Khawaldeh

18

Data Mining Techniques


Artificial neural networks


Decision trees


Genetic algorithms


Nearest neighbor method


Rule induction

E
-
Commerce

Mays M. Khawaldeh

19

Data Mining Architecture


The ideal starting point is a data warehouse containing a combination of internal data
tracking all customer contact coupled with external market data about competitor
activity. Background information on potential customers also provides an excellent
basis for prospecting. This warehouse can be implemented in a variety of relational
database systems: Sybase, Oracle, Redbrick, and so on, and should be optimized for
flexible and fast data access.


An OLAP (On
-
Line Analytical Processing) server enables a more sophisticated end
-
user business model to be applied when navigating the data warehouse.


The multidimensional structures allow the user to analyze the data as they want to
view their business


summarizing by product line, region, and other key perspectives
of their business.


The Data Mining Server must be integrated with the data warehouse and the OLAP
server to embed ROI
-
focused business analysis directly into this infrastructure.

E
-
Commerce

Mays M. Khawaldeh

20

Data Mining Architecture


An advanced, process
-
centric metadata template defines the data mining objectives
for specific business issues like campaign management, prospecting, and promotion
optimization. Integration with the data warehouse enables operational decisions to be
directly implemented and tracked. As the warehouse grows with new decisions and
results, the organization can continually mine the best practices and apply them to
future decisions.


This design represents a fundamental shift from conventional decision support
systems. Rather than simply delivering data to the end user through query and
reporting software, the Advanced Analysis Server applies users’ business models
directly to the warehouse and returns a proactive analysis of the most relevant
information. These results enhance the metadata in the OLAP Server by providing a
dynamic metadata layer that represents a distilled view of the data. Reporting,
visualization, and other analysis tools can then be applied to plan future actions and
confirm the impact of those plans.

E
-
Commerce

Mays M. Khawaldeh

21

Spyware



Spyware is computer software that collects personal
information about users without their informed
consent. Spyware is a rather negative result of
excessive e
-
commerce. Personal information is
secretly recorded with a variety of techniques,
including logging keystrokes, recording Internet web
browsing history, and scanning documents on the
computer's hard disk. Spyware has led to the
creation of an anti
-
spyware industry.


How Spyware Works


http://www.youtube.com/watch?v=Ux_RNem3bbo



E
-
Commerce

Mays M. Khawaldeh

22

Advantages
(E
-
Commerce
)

1.
Cost reduction
. Achieved through reducing the need for sales and marketing
enquiries to be handled by telephone operators and the reduced need for printing
and distributing marketing communications material, which is instead published on
the web site.

2.
Capability
. The Internet provides new opportunities for new products and services
and for exploiting new markets.

3.
Competitive advantage
. If a company introduces new capabilities before its
competitors, then it will achieve an advantage until its competitors have the same
capability.

4.
Communications improvement
. These include improved communications with
customers, staff, suppliers and distributors.

5.
Control
. The Internet and intranets may provide better marketing research through
tracking of customer behaviour and the way in which staff deliver services.

6.
Customer service improvement
. Provided by interactive queries of databases
containing,


E
-
Commerce

Mays M. Khawaldeh

23

Advantages
(E
-
Commerce
)


Being able to conduct business
24
x
7
x
365
.



Access the global marketplace:


allows people to carry out businesses without the barriers of time or distance


Market space:


Expands the marketplace and consequently, customers database Reduces the need
for employees and other overhead factors.


Speed:


faster and more convenient for the visitor


Opportunity to reduce costs.


Performing financial transactions on the Internet, at an online store or over a secure
business
-
to
-
business extranet.


Computer platform
-
independent .


Efficient applications development environment


Allowing customer self service and 'customer outsourcing'.

E
-
Commerce

Mays M. Khawaldeh

24

Disadvantages
(E
-
Commerce)



Time for delivery of physical products



Physical product, supplier & delivery uncertainty



Perishable goods



Limited and selected sensory information.


Returning goods.



Privacy, security, payment, identity, contract.


Defined services & the unexpected .




Personal service
.


Size and number of transactions.

E
-
Commerce

Mays M. Khawaldeh

25

Reasons for Consumer Complaints

E
-
Commerce

Mays M. Khawaldeh

26

Ethical Issues

Representative questions

Meaning

Issues


What information an individual is required to reveal?


What information an individual cannot be forced to reveal?


What kind of surveillance can an employer use on its employees?

Collection, storage, and dissemination of
information about an individual

Privacy


Who is responsible?


How is the injured party compensated?


How can one ensure that a proper and accurate processing and
presentation of information?


How can one ensure that errors are accidental?

Authenticity, fidelity, and accuracy of
information collected and processed

Accuracy


Who is the owner?


What are the just and fair prices for its exchange?


Can corporate computers be used for private purposes?


How should one handle software piracy?


Under what circumstances can one use proprietary data?

Ownership and value of information and
intellectual property

Property


Who is allowed to access information?


How much should be charged?


How can accessibility to computers be provided for employees
with disabilities?

Right to access information

Accessibility

E
-
Commerce

Mays M. Khawaldeh

27

Social Issues

Protection/Solution


Issue


Federal privacy laws


Federal Trade Commission (FTC)

s fair information practice principles


Self
-
regulation


Privacy
-
enhancing technologies


Platform for Privacy Preferences (P3P)

Privacy


Copyright


Patent


Trademark

Property


Department of Education

s Community Technology Centers


National Science Foundation

s Advanced Networking Project

Equity


Children

s Online Protection Act


Children

s Online Privacy Protection Act


Private pressure


Internet zoning

Welfare

E
-
Commerce

Mays M. Khawaldeh

28

Social and Ethical Issues


Equality of Access



Digital Divide; is unstable, expensive and insufficient in particular areas.


limitations for business in accessing wider markets.


If a business system's scalability is not sufficient and upgradeable, it will result in degradation, slowdown, and
eventually loss of customers.


Globalization and Cultural Diversity



May reduce diversity in products; weaken local government control.


Security


Increases vulnerability to viruses and hacking; increases likelihood of “information” crime and deception.


People and Machines


Work and shopping invade family life; confuses issues of “nexus” to taxation.


Increased “quantity” (e.g., surveys, emails); but decreased “quality” (e.g., customer emails are often handled
by “auto” mailers).


Reliability


Increase in information availability increases use of false or misleading information reducing accuracy,
authenticity and trust; “Making sense” of plethora is extremely difficult for firms and people.


Privacy and Anonymity


Generates possibility of intensive invasion of privacy for commercial and government purposes.



E
-
Commerce

Mays M. Khawaldeh

29

Videos to share and Discuss


E
-
Commerce


http://www.youtube.com/watch?v=
4
xtotgvyjm
4
&feature=related



http://www.youtube.com/watch?v=ZZUmz
-
MmoTk&NR=
1



The future of online shopping


http://www.youtube.com/watch?v=Z
4
omx
3
zef
5
o


Social Impacts: Internet Shopping


http://www.youtube.com/watch?v=thsugBVpvzU&feature=related



online shopping
-

bbc watchdog


http://www.youtube.com/watch?v=
4
LSnVYUbrzI