Chapter 3 Online Services

1. Chapter 3 Online Services Mrs. Ghazaal ICT 2012/2013 AS Level

2. 3 MAIN AREAS OF ONLINE SERVICES (uses for the internet besides information)

3. Internet vs. World Wide Web

4. Definitions

5. Do Now Must Complete by 7:15 AMIn your copybooks Describe,,(giving the uses of each) six different types of software which someone could use to create a website &Submit

6. Solution

7. Hardware Requirements for Website Development

8. EXTRA CREDIT The Asian International Insurance Company (AIIC) uses an expert system. Their insurance advisors use it to conduct risk assessments on customers. AIIC’s products are listed on a global insurance website which enables customers to choose the best insurance for their needs. Discuss three advantages and three disadvantages to customers of having an online facility to choose insurance policies. [+2 marks] Present two methods of protecting customers personal data and payment details when conducting online transactions. [+2 marks]

9. Reduced costs by reducing labour, reduced paper work, Don’t have to pay as much in running costs such as electricity, heating/air conditioning and lighting, Save in rent for large retail locations • Flexibility with efficiencyBecause of their lower costs, they can offer cheaper goods thus attracting more customers. • Flexible and extended working hours shoppers can shop 24/7 so companies can obtain increased profits • Lock in CustomersMore efficient business relationships can be created by internet technologies. These new technologies allow sellers to track the interests and preferences of their customers with the customer’s permission. This information than can be used to build an ongoing relationship with the customer. This information can also be used to customize web sites to meet the customer’s needs and keep track of purchases and see which are the most or least popular products • New Markets. The Internet has the potential to expand your business into wider geographical locations.Internet more likely to attract customers worldwide increasing profits Benefits of E-Commerce

10. Increased IT Costs initial cost such as having to pay website developers, and purchase the hardware and software to create and maintain the website • Qualified staff May need to hire or retrain staff which is costly and time consuming • Delivery wait times In traditional shopping customers have the option to take their purchases home immediately, however, when shopping online they will have to wait for the product to be delivered • Fraud potentialThis is perhaps the biggest worry for customers. Customers worry that their financial details may not be safe and that a business will use them in some unauthorised way. They also worry that security may be insufficient and that identity theft is a problem. • Less Personal TouchSome customers are deterred from purchasing online because they cannot speak to anyone from the business. They may well find this impersonal and prefer traditional stores. Drawbacks of E-Commerce

11. Online Transactions • Renewing Drivers License • Paying Parking Fines • Paying Utility Bills (Electric, Gas, Water, etc.) • Booking a practical test online

13. Features of an effective well designed online shopping website • An easy-to-remember domain name • www.toysrus.com • www.amazon.com • Articulate descriptions • Clear pricing • Detailed photos of goods • Searches and advanced searches can be carried out easily

14. Navigate from category to category easily • Allow customers to progress smoothly to the checkout • A secure method of accepting payments • A shopping basket to hold goods they are going to buy • Prospective customers should be able to use a temporary shopping basket if they are a ‘guest’ • Permanent shopping basket if they are returning customers

15. Usernames and passwords to make the system secure • Customers are able to contact shop directly via e-mail • info@gap.com • Allows customers to make use of their orders stored in a database • Allows customers to see their order and maintain their own accounts

16. Wishlists which enable users to store the goods they might want to buy in the future • Product reviews • List of related accessories also available for purchase • ‘People who bought A also bought B’ recommendations.

17. Steps which customers may go through when buying online • Price Comparison services helps to decide which online shop to use • Example: Shopzilla • Browsing Product Categories • Using the virtual shopping basket • Checking Out • Confirming the order and logging off

21. Browsing Product Categories

22. What does a company need to start an online business? • A high-specification web server that will operate 24 hours per day (A web server is a computer that stores websites on the Internet and delivers web pages to viewers upon request) • Needs to have a way of accepting payments • Secure server • Shopping Cart Software • Software to keep track of stock and orders • Will need to incorporate into it’s website a database of product names, descriptions, pricing and photos • Friendly user interface

23. Shopping Cart Software

24. POP QUIZ • Describe (giving the uses of each) three different types of software which someone could use to create a website • List 4 pieces of hardware needed for website development • List 2 advantages and 1 disadvantage of e-commerce

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