April 2, 2020
BCIS 5379 – Chapter 2: E-Commerce: Mechanisms, Infrastructure, and Tools

BCIS 5379 – Chapter 2: E-Commerce: Mechanisms, Infrastructure, and Tools


Welcome to BCIS 5379. This is Chapter 2 E-commerce
Mechanisms, Infrastructures and Tools of Electronic Commerce: A Managerial and Social Networks
Perspective 2012. The learning objectives for this chapter or to describe the major
electronic commerce activities and processes mechanisms of support them to define the marketplaces
and was there components to list the major types of the marketplaces and describe their
features to describe electronic catalog search engines and set up in shopping carts to describe
the major types of auctions and was there characteristics discuss the benefits and limitations
of the auctions to describe murdering and negotiating online to describe virtual communities
list the major Web 2.0 tools are used in e-commerce to describe social networks as an e-commerce
mechanism to understand virtual worlds and are used in e-commerce lastly to describe
Web 3.0 and define what 4.0 in general e-commerce activities can broken up the broken up and
about six different categories. For example, one of the presence of the physical presence
or virtual presence of the woven organization online physically to get their name out there
to to make create awareness about brand about a product company. No one is basically an
exchange is a mechanism to be a trade buy, sell, etc. another category might be the the
to be able communicate so establishing websites where you got the ability to chat about email
directories and things of that nature will exchange information, entertainment think
you to stop we can go and get content simply to the point of entertainment to improve performance
that it would easily and quickly exchange information regarding orders regarding transactions
nature in order to improve the efficiency of an organization in the lastly the various
other activities things is my do to try to recruit for example of potential employees
or potential customers to always different categories are supported by several mechanisms
are one of the different mechanisms identify the text electronic markets, storefronts,
malls, portals, things like that place for customers actually go make purchases. Each
catalog search engines ER options Web 2.0 technologies involving things like social
networks, twitter, Facebook and so on. Virtual worlds order processing payments the ability
to conduct the transactions that we need. If you boil down the supply chain as a whole.
Essentially, look at it in three parts about wires and bestsellers transactions that occur
between while the purchasing process may be different from industry to industry. There
certainly are some commonalities in the in the purchasing process. The purchasing process
really the most common way of doing this purchasing at fixed prices for some type of catalog we
find a good or service is available through the website or through search engine. The
prices listed we can either make a decision purchasing not purchase a particular good
or service at a fixed price. In some cases review may be able to negotiate or get some
type of the discounted price for volume or something of that nature. Another way to determine
prices for dynamic pricing dynamic pricing which refers to non-fixed prices such as those
in options or stock was is not a set price we can either type of optional monologues
verse option we can you bid up the price or we can have a price been down depending our
perspective. So here’s a graphical representation representation of those e-commerce activities
in the various mechanisms help to support those activities and a graphical representation
of our e-commerce participants and in the various components again this is really a
simplified version or perspective of the supply chain where we got basically suppliers and
customers and we’re presumably somewhere in the middle. If you’ll take a look at the individual
look on the supplier side really disappointed is much more complicated than just having
a supplier and a customer suppliers oftentimes are made up of multiple layers of supplier
so suppliers are providing the two raw materials various supporting supplies components were
some supplies are been preassembled or finished goods so suppliers can come in all shapes
and sizes and conduct B2B transactions with us. Assuming were the middle as far as our
customers. Customers can come from old placing the individuals that can be other businesses.
They can be the government so we can see a variety of different types of transactions
occurring between our company again and those customers of the could be B2B if their business
be to see if the customer will be to GF the government here we have the buying process
and in any market now this may differ from industry to industry organization organization,
but the most part is very pretty similar from one revision to another in a lot of ways it
mimics what you might see a in the physical world, though there may be some subtle differences
or four things that more transparent than others that you don’t really notice but they
do occur. If you put yourself in the eyes of the purchaser obviously gotta enter the
shop somehow right with the physical store is an online store Google search engine and
search for product Best Buy.com Walmart.com start looking around for product you may have
to register before you can do anything we start looking to the E, E catalog you can
begin the search process. You can try to evaluate septic product. I may compare with other ones
and you either decide Nama really is and do what I needed to do so, you abandon it or
you do more research for you website on a make that purchase to see added to your cart
put in your shopping cart. If your grocery store. We put it into your virtual shopping
cart from online and you go to the checkout process you producer credit Park execute payment
units online needs to be shipped to you, whether it’s a download processes because digital
or physically needs to be shipped and select that shipping. Shipping option you verify
payment make sure that things corrected submitted foods, baldly the normal things you have to
do when you’re making a purchase. We also have a lot of post shopping activities that
occur more verify that an item was shipped in weight with weight for the item. We verify
that the item was actually delivered post follow-up may include verifying are you happy
happy with your purchase was busy deriving one piece to arrive in a timely fashion things
that nature where these transactions occur traditionally the it within the online environment.
At least they would occur in some type of the marketplace. This document go to the mall
to purchase goods and services from various stores in the marketplace order to be able
make purchases online in the marketplace is an online market usually B2B market which
buyers and sellers exchange goods or services. Three types of the marketplaces are private,
public, and consortia so how open are the early private so the really limited to select
buyers and sellers are they public so if they’re open to everybody, which is usually what we’re
familiar with the be to see market and consortia were again words with relatively limited in
terms of who the participants are components of and the participants in the marketplaces
include a market space itself marketplace in which the sellers and buyers exchange goods
and services for money or for other goods and services, but do so electronically there’s
more to it than just that. Marketplaces also include customers sellers products and services
whether there digital were not really the relevant Digital Products groups can be transformed
to digital format and delivered over the Internet members the infrastructure itself is marketplaces
oftentimes provide legal and regulatory structures really help to facilitate transactions that
are that need to occur that are currently in marketplaces include things like front
ends, vacuums and intermediaries front and is really what you as a consumer see or another
business sees women trying to make a purchase of how they view their shopping cart. It’s
how they search for various goods and services. I have a few directories and things of that
nature. The backend is really what handle some of the support services so that tends
to be less seen by outsiders is really more on the backend of this for the selling for
the seller provide support for online order fulfillment inventory management purchasing
for suppliers so levels back in functions of business requires in order to be able to
deliver those goods and services to customers in the next the intermediary of third-party
that operates between the sellers and buyers. Talks about that a little bit more detail.
He marketplaces provide the opportunity for disintermediation and re-intermediation disintermediation
is the elimination of intermediaries between sellers and buyers. This is really what the
promise of the web was initially or e-commerce was initially the ability to remove the middleman
the ability to remove those that are in the middle of the supply chain that in order to
survive have to necessarily take a profit piece of the pie, so to speak, thus driving
up the in cost consumer so the promise was as if we eliminate those those players from
that supply chain that the profit that they were going to have to take could be eliminated
most the seller, the manufacturer could make more sell more bustling for less cost less
and less money and that purchasers can save money because they wouldn’t the the manufacturer
would have to suffer quite as much money so that was the real promise. Unfortunately,
while that works in some cases it doesn’t work at all cases. In some cases, those intermediaries
are very important. They provide additional value they provide information about products
and goods and services in ways that sometimes manufacturers are very good at. Sometimes
they do it in ways that are better than the manufacturer in terms of the ability of consumers
or customers will understand. So there are reasons for intermediaries. He marketplaces
certainly create a situation in which we are better able to right size supply chain in
an effort to make sure that we have the right number of intermediaries present in the supply
chain. The text discusses two types of you marketplaces private. He marketplaces public.
He marketplaces the text also covers public you marketplaces in more detail in chapter
4, so this chapter doesn’t really dive into them too much, but within private you marketplaces.
It also identifies two different types of of marketplaces sell side Marquis marketplaces
eyesight. He marketplaces sell said he marketplaces a privately marketplace with one company sell
either standard and/or customized products to qualified companies. This can occur in
in both be to see environment or B2B environment. This you can consider the one to many type
relationship on the buy side privately marketplace one company makes purchases from invited suppliers
again. It’s a privately marketplace and this often occurs in the B2B environment is considered
to be a many to one relationship between the various buyers and sellers. Perhaps the most
visible mechanism to support customer shopping is the use of a storefront all portals. The
web store. It’s really what creates an image of the customer who the organization is a
third line from what source a single company’s website were products or services are sold
usually has an online shopping cart associated with the committee what source target a specific
industry and find their own unique core market. As an aside to web store. You’ve also got
micro sites and Microsoft really just refers to a usually a single page for precious a
few pages that are meant function as an auxiliary supplement. The main website typically will
add additional information to posit information is just as it were a comment about the company
about a product, but it’s main purpose is to support the primary website all are kind
of like online stores or storefronts except consumer percentage to single business represent
various businesses or multiple businesses the mall in the physical world eBay kind of
gives you an example you can go to eBay.com purchase products from a variety of different
vendors of those vendors. That’s how we do business. They do a three day basically just
a gathering point for them to to conduct sales of lots of different types of stores and defensive
malls and general stores or general malls. This all different types of products for the
rather large market space. Examples include Amazon, Walmart, specialty stores first sell
a few kind of specialized products that really focus on some type of a market niche. Things
like shoes or books flowers 11 800 flowered flowers.com is a good example Newegg.com is
an example for computer parts peripherals. I was also regional versus global stores is
not the type of stores or malls in the lastly pure play versus brick-and-mortar stores or
online stores purchased or pure play stores such as well Amazon, buy.com Newegg Towards
the center. Those are or virtual don’t really have much of a physical residence. It’s not
there is not the outward facing to customers versus the the you click and mortar stores
are companies that will benefit both camps both in the physical world is as it relates
to customers as well as the virtual world be wrong. One example, Walmart.com is an example
that we were not 100 flowers as well. They have have a network of stores call phone place
orders as well as their website. Both these last two types of stores malls are discussed
in more next chapter the customer shopping are the use web portals web portal is a is
an information gateway is basically a point of access through a web browser. Usually the
critical business information located inside the inside the company basically way to copyrighted
my soul, the old dashboard has pertinent information allows you to drill down to the specifics
that you might need was ready different types of portals is a commercial public portal portals
which offer content for diverse communities are are the most popular form of portals on
the Internet system. Examples include size aol.com MSN.com yahoo.com place like that
portals can be a little bit more specialized to organize taxes rich content within a relatively
narrow and partner communities really geared around providing information for a specific
company so there’s lots of examples of different companies that provide a portal for their
customers for their employees, etc. they will find relevant information to the organization
of the class of of portals are approaching portals intended for communities with very
specific interests. Usually these types portals don’t offer a lot of opportunity for customization.
They usually provide a lot of opportunity for search features to give you a lot of different
capabilities in terms of searching for poor resources to the portal’s some examples include
ZDNet ZDNet.com tech, etc. personal portals are targeted targeted to specific individuals
or once it really by you as an individual customize it for yourself is really Portals
for one portals for you as an individual Google for example has the ability to for you to
create a login for yourself and customize your Google search page and all that search
page instead of just being very plain generic Google search page that you normally see you
can have the various features on the that you might like like your email will brief
window in your email, calendars, etc. the cost portals are more mobile portals which
are really designed to be accessed by various mobile devices so the content is really created
around the smaller screen size and the below make it will be more user-friendly and lastly
work voice portals relaxes by telephone or cell phone, especially ones that are able
to use voice to access content able to read content that on the web and provide audio
feedback of the content is AOL has such a service as well by phone that allows users
to retrieve email check news and retrievable content from AOL via via telephone. So is
a graphical representation of how portal might work if you want to step one you basically
should the better variety of different sources of of the of information available to you
both from within an organization take school for example event different departments different
professors different organizations within the University of that give you a lot of different
types of information the external source sources of information so can Roy come from a variety
different places in the issue is we need to figure out ways to creatively filter the information
both internally and externally to a way that we can get down drill down to only the information
that we really need massive purpose of C in step two and ultimately instead step three
was presented to us in on my sneak form and easy to consume. Refer to talk about intermediaries
a little bit. The book talks about him several times throughout the chapter on a stress intermediary
intermediaries are not all bad. There are some necessary reasons to have different when
they provide value-added activities services to buyers and sellers are several different
types of intermediaries in the physical world. We typically referred to intermediaries are
the most common types of intermediaries in the physical world where wholesalers and retailers
so we typically supply chain. While manufacturing manufactures a product they sell it to wholesaler
wholesalers will then sell the goods or services that usually to retailers and we as consumers
purchase those those goods from the retailers. There’s two major types of online intermediaries,
brokers and info years intermediaries are electronic intermediaries that provide and/or
control information flow in cyberspace, often aggregating information and selling it to
others for a couple of different types of intermediaries on the one offers and offers
consumers a place to gather information about specific products companies before making
purchase decisions something out of Itel.com cars.com company like that places where you
go, you will find a lot of information about a particular company or product something
that nature will make comparisons easily the second one is not necessarily web-based type
of intermediary provides vendors with consumer information will help vendor development and
market their products with chondral personality gives information to to those companies have
been intermediary RE distributors and e-commerce intermediary that connects leaf actions with
business buyers customers by aggregating catalogs of many manufactures in one place in intermediaries
website example inside the company is Granger.com the has a lot of their products from a lot
of different a lot of different companies and they set up their own catalog bill to
sell these products makes it very easy for customers to come in and purchase products
with need to spin example of each distributor. Oftentimes companies like Granger have some
sort of the E catalog as the variety of other types of of of online businesses and he catalogs
really can’t just feel it, representation of the standard paper catalogs. The presentation
product information in electronic form. It’s really the backbone of smoke most detailing
sites or reselling sites. That’s what allows them to display their products your product
information show prices and things of that nature. A real advantage over of the catalogs
over paper catalogs are that amount of information that provided is much greater. I miss more
dynamic content can provide much richer content in terms of being able to show products from
different angles quickly change colors of different photographs things that nature,
but that the same time. Pricing information can be adjusted very quickly and easily without
having to send out updates to the paper that you might have to the paper have Being able
to search you is obviously critical importance for organizations in terms of being a fine
product and what catalogs and things of that nature. In general there’s three different
types of searches that can be conducted there’s the general Internet or web search enterprise
search is the desktop search the Internet or web searches exactly what you’re thinking
of. It’s going to Google and type in your product name you’re looking for to find information
about that’s by far the most common type approach of of the person you see an enterprise search
is the practice of identifying a enabling specific content across the enterprise to
be indexed, searched and displayed authorized users. It’s basically searching within a site
and must follow the best with some of what enterprise searches enterprises have the option
of using a robots file to limit what search engines can index and what that does is it
allows the organization to categorize the content that they have on their website and
determine what they’re going to make available to the outside world. What are not going to
make available to the outside world. The file type of searches the desktop search search
tools to search the contents of the user organizations computer files rather than searching the Internet
so the ideas defined the sources of information that you are or copy to install to your local
machine to conduct web searches are not searches enough times the price searches often require
some type of the search engine, which is a computer program access databases of Internet
resources search for specific information or keywords and report the results so obviously
Google is the dominant player in the space but there are our alternatives a result of
Vista. For example, Lycos being a popular one, an offshoot of this are the use of software
intelligent agents. These are basically tools that allow you to search for a and get suggestions
from your search engine do more than just search and match as capabilities, they can
be used to perform routine tasks that require intelligence, for example, you can monitor
movements on website. It can help you to compare prices can help you market activities basically
serving is kind of in the system so price grabber.com is a great example allows you
go in and search for particular product. The details agent portion of this event search
allows you to bring up that product is offered from a variety of different sources and give
you feedback about the prices those different the echoes different retailers, etc. retailers
for example. Another type of search engine. Our question and answers online couple popular
examples of better ask.com answers.com the basically diligent search engines that allow
you to pose a question and hopefully find some some sort of answer voice powered search
engines are ones allow you to speak your search rather than typing in your search. This is
obviously very useful for portable devices, smart phones and small tablets words not necessarily
is easy to type in your search term person a Google tablet. The really neat feature state
whatever it is I’m looking for I hit the button from button state whatever it is I’m searching
for it interprets my speech and conducts research in the lastly visual shopping search and basically
surgeons that allow you to kind of interpret what something like red high-heeled pumps
white might actually for a pattern sleeveless dress and give you feedback about that after
customer has successfully searched for, found reviewed found a product that purchase they
have to place it into their electronic shopping, carbon analogy is to a shopping cart that
you have purchaser where you gather together various goods as you go to the grocery store.
He put them in your shopping cart and moved to the checkout. What are shopping same things
in order processing technology allows custard customers to accumulate items they wish to
buy while we continue to shop the textbook talks about this in a little bit more detail
but the thing that I would point out on page 63 just before the end of the section talks
about free online shopping cart trials and demos are [email protected] and one free
cart.com to check those out for your semester projects other mechanisms and merchant software
that are important are the shopping is obviously Google and MSN being things that nature to
are the the big players in this market space but there’s lots of other search server after
other shopping engines that are out there for example 1: info.com that allows you to
search multiple search engines the same time so some of the specialized search engines
that the can help you find specific types of information special specialized types of
information audio info.com flights.info.com health other just a few examples another mechanism
since the another mechanism that is extremely important as it relates to merchant software
is product configuration. The ability to customize your product for sale. We want to be able
mass-produce and sell the same product over and over again, but in order to gain a competitive
advantage if we can offer some customization options to customers were providing an additional
service or additional value to those customers to the ability to configure products or allow
customers to sell customized products on is something is key to e-commerce success. Dell
is a great example of a cell based machines there are prebuilt so you get the advantage
of of speed searching very prepared or you can customize the base configuration and add
to it to get exactly what you want and it’s a way to provide an additional value added
service to your customers. Next section. Section 2.5 options bartering and negotiating online
moves into the realm of of options. An option is a competitive process in which the seller
solicits consecutive bits from buyers is a forward auction or buyer solicit bids from
sellers a backward option, sometimes referred to as a reverse auction prices are determined
dynamically, but bids this idea of dynamic pricing is is that prices the change based
on supply and demand relationships at any given time to be an easier way of thinking
about it is that prices are not fixed but allowed forcefully as supply and demand and
market place change thing for example a hot afternoon at 65 is the ice cold Coke worth
more. When it’s hot. Was it worth more women temperatures comfortable outside. Most people
are willing to pay more when it’s hot may not like it but they’re willing to pay more.
This works better in some industries than than other industries industries like the
airline industry where you get a fixed number of seats on an airplane. It works quite well
when the plane is at the they can reduce the price in order to try to sell out all the
seats as the plane fills up those seats become more valuable and they can raise the price.
Traditional options have a variety of different limitations relative to the options for example,
traditional options usually last for only a few minutes maybe in a few seconds, depending
on the the items that are being sold that speed all times leaves certain buyers, potential
buyers out of the decision-making process that can’t form a decision quickly be able
decide to bid or not to bed so stay out of it. Also, in some cases bidders don’t have
a lot of time to examine the good can’t really look up information about everything that
because it’s on the spot. In some cases you physically have to be present at the option
in order to be able make bids bids on online as result of a variety people that don’t participate.
Also this cost increase costs that are associated with with auctions. It caught it takes time
might move goods to the auction site commissions that we paid for people that run the auctions
because the physical place for the options being held has to be rented has to be a cause
of the options occurring things that nature sows a variety of different limitations to
physical options, many of which he auctions help to offset. Additionally, by moving auctions
online. It provides for some very innovative ways in which options can be be conducted.
The book talks about a few different examples gives one about Warren Buffett, who auctions
off lunch with him once a year to discuss investment advice. For example, the money
raised in the auctions is given to charity, but also talks about some examples by Harley-Davidson
which items that were autographed by Jay Leno and other slivers were auctioned off in the
money donated to salami victims. In another example regarding JetBlue and auctioning off
vacation packages flights as it is a few examples so auction options can be used very creatively
in an online environment in ways that really are much more difficult than in the physical
world. There are several types of auctions or categories locked off auctions if you will
include 11 buyer one seller, one seller. Many potential buyers. One buyer many potential
sellers. The name your price manual price model. Many sellers, many buyers and penny
auctions in general is a broad classifications or types of auctions. One buyer one seller
type of auctions really just more of the negotiations were. You don’t have a fixed price and buyers
negotiating with this specific seller or haggling over overprice the one seller many potential
buyers are a type of auction is sometimes referred to as a forward auction is typically
what we think of when we think of an option that one seller that got a good service on
multiple people to bid on on a particular item is an option which is so intense bids
from buyers bidders increase the price sequentially so as each person bids on item. The price
is goes up tell how the seller wants it will make additional money so I pushed the price
up one buyer many potential sellers type of auction is sometimes referred to as a reverse
stock auction, and perhaps many of your little bit less familiar with this type of model
of the idea of this is where you have one buyer and they put out a notice that they’re
interested in making a purchase and then you better variety of different potential sellers
that are trying to bid on your purchase of of their good or service. Now Mr. model the
price goes down. Why because the sellers are trying to sell you that good or that service
in order to be able to make that transaction occur, they gotta come in a little bit lower
than their competing bids. The competing bids from other sellers to reverse auction prices
being a bit down on sometimes is referred to as a name your own price small, good example.
This is Priceline.com is what most people think of you put out your price that you won’t
pay for a hotel room or you mentioned that you’re interested in person purchase, I might
stay at a hotel or a thicker trip something of that nature and the various companies that
operate Met that market space come to you with their bids they bid it down to a point
until you’re willing to accept it instead of a visual representation of what you might
of what the reverse auction process might might look like. I guess seller a who initiates
the bidding process they’re offering X amount of dollars seller becomes indecision. What
I I I can sell this hotel room for just a little bit less on the place a bid for just
a little bit less of the buyer seller a consensus you know what I don’t lose a sale on the under
place another bit of from a little bit lower seller because that does the same faces. I
really want to sail on and reduce it even more and at the last second guess seller see
the step sentences on the really lowball this I’m going to get this transaction and they
really lowball the sale of a hotel room and the low low price ends up winning selects
reverse auction price actually goes down over time. Double auction is sometimes referred
to as a type of auction indicate in a situation where you have many sellers and many buyers
in the polio. Typical industry or market segments in the seminar. The stock markets and commodity
markets in which case you have many sellers and buyers trying to sell various stocks,
various types of commodities in the lastly you got penny auctions which in which the
mother or specific sample of a forward auction that, in which case you basically’s pay for
upfront 4 feet dissipate me auction and then the bids for the item are incremented at very
small levels usually just a few cents which is not typical traditional forward auction.
What are some of the benefits of the auctions will really all the parties have some benefits
that come from the options the sellers the buyers and auctioneers for that matter for
the sellers. There’s increase revenues from broadening the bitter based on boards of there’s
more people bidding the more likely to make money is not to bargain so silly and fixed
prices is optimal price setting determined by the market sellers gain more customer dollars
by offering items directly in other words, reducing some of that the number of intermediaries
you can liquidate large quantities of of items quickly. You can have improved customer relationships
and loyalty some benefits to buyers that got more opportunity to find unique items and
collectibles. It’s easy to find things because you have is online auctions that pull in goods
from around the world in terms of entertainment participation the options can be an entertaining
assigning some people to really get into the thrill of the hot of tracking out good some
type of item. This convenience buyers can bid from anywhere you a cell phone tower will
have to be brought to travel to an auction place to the physical side as an amenity with
the help of the third-party buyers can remain anonymous if you’re physically there is, obviously
you are released to always take photographs taken that nature. But it’s a little bit easier
to be anonymous. Now I’m on world as possible refining find bargains for both individuals
and organizations as far as auctioneers hire repeat customers research actually shown auction
sites such as eBay to the Garner hire repeat purchase rates then taught me to see sites
such as Amazon is also a lot of stickies or high stickiness to the website the tent which
refers to the tendency of customers to stay at sites longer and come back more auction
more often auction sites are frequently stickier than fixed prices price site because customers
are constantly having to come back to check the latest bid on their vitamins are interested
in is also easy expansion auction business was it easy to add more more bids. As with
most things in life. Limitations are all around us in the auctions are any different. There
are limitations to the auctions whenever we put something in an online environment. There’s
obviously security concerns were circling to make payments using credit card numbers
and things of that nature. We have sickened security concerns about sharing financial
and personal information online is also the possibility of fraud. Online because we can’t
physically pick up something and inspected wiki. There’s the issue of fraud. So for example
you see exam C cases were baseball cards are sold. Turns out they’re not the actual cards
that were advertised social possibility of fraud is also the issue of limited participation.
Some options are by invitation only to to dealers only there purposefully limiting their
their pool of potential buyers limited participation may be a disadvantage to sellers usually benefit
from some from a larger pool buyers and because it helps to drive up the price also buyers
might not be happy if there excluded from the possible auction in which there they might
be interested in some of the items related to auctions is the art barter bartering and
negotiating online bartering is the exchange of goods and services for other goods and
services. The bartering is just moving that into the online environment. Safari conducted
online usually usually in a bartering exchange which is a marketplace in which an intermediary
arranges barter transactions. Examples of this in your exchange.com swap swap pays.com
and barter depot.com online negotiating is another way of facilitating dynamic pricing
this were negotiated pricing you were pricing is negotiated as commonly used for expensive
or specialized products sometimes confused when the quantities are very large in order
10,000 of the product might negotiate the price negotiation also deals with bond pricing
terms such as the payment method timing and credit if you’re paying cash. Sometimes you’re
able get a discount. Reason being that oftentimes is an additional charge associated with running
a transaction through credit card if you pay cash. The sale little bit of money so sometimes
offer discount negotiations, a well-known process in the off-line world, such as real
Satan automobiles. Think about going to make a purchase amount the automobile dealer. Usually
you don’t simply take a price that is printed on on the stick usually negotiate the price
in this effort is talking about in an online environment. Yet another tool that is another
effective tool can be used in the realm of e-commerce are blogs on building effective
blogs become easier and easier. There’s a variety of different software that are available
out out there for users to use for example, Blogger.com and he does that come offer easy
to use templates in the mission field set set up your own blog corporations and various
organizations have jumped on the blogging bandwagon to the use blogs to be able get
out product information very quickly. People follow follows the organization. However,
having said that there are risks of those types of blogs obvious. Obviously, there’s
the issue actually leaking sensitive information. Since we information about the company that
the name revealed trade secrets or just making statements that may be considered libel or
defamation barter can also be biased against the company and content that companies reputation
as a result, a lot of times companies of internal policies can guide the organization’s use
of blogging a special category of blogging is referred to as microblogging to form blogging
allows users to write, write and publish messages usually pretty limited in terms of the number
of characters 40 is pretty standard and the need to be viewed by anyone or by restricted
group chosen by the user Twitter obviously is is the king of this domain space twitter
is a free microblogging service allows its users to send and read other users updates.
These these are referred to as tweets to test textbased posts of 240 characters in length
and post twitter on the essentials of twitter for business. Some of the major benefits of
twitter. Some of the essentials of twitter for business the last business to quickly
share information with people who are interested in a company also allows him to gather real-time
market intelligence and receive customer feedback, obviously very valuable organization, plus
an organization to build relationships with customers, partners and other people might
care about your particular company. As far as the individual, the individual is allows
individual hotel company where nothing had a good or bad experience for that matter the
business also allows you to offer product ideas. Hey, why don’t you do this to you what
to do that. That also allows customers to learn about great offers some of the major
benefits of twitter is that it gives the organization or gives an organizational chance to communicate
informally and casually with the customer on their terms, creating a friendly relationship.
Along the way. The reason that’s important is that it helps to shrink the emotional distance
between the company and their customers because you’re speaking a more casual casual term
rather than the legalese that might normally hear your feels like you’re talking to a friend
rather than some some more just all that you might be speaking to talking to an organization
allows direct access between two a a a user to a customer or potential customer. It provides
direct access to employees, which really cut it gives you is you with the impression that
this organization cares and is interested in responding to your needs. Examples of twitter
is enterprise tool are really in all around us. Dell uses twitter Pepsi’s twitter JetBlue
uses twitter twitter it is all around us is being used by virtually every organization
anymore. Wikis are essentially a a wiki blog if you will a blog that allows everyone to
participate as a peer. Anyone might add, delete or change content. The idea is that it’s a
collaborative effort in terms of building community websites. Wikipedia obviously is
a great example you set an online encyclopedia in which various users can add content they
can review content that can change the complete that content. It’s really kind of an extension
of a blog which is where the term wiki blog comes in words the blog usually just have
an individual it creates that blog and it may be opened up to various comments that
you can have in response to the blog itself, but the content is unchanged except for the
creator when the creator chooses to a wiki on the other hand is really opened up for
everyone to be able to participate as a peer. It will make those changes delete or change
content as far as business applications. Wikis a great application for organization is to
develop content knowledge management systems to be able allow the organization to document
processes to document knowledge to capture knowledge within an organization so that as
employees leave the organization. The knowledge of those employees doesn’t leave the organization
within wikis are an ideal application to be able capture knowledge. Knowledge management
issues for organization lots of these tools have techniques that you can use to facilitate
finding information. For example, in twitter you can can use tags to be a little identify,
classify, and find related information. A tag is a nonhierarchical keyword, signed a
piece of information, such as an Internet bookmark digital image video clip work any
computer document. Think of the tag as kind of a hyperlink. It allows you is a textual
hyperlink. It allows you to categorize the text were the words around the tag with whatever
it is that you write yet at the same time with that tag. When you click on it. It allows
you to go to other postings that have used the same tag allows you to categorize that
information. This leads to the idea of a folksonomy or collaborative tagging, social tagging the
practice and met at the practice and method of collaboratively creating, classifying,
and managing tags to annotate and categorize content. So when you have a collective way
of of of referring to something using a specific tag this now becomes a practice for an organization
for company for a group to be able to actively do it in a certain way to make sure that you’re
getting the proper cadres categorization that you’re looking for yet another social software
tool are these mash ups which is a combination of two or more websites into a single website
that provides the content of both sites whole or partial to deliver a novel product. Consumers
good examples use of Google maps in Google maps 100 can import data from a variety of
different sources that allows you to kind of visually or graphically see the red representation
on map. For example, I like McDonald’s. I will see the location of all the various McDonald’s
that are in the area. I can use a mashup show me the various McDonald’s on Google map. Another
tool is the use of social bookmarking. This is not something I really see a lot of value
in but there are some people who do social bookmarking is a web service for sharing Internet
bookmark sites are popular popular way to store, classify, share and search links through
the practice of folksonomy techniques on the Internet and Internet. So basically it’s a
way of categorizing different different websites and saving them as as as bookmarks into classifications
you will and insure them amongst friends and other users. Section 2.7 virtual communities
and social networks books talk about virtual communities. Community is a group of people
with common interests who interact with one another, usually based on similar interests
virtual community is really pretty much the same thing. The only differences they operate
in an online environment using the Internet. There are variety of different characteristics
of traditional online communities and classifications. Some of the types of communities include associations
think about parent-teacher associations. For example, you may communities that the development
in order to bring the two groups together to talk and discuss issues of parents and
teachers have you get affinity portals communities organized by interest, MySpace, for example,
back in 2010 10 became entertainment social network. Other examples include communities
of that organized around vocations, political parties, trade unions, etc. ethnic communities
exist. For example, ones that the pop-up and organize around a specific country or around
specific language gender communities include ones that they cater to specific gender. So
for example women.com community interest in specifically for women. Some cater specifically
young people, others to specific practices such as doctors and lawyers, neighborhood
communities in which some cases, newspapers create virtual communities to discuss local
events, community events still user share photo share local news shut social networking
sites. Obviously Facebook LinkedIn are good examples and virtual worlds such as Second
Life. Other classifications virtual communities can broadly be described as either being public
or private, which are really pretty so pretty self-explanatory. Yet another classification
virtual networks include discussed on page 80 transactions. The purpose or interest relations
or practices fantasy social networks or virtual worlds online social networks can is for the
definitions basic information. A social network is related. It’s just a place where people
can come to create their own space their own homepage their own identity online is a place
to write about themselves right blogs to post and share pictures or videos share music they
talk about some of their ideas and linked other web locations that they bet that they
think are interesting will share with their friends in the outside world. Source the size
of some of the social networking size sites for organizations. Obviously there there.
The growing very rapidly love them are over 100 million users to remember them or program
remain users members present Facebook had 750 million members. In June 2011 typical
annual growth of a successful site is 40 to 50% in the first few years, and 15 to 25%
thereafter. And the idea is that they really need a lot of users a social networking site
cannot succeed unless they have a lot of users more user so they happen more successfully
will be because they rely on those you generate content to share those photos to share that
music to share those ideas, it’s a global phenomenon is not something is limited here
to the United States. Obviously, here in the United States. We talk about social networking
sites. We talk a lot about MySpace, Facebook LinkedIn, etc. but the reality is worldwide.
There’s a variety of editors as well. Princeton, for example, or could mix the winter storm
just to name a few. So it’s not just limited to, here in the states. As far as some of
the representative capabilities and services provided by is very social networking sites
are usually create some type of a webpage some type of a portal of a presence on the
web usually have a group of friends, a circle of friends, something that are linked together
in some fashion. There’s usually some type of of 400 and discuss ideas and topics usually
usually a way to share photos, videos, and things of that nature. Wikis can be used directly
create documents blogs and so the whole host of of capabilities and services offered by
social networking sites that largely are comparable across social networking site. As with most
things in life. The business world is is taken the idea of social networks and tried to apply
it in a way that that makes sense for business or allow business to to become more efficient,
better use of their resources. This is where the idea for the business-oriented social
network comes in a business-oriented social networking social network. Major interest
is business topics and whose members have professional people. Such networks are used
mostly creating contacts, providing requirements and enlisting member support problem solving
and knowledge sharing the prime example in this area. His LinkedIn. It allows professionals
to go on create an online profile themselves and link themselves, tie themselves together
with other professionals in their community practice business-oriented social networks
allow individuals to establish new business contacts to systematically expand and manage
their complex networks to market themselves to employers professional business contacts
to identify experts and received by some virtually in any business related topic organize meetings
and events and hopefully control the level of privacy sure that the personal data are
protected some capabilities of business-oriented networks to encourage customers to rate consumers
to rate and comment on products to allow consumers to create their own topic areas and build
communities for around shared interest possibly related to the company’s products to hire
bloggers staff editors who company formatted essays and discussions allow not really driven
by customer, this whole whole whole host of other capabilities. The business-oriented
networks really rely on end-users or consumers or customers to generate an awful lot of context
business models and services related to social networking rely on customer reviews in order
to generate revenues at least in the one sentence is one way to make money is through customer
reviews. No one is through location-based services companies can advertise based on
the individual’s location by monitoring your location of your smart phone or your laptop
or computer. I have no revenue model or approach to making money in this. This area is traditional
traditional advertising. Ideally we need Viola to monitor or analyze how effective were being
messed were social network analysis software we use that to identify, represent, analyze,
visualize or simulate network nodes and how they are performing and how their operating
and he gives us insight into an individual or groups sphere of influence and how big
their their group is it allows the to start to determine is that an effective group or
community of interest that we want to pursue in terms of advertising and things of that
nature. Some specific companies that they can’t fall within some of these areas Xanga
Xanga is a ring site a site that facilitates the creation of Walgreens which are basically
bringing together various bloggers that walk on a similar topic and allows those blogging
waters to have their blocks categorized. So when a person is interested in the topic,
they can see these various bloggers and in the various blogs and through those particular
read through this box. Another one is did a community-based popularity website with
an emphasis on technology and science of a recently Expanded to cover other topics such
as politics and videos, the, combines his social marketing blogging tool syndication
of the form of nonhierarchical democratic control editorial control allows users to
submit new stories and websites and user control ranking system promotes the stories in size.
The front page so whichever stories are generating the most interest are the ones to get pushed
up and covered the most mobile social networking mobile community activities and social networking
services are all really, tied together mobile social networking relies on on social networking
sites and smart phones essentially to be able to scale down some of the social networking
sites capabilities in order to facilitate their use in the mobile setting allows you
to quickly and easily take a picture posted online to pressure, to use location-based
services to let my friends know where you are and those are some of the services a social
network. Network services provide section 2.8 in the book virtual worlds as an electronic
commerce mechanism talks about virtual worlds. The use of avatars as a way to generate revenue
for organizations for virtual world is a user-defined world in which people can interact play and
do business. The most publicized virtual world of Second Life. Essentially you login your
able to walk around your will see various various buildings, organizations will create
a presence in Second Life. For example, Coca-Cola presence of Second Life. You can visit their
company to make purchases that nature every product literature virtual worlds such as
Second Life rely on the use of avatars animated computer character that exhibits humanlike
movements and behaviors so you represented by an avatar in this virtual world. Your avatar
can meet up collectively with other avatars in order to collaborate on various projects.
For example, the book discusses IBM employees get together to work, work on projects and
share ideas, so there is avatars can be seen the virtual world and facilitate the communication
your target can also be used in researching marketing. For example, but talks about the
top of page 1 should page 87 BuSpar what would hotels constructing prototype new brand of
hotels that they were planning on rolling out so they could test this virtual world
to in terms of feedback from users virtual shopping can also be conducted as a national
glasslike you can go to various organizations for his companies that have a presence in
Second Life or in a virtual world and the virtual environment and assuming they have
it all set up virtual world to be delivered so you can essentially go into this virtual
store and look at the various things that they have on on the shelf look at them read
about them talk to a virtual or talk to an avatar of a salesperson in order to get feedback
about this particular good and then make your purchase all in this virtual world. You can
also treat virtual properties space in these virtual worlds is obviously limited by what
my heartso make it creates this virtual real estate. This virtual realistic to me can be
traded physical property. The last section of the book. 2.9 the future the future Web
2.0 and Web four point talks about the future of of the web currently in Web 2.0, Web 3.0
really can refers to something that we don’t know a lot about just yet hasn’t developed
just yet. Web 2.0 really has a lot of content in that involves user interaction, your content
generation with 3.0 is a term used to describe the future. The World Wide Web insisted of
the creation of high-quality content and services produced by gifted individuals using Web 2.0
technology as an enabling platform now key component to what is seen as Web 3.0 is this
idea semantic web semantic Web is an evolving extension of the web in which web content
can be expressed not only natural language but also in a form that can be understood
and interpreted and used by intelligent computer software agents permitting them to find, share
and integrate information more easily. That’s a nice formal definition. It was a really
mean what it really means is that when we type in something into her search engine that
are search engine just doesn’t just look for the words that we typed into the search engine.
It interprets the meaning behind those words and is able to find relevant content to the
meaning of those words in other words, when you say reddish red car. It knows that you’re
talking about you that you like this color red and so it understands that there’s various
shades of red. It understands that you said car you didn’t say truck you didn’t say bicycle
things of that nature. The semantic Web is not only an understanding of the actual natural
language but the meaning behind that language as well. If Web 3.0 is hard to describe Web
four point certainly is, but at this point, seen as the generation as Web 3.0. Obviously,
it still is still an unknown entity currently envisioned as being based on islands of intelligence
and is being ubiquitous members being everywhere as far as the technological environment disrobe
in a couple of noble predictions that describe Web 4.01 was by McKinsey and Company who basically
came up with 10 tech enabled business trends to do, keep an eye on to keep an eye the idea
that distributed co-creation moves into the mainstream. In other words, creation content
is created by content providers variety different places or spaces as if you do not just from
companies putting out content about their their products with us as consumers as well.
This can be become much more mainstream. According to the company making the network were making
the network. The organization of the words. Our systems are what rely on completely. Everything
is going to our our physical world is going to mimic what we do in the virtual collaboration
scale. Everybody’s going to collaborate. This is why it’s so important to work on group
projects, especially in a virtual environment online environment collaborations going to
be everywhere. The growing Internet of things in other words, pervasive computer computers
should be everywhere. We have smart phones with tablets there in our cars, we expect
computers. The movie gone through a variety of other production is another set of predictions
by Nicholas Carr, Nicholas Carr who is a prolific researcher in the field of information systems
without free e-book in 2008 and made her a discussed several different trends including
more intelligent computers order and efficient data centers based on cloud computing. The
use of virtualization parallel processing utility cloud computing become more etc. so
if you’re me. Kind of like a graphical representation like this visualize and see how this might
look at some of the authors provide that to us here in her little 2 x 2 matrix here in
Tennessee that were moving common in a zigzag pattern from the bottom left ultimately to
the top right that are our axis along the bottom is in social connectivity, which is
certainly something that we’ve done the web is removed from being very static and operating
in isolation or in silos also operate separately to more of a social context, but the future
really kind of scene is his being more semantic in that words have meanings and so is more
than just what we type. It’s the meaning behind those words. So the future will come entails
our quadrant there in the top left in which an increasing knowledge connectivity and reasoning,
which is is that axis occurs and ultimately over into the fourth quadrant if you will
the Yupik of ubiquitous web connection which connects intelligence surf your organization.
Your manager for an organization man you just read this chapter, some things you might be
considering is whether not your organization should start using options for selling and
that that’s an issue to consider if your manager it may or may not make sense. Depending on
the product the service is trying to sell should you barter again. Something else that
the symptoms would be an interesting strategy is lack cash if you don’t have cash of your
startup bartering may be a good approach. How do we select merchant software on the
slot products lots of vendors that are out to provide provide software that’s available
to to organizations, small businesses, Royal think about some online offers from from Yahoo
or eBay things like that because a lot of times they will offer hosting services as
well. It’s a way to limit the investment. The small organizations have to put up how
can we use Facebook and other social networking sites in our business was a lot of possibilities
are talk about that more and chapter 7, but certainly opportunities for advertising and
marketing existed in these types of social settings. How should we start. How shall we
start Web 2.0 tools will is like most things you cannot dip your toe and start small and
build up determine whether a collaborative tool would benefit the team or group working
on specific specific project people. The marketing department are often good first targets for
information sharing those because of usually once tasked with sharing corporate information
to think about blogs but about some of the Google sites that you can create in order
to facilitate collaboration amongst team members so we take part in virtual worlds. This is
it is, hard-won virtual worlds are not real mainstream just yet that they probably will
be Sunday but they’re not just yet, so that may be something to, step back from 44 bit
number seven. How should we deal with Web 2.0 risks. The book talks more detail. Russell
Marissa Web 2.0 on the sum of some of the wristed to be wary of depending on the applications
of the knowledge from unreliable participants may downgrade the credibility of knowledge
from open sources to protect the security get some outside legal advice user risk expert
for large projects to examine and evaluate the risks to some of for this chapter Chuck
to talk to some of the activities of the mechanisms of e-commerce. We talk about the marketplaces
and some of the components we talked about the major types of the marketplaces we talk
about electronic catalog search engines and shopping carts also talked about on different
types of options variety different types reverser support options, etc. some of the characteristics
we talk about some of the benefits as well as limitations of options than we talk about
bartering and negotiating started talking about the structure role virtual communities
talk muscle of the web 2.2 .0 tools such as social networks and blogging nature social
networking and e-commerce mechanism talk about virtual worlds in the chapter finished up
talk about web 3.04 point if you have any questions. Be sure an email take care.

3 thoughts on “BCIS 5379 – Chapter 2: E-Commerce: Mechanisms, Infrastructure, and Tools

  1. Professor, you have become my addiction. I have another question, I don't really see a specific feature that distinquish a blog and a user-produced regular Web page. Is there even something that can make a specific diffrence between them?

  2. Sir can i ask something about the broker? There are 6 types of broker that are buy/sell fulfillment, virtual mall, metamediary, bounty, search agent and shopping facilitator. Can i know the further explanation of this 6 types? Or can Sir sent me a link to this 6 types of broker so that i can know better about it? Your help is much grateful

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