CIT 605 CONCEPTS AND APPLICATIONS OF E-BUSINESS NATIONAL OPEN UNIVERSITY OF NIGERIA SCHOOL OF SCIENCE AND TECHNOLOGY COURSE CODE:CIT 605 COURSE TITLE:Concepts and Applications of e-Business i CIT 605 CONCEPTS AND APPLICATIONS OF E-BUSINESS Course Code CIT 605 Course Title Concepts and Applications of e- Business Course Developer/Writer Dr. Bertram C. Iloka Data Processing Centre NPopC, Enugu Nigeria Course Editor Programme Leader Course Coordinator NATIONAL OPEN UNIVERSITY OF NIGERIA ii CIT 605 CONCEPTS AND APPLICATIONS OF E-BUSINESS CONTENTS PAGE Module 1 Introduction to Basic Concepts and Skills ……. 1 Unit 1 Understanding e-Business and e-commerce I ……. 1 Unit 2 Understanding e-Business and e-Commerce II ……. 1 Unit 3 Exploring e-Business Technologies………………… 1 Unit 4 Electronic Impact and Technology ………………….. 1 Unit 5 Concepts and Applications of e-Business Infrastructure………………………………………… 1 Module 2 Techniques and Methodology for Site Development.. 1 Unit 1 e-Business Strategy and Implementation in Firms ….. 1 Unit 2 Framework for e-Business…………………………… 1 Unit 3 e-Business Chain …………………………………… 1 Unit 4 e-Business Requirement and Benefits ……………… 1 Module 3 Guide for Building E-Business Sites ……………… 1 Unit 1 The e-Business Modeling …………………………. 1 Unit 2 The e-Business Evolution Phases ………………… 1 Unit 3 The e-Business Project Management …………….. 1 Unit 4 The Application Service Providers ……………….. 1 Module 4 Developing and Enhancing a Product Catalogue ….1 Unit 1 Developing a Product Catalogue and Order Processing ………………………………………….. 1 Unit 2 Transforming Businesses …………………………. 1 Unit 3 Building a Web Presence Site…………………….. 1 Unit 4 Application Development Process ……………….. 1 Unit 5 Electronic Infrastructure and EDI ……………….. 1 Unit 6 Marketing Strategies for e-Business………………. 1 Unit 7 Legal, Ethical and other Public Issues…………….. 1 Glossary …………………………………………….…………287 iii CIT 605 CONCEPTS AND APPLICATIONS OF E-BUSINESS MODULE 1 INTRODUCTION TO BASIC CONCEPTS AND SKILLS Unit 1 Understanding e-Business and e-Commerce I Unit 2 Understanding e-Business and e-Commerce II Unit 3 Exploring e-Business Technologies Unit 4 Electronic Impact and Technology Unit 5 Concepts and Applications of e-Business Infrastructure UNIT 1 UNDERSTANDING E-BUSINESS AND E- COMMERCE I CONTENTS 1.0 Introduction 2.0 Objectives 3.0 Main Content 3.1 e-Commerce 3.2 e-Commerce Site Features 3.3 What is e-Commerce Marketing? 3.4 Beginning & Feature of e-Commerce Marketing 3.5 What are the Benefits of e-Commerce Marketing? 3.6 What is e-Commerce Web Design? 4.0 Conclusion 5.0 Summary 6.0 Tutor-Marked Assignment 7.0 References/Further Reading 1.0INTRODUCTION The rapid development of internet and e-Commerce has dramatically changed the role of information technologies in business. Evolving into e-business has become a global trend and is a new paradigm in information systems. In this unit you will go through brief introductions to e-Commerce, including what it is, how far it has come and features specific to e-Commerce. You will also be introducing, defining and explaining e-Commerce marketing and e-Commerce web design. In addition, you will be exposed to many of the biggest benefits to conducting business Online, marketing Online and designing the site correctly. 1 CIT 605 CONCEPTS AND APPLICATIONS OF E-BUSINESS 2.0OBJECTIVES At the end of this unit you should be able to: • Define e-Commerce • Identify the site features of e-Commerce • Understand e-Commerce marketing • Contribute to the discuss on beginning and future if e-Commerce • Discuss the benefit of e-Commerce marketing • Understand the concept of web design. 3.0MAIN CONTENT 3.1 e-Commerce, e-Business, Marketing & Design Overview: e-Commerce e-Commerce, which is short for electronic commerce, is the process used to distribute, buy, sell or market goods and services, and the transfer of funds online, through electronic communications or networks. Electronic commerce is commonly referred to as Online commerce, Web commerce, e-Business, e-Retail, e-Tailing, e-tailing, e- commerce, e-Commerce, e-commerce, e-com or EC. e-Commerce basically began (although debated) in 1994 . 3.2 e-Commerce Site Features Typical business web sites do not usually have the same features as e- Commerce enabled web stores do. In order to effectively distribute, market and sell goods or services Online you will need certain features only found on e-Commerce sites. Features may include: • a shopping cart, • ability to process credit cards, • online product catalog, • automated inventory system, • databases, • bulk email program, • statistics tracking other non-computer technologies such as: • product warehousing and • shipping transportation. 2 CIT 605 CONCEPTS AND APPLICATIONS OF E-BUSINESS 3.3 What is e-Commerce Marketing? e-Commerce Marketing Defined: e-Commerce marketing can be defined in many different ways and can include both Online or Offline campaign strategies. Most often, it's considered to be the marketing of goods and services over the Internet or any other electronic network (like a mobile phone or pda). e-Commerce marketing is commonly referred to as: • e-Commerce optimization, • online marketing, • search engine marketing, • search engine optimization, • catalog optimization, • catalog, product, • merchant marketing and many more variations of those terms. 3.4 Beginning & Future of e-Commerce Marketing e-Commerce marketing began when the first shopping cart enabled sites started popping up all over the Net. As competition in major markets such as consumer electronics, gifts, clothing or apparel and outdoor goods started to grow so did the need for e-Commerce marketing. Online retailers who first began to market through the Internet saw huge potential for success Online and many of them saw enormous profits all the way up until the dot com boom. SELF ASSESSMENT EXERCISE Identify the site features of e-Commerce. Marketing Strategies & Techniques e-Commerce marketing today is typically made up of several creative or unique mixes of traditional and new-age marketing strategies that can include: • techniques related to direct mail, • email marketing, • search engine optimization, • CPC or sponsored listings, • building related links, • establishing brand recognition and social media marketing. 3 CIT 605 CONCEPTS AND APPLICATIONS OF E-BUSINESS There are many other ways to market an e-Commerce store and new ways of reaching out to potential customers are always being discovered and tested. 3.5 What are the Benefits of e-Commerce Marketing? The processes involved with marketing products on the Internet and increasing company or brand recognition among consumer markets have several benefits to both Online shoppers and merchant store owners. The biggest benefits of e-Commerce marketing include: • less costs than print advertising, • helps build customer relationships, • brand credibility It costs less to get an e-Commerce marketing campaign running and operational. 3.5.1 Tax Breaks for Conducting Business Online It is common knowledge that conducting business Online has certain tax advantages compared to brick-and-mortar selling. Many e-Commerce merchants who qualify for such tax deductions may find that they can save more in taxes than if they sold using traditional retail or a physical storefront. Home-based e-Business can deduct many of the same things traditional businesses can. Traditional businesses can: • write-off utility, • rent or mortgage bills as costs of doing business Online merchants can also write-off certain portions of utilities. Vehicles are another common deduction along with office equipment and other time spent on setting up or running the business. Consider the tax benefits you could reap by conducting business through e- Commerce. 3.5.2 Cheaper than Print Advertising Many traditional businesses are used to more traditional marketing campaigns such as print and yellow page advertising. Many traditional business owners are not aware that a majority of e-Commerce marketing strategies are far cheaper than any of the best Offline, print advertising methods that have been used for years. Traditional advertising is still a quality form of marketing, however it is not always cost effective, especially for small businesses. Print advertising can get expensive as there may be a need to update regularly, which requires new work be 4 CIT 605 CONCEPTS AND APPLICATIONS OF E-BUSINESS planned and generated. It is much quicker and more cost effective to update and maintain e-Commerce marketing campaigns, especially as technology continues to improve. By conducting business Online and using the proven form of e-Commerce marketing, merchants have the potential to generate far more in Return On Investment (ROI) with less spend than they could ever hope to expect from costly print advertising campaigns. 3.5.3 Interactive Ads or Marketing Campaigns Using advertising that engages potential customers is key in today’s fast paced, little time consumer shopping space. One benefit to e-Commerce marketing is the merchants ability to develop and improve a number of interactive advertising or marketing campaigns designed to reach out and engage shoppers. Videos, flash, presentations, graphics, moving animations; they can all be used as interactive devices to help entice shoppers to drop in and shop around for the products or services offered. Interactive ads and applications on the Web are predicted to reach new heights as technology improves. 3.5.4 FlexiBle Ad or Marketing Campaigns Many traditional marketing strategies are limited in what