CMPE 484 - Fundamentals of Electronic Commerce

1. CMPE 484 - Fundamentals of Electronic Commerce Spring 2001 Dr. Ayşe Başar Bener

2. About the Course • Technical majors • Team projects- teams will be assigned • Weekly assignments • Guest lecturers • Web site for course: www.cmpe.boun.edu.tr/cmpe484.html • The course is run in collaboration with GWU (course code Csi 701)

3. Project Requirements • Design and Implement an E-business • Business Plan • Complete architecture: design & implement • Each team • install a webserver • Java servlet module • MSQL DBMS • ** for technical lecture, need extra time slot**

4. Sooner or later the internet will become an indispensable part of our lives - resistance is futile. It is here to stay!

5. Essential to E-business E-Business Communication Commerce Collaboration

6. What is Communication • Communication: The building block of a revenue generating e-business activity. It involves the setting up of web-sites on the internet

7. What is Collaboration • Collaboration: Is a critical requirement for e-business. Currently, EDI is being used to meet requirements, but clearly, the future belongs to XML or extensible markup language. Emerging needs such as open buying on the internet and open tracking protocol can be embedded in XML

8. What is Commerce • Commerce involves a whole gamut of issues including • Legal rights of respective trading partners, (more so, if they are from different countries) • Exchange of business transactions: between the supplier/s, enterprise and the customer/s

9. What is Commerce • Marketing of products and services: The actual marketing/selling on internet took a long time to find acceptance as customers were cagey about the security of financial transactions on the internet

10. Electronic Commerce - Definitions • Modern business methodology that addresses the needs of organizations, merchants, and consumers to • cut costs • improve quality of goods and services • increase speed of service delivery • increase market share • modern gold rush

11. Electronic Commerce - Definitions • Communications • delivery of information, goods/services via phone, computer or other e-means • Business • application of technology to automation of business transactions

12. More Definitions • Service • tool for firms wanted to cut service costs and improve quality of goods and speed of delivery • On-line • capability of buying an selling on-line • converts digital inputs to value-added outputs through set of intermediaries • Not electronic cash

13. Electronic Commerce - Definitions • Use of computer networks to search and retrieve information in support of human and corporate decision making • E-commerce is associated with the buying and selling of information, products and services via computer networks • Commercialization of the Internet • cheap to get going • easy to reach millions

14. Electronic Transactions • Any transaction is an exchange • Series of steps that must run to completion so that an exchange can be recorded • Not new • ATM (Automated Teller Machine) • Value exchange transactions • not just digital money • new ways of working

15. Building Blocks • Common business services for facilitating buying and selling • Messaging and information distribution • Multimedia content and network publishing • Information Superhighway • Any successful e-commerce requires the E-6 the way regular commerce requires the one-way interstate roads

16. Pillars of E-commerce • Public policy • universal access • privacy • information pricing • Technical standards • nature of information publishing • user interfaces • transport and compatibility across the network

17. Model for commercial transaction • establishing trust • customer enters store • customer makes prior choices • merchant and customer trust each other • negotiating a deal • payment and settlement • consummation of online transaction

18. Online commerce integrators • hardware • software • network connections • labor and programming involved for digital storefront • payment and settlement systems • linking online transaction to existing organizational systems

19. Online commerce vs Electronic Payment System • online commerce is all encompassing • connected in that people have to pay for stuff

20. Currency • Function • medium of exchange • store of value • Began in primitive barter • Intermediate good • trade a for b • trade b for c • b becomes intermediary • medium of exchange

21. Currency • gold was generally medium of exchange • heavy • paper replaced coins but paper was redeemable for gold • silver certificates • now trust • three centuries of banking systems

22. Banking Systems • Government today has the exclusive right to print money • Today centralized banking

23. Internet advantage • open system • no ownership • world wide web capability

24. M Y T H

25. Electronic commerce is about a new way of doing business... Electronic Economy Year 2000+ Industrial Economy Agrarian Economy …that will forever change today’s business

26. Evolution of the Web The impact of this New Electronic Economy is just emerging to E-Magnon Cro-Magnon

27. … that changes how companies must think about web enabling their business … with unique characteristics It’s all about a new business model... • Customer Choice • Product Breadth and Convergence • Economic models based on high volume, low margins and high service • Recognizing new strategies for winning • Preparing for the onset of buyer value networks • Transforming to an electronic economy competitor “It’s not about new products. It’s about a new business model where the greatest risk is irrelevancy”

28. E-commerce • E-commerce is buying and selling of products, services, and information via computer networks including the Internet • Companies who do business on the net and/ or who carry their businesses to the net • business-to-business: B2B • business-to-consumer: B2C • consumer to consumer: C2C • consumer to business: C2B • Companies that provide infrastructure to enable others to do business on the net.