e-commerce types dr. john p. abraham professor, utpa
TRANSCRIPT
E-Commerce Types
Dr. John P. Abraham
Professor, UTPA
Business models
• brick-and-mortar businesses (businesses that have only a physical presence)
• click-and-mortar businesses (businesses that have both an online and an offline presence)
• Combined - Amazon.com teamed with Target physical/offline presence and Target builds its online presence).
• Store Front Model such as walmart, gap, barns and noble, etc. Enhance brick-and mortar business through web presence.
World Wide Web
• Part of the Internet that connects electronic documents in the form of web pages.
• Web pages contain hypertext links, graphics, sound, video and automation.
• Each web page has an address – URL (Uniform Resource Locator)
• Pages are stored in web-servers.
Web Server
• A computer with an IP address and a server software running on it like Apache.
• The protocol used to transfer web pages is called HTTP (hypertext transfer protocol).
• The language of the web pages is HTML (Hypertext Markup Language).
Comparison
TraditionalFace to Face
Printed & written documents
Telephone communication
Postal mail
Payment by Cash, check or CC
Ads: print med, radio, tv
Merchandize deliver immediately.
Customer takes merchandise home.
E-CommerceNo personal contact
Documents on the web.
Web pages personalized for a particular customer.
E-mail or webmail communication.
Ads on web, radio, tv
Payment: credit card, direct withdrawal, fund transfer (paypal).
Merchandise deliver home 2-5 days.
EDI
• Electronic data Interchange
• Existed since 1960s. Used for ordering and shipping document transfers.
• Early – agreement between two trading partners. Format agreeable to the two.
• One company trading with several, will have to learn several formats and programs.
EDI Today
• Computer-to-computer transmission of business information.
• Standard format.• Private value added network (satelite).• Over 15000 users of EDI worldwide.• EDI service provider maintains VAN.
– Messaging boxes for each subscriber.– Store and forward message between subscribers.– Very common among Banks because of high amount
of security requirements.
E-Commerce Strategies
• Cut cost
• Improve quality of service
• Increase speed of time to market
• Provide for decision support
E-Commerce Models
• B2B
• B2C
• C2B
• C2C
• M-commerce
• P2P
B2B
• greatest portion of e-commerce.• Provides infrastructure for supply chains.
Example – Covisint • Vertical model
– Specialized goods or services across many type of industries.
• Horizontal model– Goods or services for one industry
B2B models
• E-distributor grainger.com, FindMRO.com
• E-Procurement – Ariba.com, CommerceOne.com
• Exchanges – ExchangeSteel.com, GEPlymerland.com
• Industry Consortia – Covisint.com, Sciquest.com
B2C
• Business to consumer• Many .com that went out of business fell in this
category.• Example amazon.com. Cut out the middleman.• Manufacturers can sell cheaper and faster – Dell.• Many end-users are not
sophisticated to deal with the manufacturer.• So new middleman exists – quotesmith.com• CRM – customer relationship management, a big
problem.
B2C Models• Portal – yahoo.com msn.com – Offers
integrated package of content. Sailnet.com – Offers vertical content.
• E-tailer – Amazon.com –virtual merchant. Wal-Mart.com – Clicks and Bricks. LandsEnd.com –catalog. Dell.com – manufacturer direct.
• Content Provider – wsj.com, cnn.com• Transaction broker – e-trade.com,
expedia.com, monster.com• Market creator – ebay.com priceline.com• Service Provider – Mybconsulting.com,
lawinfo.com• Community provider – about.com, ivillage.com
C2B
• Consumer to business
• Broker between consumers and business
• Consumer make the offer
• Priceline.com
C2C
• Consumer to Consumer Models
• Ebay.com
• Half.com
• Overstock.com
Mobile Electronic Commerce
• M-commerce
• Wireless access to internet through handheld devices.
• Shop from anywhere any time.
P2P
• Person to Person
• Transferring money from one individual to another.
• Paypal.
• Kazaa.com
E-commerce and Client/Server Architecture
• Server – Provider of service
• Client – Requester of Service
Internet Related Programs
• FTP
• TCP/IP
• RDBMS
• SQL
Client Server-Architectures
• Two-Tier– Server process on server and client process
on client (interface)– Security provided by both
• Multi-Tier– Borwser Web Server Enterprise
Application Database Server
Three Tier Architecture
• A middle tier is added between the server and the client
• The middle tier can perform queueing, application execution and database staging.
• The client can make a request and then do something else while waiting for the answer.
E-commerce technologies
• LAN
• Inter-networking
• Web Server and web pages (front-end)
• Relational database (rear-end)
Front End
• Must be attractive, appealing, concise and informative.
• Web browser – web server - middleware – database.
• Construction of front-end– Transmission control protocol/internet
protocol– Hypertext markup language– Hypertext transfer protocol
TCP/IP
• 5 layers– Physical – wires– Data link – mac, hardware addressing, frames
and encoding– Network – IP addressing, packet, control– Transport – socket, TCP or UDP– Application
HTML
• Web page may include text, graphics and pointers to other web pages.
• HTML describes how documents to be formatted.
• Starting with HTML version 2.0 forms are included. Form contains boxes and buttons.
• XML And XSL
Storefront Model (1)
• Similar to stores we are accustomed to (Shopping Cart)
• Buyer and seller interact directly• Merchants organize an online catalog of
products– Secure Transaction processing– Online payment and merchandise shipping– Information storage
Storefront Model (2)
• www.more.com
• www.amazon.com
• www.ticketmaster.com
Shopping-cart Technology
• Allows to accumulate items
• Items are placed in shopping cart from product catalog
• Product catalog is kept on merchant server database
• Can view the contents of the shopping cart and get a total any time
Merchant server database
• Product specifications
• Availability
• Shipping info
• Stock levels
• On-order info
Online Shopping Malls
• Variety of products in one location
• Save shopping time and shipping costs
• These sites may be shopping portals directing customers to retailers
• Mall.com shopnow.com DealShop.com
Auction Model
• Sites are forums that a person can be an auctioneer or a bidder
• Photographs, minimum bid, reserve price
• eBay model
Portal Model
• News, Sports, Weather
• Ability to search the web
• Yahoo.com, about.com, hotbot.com, altavista.com
Dynamic Pricing Models
• Name your price - Priceline.com
• Comparison pricing Model– Search web and compare prices for you– (bottomdollar.com)
• Demand-Sensitive Pricing Model– Combing buyers to lower cost
• Barter Model, Rebates, Free
B2B EXCHANGES
• Fastest growing of e-commerce
• Icgcommerce.com
• Tradeaccess.com
• Itoi.com
• eWork.com
B2B Service Providers
• Help other businesses improve policies, procedures and customer service
• Ariba.com provides supply chain management, procurement, logistics
• Freemarkets.com connects sellers and buyers
• Liverperson.com to improve customer service on the net.
E-Loan
• Eloan.com
• Lendingtree.com
• Ditech.com
E-Recruiting
• Monster.com
• Dice.com
• Guru.com
E-news
• Wsj.com
• Barrons.com
• Espn.com
E-travel
• Expedia.com
• Travelocity.com
• Counciltravel.com
• Cheaptickets.com
• Orbitz.com
Entertainment
• iCast.com
• Imdb.com
Automotive
• Autobytel.com
• Autoparts.com
Energy
• Houstonstreet.com
• Altranet.com
• Retailenergy.com
Brain Power
• Buy patents and intellectual property online.
• Yet2.com
Art
• Art.com
E-Learning
• Universities offering degrees
• Technical education
Click-and-Mortar
• Walmart
• Bn.com
• 1800flowers.com