building e business

7/30/2019 Building E Business

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Operating Your E-Business


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2Thursday, J anuary 21,1:43:28 PM

Learning Objectives

Describe operational challenges for a startup

e-business

Define legal, office space, and human resourcesissues

Discuss electronic payment methods

Explain front-end and back-end e-businesssystems


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Startup and Operational

Challenges

Identifying and solving legal issues

Planning for and acquiring commercial officespace

Hiring employees

Selecting and managing electronic paymentmethods

Selecting e-business technologies andtechnology providers


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Legal Issues

Establish a relationship with an attorneyexperienced in startups

Helps to develop business plan

Establishes company valuation for investors

Provides leads to investors

Participates in negotiations

Reviews all legal documents Advises on copyright, trademark, employee

benefits, personnel policies


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Legal Issues (continued)

Copyright

Form of legal protection for original work

Takes effect the moment the work is created

Need copyright notice on Web site as a bestpractice

U.S. Copyright Office good source of information

on copyright law


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Trademark and service mark

Distinctive symbol, word, or phrase used toidentify a business

Make it easy for consumers to identify source ofproducts and services

U.S. Patent and Trademark Office good source ofinformation on trademarks and service marks


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Content liability

Exposure to potential liabilities based on Webcontent

Need appropriately worded disclaimer of liabilityat Web site


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Customer information privacy

Customers may hesitate to provide information

Must have clear policy on how customer

information is handled, secured, and used

Consider voluntary programs such as TRUSTe

Non-profit organization

Advocates disclosure of information privacyprograms

Members post TRUSTe seal at Web site


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Hiring Employees (continued)

Leads on finding qualified and talentedemployees

Investors and advisors

Family and friends

Professional recruiters


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U.S. Department of Labor and Salary.com

Good sources of area information

Salaries

Benefits

Employment statistics


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Electronic Payment Methods

Make selection based on type of products andservices offered and type of customer

Payment cards

Credit, debit, and charge cards

Require a merchant account to accept paymentcard receipts

Require access to a payment gateway to processpayments


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Cost of accepting payment cards

Merchant account fees

Setup

Per transaction

Statement

Discount rate (percentage of each transaction)


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Must provide secure transmission of data

Use Secure Sockets Layer (SSL) protocol toencrypt transaction data

Relies on digital certificates for authentication

https://


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Other electronic payment methods

Stored value cards, such as gift cards and smartcards

Electronic checks Electronic equivalent of paperchecks

Electronic cash (micropayments)

P2P payment systems


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E-Business Technologies

Technology decisions

Processing sales and payment transactions

Monitoring inventory

Accounting and internal recordkeeping

Connecting to the Internet

Hosting a Web site


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(continued)

Front-end systems

Customer interaction and control

Web site and related processes

Back-end systems

Not directly accessed by customers

Accounting and budgeting

Manufacturing, warehousing, distribution Order tracking and customer support

Marketing


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Integration of front-end and back-end systems

Requires technologies to tie disparate systemstogether

Reduces costs by sharing the same transactiondata across systems

Issues to consider when integrating systems

Need for real-time or batch processing

System security

Compatibility

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Outsourcing Operations

Wide array of outsourced technology solutionsare available

Internet service providers

Web hosting companies

Application service providers

Fulfillment houses

Major advantage is reduced cost

Major disadvantage is loss of control


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Chapter Summary

Establish relationships with an attorney andaccountant or other professionals

Post appropriately worded liability disclaimer

and privacy policy at Web site

Create a facilities plan before securing newoffice space

First hires should be key managementpersonnel


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Chapter Summary

(continued) Electronic payment methods

Payment cards and stored value cards

Electronic checks and electronic cash

Micropayments and P2P payment systems

Merchant account and payment gateway

Necessary to accept payment cards

Risks include cardholder not present risk andchargeback risk


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Thank You

building e business

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