Introduction to E-Commerce

E-business Examples of E-Business Applications E-Commerce Examples of E-Commerce E-Business vs E-Commerce Features of E-commerce Technology Advantages of E-commerce Disadvantages of E-commerce

All electronically mediated information exchanges, both within an organization and with external stakeholders supporting the range of business processes

Examples:◦ Purchasing from suppliers (e-procurement)◦ A company intranet ◦ Supplying partners with information through an extranet

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Cisco (financial management) Nike (product design) Jet Blue Airlines (customer service & ticketing) Dell Computer (customer ordering & service) Boeing (flight manuals, maintenance documents, spare parts

to order) Garden.com (drop ship) AlliedSignal (operations scheduling & supply chain) Starbucks (smart cards & web access)

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‘All electronically mediated information exchanges between an organization and its external stakeholders’

Examples:◦ Buying books online (transactional)◦ Selecting a car online (informational)◦ Interacting with brand online (relationship building )◦ Asking a customer service query, e.g. www.easyJet.com

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Retailing and Marketing Entertainment and Travel Education and Learning Banking and Investment Health-Care Auction Personal and Business Service

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E-Business:E-Business:

Improving businessImproving businessperformance through low cost and performance through low cost and open connectivity:open connectivity:

• New technologies in the value chainNew technologies in the value chain• Connecting value chains across businessesConnecting value chains across businesses

in order to :in order to :

• Improve service/reduce costsImprove service/reduce costs• Open new channelsOpen new channels• Transform competitive landscapesTransform competitive landscapes

E-CommerceE-Commerce:• marketing• selling• buying of products and

services on the Internet

E-CommerceE-Commerce:• marketing• selling• buying of products and

services on the Internet

E-Business is more than selling and marketing online!BACK

Features of E-commerce TechnologyFeatures of E-commerce Technology

Ubiquity:

Internet/Web technology available everywhere: work, home, etc., anytime.

Effect:

Marketplace removed from temporal, geographic locations to become “marketspace”

Enhanced customer convenience and reduced shopping costs

Global reach: The technology reaches across national boundaries,

around Earth Effect:

Commerce enabled across cultural and national boundaries seamlessly and without modification

Marketspace includes, potentially, billions of consumers and millions of businesses worldwide

Universal standards: One set of technology standards: Internet standards Effect:

Disparate computer systems easily communicate with each other

Lower market entry costs—costs merchants must pay to bring goods to market

Lower consumers’ search costs—effort required to find suitable products

Richness: Supports video, audio, and text messages Effect:

Possible to deliver rich messages with text, audio, and video simultaneously to large numbers of people

Video, audio, and text marketing messages can be integrated into single marketing message and consumer experience

Interactivity: The technology works through interaction with the user Effect:

Consumers engaged in dialog that dynamically adjusts experience to the individual

Consumer becomes co-participant in process of delivering goods to market

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You can buy products at anytime. You can save money by not travelling. You can shop from your own home. There are no heavy bags to carry. You don’t have to deal with crowds. You can get discounts on prices.

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Security concerns with peoples personal details which includes credit card details.

The quality of the product may not be the same as in the shop.

The appearance of the product on the website might be different to the product shown that the customers receives.

The shop might not send the product you ordered. It can be expensive to return the goods. You need to be present at home to receive the product.

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