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A FRAMEWORK FOR ADOPTION OF E-COMMERCE PROGRAMS IN HIGHER EDUCATIONAL INSTITUTIONS Ergun Gide Mingxuan Wu Faculty of Informatics and Communications Central Queensland University Australia Abstract: For the last nine years, electronic commerce (e-commerce) is tremendously changing the way we do business all around the world. As today’s dynamic global business environment moves towards Internet and e-commerce, then the higher educational institutions such as universities are also being forced to introduce new programs in Internet and e-commerce in order to supply knowledge-based and skilled people to the e-business marketplaces. The purpose of this paper is to analyze the current situation and further demand of e- commerce education, and describe their features. This paper also introduces the Australia’s experience in e-commerce programs, and provides a proposal framework for developing e-commerce programs, specially, for China’s higher educational institutions, which have been facing opportunities and challenges after China was accepted to be a member of World Trade Organization (WTO). Key Words: E-Commerce, Higher Education, E-commerce Education, E-commerce Program. 1. Introduction The Internet and the web provide an infrastructure for truly world-wide markets and for new web-based business opportunities (Essex 2003), such as negotiating and auctioning, business-to-business internet- based transactions and consortium purchasing. Internet usage as a part of people's everyday lives is increasingly pervasive around the world, says a new study (Cox 2003), and e-commerce is more than ever a part of life online. Miller (2000) believed that e- commerce was perhaps the fastest growing phenomenon ever to affect the business community. The trend of e-commerce application is just only in the wire environment, but also in the wireless environment. E-commerce reduces or eliminates the geographical and time barriers that limit the exchange of information and information based products and services (ND 2003). Today, e- business/e-commerce is no longer an option for companies who want to remain competitive and successful in the new Internet economy (InsDomains 2001), which has become a critical marketing tool, an essential distribution channel, a cost effective service medium, and the required technology for your company's survival and growth. Even to the extent that, a research (Philadelphia, 2004) indicates that those businesses that do not use e-businesses will be out of business. In today's dynamic and tough economy, e-commerce (Internetnews 2003) has strong potential to be a bright spot that can play an important role in fueling a recovery. Some experts (Naraine 2003) predict that the total business-to-consumer (B2C) commerce market is projected to reach $133 billion by 2005. E- commerce sales (Trendsetters 2003) are predicted that will grow to $218 billion by 2007, representing 8% of total retail sales. However, e-commerce as a new branch of commerce involves informatics, communication, multimedia, marketing, advertising, management, finance, business, law, education and training. It needs a lot of compound talents. The configurable contradiction of 1

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Page 1: Adoption of E-commerce Programs in Higher Educational Institutions

A FRAMEWORK FOR ADOPTION OF E-COMMERCE PROGRAMS IN HIGHER EDUCATIONAL INSTITUTIONS

Ergun Gide Mingxuan WuFaculty of Informatics and Communications Central Queensland University Australia

Abstract: For the last nine years, electronic commerce (e-commerce) is tremendously changing the way we do business all around the world. As today’s dynamic global business environment moves towards Internet and e-commerce, then the higher educational institutions such as universities are also being forced to introduce new programs in Internet and e-commerce in order to supply knowledge-based and skilled people to the e-business marketplaces. The purpose of this paper is to analyze the current situation and further demand of e-commerce education, and describe their features. This paper also introduces the Australia’s experience in e-commerce programs, and provides a proposal framework for developing e-commerce programs, specially, for China’s higher educational institutions, which have been facing opportunities and challenges after China was accepted to be a member of World Trade Organization (WTO).Key Words: E-Commerce, Higher Education, E-commerce Education, E-commerce Program.

1. IntroductionThe Internet and the web provide an

infrastructure for truly world-wide markets and for new web-based business opportunities (Essex 2003), such as negotiating and auctioning, business-to-business internet-based transactions and consortium purchasing. Internet usage as a part of people's everyday lives is increasingly pervasive around the world, says a new study (Cox 2003), and e-commerce is more than ever a part of life online. Miller (2000) believed that e-commerce was perhaps the fastest growing phenomenon ever to affect the business community. The trend of e-commerce application is just only in the wire environment, but also in the wireless environment.

E-commerce reduces or eliminates the geographical and time barriers that limit the exchange of information and information based products and services (ND 2003). Today, e-business/e-commerce is no longer an option for companies who want to remain competitive and successful in the new Internet economy (InsDomains 2001), which has become a critical marketing tool, an essential distribution channel, a cost effective service medium, and the required technology for your company's survival and growth. Even to the extent that, a research (Philadelphia, 2004) indicates that those businesses that do not use e-businesses will be out of business.

In today's dynamic and tough economy, e-commerce (Internetnews 2003) has strong potential to be a bright spot that can play an important role in fueling a recovery. Some experts (Naraine 2003) predict that the total business-to-consumer (B2C) commerce market is projected to reach $133 billion by 2005. E-commerce sales (Trendsetters 2003) are predicted that will grow to $218 billion by 2007, representing 8% of total

retail sales. However, e-commerce as a new branch of

commerce involves informatics, communication, multimedia, marketing, advertising, management, finance, business, law, education and training. It needs a lot of compound talents. The configurable contradiction of talent is becoming an outstanding problem after China’s acceptance of membership into the WTO.2. The Challenges and Future of E-Commerce

E-commerce is often referred to as business that is conducted over the Internet using any of the applications that rely on the Internet, such as e-mail, instant messaging, shopping carts, Web services, FTP, and EDI, among others, which can be between two businesses transmitting funds, goods, services and/or data or between a business /a customer (Jupitermedia 2004). Also, it can between government agents.

With the continued growth of e-commerce, it (Daniel 2000) will be necessary to have more and more people with the necessary skills to understand all aspects of e-commerce.2.1 The Demands for E-commerce Education

The demand for e-commerce education is insatiable at the moment because of the Internet. Many institutions throughout the Asian region and Australia are jumping on the bandwagon to offer e-commerce degrees both Bachelors and Masters (Ee 2001).

On educational enterprises, e-commerce has a curious effect bringing pressure for change from the bottom, driven by student expectations and technical skills - and from the top, from political and business leaders demanding the efficiency of e-commerce technologies. E-commerce now encompasses all aspects of business and market processes enabled by web technologies, and

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currently intersects with education in at least three ways (Sanford 2000): As a separate educational topic; E-commerce principles are affecting many higher education transactions; These changes are animating a growing interest by digital economy leaders -- both private- and public-sector -- in the nature and quality of education.

Some researchers (Jenkins 2002) believed that students were quick to respond seeking courses and programs that provide education in E-commerce; on the other hand, government agencies are also affected in the same manner. 2.2 The Challenges for E-commerce Education

Electronic commerce has become a key tool for organizations to achieve strategic competitive advantage. With massive changes in ways that firms do business, effective integration of information technology into business practice is crucial to success. However, electronic commerce is a multi-disciplinary field that cuts across traditional functional boundaries. As such, success relies on experts who possess both depth of knowledge in their specialist area as well as breadth of understanding about the multiple dimensions of electronic commerce (Bond 2002).2.3 Career Opportunities

In recent years the Internet, the web and computer networks have become essential everyday business tools. Not surprisingly the IT industry is one of the world’s fastest-growing industries and graduates can expect exciting and rewarding careers anywhere in the world (JCU 2003).

According to Chan & Swatman (2000, pp.4-13), e-commerce was divided into the following seven categories: Web Development and

Programming; E-Commerce Systems and Solutions; Business Analysis; Sales and Consultancy; Management and Strategic Planning; Education and Training; Research 3. Brief of Australian Universities’ E-Commerce Programs

There are 43 higher educational institutions in Australia (Detya 2003), which include 39 universities. Among all of the universities, 31 universities provide bachelor of e-commerce; 5 universities do not provide a bachelor program in e-commerce, but provide master’s program. Among these programs, Victoria University (VU) and Central Queensland University (CQU) demonstrate the outstanding progress. VU provides one bachelor program of e-commerce and eleven double bachelor programs of e-commerce. Specially, CQU provides a leading e-commerce program both bachelor and master’s degrees within Australian universities.

The following table 1 shows that six e-commerce programs (about 15.38%) are provided by faculties of IT, sixteen (about 41.03%) by faculties of business, and only one (about 2.56%) by faculty of engineering. The majority of the universities with 21 (about 53.85%) are providing three-year full-time studies; however, eight universities (about 20.51%) are providing double degree programs. The study duration in ten universities (about 25.64%) are four or five years; specially, all of the double degree programs are over three years studies; five universities (about 12.82%) are providing only master’s program and do not provide bachelor program; only three universities within total thirty-nine universities (about 7.69%) do not provide bachelor of e-commerce or a related program.

Table 1: Australian E-commerce Programs by the end of 2003PROGRAMS DURATION IT Business Engineering Double SUM

num % num % num % num % num %BACHELORS Three Years 5 12.82% 16 41.03%         21 53.85%

Four Years 1 2.56% 1 2.56% 6 15.38% 8 20.51%Five Years 2 5.13% 2 5.13%

MASTERS 5 12.82%NON                   3 7.69%TOTAL                   39 100.00%

4. Proposed Framework for a Bachelor of E-Commerce Program

By July 1, 2003, China has established 1517 higher educational institutions (EDU 2003), which are classified into thirteen categories (CAS

2002) including comprehensive, science and arts, science and engineering, liberal arts, science, engineering, agriculture, medical and health science, law, literature, management, sport and arts. These different kinds of universities have different programs aims and focuses in career

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opportunities and outcomes. E-commerce program should be a mix of

commerce, computing, networking communication, multimedia, Internet technology, marketing, laws, and management, which should provide students with a solid foundation in the development of Internet applications, focus on one aspect of business activities, such as commerce, communication, multimedia, Internet technology, Internet marketing, information systems management, e-commerce security, and payment systems. Therefore, considering the present situation of Chinese higher education and Chinese talent demands, a proposal framework for China’s higher educational institutions are suggested in order to provide the following bachelor programs of e-commerce with study duration of four years, such as bachelor of e-commerce with major in: Internet/Web technologies, Information systems management, Marketing/Management.

The following programs are based on a four years full-time study, which consists of four sections including eight foundation courses (see table 2), eight core courses (see table 3), eight specialization courses (see table 4), and other eight elective courses (see table 5) totaling thirty-two courses.

Table 2: Eight Foundation Courses:

1 Computing Mathematics2 Introduction to Programming3 Computer Hardware Fundamentals4 Computer Software Fundamentals5 Introduction to Internet and Multimedia6 Introduction to Information Systems7 Introduction to Electronic Commerce

8 Systems Analysis and Design

Table 3: Eight Core Courses:1 E-Commerce Systems and Applications2 Digital Data Communications 3 Security of E-Commerce and the Internet4 Management Information Systems5 Web Site Design and Development6 Database Use and Design7 & 8 Project thesis: E-commerce Application

(Last two semesters as it has double credit points

  in chosen major area)

Table 4: Eight Courses for Specialization Study

Areas

Major in Internet/Web Technologies: 1 Computer Programming2 Algorithms and Data Structures3 Internet Programming (Advanced Java)4 Business Programming5 Software Engineering6 Wired and Wireless Networking7 Operating Systems8 Software DevelopmentMajor in Information Systems Management: 1 Fundamentals of e-Management2 Computing Programming3 Internet Programming (Advanced Java)4 E-Business Process Management5 E-Management Strategy

6E-Commerce Management Information Systems

7 E-Project Management

8Knowledge-based Management Support Systems.

Major in Marketing/Management1 Fundamentals of e-Marketing2 E-Business Financial Statistics 3 E-Marketing Principles

4Introduction to E-Human Resources Management

5 Accounting for E-Commerce 6 Advanced e-Marketing Strategies

7E-commerce Management Information Systems

8 E-Project Management

Table 5: Other Eight Elective CoursesThese courses can be chosen from other study areas so as to enlarge students' knowledge scope. 5. Conclusions

Although e-commerce has provided a number of opportunities, some researchers (Sushil & Jatinder 2001, p.32) believed that it has also opened up new challenges to tackle various problems such as linguistic challenges, import / export regulations, real-time currency exchange, security, tax and fee implications, and increasingly sophisticated frauds, etc. A report (Levy 2002) indicated that the use of e-commerce would continue to increase, despite the economic climate, with a more efficient, disciplined, orderly, and user friendly manner that would increase not only the usage rate, but also participation.

The following tips should be good suggestion (Miller 2000; About 2003):

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Undergraduates as well as postgraduate students must understand the opportunities and challenges of doing business on the web with the new technologies. It will take time, perhaps several years, to integrate these technologies into the standard business curriculum, although this is necessary in all aspects of business education. The e-commerce world is changing week by week. Be prepared to change your business plans at short notice to adapt to changing conditions.

In fact, e-commerce is challenging this world daily. The above rules and features should be considered and reflected in developing the further e-commerce program including program aims, structure, teaching methods, and study materials and resources. References:About 2003, ‘How to Succeed in Electronic

Commerce’, [online]. Available at URL: http://ecommerce.about.com/cs/faqstutorials/ht/ht_03.htm

Bond 2002, ‘Bachelor of Electronic Commerce (BEC)’, Bond University, [online]. Available at URL: http://www.bond.edu.au/bus/degrees/ugpro/Ug-becom.htm

CAS, 2002, ‘Research On Classifying Chinese Higher Education Institute: Chinese scholars provide new standard’, Chinese Academy of Sciences, 26 November 2002- last update [online]. Available at URL: http://www.cas.ac.cn/html/Dir/2002/11/26/2923.htm

Chan, E.S.K. & Swatman, P.M.C. 2000, ‘Electronic Commerce Carrers: A Preliminary Survey of the Online Marketplace’, Electronic Commerce: The End of the Beginning, Thirteenth Bled Elecronic Commerce Conference, ed. Klein, S., O’Keefe, B., Gricar, J. & Podlogar, M., Bled, Slovenia.

Cox, B. 2003, ‘E-Commerce as a Way of Life’, Internetnews, 13 February - last update [online]. Available at URL: http://www.internetnews.com/ec-news/print.php/1583721

Daniel A. M. 2000, ‘A Reference Model for Designing a Curriculum for E-commerce’, IEEE Concurrency’, March- last update [online]. Available at URL: http://cs.gmu.edu/~menasce/papers/menasce-ieee-concurrency.pdf

Detya 2003, ‘The Higher Education Sector in Australia’, 04 March- last update [online]. Available at URL: http://www.detya.gov.au/highered/unis.htm

EDU, 2003, ‘List of Chinese Higher Educational Institutions’, China Education and Research Network , 4 July- last update [online]. Available at URL: http://www.edu.cn/20030704/3087953.shtml

Ee, L. 2001, ‘Essential components of e-commerce education: Supply chain and logistics management’, Expanding Horizons in

Teaching and Learning, Proceedings of the 10th Annual Teaching Learning Forum, 7 February - last update [online]. Available at URL: http://cea.curtin.edu.au/tlf/tlf2001/ee.html

Essex (2003), ‘Why study E-commerce Technology?’, University of Essex, 9 Sep - last update [online]. Available at URL: http://www.essex.ac.uk/ecommerce/why.htm

InsDomains 2001, ‘E-Commerce is becoming a Critical Component of Business, 19 July- last update [online]. Available at URL: http://www.insdomains.com/etrends/trendsmain.htm

Internetnews 2003, ‘E-Commerce Industry Soaring’, 18 February- last update [online]. Available at URL: http://www.internetnews.com/ec-news/print.php/1585731

Jenkins, A.M. 2002, ‘Meeting The Need for E-Commerce and E-business Education: Creating a Global Electronic Commerce Concentration in The Maters of Business Administration (MBA) Program’, 23 April - last update [online]. Available at URL: http://miltjenkins.net/pub/meeting_the_needs.pdf

JCU 2003, ‘E-business’, James Cook University, March- last update [online]. Available at URL: http://www.jcu.edu.au/courses/info/e-business.pdf

Jupitermedia (2004)., ‘electronic commerce’, [online]. Available at URL: http://www.webopedia.com/TERM/e/electronic_commerce.html

Levy, M. (2002). ‘ECnow.com's Top Ten 2003 Business Trends’, [online]. Available at URL: http://ecnow.com/2003Top10TrendsArticle-withQuotes.pdf

Miller, A.L. 2000, ‘E-commerce Education: A University’s Quick Response’, [online]. Available at URL: http://www.abe.villanova.edu/proc2000/n041.pdf

Naraine, R. 2003, ‘B2C Goes From Rags to Riches’, Internetnews, 25 April- last update [online].Available at URL: http://www.internetnews.com/ec-anews/print.php/2196821

ND 2003, ‘Electronic Commerce’, The University of Notre Dame Australia, February- last update [online]. Available at URL: http://web.nd.edu.au/curriculum/degrees/marketing/ElectronicCommerce.pdf

Philadelphia (2004), ‘Why Study E-Commerce?’, Philadelphia University, [online]. Available at URL: http://www.philau.edu/sba/UndergradMajors/E_Commerce/Why_ecomm.html

Sanford S. 2000, ‘E-Commerce and Education: Pressure, Progress and Innovation’, Convergemag, May- last update [online]. Available at URL: http://www.convergemag.com/Publications/CNVGMay00/InnPartnerECommerce/InnovativePartnerECommerce.shtm

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