E-Commerce Summary (Al-3ahed) PDF

‫‪Summary‬‬ ‫‪E-commerce‬‬ ‫اعداد الطالبة‪:‬‬ ‫راما العمايرة‬  ‫بسم هللا الرحمن الرحيم‬ ‫يقدم لكم فريق العهد لتكنولوجيا المعلومات الملخص الشامل لمادة‬ ‫"التجارة االلكترونية"‬...

‫‪Summary‬‬ ‫‪E-commerce‬‬ ‫اعداد الطالبة‪:‬‬ ‫راما العمايرة‬  ‫بسم هللا الرحمن الرحيم‬ ‫يقدم لكم فريق العهد لتكنولوجيا المعلومات الملخص الشامل لمادة‬ ‫"التجارة االلكترونية"‬ ‫فكرة الملخص‪:‬‬ ‫ترتيب النقاط الموجودة بالساليدات لتسهيل الفهم والحفظ علما بأن المرجع‬ ‫األساسي هو ساليدات المادة ثم الملخص‬ ‫‪ ‬وجب التنويه بأن الملخص ال يغني عن دراسة شباتر المادة نفسها‬ ‫قام بكتابة هذا الدفتر الطالبة‪ :‬راما العمايرة‬ ‫إن وفقت في كتابة الملف فمن هللا وإن كان هنالك أي أخطاء فجل من ال‬ ‫يسهو‬ ‫بقي‬ ‫متى َ‬‫ُعاء عنهُ ٰ‬ ‫َّ‬ ‫يغفلن بالد ِ‬ ‫صاب أخيه وإن َطال وال‬ ‫َ‬ ‫َّ‬ ‫يألفن أحدُكم ُم‬ ‫ال‬ ‫البال ُء أو زال‬ ‫على قُلو ِبهم ِ‬ ‫وآمن‬ ‫نجِ إخواننا ال ُمستضعفين في غزة الل ُه َّم اربط ٰ‬‫اللهم ِّ‬ ‫وقو إيمانهم‬ ‫ضعفهم ِّ ِ‬ ‫روعا ِتهم وار َحم ُ‬ ‫وظهيرا‬ ‫ً‬ ‫ونصيرا و ُمعينًا‬ ‫ً‬ ‫وكُن ل ُهم عونًا‬ ‫مع تمنيات عهد التكنولوجيا لنجاحكم وتوفيقكم‬ ‫فريق عهد التكنولوجيا – ال البيت‬ ‫‪0‬‬  E-commerce Summary Content… Chapter 01 – OVERVIEW OF ELECTRONIC COMMECE – page 02 Chapter 02 – E-MARKETPLACEES – page 05 Chapter 03 – RETAILING IN E-COMMERCE: PRODUCTS AND SERVICES – page 08 Chapter 12 – LAUNCHING A SUCCESSFUL ONLINE BUSINESS AND EC PROJECTS – page 11 Chapter 04 – ONLINE CONSUMER BEHAVIOR, MARKET RESEARCH, AND ADVERTISMENT – page 14 ‫فريق عهد التكنولوجيا – ال البيت‬ 1  E-commerce Summary Chapter 01: Electronic commerce (EC): The process of buying, selling, or exchanging products, services, or information via computer. E-business: A broader definition of EC that includes not just the buying and selling of goods and services, but also: servicing customers, collaborating with business partners, and conducting electronic transactions within an organization. MAJOR EC CONCEPTS 1. the product (service) sold 2. the process (e.g., ordering, payment, fulfillment) 3. the delivery method EC Organizations: - brick-and-mortar (old economy) organizations: Old-economy organizations (corporations) that perform their primary business offline, selling physical products by means of physical agents.( ‫ بس محالت بالواقع‬:‫)مثالها‬ - virtual (pure-play) organizations: Organizations that conduct their business activities solely online. - click-and-mortar (click-and-brick) organizations: Organizations that conduct some e- commerce activities, usually as an additional marketing channel. )‫(شركات الها محالت بالواقع وعملت مواقع خاصة فيها‬ electronic market (e-marketplace) : An online marketplace where buyers and sellers meet to exchange goods, services, money, or information Networks: – intranet: An internal corporate or government network that uses Internet tools, such as Web browsers, and Internet protocols. – Extranet: A network that uses the Internet to link multiple intranets. CLASSIFICATION OF EC: - business-to-business (B2B): Ex: Alibaba,dell - business-to-consumer (B2C): Ex: e-tailing, amazon.com - business-to-business-to-consumer (B2B2C) –‫وكالء‬- - consumer-to-business (C2B): Ex: Freelances - intrabusiness EC:E-commerce category that includes all internal organizational activitiesamong various units and individuals in an organization. - business-to-employees (B2E) ‫فريق عهد التكنولوجيا – ال البيت‬ 2  E-commerce Summary - consumer-to-consumer (C2C): Ex: open souq - collaborative commerce (c-commerce):E-commerce model in which individuals or groups communicate or collaborate online. social computing: An approach aimed at making the human–computer interface more natural ‫"تعامل النظام معي قريب من تعامل الناس مع بعضهم" مثل المايك‬ social network service (SNS): A service that builds online communities by providing an online space for people to build free homepages and that provides basic communication business-oriented networks: Social networks whose primary objective is to facilitate business. Ex:Linkedin, Xing virtual world: A user-defined world in which people can interact, play, and do business. The most publicized virtual world is Second Life Ex: 3D Games digital economy: An economy that is based on digital technologies, including digital communication networks, computers, software, and other related information technologies; also called the Internet economy, the New economy, or the Web economy Major characteristics of Digital Economy: Globalization - Digital Systems - Speed - Information Overload - Physical markets replaced with online markets - Digitizing business processes - Innovation - Obsolescence - Opportunities - Fraud - Wars digital enterprise: A new business model that uses IT in a fundamental way to accomplish one or more of three basic objectives: reach and engage customers more effectively, boost employee productivity, and improve operating efficiency. It uses converged communication and computing technology in a way that improves business processes. corporate portal: A major gateway through which employees, business partners, and the public can enter a corporate Web site. THE DIGITAL SOCIETY The final, and perhaps most important, element of the digital world is people and the way they live and interact. ‫فريق عهد التكنولوجيا – ال البيت‬ 3  E-commerce Summary business model: A method of doing business by which a company can generate revenue to sustain itself. Common Revenue Models: 1. Sales: From sales to goods 2. Transaction Fees:commission paid 3. Subscription Fees: fixed amount 4. Advertising Fees: payment from adverised 5. Affiliate Fees: commission for reffering costumer ‫فريق عهد التكنولوجيا – ال البيت‬ 4  E-commerce Summary Chapter 02: e-marketplace electronic Space in which buyers and sellers meet and conduct different type of transaction Functions of a market: 1. Matching of buyers and sellers 2. Facilitation of Transaction 3. Institutional infrastructure E-MARKETPLACE COMPONENTS: 1. Customers 2. Sellers 3. Products and services (digital products: Goods that can be transformed to digital format and delivered over the Internet.) 4. Infrastructure 5. front end: ‫كل شيء يراه المستخدم ويتعامل معه‬ 6. back end‫كل شيء ال يراه المستخدم وال يتعامل معه‬: 7. intermediary: A third party that operates between sellers and buyers.Ex: Aramex disintermediation: Elimination of intermediaries between sellers and buyers‫ازالة للوسيط‬ TYPES OF E-MARKETPLACES: 1. Private E-Marketplaces:(Owned by a single company) - sell-side e-marketplaceex:cisco - buy-side e-marketplace 2. Public E-Marketplaces: (Owned by third party or a group) Webstore (storefront) A single company’s Web site where products or services are sold e-mall (online mall): An online shopping center where many online stores are located. Web (information) portal: A single point of access, through a Web browser, to critical business information located inside and outside (via Internet) an organization. Types of Portals: 1. Commercial (public) portals 2. Corporate portals 3. Publishing portals 4. Personal portals ‫فريق عهد التكنولوجيا – ال البيت‬ 5  E-commerce Summary 5. mobile portal: A portal accessible via a mobile device. 6. voice portal:A portal accessed by telephone or cell phone. 7. Knowledge portal THE ROLES OF INTERMEDIARIES(Brokers) IN E-MARKETPLACES: 1. Buy/sell fulfillment 2. Virtual mall 3. Metamediary 4. Comparison agent 5. Shopping facilitator 6. Matching services Infomediaries: ‫وسيط للمعلومات بجمعهم وببيعهم لالخرين‬ Electronic intermediaries that provide and/or control information flow in cyberspace, often aggregating information and selling it to others. e-distributor: An e-commerce intermediary that connects manufacturers with customers ‫بتربط الشركات المصنعة مع العمالء‬ electronic catalogs (e-catalogs): The presentation of product information in an electronic form, the backbone of most e-selling sites Types of EC Searches: 1. Internet/Web Search 2. enterprise search 3. desktop search search engine: A computer program that can access databases of Internet resources, search for specific information or key words, and report the results. electronic shopping cart: An order-processing technology that allows customers to accumulate items they wish to buy while they continue to shop. Auction: A competitive process in which a seller solicits consecutive bids from buyers (forward auctions) or a buyer solicits bids from sellers (backward auctions). Prices are determined dynamically by the bids dynamic pricing Prices that change based on supply and demand relationships at any given time. ‫السعر يتغير بناء على العرض والطلب‬ ‫فريق عهد التكنولوجيا – ال البيت‬ 6  E-commerce Summary TYPES OF AUCTIONS: 1. One Seller, Many Potential Buyers (forward auction): An auction in which a seller entertains bids from buyers. Bidders increase price sequentially. 2. One Buyer, Many Potential Sellers(reverse auction): Auction in which the buyer places an item for bid (tender) on a request for quote (RFQ) system, potential suppliers bid on the job Limitations of E-Auctions Minimal Security Possibility of Fraud Limited Participation Blog A personal Web site that is open to the public to read and to interact with; dedicated to specific topics or issues. vlog (or video blog) A blog with video content. ‫فريق عهد التكنولوجيا – ال البيت‬ 7  E-commerce Summary Chapter 03  electronic retailing (e-tailing) Retailing Conducted online, over the internet.  e-tailers Retailers Who Sell over the internet.  Considered Commerce Conducting e-Commerce where the [online Channel] of business is integrated with the [Physical retail] business as opposed to being a separate channel. ‫الشركات االون واالوف بشتركوا مع بعض بدل ما يكونوا منفصالت‬ Characteristics & advantages of successful e-tailing: 1) Sound business thinking. 2) Visionary Leadership.  – Competitive analysis. – financial analysis. – EC strategy. 3) Infrastructure. Special services online: 1) Wireless services. 2) Direct marketing 3) alliances and consortia 4) Travel-Orianted social networks (ex. Expedia, Trivago) Benefits of online travel services: 1) Free information. 2) accessible at any time from any place. 3) substantial discounts. Parties use the internet job market: 1) Job seekers. 2) Employes seeking employees. 3) Classified ads. 4) Job agencies. 5) Government agencies and institutions.  Online markets on social networking. (ex. Linked in, intojobs)  Real estate online (ex. Zillow)  Insurance online (ex. Progressive)  Online stock trading. (ex. E*trade) ‫فريق عهد التكنولوجيا – ال البيت‬ 8  E-commerce Summary  E-banking. Activities conducted from home or the road using an internet connection. (ex. Progress Soft, access 2 arabia) 1) Cyber banking. 2) Virtual banking. 3) online banking/home.  Virtual banks Bank which exist only Online. (ex. PayPal) → Online Financial Transaction implementation issues: (ex. online billing) ‫اشياء الريم أعملها‬ 1) Securing Financial Transaction. 2) Imaging system. 3) Fees Online/ Offline 4) Risks. Example of On-Demand delivering of products: ‫التسليم عند الطلب‬ 1) E-grocer. That takes orders online and delivers on a daily or other regular schedule or within a very short period of time. 2) On-demand delivery service. Express delivery fairly quickly after an online order is received. Examples of online entertainment: 1) Internet gaming. 2) Online video streaming. ‫فريق عهد التكنولوجيا – ال البيت‬ 9  E-commerce Summary  Retailing in EC What sells well on the Internet  Travel (‫)وكالء السفر‬: Online travel agent offer a range of service. Car rentals / hotel reservations / travel booking.  Computer hardware and Software )‫(موقع خاص لبيع اي شيء بتعلق بالحاسوب‬: is Largest Category of product sold Online. (ex. Dell)  Consumer electronics)‫(اي شيء يحتاجه المنزل من اللكترونيات‬: is the second largest category of product sold online. Digital camera / printer / scanners / wireless devices. ‫امثلة على المنتجات التي تباع‬  Office supplies )‫(منتجات متعلقة بالقرطاسية‬: B2C and B2B sales of office supplies. (ex. Staples.com)  Sport and fitness goods )‫(المنتجات المتعلقة بالرياضة‬: (ex. Fogdog.com)  Books and music. (ex. Amazon)  Toys and hobbies.  Health and beauty. Vitamins / comestics / fragrances – are sold online.  Apparel and clothing: the online sale of apparel also is growing. (ex. She in, modanisa)  Jewelry: claim of prices about 40% less than would be paid in traditional stores. (ex. Pandora)  Cars. ‫تداول األسهم‬ ‫عقارات‬ ‫تأمين‬  Services: Travel / stock trading / electronic banking / real estate / insurance.  Food and drugs.  Pet supplies)‫ (مستلزمات الحيوانات األليفة‬: example selling food for birds, cats, dogs… Online Entertainment Entertainment-Related services Web browsing Event ticketing Internet gaming Restaurant reservations Social networking sites Information retrieval Virtual word Retrieval of audio and video entertainment Card games Application types of e-banking Informational Administrative Transactional general banking into Account information access Account transfer capabilities Financial banking info Opening of new account Transfer funds housed Employment information Applications for services Bill-pay services Interest rate quotes Moving all banking online Corporate services Financial calculators Personal finance software Online insurance services application Local news Real-time funds services ‫فريق عهد التكنولوجيا – ال البيت‬ 10  E-commerce Summary Chapter 12 Funding new online business First round second round Venture capital (UG) Wealthy individual who contributes personal funds and possibly Angel expertise at the earliest stage of Investor Money invested in business by business development individual, a group individual funding company exchange equity in the business Camping, university nonprofit org that support business in initial stage incubator of development  Organizational transformation: Comprehensive concept that implies a major organizational change A sharp break from the past.  How the organization can transformation into E-banking? Social technical theory external  technical Internal  social  Business process management (BPM). Method for business restructuring that combines workflow systems and redesign methods. ….Covers three process: 1) People-to-people. 2) systems-to-systems. 3)systems-to-people. ‫فريق عهد التكنولوجيا – ال البيت‬ 11  E-commerce Summary Classifications of web site: Informational Interactive Attractors Transactional Collaborative Web site web site Web site web site Provide Provides Attract/ interact Sell Allow information opportunities for with visitors in products business about the customers the target and services partners to business and and business to stakeholder collaborate product communicate and group share information  Steps to build web site: 1) Select web host. 2) Domain name. 3) Create content. 4) Web site design. 5) Construct site. 6) Advertise. Web hosting options: storebuilder, web hosting, ISP hosting, self-hosting. 1) Storebuuilder service: provide disk space and service to help small and microbusinesses build a Web site quickly and cheaply. (ex. Wordpress, wix) 2) Web hosting service: company that offers a wide range of hosting service and functionally to business all sizes. (ex. Ya donia, go daddy) 3) ISP hosting: provide an independent, standalone web site for small and medium size business. (ex. Zain, Orange) 4) Self hosting: setup and manage own web site.  Types of web content: 1) Dynamic content: content that must kept up-to-date. 2) Cross-selling: Offering similar or complementary products and services to increase sales. 3) Up-selling: Offering an upgraded version of the product in order to boost sales and profit. 4) Promotion. 5) Comment. ‫فريق عهد التكنولوجيا – ال البيت‬ 12  E-commerce Summary 5 steps approach to developing an EC system Identifying, Creating an EC Selecting a Installing, testing, Operations, justifying, architecture development integrating, maintenance, planning EC options deploying EC app updates system Three basic Testing applications software Unit testing options for modules one at a time EC architecture Scalability developing an EC web site: A plan for How big system can Integration Testing the combinations of organizing the grow in various 1) develop the testing app modules acting in concert underlying dimensions to provide site in-house. more services infrastructure and Testing the quality of user’s Usability application of a 1) by total num of 2) buy a packaged experience when interacting testing site users application with a web site. 2) num of 3) lease the app simultaneous users. from a third party Determining whether a web Acceptance site meets the original 3) transaction volume. testing business objectives and vision  DEVELOPMENT STRATEGIES FOR E-COMMERCE MAJOR APPLICATIONS insourcing turnkey approach outsourcing In-house development app Ready to use without further assembly or testing A method of transferring Reusability the management and/or day-to-day execution of segment of source code can be used an entire business again to add new functionalities function to a third-party service provider. Interoperability Outsourcing Options: Connecting people, data, and diverse systems; 1) Software houses. the term can be defined in a technical way 2) outsourcers and others 3) Telecommunications companies. Insourcing Options: 1) Build from scratch 2) Build from components ‫فريق عهد التكنولوجيا – ال البيت‬ 13  E-commerce Summary Business plan Business case Written documents that identify the company Written documents that justifies investment goals outline how the company achieve this goal internal organizational records in specific app and what the cost is. and project Chapter 04  Personalization: The matching of services, products, advertising contents with individual consumers and their preferences.  User profile: The requirements, preferences, behaviors and demographic traits of a particular customer....‫ السكن‬,‫ الجنس‬,‫ العمر‬,‫الدخل‬ Major strategies used to compile user profile Solicit information Observe what people are Build from previous Perform marketing Make inferences directly from the user doing online purchase patterns research Cookie Behavioral targeting Data file that is placed The use of information collected on an individual’s on a user hard drive Internet browsing behavior by remote web server, to select which without disclosure or advertisements to display the user consent  to that individual. that collects information about user activities at a site  e-loyalty: Customer loyalty to an e-tailer or loyalty programs delivered online or supported electronically. ‫فريق عهد التكنولوجيا – ال البيت‬ 14  E-commerce Summary  Loyalty programs: Expense of acquiring a new customer can be over $100.  Most loyal customers: Apple.  ATISFACTION IN EC: Satisfied customers are what businesses looking for.  TRUST IN EC: Trust: The psychological status of willingness to depend on another person or organization. Trust includes risk, and online risk is higher, why?? ‫للعمل‬ Review ‫ عشلن اضمن الثقة الزم يكون في‬,‫الني ما بعرف مع مين بتعامل‬ What are marketers looking for in EC? 1) Explain and predict online buying behaviors. 2) Purchase patterns for individuals and groups. MARKET segmentation RESEARCH FOR EC Direct Solicitation of Data Collection in the Observing Customers’ Information Web 2.0 Environment Movements Online 1) Implementing Web-Based Surveys 2) Online Focus Groups 3) Hearing Directly from Customers Transaction log Clickstream behavior Web bugs spyware Tiny graphics files Record of user Customer Software that embedded in e-mail activities at a movement on the gathers user messages and in Web company web site internet information over sites that transmit an Internet information about connection users and their without the user’s movements to a Web knowledge. server.  clickstream data: Data that occur inside the Web environment; they provide a trail of the user’s activities (the user’s clickstream behavior) in the Web site.  Web mining: The use of data mining techniques for discovering and extracting information from Web documents and Web usage. ‫فريق عهد التكنولوجيا – ال البيت‬ 15  E-commerce Summary  collaborative filtering: A market research and personalization method that uses customer data to predict, based on formulas derived from behavioral sciences, what other products or services a customer may enjoy; predictions can be extended to other customers with similar profiles. (Legal/ ethical issues) Solution: Problem: Automate the process through data warehousing and data mining. too much data Data warehousing ‫ غير مهم الترتيب فيها‬, ‫مستودع غير مرتب‬ Data base  ‫ مهم الترتيب فيها‬, ‫منظمة اكثر‬  Web advertising: Advertising is an attempt to disseminate information in order to affect buyers.  Traditional marketing: one way!  Interactive marketing: Online marketing, facilitated by the Internet, by which marketers and advertisers can interact directly with customers, and consumers can interact with advertisers/vendors. BASIC INTERNET ADVERTISING TERMINOLOGY /page view / impressions Ad views The number of times users call up a page that has a banner on it during a specific period Button A small banner that is linked to a Web site. It can contain downloadable software. Click A count made each time a visitor clicks on an advertising banner to access the advertiser’s Web site. The percentage of visitors who are exposed to a banner ad Click and click on it. rate ‫فريق عهد التكنولوجيا – ال البيت‬ 16  E-commerce Summary Conversion rate The percentage of clickers who actually make a purchase. CPM (cost per The fee an advertiser pays for each 1,000 times a page with a thousand banner ad is shown. impressions ) hit A request for data from a Web page or file. page HTML document that contain text and other online elements. stickiness Characteristic that influences the average length of time a visitor stays in a site. (ex. Youtube, amazon. Use recommendation )system) Advantages of advertising online: 1) Cost, 2) Richness of format. 3) Personalization. 4) Timeliness. 5) Location-basis. 6) Linking. 7) Digital branding. Online advertising methods On a Web page, a graphic advertising display linked to the advertiser’s banner Web page. Keyword Banner ads that appear when a predetermined word is queried from a banners search engine. (ex. Google, yahoo) Random Banner ads that appear at random, not as the result of the user’s action. banners Pop-up ad An ad that appears in a separate window before, after, or during Internet surfing or when reading e-mail. Pop-under ad An ad that appears underneath the current browser window, so when the user closes the active window the ad is still on the screen. ‫فريق عهد التكنولوجيا – ال البيت‬ 17  E-commerce Summary E-mail ads 1) E-mail hoaxes. 2) Fraud. Search engine Search engine optimization (SEO) ads The craft of increasing site rank on search engines - uses the ranking algorithm Google: the online ads king. Viral Word-of-mouth method by which customers promote a product or service by telling marketing others about it. (review, rating, share)  Social network advertising: Online ads that focuses on social networking site.  Types of social networking ads: 1) Direct advertising that is based on your network of friends 2) Direct advertising placed on your social network site 3) Indirect advertising by creating “groups” or “pages”  Sponsored Reviews by Bloggers. ‫فريق عهد التكنولوجيا – ال البيت‬ 18