1-1 Chapter One Understanding e-commerce. Learning objectives Evolution of e-commerce Role of...
-
Upload
randell-manning -
Category
Documents
-
view
218 -
download
0
Transcript of 1-1 Chapter One Understanding e-commerce. Learning objectives Evolution of e-commerce Role of...
1-1
Chapter OneUnderstanding e-
commerce
Learning objectives Evolution of e-commerce Role of technology in e-commerce Internet and e-commerce
1-2
History of e-commerce
1-3
History of ecommerce dates back to the year (1991) when the internet was made available for commercial purposes
web sites were allowed to use internet for business transactions
Do business electronically from virtually anywhere in the world that has a computer.
In 2004 alone, e-commerce generated well over $100 billion in retail business and over $1.5 trillion business-to-business traffic.
At first, the term ecommerce meant the process of execution of commercial transactions electronically
leading technologies such as Electronic Data Interchange (EDI) and Electronic Funds Transfer (EFT) were used
CONT’D
1-4
Factors that impacted e-commerce
Security wrong usage of credit information Privacy security protocol such as HTTP
The Dot Com era
1-5
"brick and mortar" retailers recognized the advantages of electronic commerce
first generation e-commerce portal In spite of ‘dotcom’ burst, the ecommerce sales continued to grow
in the next few years customers prefer e-commerce over tele orders Today’s Internet promotes individualism.
Case: Amazon.com: synonymous with e-commerce Case: Dell: An evolutionary e-commerce
What is e-commerce
1-6
E-commerce is a short version of the term Electronic Commerce transactions related to online buying and selling of products or
services done using electronic systems such as the Internet and other
computer networks penetration and spread of the internet has fuelled e-commerce Examples os e-commerce are electronic funds transfer, supply
chain management, Internet marketing, online transaction processing, electronic data interchange (EDI), inventory management systems, and automated data collection systems
definition of e-commerce in modern the modern times implies that it typically uses the World Wide Web at least at any point in the transaction's lifecycle
Online retailers are sometimes known as e-tailers online retail is sometimes known as e-tail
Types of e-commerce
1-7
B2B: E-commerce that is conducted between businesses is referred to as Business-to-business (1) open to the entire public or (2) limited to a group of
businesses who have been part of the specific group business-to-consumer (B2C), business-to-government (B2G)
All the forms of e-commerce include following steps. i) account acquisition, ii) product discovery through search and browse, iii) price negotiation, iv) payment, and v) product delivery.
In some cases, dispute resolution and customer services may also exist
Changing times in e-commerce
1-8
Electronic Data Interchange (EDI) and Electronic Funds Transfer (EFT).
Automated Teller Machines (ATMs) growth and acceptance of credit cards, and telephone banking
became part of e-commerce Broadband connections to homes is fulfilling the ultimate
mission of e-commerce. E-mail is now the very connectivity of e-commerce. Bar code scanning is on the way out, replaced by sophisticated
biometric technology. Legal downloading of music, video, and other digital products
via the Web is increasing. Big businesses, as well as small- and medium-sized firms, can
afford to develop a Web presence quickly, reliably, and at an affordable cost.
E-commerce has gone international.
E-commerce components
1-9
Important component of e-commerce based firm is the website website should have technology that will make it easier for
its customers to navigate site should offer every single feature necessary fully-functional and sustainable ecommerce web site stable server for hosting provide customer specific services technology partners who constantly upgrade the features
as well as technology help business partners such as logistics partners and
suppliers to share and exchange business data Alternatively SaaS can be used for running these
services (reduce cost)
E-commerce Versus E-business
1-10
E-commerce Selling goods and services on the retail level with anyone,
anywhere, via the Internet Greater efficiency and effective exchange of goods and
services Exchange based upon transaction
A block of information exchange between the merchant and its customers via the corporate Web site
www.amazon.com
E-business Connecting critical business systems and constituencies
directly via the Internet
E-commerce and Web 2.0
1-11
web 2.0 and collaborate collaboration becomes a mutual touch point for all the
stakeholders aggregating information about people, products and
services reduces time spent searching resources for
information, eliminates redundant data increased relevance, delivering key information to
places where it can be used effectively Digital Convergence - digital devices communicating
with one another Anytime, anywhere, anyone - e-commerce is available
to anyone (24/7) Demand for customized products and services - mass
customization puts pressure on firms to handle customized requests on a mass-market scale
Business-to-Government (B2G)
1-12
The government market is strikingly similar to B2B.
Huge potential for savings in $1.8 trillion federal and $1 trillion state and local expenditures
Changing the status quo in government is not so easy
Changes to employee tasks and job restructuring often create resistance
Tax savings potential is not easily recognized Committing to technology means constant need for
upgrades and additional costs
E-commerce Business Models
1-13
Storefront Model
Click-and-Mortar Model
Built to Order Merchant Model
Service Provider Model
Subscription-based Access Model
Prepaid Access Model
Broker Model
Advertiser Model
Portal Site Model
Free Access Model
Virtual Mall Model
Virtual Community Model
Infomediary Model
Summary
1-14
Electronic commerce (EC) is the ability to deliver products, services, information, or payments via networks such as the Internet and the World Wide Web.
Electronic business connects critical business systems directly to key constituents
The rise of specialized Web sites and Web logs (blogs) generated opportunities to read and write on a vast array of topics
Several drivers promote EC: digital convergence
Advantages of EC