Introduction to E-Commerce

Topic: Introduction t o E-Commerce

Introduction To Commerce
Commerce is the exchange of something of value between two entities. That "something may be goods, services, information, money, or anything else the two entities consider to have value. Commerce is the central mechanism from which capitalism is derived.

Topic: Introduction to E-Commerce

)hat is E Commerce*+
There are many different understanding about E Commerce. definitions and

!ccording to "rederic# $. %iggins and &yeun 'u# %hee, a recent pilot survey shows that some practitioners and managers view E Commerce ( buying and selling goods and products over internet. &owever, researchers believe the E Commerce practice should include a wide variety of presale and post sale activities.

Topic: Introduction to E-Commerce

,ifferences between Electronic Commerce and traditional commerce

The ma-or difference is the way information is exchanged and processed. Traditional commerce. face to face, telephone lines manual processing of traditional business transactions individual involved in all stages of business transactions E Commerce. using Internet or other networ# communication technology automated processing of business transactions individual involved in all stages of transactions

Topic:Benefits of E-Commerce

/enefits of E Commerce
/enefits to 0rgani1ations.
2ar#et expansion to national and international mar#ets %educed cost of creating, processing, distributing, storing and retrieving paper based information Cost effective document transfer %educed time to complete business transactions, speed up the delivery time -Improved customer service. -Increased productivity -%educed transportation Costs

Topic:Benefits of E-Commerce

/enefits of E Commerce
/enefits to Consumers.
Tranactions can be done 34 hrs a day, all year round and from any location Customer has more choices -%apid inter personal communications and information accesses - 'ave shopping time and money "ast services and delivery

Topic:Benefits of E-Commerce

5imitations of E Commerce
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.

Topic:Benefits of E-Commerce

5imitations of E Commerce
7on Technical 5imitations.
-Cost and -ustification -'ecurity and privacy -5ac# of trust and user resistance -0ther factors

TopicTypes of E-Commerce

Types of E Commerce
B /usiness to Consumer 8/3C9 /usiness to /usiness 8/3/9 Consumer to Consumer 8C3C9 Consumer to /usiness 8C3/9 /usiness to :overnment 8/3:9 :overnment to B C C G

B2B C2B G2B

B2C C2C

B2G C2G

G2C G2G

Business-to-consumer E-commerce

On-line Retailer
Sh ip m en t
O rd e r

Or de

Sh ipm e

nt

Order

Shipment

B2C applications
Offer directly to the customer an interface of activity
Typical examples:
Online book store (e ! ama"on com# Online car purchasin! (e ! automall com# Bookin! and purchase of airline tickets (e ! ryanair com#

Correspond to retail sale $ro%th of B2C applications thanks to &nternet ' ne% kind of B2C applications are the Cybermalls

B2C applications:
advanta!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)

Direct Business-to-Business Relationship

Shipment

Seller (Supplier)

Buyer

Order

B2B applications
-eali"e transactions needed to perform financial or commercial activities by companies over the &nternet .ome typical applications:
/0procurement /0(arketplace

The turnover is much !reater than that dealed %ith B2C applications

B2B applications:
advanta!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

Consumer-to-consumer E-commerce
Hub
(or Electronic market)

S B S
Cash

B B S
sh Ca

sh Ca

Products shipped

cts u od ped r P ip sh

ts uc od ped Pr ip sh

C2C applications
Concern the consumers %ho run ne!otations %ith other consumers sometimes utili"in! as intermediary a company
/xamples:
/bay 'utotrader com

C2C applications:
advanta!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

B2$ applications
Correspond to all kind of transactions bet%een company and public administrator 2tili"ed mostly in the 2.'

(obile 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 e0 commerce applications 3ill introduce completely ne% forms of electronic commerce
/ ! /0tickets

The development of such applications faces some of the !reatest challen!es in the security area to secure the trust of consumers

Topic:Benefits of E-Commerce

Impact of E Commerce
Improving ,irect 2ar#eting
-;roduct ;romotion -7ew 'ales Channels -,irect 'avings -%educed Cycle Time -Customer 'ervice -/rand or Corporate Image

Topic:Benefits of E-Commerce

Impact of E Commerce
Transforming 0rgani1ations
-Technology and 0rgani1ational 5earning -Changing 7ature of )or#

Transforming
-7ew ;roduct Capabilities -7ew /usiness 2odels

Topic:Benefits of E-Commerce

Impact of E Commerce
Impact on 2anufacturing
-2anufacturing systems are changing from mass production to demand driven - $ust <In time 2anufacturing -)eb based systems -"lexible sytems

Topic:Benefits of E-Commerce

Impact of E Commerce
Impact on finance and !ccounting.
-0n line payments systems -'ecurity involved in electronic payment systems

Impact on &%2, Training and Education

Topic:Benefits of E-Commerce

E commerce !pplications
-'upply Chain 2anagement -=ideo on demand -;rocurement and purchasing -0n line 2ar#eting and !dvertising -&ome 'hopping