ELECTRONIC COMMERNCE

MANAGING INFORMATION SYSTEMS IN ORGANIZATIONSPrepared by: Jan Wong Download at: www.slideshare.net/janwong

TYPES OF ORGANISATIONS

E-COMMERCE

Brick-and-mortar, virtual and click-and-mortar.

E-COMMERCE TRANSACTION TYPES

B2B, B2C, C2B, C2C, Collaborative Commerce, B2E, G2C, Mobile Commerce.

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MOST E-COMMERCE APPLICATIONS ARE B2C. BUT WHY?

THE REALITY:

It started with the basic business model of retailing; and become e-tailing.

IN THE PAST: • Home catalogues • Flyers • TV shopping channels • Shopping malls

PROBLEMS: • Expensive production • Not up-to-date • Limited to time • Spam • Not interactive • Not targeted

MOST E-COMMERCE APPLICATIONS ARE B2C. BUT WHY?

WITH E-COMMERCE: • Digitisation and

automation of processes • Delivery of services • Cost reduction potential • Interactive • Targeted

MOST E-COMMERCE APPLICATIONS ARE B2C. BUT WHY?

E-BUSINESS VS E-COMMERCEWhat are the differences?

E-BUSINESS VS E-COMMERCE• Broader definition of

eCommerce. • Beyond buying and

selling goods / services. • Includes servicing

customers, collaborating with business partners, e-learning, fulfillment, etc.

What are the differences?

• Process of buying or selling products & services and / or information via networks.

• Can take several forms depending on the level of digitisation e.g. the product, service, process or delivery agent.

MAJOR ISSUES WITH E-COMMERCE IN ORGANISATIONS

5• Resolving channel conflict. • Resolving conflicts within click-and-mortar

organizations. • Organising order fulfilment and logistics. • Determining viability and risk of online e-tailers. • Identifying appropriate revenue models.

HOW CAN ORGANISATIONS IMPLEMENT E-COMMERCE APPLICATIONS?There is an E-Commerce Framework to assist.

5 PILLARS OF E-COMMERCEE-COMMERCE FRAMEWORK

5 PILLARS OF E-COMMERCEE-COMMERCE FRAMEWORK

PEOPLE“Direct and indirect users of eCommerce.”

Who: Sellers, buyers, intermediaries, systems specialists, employees, other participants, etc.

5 PILLARS OF E-COMMERCEE-COMMERCE FRAMEWORK

PUBLIC POLICY“Legal and regulating issues that may affect eCommerce.”

What: Taxation laws, privacy acts (PDPA), terms and conditions, copyrights, trademarks, etc.

5 PILLARS OF E-COMMERCEE-COMMERCE FRAMEWORK

MARKETING & ADVERTISING“Methods to attract users and increase conversions.”

How: Market research, promotions, content marketing, digital advertising, influencer engagement, etc.

5 PILLARS OF E-COMMERCEE-COMMERCE FRAMEWORK

SUPPLY SERVICES“Additional services that supports the running of eCommerce.”

What: Payment Gateway Services, Logistic Services, Content Services, etc.

5 PILLARS OF E-COMMERCEE-COMMERCE FRAMEWORK

BUSINESS PARTNERSHIP“Mutually beneficial business relationships that can support eCommerce.”

What: Affiliate Programmes, Joint Ventures, eMarketplace, etc.

5 PILLARS OF E-COMMERCEE-COMMERCE FRAMEWORK

ALL E-COMMERCE APPLICATIONS REQUIRES SUPPORT!eCommerce Support Services makes an eCommerce application whole.

E-COMMERCE SUPPORT SERVICES

E-COMMERCE SUPPORT SERVICESE-INFRASTRUCTURE“The technical components that makes a eCommerce application ‘work’.”

What: Database, domain name, web hosting, security, networks, integration standards, development, etc.

E-COMMERCE SUPPORT SERVICES

E-PROCESS“The work flow components of an eCommerce application.”

What: Payment services (e-wallets, credit cards, etc) & integration, logistics & tracking, etc.

E-COMMERCE SUPPORT SERVICES

E-MARKETS“The marketing component of the eCommerce application.”

What: Affiliate programmes, data mining, advertising opportunities, social media sharing, etc.

ONLINE MARKETING & ADVERTISINGIt is an attempt to disseminate information in order to influence a buyer-seller transaction (on both online and offline).

TRADITIONAL ADS VS INTERNET ADS

• Impersonal • One-way, mass

communication • Little to no interactivity • Expensive • Less targeted • TV, Newspapers, Radio,

Magazines, etc

What are the differences?

• Media-rich • Dynamic • Interactive • Targeted • Less expensive • Quicker setup • Banner, Pop-Up / Pop-

Under, Email, E-Catalogue, PPC, PPM, SEO, etc

ISSUES IN ONLINE MARKETING / ADVERTISING• Spamming • Link baits • Overly saturated • Privacy and security

issues

Questions, anyone?