E-commerce

Online exchange of goods and services

Includes the exchange of information

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e-CommerceB2C

B2B

B2E

C2C

G2C

G2B

G2G

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Capabilities of the Web

Global Information Dissemination

Integration

Mass customization

Interactive Communication

Collaboration

Transactional Support

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Business Strategies

Components of A Business Model

Revenue ModelValue Proposition

Competitive EnvironmentMarketing StrategyManagement Team

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Other Factors

What does the company do?

How does the company do it UNIQUELY?

In what ways does the company get paid for it?

What is the margin per unit sale?7

Revenue Models

Affiliate MarketingSubscription basedTransaction FeesTraditional SalesWeb Advertising

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Types of Nets

Intranet: Business-to-Employee

TrainingEmployee “Directory”Application IntegrationOnline Entry of DataRealtime access to InformationCollaboration

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Extranet: Business-to-Business Business-to-PartnersSupply Chain Management

Information Timeliness and Accuracy

Technology Integration

Low Cost-High Value10

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Internet: Business-to-Consumers

Global Information DisseminationIntegrationMass CustomizationNiche MarketsInteractive CommunicationCollaborationTransactional Support

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Stages of B2C e-Commerce

The Long Tail

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Attracting and Retaining Customers

1. The Website should offer something unique.

2. The Website should be aesthetically pleasing.

3. The Website must be easy to use and fast.

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4. The Website must motivate people to visit, to stay and to return.

5. You must advertise your presence on the Web.

6. You should learn from your Website.

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Ways to Protect yourself Online

1. Use a secure browser

2. Check the site’s privacy policy

3. Read and understand the refund and shipping policies

4. Keep your personal information private18

5. Give payment information only to businesses you know and trust

6. Keep records of your online transactions and check your email

7. Review your monthly credit card and bank statements

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Mobile Computing

Purchasing

Financial Transactions

Reserving and/or Booking

Entertainment and Information

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Issues of Concern

Privacy and Security of Information: USA Patriot Act

Taxation

Net Neutrality

Censorship21

Patriot Act

View electronic messagespermission to view and save messages to and from a person

View online transactionsPermits roving surveillanceBanking regulations

new customer identification

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Taxation

Internet Tax Freedom Act of 1998

Use Taxes

Streamlined Sales Tax Project

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Net Neutrality

Data sent over the Internet should be routed and handled in a neutral manner, regardless of the content.

-Tim Wu,Professor at Columbia University

Alternative is to prioritize for particular applications: Should YouTube pay more for the Internet?

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Censorship

Government’s attempt to control Internet traffic

China, IranAustralia, Turkey

Child Online Protection Act – only part of the population

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Web 2.0

Integration of interactive features into Web

information sharing interoperability user-centered design collaboration

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Examples

hosted services web applications social-networking sites video-sharing sites wikisblogsmashups

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Pillars

Utilizing the web as a platformHarnessing collective intelligenceLeveraging the dataImplementing innovative web capabilitiesUse of widgetsCollaboration

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SLATESSearch: Finding information through keyword search.

Links: Connects information together into a meaningful information ecosystem using the model of the Web, and provides low-barrier social tools.

Authoring: The ability to create and update content leads to the collaborative work of many rather than just a few web authors. In wikis, users may extend, undo and redo each other's work. In blogs, posts and the comments of individuals build up over time.

Tags: Categorization of content by users adding "tags" - short, usually one-word descriptions = to facilitate searching, without dependence on pre-made categories. Collections of tags created by many users within a single system may be referred to as “folksonomies“ (i.e., folk taxonomies).

Extensions: Software that makes the Web an application platform as well as a document server.

Signals: The use of syndication technology such as RSS to notify users of content changes.

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Benefits

Reduced costs and risks

Tools are easy to use

Increased efficiency

No need to purchase software updates

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Costs

Loss of control of data and service qualityLittle or no documentationLittle or no trainingSecurity and compliance policies cannot be

enforcedIncreased possibility of exposure of dataTools and features may be changed without

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Wikis

Website that allows people to post, add, edit, comment and access information

Cooperative work – anyone with access can contribute

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