Professional Documents
Culture Documents
Electronic Commerce
Electronic Commerce
Opinions
Electronic Commerce
19849
1991 1991
Textbook
Gary Schneider, Electronic Commerce, Seventh Annual Edition. Thomson Course Technology, 2007, ISBN 1-4188-3703-2.
Electronic Commerce
Course Objectives
This course covers emerging online technologies and trends and their influence on the electronic commerce marketplace. k t l Students will learn various revenue models and how to market on the Web. Next, the course covers online Web Next auctions and various legal and ethical issues. Students will learn about important security issues issues, such as spam and phishing, their role in organized crime and identity theft, and online payment fraud. y p y Finally, students learn how to plan for electronic commerce.
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Objectives (continued)
How economic forces have created a business environment that is fostering the g second wave of electronic commerce How businesses use value chains and SWOT analysis to identify electronic commerce opportunities The international nature of electronic commerce and the challenges that arise in engaging in electronic commerce on a global scale
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Business processes
Th group of logical, related, and sequential The fl i l l t d d ti l activities and transactions in which businesses engage
Telecommuting or telework
Emplo ees log in to compan comp ters thro gh Employees company computers through the Internet instead of traveling to the office
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Revenue model
A specific collection of business processes used to: to
Identify customers Market to those customers Generate sales to those customers
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Role of Merchandising
Merchandising
C bi ti of store d i Combination f t design, l layout, and product t d d t display knowledge
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Transaction Costs
Transaction costs are the total costs that a buyer and seller incur Significant components of transaction costs:
Cost of information search and acquisition q Investment of the seller in equipment or in the hiring f kill d hi i of skilled employees t supply products or l to l d t services to the buyer
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Transaction Costs
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Strategic partners
Entities that come together as a team for a specific project or activity j t ti it
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Network Effects
Law of diminishing returns
Most activities yield less value as the amount of consumption increases
Network effect
As more people or organizations participate in a network, the value of the network to each participant i ti i t increases
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Industry
Multiple firms that sell similar p p products to similar customers
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Customers inherent lack of trust in strangers on the Web is logical and to be expected
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Language Issues
To do business effectively in other cultures a bus ess ust business must adapt to t ose cu tu es those cultures Researchers have found that customers are more lik l t b products and services f likely to buy d t d i from Web sites in their own language Localization
Translation that considers multiple elements of the local environment
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Culture Issues
An important element of business trust is a t c pat g o the other party anticipating how t e ot e pa ty to a transaction will act in specific circumstances C l Culture:
Combination of language and customs g g Varies across national boundaries Varies across regions within nations
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Infrastructure Issues
I t Internet infrastructure includes: ti f t t i l d
Computers and software connected to the Internet Communications networks over which message packets travel
Organization for Economic Cooperation and Developments (OECD) Statements on ( ) Information and Communications Policy deal with telecommunications infrastructure development issues
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T Targets for technological solutions i l d t f t h l i l l ti include paperwork and processes that accompany international transactions
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Summary
Commerce
Negotiated exchange of goods or services
Electronic commerce
Application of new technologies to conduct business more effectively
Summary (continued)
Using electronic commerce businesses have: commerce,
Created new products and services Improved promotion, marketing and delivery of promotion marketing, existing offerings
The global nature of electronic commerce g leads to many opportunities and few challenges To conduct electronic commerce across international borders, you must understand the trust, cultural, language, and legal issues
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