eCommerce

1
eCommerce

• Presented By
• Henry Vasquez
• Collene Kelly
• Vinh Phan
• Tanya Lastrilla

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Outline

• History of Ecommerce
• Online Ecommerce Sites
• SCM Its Technologies
• Security of Ecommerce
• Demand of Ecommerce
• Pros Cons of Ecommerce

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What is eCommerce?

• The Buying and Selling of goods over the internet.

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History

• 1960 - Computers first made their way into
  commercial applications in the with ERMA (the
  Electronic Recording Machine Accounting).
• 1970s and 1980s - businesses extended their
  computing power beyond the company's walls,
  sending and receiving information with business
  partners and suppliers electronically via EDI.
• - 1984 EDI or electronic data interchange
  guarantees that companies would be able to
  complete transactions with one another reliably.

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History continued

• 1992 - offers online retail products to its
  customers. This gives people the first chance to
  buy things off their computer.
• 1994 - arrived. Providing users a simple
  browser to surf the Internet and a safe online
  transaction technology called Secure Sockets
  Layer.
• 1995 - Two of the biggest names in e-commerce are
  launched Amazon.com and eBay.com.

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Supply Chain Management
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Reason to Adapt SCM

• Meet customers satisfaction
• Reduce Cost
• Gain competitive advantage

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Supply Chain Management

• Sharing inventory with its loyalty suppliers.
• The suppliers use the same software that Dell use
  to manage its inventory.
• Share demand forecast with suppliers on monthly
  basis.

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I2 Technology

• i2 technology is the new tool for the new
  generation of supply chain management.
• Visibility Providing a clear, unobstructed view
  of operations up and down a supply chain is
  critical for success
• Planning include demand-driven, constraint-based
  tools designed to improve sales and operations
  planning and factory planning, while also helping
  companies manage risk
• Collaboration Improved collaboration with supply
  chain partners can break down the walls
  separating companies, enabling an extended supply
  chain to compete as a single system
• Control successfully monitor and manage the
  system will improve decision-making and have the
  ability to rapidly replan based on changing
  business dynamics.

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i2 Customers

• Automotive and Industrial Toyota, Volvo, Ford,
  etc..
• High Tech Dell, IBM, LG, etc..
• Consumer Industries Unilever, Sunbeam, 3M
  Canada, etc..
• Retail Best Buy, Payless Shoes Sources, Louis
  Vuitton, etc..

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What is a Secure Site?

• uses the HTTPS protocol to ensure that
  information cannot be stolen by a third party
• SSL Certificate
• allows the web browser to verify the identity of
  a secure site before sending private personal
  information

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What is a SSL Certificate?

• Secure Socket Layer
• create endpoints for communication and make
  connections between those ends
• SSL encryption allows the seller to verify the
  identity of the buyer the business transaction is
  being negotiated with

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Popular Products
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Biggest Five Online E-Commerce Sites 2006

• Ebay.com
• Yahoo.com
• Amazon.com
• Google.com
• Buy.com

• According to a Forrester Inc. report, online
  retail sales will grow at a 25 annual growth
  rate over the next five years. Online retail
  sales will reach nearly 230 billion and account
  for 10 of total US retail sales by 2008. On
  Ebay, more than 430,000 people are making a full-
  or part-time living from the auction site. Online
  sales including travel will rise to 172.4
  billion this year."  -- Forrester

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Some Ask

• Why the Hype?

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Demand

• "...the estimate of U.S. retail e-commerce sales
  for the third quarter of 2005, adjusted for
  seasonal variation and holiday and trading-day
  differences, but not for price changes, was 22.3
  billion, an increase of 5.7 percent (1.7) from
  the second quarter of 2005."--  U.S. Census
  Bureau

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and more Demand

• "Online ad growth of 33.7 percent is expected in
  2005 to 12.7 billion, raising a previous
  estimate of 11.5 billion for the year. eMarketer
  had estimated 2004 ad revenue at 9.5 billion."
  --  eMarketer

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Positives and Negatives

• Decrease in Store Sales.
• -Shipping Stores
• -Brick-and-Mortars
• -Movie Rentals

• Online Visits Increase Store Sales
• Online Coupons

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Questions?

• Thank You