E-Commerce System - CH 9

Ni Luh Putu Amara Prabasari
119211078
Accounting IC
E-Commerce System
Section 1: Introduction to Electronic Commerce
E-commerce changes the form of competition, the speed of action, and the improvement
of interactions, products and payments from customers to companies from companies to
suppliers. For most companies, electronic commerce is more than just buying and selling
products online. In fact, electronic trading covers the entire online process from development,
marketing, sales, delivery, inter-network, to global customer markets, with the support of a
worldwide network of business partners.
Scope of Electronic Commerce, the business processes involved in the marketing,

buying, selling, and service of products and services in companies that participate in electronic
commerce. Companies involved in e-commerce, both buyers and sellers, rely on internet-based
technology and electronic trading applications and services to achieve marketing, discovery,
transaction processing, and product and customer service processes. As well as for example, e-
commerce can include interactive marketing, ordering, payment, and customer support processes
on e-commerce catalogs and auction sites on sites worldwide.
Electronic commerce technology Most of the information technology and internet

technology discussed in the text, in some form, are involved in electronic commerce systems. An
increasing number of specific answers provide an example of the technological resources
required by many e-commerce systems.
Categories in Electronic Commerce, Currently many companies participate in or sponsor

the four basic categories of e-commerce applications; business to consumer, business to business,
consumer to consumer, and business to government e-commerce. Note: We are not explicitly
discussing business to government and e-government applications as they go beyond the scope
of this text, but many e-commerce concepts are applied to applications such as these:
 Business to Consumer Electronic Commerce

 Consumer-to-Consumer Electronic Commerce
 Business to Business Electronic Commerce
Essential Electronic Trading Processes
The e-commerce process is essential to the successful operation and management of e-

commerce activities as it outlines nine key components of the e-commerce process architecture,
which are the foundation of the e-commerce initiatives of many companies today.
Access Control and Security, Electronic commerce processes must build trust and access
security between parties in electronic commerce transactions by ensuring user authenticity,
authorizing access, and using security features. For example, this process specifies that
consumers and e-commerce sites are those who identify themselves by means of usernames and
passwords, encryption or certification keys and digital signatures.
Profiles and Personalization, Once you have gained access to an e-commerce site, a
profile process can occur when collecting data on your property and site behavior and your
preferences, as well as building a profile of your characteristics and preferences. User profiles
are constructed using profile tools such as user registrations, small information archives, website
behavior tracking software, and user feedback. These profiles are then used to identify you as an
individual user and provide you with a personalized overview of the site's content, such as
product recommendations and personalizing Web ads as part of a one-on-one advertising
strategy.
Search Management, An efficient and effective search process provides top-of-the-line
capabilities for e-commerce sites that help consumers search for the specific product or service
they want to rate or purchase. E-commerce software packages can include components of a web
search engine, or a company can obtain customized e-commerce search engines from technology
companies such as Google and Requisite Technolgy.
Cargo and Catalog Management, Cargo management software helps e-commerce

companies build, generate, transmit, update and retrieve text data and multimedia information on
e-commerce sites. For example, the German media giant Bertelsmann is part of the owners of
Bearnesand-Noble.com. Uses StoryServer load manager software to generate web page
templates that make online editors easy.
Workflow Manager, Many business processes in e-commerce applications are partially

managed and automated with the help of workflow management software. Electronic business
workflow system to achieve structured work tasks in knowledge-based business processes an.
Workflow manager, both e-business and commerce electronics, relying on a workflow software
engine contains a software model of the business process to be achieved.
Event Notification, Most e-commerce applications are event-driven systems that respond
to a set of events - from the first new customer site access, to the pay and delivery process, to
countless customer relationships and supply management activities.
Colaboration and Trade, The main category of the e-commerce process comprises those
that support important collaborative arrangements and trading services required by customers,
suppliers and other shareholders to complete e-commerce.
Electronic Payment Process
Payment for purchased products and services is a clear and important structure in the
process of electronic commerce transactions. The payment process, however, is not simple due to
the almost unrecognized nature of the electronic transactions that take place between the
networked computer systems of the buyer and the seller as well as the many security issues
involved.
Payment Process through the Site, Most e-commerce systems on the site involve
businesses and customers (business and consumers-B2C) depending on credit card payment
processing, but many B2b e-commerce systems rely on more complex payment processes based
on the use of purchase orders.
Electronic Funds Transfer, Electronic funds transfer (EFT) is a common form of

electronic payment systems in the banking and retail industries. EFT systems use shared
information technology to capture and process credit and debt transfers between banks and
businesses and their customers. For example, the banking network supports cashier terminals in
all bank offices and automated teller machines (ATMs) around the world.
Secure Electronic Payments When you make an online purchase on the internet, your
credit card information is vulnerable to being intercepted by tracking networks, which are
software that easily recognizes credit card number formats. Several basic security measures have
been used to solve this security problem: 1. Encrypt data that passes between customers and
merchants, 2. Encrypt data that passes between customers and companies that authorize credit
card transactions, or 3. Take sensitive information offline.
Section II: Applications and Various Things in Electronic Commerce
Electronic commerce is here to stay. Websites and e-commerce are key drivers of the
industry. This changes the way the company does business. Electronic commerce creates new
channels for our customers. The company is at an e-commerce crossroads and there are many
roads to walk.
Business-to-consumer e-commerce, Consumer-focused e-commerce applications have

important goals of attracting potential buyers, transacting goods and services, and building
consumer loyalty through individual courtesy treatment and attachment to community features.
E-Commerce Success Factors, On the internet, barriers of time, distance and form are no
longer applicable, and businesses are able to transact goods and services 24 hours a day, 7 days a
week, 365 days a year with customers all over world. In certain cases, it is even possible to
convert physical items (CDs, software packages, newspapers) into virtual goods (MP3 audio,
downloadable software, HTML information).
E-Commerce Success Factors:
 Options and Values

 Performance and Service
 Look and Feel
 Advertising and Incentives
 Personal Attention
 Community Relations
 Safety and Reliability
Site Store Requirements, most business-to-consumer e-commerce businesses take the

form of retail business sites on the World Wide Web. Whether it's a large retail site portal like
Amazon.com or a retailer on small specialty sites, the main focus of e-retailers like this is to
build, operate, and manage their sites, making them a top priority destination for customers who
repeatedly choose to go to. there to buy products and services.
 Build shop on site

 Serve your customers
 Managing Shop Site
 Electronic Trading Market
1. One to Many: Sellers' side markets. Enforce one major supplier offering product and
price pricing options, for example Cisco.com and Dell.com
2. Many to One: buying-side markets include a large pool of suppliers in exchange for a
business offer from a major buyer such as GE or AT&T
3. Several to Many: Distribution markets, bundled and major suppliers combines their
product catalog to attract a wider range of buyers, for example: VerticalNet and
Works.com
4. Many to Several: Procurement market, bringing together major buyers who combine their
catalog of buyers to attract more suppliers, thereby increasing competition and lowering
prices. For example: the Convisint car industry and the Patelios energy industry.
5. Many to Many: The auction market uses a large number of buyers and sellers can make
the auction of various buyers and sellers dynamically optimize prices, Examples are eBay
and FreeMarket.
Virtual and Real in Electronic Commerce
Companies recognize that success will come to those who adopt a clicks-and-mortar
strategy that bridges the real and virtual worlds. Different companies will need to follow
different paths when deciding how close - or free - to integrate their internet initiatives with their
traditional operations.
Electronic Trading Integration
The Office Depot is a prime example of why companies have chosen to integrate virtual
and real-world strategies, whereby their e-commerce business is integrated in several key ways
in the traditional business operations of a company.
Other Virtual and Real-time Strategies, for example, KBTOYS.com is an e-commerce

joint venture of KB online Holdings LLC, created by toy retailer KB Toys, and BrainPlay.com,
formerly an eclectic property of children's products. The company is 80 percent owned by KB
Toys but has an independent management team and a separate distribution system. However,
KBToys.com has successfully capitalized on KB Toys' brand name sharing and purchasing
power, such as the ability of its customers to buy back through 1,300 KB Toys stores, which also
heavily promoted its e-commerce site.
E-Commerce Channel Options, Some of the key questions company management should
answer in making virtual and real-time decisions and developing outcomes from the e-commerce
channel. An e-commerce channel is a marketing or sales channel created by a company to carry
out and manage the e-commerce activities of its choice.

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Ni Luh Putu Amara Prabasari

Section 1: Introduction to Electronic Commerce

Scope of Electronic Commerce, the business processes involved in the marketing,

Electronic commerce technology Most of the information technology and internet

Categories in Electronic Commerce, Currently many companies participate in or sponsor

 Business to Consumer Electronic Commerce

Essential Electronic Trading Processes

The e-commerce process is essential to the successful operation and management of e-

Cargo and Catalog Management, Cargo management software helps e-commerce

Workflow Manager, Many business processes in e-commerce applications are partially

Electronic Payment Process

Electronic Funds Transfer, Electronic funds transfer (EFT) is a common form of

Section II: Applications and Various Things in Electronic Commerce

Business-to-consumer e-commerce, Consumer-focused e-commerce applications have

E-Commerce Success Factors:

 Options and Values

Site Store Requirements, most business-to-consumer e-commerce businesses take the

 Build shop on site

Virtual and Real in Electronic Commerce

Electronic Trading Integration

Other Virtual and Real-time Strategies, for example, KBTOYS.com is an e-commerce

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