E commerce

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› Distributing, buying, selling and marketing products and services over electronic systems

› E-business for commercial transactions› Involves supply chain management, e-

marketing, online marketing, EDI› Uses electronic technology such as:

- Internet

- Extranet/Intranet

- Protocols

What is E-commerce

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E-commerce as the Networked Economy

Create value largely through gathering, synthesizing and distribution of information

Formulate strategies that make management of the enterprise and technology convergent

Compete in real time rather than in “cycle time” Operate in a world characterized by low barriers

to entry, near-zero variable costs of operation and shifting competition

Organize resources around the demand side rather than supply side

Manage better relationships with customers through technology

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› The Internet is the perfect vehicle for e-commerce because of its open standards and structure.

› No other methodology or technology has proven to work as well as the Internet for distributing information and bringing people together.

› It’s cheap and relatively easy to use it as a medium for connecting customers, suppliers, and employees of a firm.

› No other mechanism has been created that allow organizations to reach out to anyone and everyone like the Internet.

E-commerce Today

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› The Internet allows big businesses to act like small ones and small businesses to act big.

› The challenge to businesses is to make transactions not just cheaper and easier for themselves but also easier and more convenient for customers and suppliers.

› It’s more than just posting a nice looking Web site with lots of cute animations and expecting customers and suppliers to figure it out

› Web-based solutions must be easier to use and more convenient than traditional methods if a company hopes to attract and keep customers.

E-commerce Today

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Four Categories of E-Commerce

B2B

B2C

C2B

C2CConsumers

Business

And selling to...

Business originating from...

Business Consumers

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Distinct Categories of E-Commerce

Business to Business (B2B) refers to the full spectrum of e-commerce that can occur between two organizations.

This includes purchasing and procurement, supplier management, inventory management, channel management, sales activities, payment management &service and support.

Examples: FreeMarkets, Dell and General Electric

Business to Consumer (B2C) refers to

exchanges between business and consumers, activities tracked are consumer search, frequently asked questions and service and support.

Examples: Amazon, Yahoo and Charles Schwab & Co

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Distinct Categories of E-Commerce (cont’d)

Peer to Peer (C2C) exchanges involve transactions between and among consumers. These can include third party involvement, as in the case of the auction website Ebay.

Examples: Owners.com, Craiglist, Monster

Consumer to Business (C2B) involves when consumers band together to present themselves as a buyer in group.

Example: www.planetfeedback.com

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› Technological – degree of advancement of telecommunications infrastructure

› Political – role of government, creating legislation, funding and support

› Social – IT skills, education and training of users

› Economic – general wealth and commercial health of the nation

Key Drivers of E-commerce

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› Organizational culture- attitudes to R&D, willingness to innovate and use technology

› Commercial benefits- impact on financial performance of the firm

› Skilled/committed workforce- willing and able to implement and use new technology

› Requirements of customers/suppliers- in terms of product and service

› Competition- stay ahead of or keep up with competitors

Key Drivers of E-business

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›Communication

›Connection

›Commerce

›Context

›Content

›Community

Conducting E-Commerce

Seven C’s of Website DesignSeven C’s of Website Design

Customization

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The 7C’s of Website designContext

Site’s layout and design

Commerce

Site’s capabilities to enable commercial transactions

Connection

Degree site is linked to other sites

Communication

The ways sites enable site-to-user communication or two-way

communication

Customization

Site’s ability to self-tailor to different users or to allow users

to personalize the site

Community

The ways sites enable user-to-user communication

Content

Text, pictures, sound and video that web pages contain

INTRODUCTION TO E-COMMERCE -

G53DDB 13

Seven Unique Features of E-commerce Technology and Their Business Significance

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› To consumers: 24/7 access, more choices, price comparisons, improved delivery, competition

› To organizations: International marketplace (global reach), cost savings, customization, reduced inventories, digitization of products/services

› To society: flexible working practices, connects people, delivery of public services

Benefits of E-commerce

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Benefits to Consumers

Convenience

Buying is easy and private

Provides greater product access and selection

Provides access to comparative information

Buying is interactive and immediate

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Benefits to Organizations

Powerful tool for building customer relationships

Can reduce costs

Can increase speed and efficiency

Offers greater flexibility in offers and programs

Is a truly global medium

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Benefits to Society

More individuals can work from home

Benefits less affluent people

Third world countries gain access

Facilitates delivery of public services

› http://eclips.northern.edu/

› http://www.cs.nott.ac.uk/