Chapt 6.ppt

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Introductionto

E-Commerce

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Introduction ToCommerce

Commerce is the exchange ofsomething of value between twoentities. That "something may be

goods, services, information,money, or anything else the twoentities consider to have value.Commerce is the central mechanismfrom which ca italism is derived.

Topic: Introduction t o E-Commerce

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There are many different definitions andunderstanding about ECommerce.

!ccording to rederic# $. %iggins and &yeun'u# %hee, arecent pilot survey shows that some practitioners andmanagers viewECommerce ( buying and selling goods and productsover internet.

&owever, researchers believe the ECommerce practiceshould include a wide variety of presale and postsaleactivities.

Topic: Introduction to E-Commerce

)hat is ECommerce*+

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ifferences between ElectronicCommerce and traditional commerce

The ma-or difference is the way information is exchanged

and processedTraditional commerce

facetoface, telephone linesmanual processing of traditional businesstransactions

individual involved in all stages of businesstransactions

ECommerceusing Internet or other networ# communicationtechnologyautomated processing of business transactionsindividual involved in all stages of transactions

Topic: Introduction to E-Commerce

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/enefits to 0rgani1ations

2ar#et expansion to national and international mar#ets

%educed cost of creating, processing, distributing, storing and

retrieving

paper based information

Costeffective document transfer

%educed time to complete business transactions, speedup the

delivery time

-Improved customer service.

-Increased productivity

-%educed transportation Costs

Topic:Benefits of E-Commerce

/enefits of E Commerce

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/enefits to Consumers

Tranactions can be done 34 hrs a day, all year round

and from any

location

Customer has more choices

-%apid interpersonal communications and information

accesses

- 'ave shopping time and money

ast services and delivery


/enefits of E Commerce

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Technical 5imitations

-5ac# of security,reliability,standards

-Insufficient bandwidth

-%apid change in software development tools

-Incompatibility of certain operating systems with

certain h6w or s6w.


5imitations of E Commerce

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7onTechnical 5imitations

-Cost and -ustification

-'ecurity and privacy

-5ac# of trust and user resistance

-0ther factors


5imitations of E Commerce

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/usiness to Consumer/usiness to Consumer

8/3C98/3C9

/usiness to /usiness/usiness to /usiness

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Consumer to ConsumerConsumer to Consumer

8C3C98C3C9

Consumer to /usinessConsumer to /usiness

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/usiness to :overnment/usiness to :overnment

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:overnment to:overnment to

TopicTypes of E-Commerce

Types of E Commerce

B2B B2C B2G

C2B C2C C2G

G2B G2C G2G

B C G

B

C

G

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Business-to-consumer

E-commerce

On-line Retailer

B

B

B

Order

Order

Order

Shipment

Shipment

Shipm

ent

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B2C applicationsB2C applications

Offer directly to the customer an interface of activity

Typical examples:

Online book store (e! ama"oncom#

Online car purchasin! (e! automallcom# Bookin! and purchase of airline tickets (e! ryanaircom#

Correspond to retail sale

$ro%th of B2C applications thanks to &nternet

' ne% kind of B2C applications are the Cybermalls

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B2C applications:B2C applications:

advanta!es and disadvanta!esadvanta!es and disadvanta!es

'dvanta!es:

'llo% company to extend existin! services to customers

'llo% company to increase its customers

Offer a %ider choice and allo% cheaper prices

ay !ive to the company a %orld%ide visibility

Online shops are accessible 2)h a day

*isadvanta!es: +o% order conversion rates

,i!h risk (see Cyberphobia)

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Direct Business-to-Business

Relationship

Seller

(Supplier) Buyer

Order

Shipment

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B2B applicationsB2B applications

-eali"e transactions needed to perform

financial or commercial activities by

companies over the &nternet

.ome typical applications:

/0procurement

/0arketplace

The turnover is much !reater than that dealed

%ith B2C applications

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B2B applications:B2B applications:advanta!es and disadvanta!esadvanta!es and disadvanta!es

'dvanta!es:

,elp to automate communications bet%een

companies makin! them easier and 1uicker

'llo% to cut prices drastically

,elp in reducin! mistakes

*isadvanta!es:

Often need le!acy inte!ration

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Consumer-to-consumer

E-commerce

Hub(or Electronic market)

S

S S

B

BBProducts

shippedProducts

shipped

Produc

ts

shipp

ed

Cash

Cash

Cash

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C2C applicationsC2C applications

Concern the consumers %ho run ne!otations

%ith other consumers sometimes utili"in! as

intermediary a company

/xamples:

/bay

'utotradercom

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C2C applications:C2C applications:advanta!es and disadvanta!esadvanta!es and disadvanta!es

'dvanta!es

'llo% consumers to interact directly amon! them

$ive to the consumers a ne% %ay of purchasin!

and sellin! services and !oods

*isadvanta!es

+ittle earnin! capacity

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B2$ applicationsB2$ applications

Correspond to all kind of transactions bet%een

company and public administrator

tili"ed mostly in the .'

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obile commerce applicationsobile commerce applications

Concern doin! businesses by means of mobile%ireless devices

Can be both B2B and B2C

,ave a !ro%in! importance in the future of e0commerce applications

3ill introduce completely ne% forms of electroniccommerce

/! /0tickets The development of such applications faces some of

the !reatest challen!es in the security area to securethe trust of consumers

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Improving irect 2ar#eting

-;roduct ;romotion

-7ew 'ales Channels

-irect 'avings

-%educed Cycle Time

-Customer 'ervice

-/rand or Corporate Image


Impact of E Commerce

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Transforming 0rgani1ations

-Technology and 0rgani1ational 5earning

-Changing 7ature of )or#

Transforming

-7ew ;roduct Capabilities

-

7ew /usiness 2odels



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Impact on 2anufacturing

-2anufacturing systems are changing from mass

production to demanddriven

-$ust

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Impact on finance and !ccounting

-0nline payments systems

-'ecurity involved in electronic payment systems

Impact on &%2, Training and Education



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Ecommerce !pplications

-'upply Chain 2anagement

-=ideoondemand

-;rocurement and purchasing

-0nline 2ar#eting and !dvertising

-&ome 'hopping

Documents

Chapt 6.ppt