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MIS486- Electronic and Mobile Commerce Technologies in the ...
MIS486- Electronic and Mobile Commerce Technologies in the ...
MIS486- Electronic and Mobile Commerce Technologies in the ...
MIS486- Electronic and Mobile Commerce Technologies in the ...
MIS486- Electronic and Mobile Commerce Technologies in the ...
MIS486- Electronic and Mobile Commerce Technologies in the ...
MIS486- Electronic and Mobile Commerce Technologies in the ...
MIS486- Electronic and Mobile Commerce Technologies in the ...
MIS486- Electronic and Mobile Commerce Technologies in the ...
MIS486- Electronic and Mobile Commerce Technologies in the ...
MIS486- Electronic and Mobile Commerce Technologies in the ...
MIS486- Electronic and Mobile Commerce Technologies in the ...
MIS486- Electronic and Mobile Commerce Technologies in the ...
MIS486- Electronic and Mobile Commerce Technologies in the ...
MIS486- Electronic and Mobile Commerce Technologies in the ...
MIS486- Electronic and Mobile Commerce Technologies in the ...
MIS486- Electronic and Mobile Commerce Technologies in the ...
MIS486- Electronic and Mobile Commerce Technologies in the ...
MIS486- Electronic and Mobile Commerce Technologies in the ...
MIS486- Electronic and Mobile Commerce Technologies in the ...
MIS486- Electronic and Mobile Commerce Technologies in the ...
MIS486- Electronic and Mobile Commerce Technologies in the ...
MIS486- Electronic and Mobile Commerce Technologies in the ...
MIS486- Electronic and Mobile Commerce Technologies in the ...
MIS486- Electronic and Mobile Commerce Technologies in the ...
MIS486- Electronic and Mobile Commerce Technologies in the ...
MIS486- Electronic and Mobile Commerce Technologies in the ...
MIS486- Electronic and Mobile Commerce Technologies in the ...
MIS486- Electronic and Mobile Commerce Technologies in the ...
MIS486- Electronic and Mobile Commerce Technologies in the ...
MIS486- Electronic and Mobile Commerce Technologies in the ...
MIS486- Electronic and Mobile Commerce Technologies in the ...
MIS486- Electronic and Mobile Commerce Technologies in the ...
MIS486- Electronic and Mobile Commerce Technologies in the ...
MIS486- Electronic and Mobile Commerce Technologies in the ...
MIS486- Electronic and Mobile Commerce Technologies in the ...
MIS486- Electronic and Mobile Commerce Technologies in the ...
MIS486- Electronic and Mobile Commerce Technologies in the ...
MIS486- Electronic and Mobile Commerce Technologies in the ...
MIS486- Electronic and Mobile Commerce Technologies in the ...
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MIS486- Electronic and Mobile Commerce Technologies in the ...

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  • Small businesses particularly, no longer bricks and mortar but virtual businesses, Internet-based and located anywhere in the world - the “global village”.
  • Transcript

    • 1. MIS486- Electronic and Mobile Commerce Technologies in the New Era
    • 2. What is E-Commerce? Business Perspective <ul><li>Commerce is all about buying and selling. </li></ul><ul><li>Everything has two prices: </li></ul><ul><li>In the difference lies all of human commerce </li></ul>Buy Low Sell High $ Markup $
    • 3. What is E-Commerce? <ul><li>Initial Definition (c.1998): E-Commerce - The application of information technologies to enable commercial transactions between two parties. </li></ul>The Internet
    • 4. Why has E-Commerce become so important? <ul><li>E-Commerce has evolved to mean more than just buying and selling. </li></ul><ul><ul><li>Info sharing (Web catalogues, ads, communities) </li></ul></ul><ul><ul><li>Ordering (e-mail, e-forms) </li></ul></ul><ul><ul><li>Payment (traditional, credit cards, EDI, digital cash) </li></ul></ul><ul><ul><li>Fulfillment (Web-site, e-mail, fax, phone) </li></ul></ul><ul><ul><li>Service & support (Web notes, FAQs, bulletin boards, e-mail) </li></ul></ul>
    • 5. Why has E-Commerce become so important? <ul><li>The Driving Force  The Internet Economy </li></ul><ul><li>To reach 50,000,000 users </li></ul><ul><ul><li>Radio took 38 years </li></ul></ul><ul><ul><li>Computers took over 16 years </li></ul></ul><ul><ul><li>TV took 13 years </li></ul></ul><ul><ul><li>The Internet took 4 years! </li></ul></ul><ul><li>Over 75% of (12.3M)Australian homes now have PCs </li></ul>
    • 6. Electronic Commerce: The Second Wave <ul><li>Electronic commerce (e-commerce) </li></ul><ul><ul><li>Businesses trading with other businesses and internal processes </li></ul></ul><ul><li>Electronic business (e-business) </li></ul><ul><ul><li>Term used interchangeably with e-commerce </li></ul></ul><ul><ul><li>The transformation of key business processes through the use of Internet technologies </li></ul></ul>
    • 7. Categories of Electronic Commerce <ul><li>Five general e-commerce categories: </li></ul><ul><ul><li>Business-to-consumer </li></ul></ul><ul><ul><li>Business-to-business </li></ul></ul><ul><ul><li>Business processes </li></ul></ul><ul><ul><li>Consumer-to-consumer </li></ul></ul><ul><ul><li>Business-to-government </li></ul></ul><ul><li>Supply management or procurement </li></ul><ul><ul><li>Departments are devoted to negotiating purchase transactions with suppliers </li></ul></ul>
    • 8. Categories of Electronic Commerce (continued) <ul><li>Transaction </li></ul><ul><ul><li>An exchange of value </li></ul></ul><ul><li>Business processes </li></ul><ul><ul><li>The group of logical, related, and sequential activities and transactions in which businesses engage </li></ul></ul><ul><li>Telecommuting or telework </li></ul><ul><ul><li>Employees log in to company computers through the Internet instead of traveling to the office </li></ul></ul>
    • 9.  
    • 10. E-Business Models <ul><li>Storefront – shopping on-line, a business a model where buyer and seller interact directly. Eg B2C (business-to-consumer) www.more.com , www.ticketmaster.com </li></ul><ul><li>Shopping-cart technology: shopping cart and merchant server (database) – www.amazon.com is a widely recognized example </li></ul><ul><li>Online shopping malls – purchase items from several shops from a mall in 1 transaction – www.mall.com </li></ul>
    • 11. Auction model <ul><li>Place bids in open competition (with or without reserve price) </li></ul><ul><li>In 2000, $3.8 billion spent on person-to-person auctions </li></ul><ul><li>$52 billion was projected to be spent on B2B auctions </li></ul><ul><li>On eBay, people can buy/sell just about anything ( http:// www.ebay.com / ) </li></ul>
    • 12. Portal model <ul><li>Gives visitors the chance to find almost everything they are looking for in 1 place </li></ul><ul><li>Search engines are horizontal portals – provide broad range of topics </li></ul><ul><li>Vertical portals are more specific – offering a great deal of info in a single area of interest. </li></ul><ul><li>Sites: www.hotbot.com , www.about.com , www.altavista.com , www.yahoo.com </li></ul>
    • 13. Dynamic pricing models <ul><li>Customers can name their prices – bargain hunting </li></ul><ul><li>Eg www.priceline.com , www.imandi.com </li></ul><ul><li>Name-your-price (priceline) </li></ul><ul><li>Comparison pricing model – customers can poll to find out the lowest price – www.bottomdollar.com </li></ul><ul><li>Demand-sensitive pricing model – customers to demand better, faster service at cheaper prices and shopping in groups to get group rate (www.mercata.com) </li></ul><ul><li>www.aol.com - 22 mill users in interactive mode for browsing/email/chatting and downloading </li></ul>
    • 14. Bartering model <ul><li>Offering one item in exchange for another </li></ul><ul><li>www.ubarter.com </li></ul><ul><li>Other models: rebates, offering free products and services (www.hsx.com) </li></ul>
    • 15. B2B <ul><li>Buying, selling, partnering, bartering or trading between 2 or more businesses </li></ul><ul><li>Procurement and effective chain management can be difficult and costly. </li></ul><ul><li>www.icgcommerce.com enables transactions on the internet </li></ul>
    • 16. Other models <ul><li>Online trading and lending – securities, stocks ( www.etrade.com ) </li></ul><ul><li>Getting a loan online ( www.eloan.com ) </li></ul><ul><li>Recruiting on the web eg www.dice.com , www.guru.com . </li></ul><ul><li>Online news services ( www.espn.com ) </li></ul><ul><li>Online travel services ( www.cheaptickets.com ) </li></ul>
    • 17. Other models <ul><li>Online entertainment </li></ul><ul><li>Online automotive sites </li></ul><ul><li>Energy online – energy commodities </li></ul><ul><li>Selling brainpower – buy patents and intellectual property </li></ul><ul><li>Online art dealers ( www.art.net ) </li></ul><ul><li>E-learning ( www.click2learn.com ) </li></ul>
    • 18. Generic Classification <ul><li>Business-to-Business </li></ul><ul><ul><li>eg. transactions using EDI, VANs, VPN </li></ul></ul><ul><li>Business-to-Customer </li></ul><ul><ul><li>eg. homebanking, stock-trading, on-line reservations, & purchase </li></ul></ul><ul><li>Business-to-Government </li></ul><ul><li>Citizen-to-Government </li></ul><ul><li>Community (ie. Industry e-commerce) </li></ul><ul><ul><li>eg. Intranets, supply-side e-commerce, demand-side e-business & customer service </li></ul></ul>
    • 19.  
    • 20.  
    • 21. The Development and Growth of Electronic Commerce <ul><li>Electronic funds transfers (EFTs) </li></ul><ul><ul><li>Also called wire transfers </li></ul></ul><ul><ul><li>Electronic transmissions of account exchange information over private communications networks </li></ul></ul><ul><li>Electronic data interchange (EDI) </li></ul><ul><ul><li>Transmitting computer-readable data in a standard format to another business </li></ul></ul>
    • 22. The Development and Growth of Electronic Commerce (continued) <ul><li>Trading partners </li></ul><ul><ul><li>Businesses that engage in EDI with each other </li></ul></ul><ul><li>Value-added network (VAN) </li></ul><ul><ul><li>Independent firm that offers connection and transaction-forwarding services to buyers and sellers engaged in EDI </li></ul></ul>
    • 23.  
    • 24. Why has E-Commerce become so important? <ul><li>The Canadian Statistics </li></ul><ul><li>Over 75% of (12.3M)Canadian homes now have PCs </li></ul><ul><li>Over 55% (6.7M) of those are Internet connected, up 51% over 2002 </li></ul><ul><li>64% regularly go online from home or work (2003), 5% gain over 2002 (but note that it is slowing down: 19% growth in 2000, 24% growth in 2001)) </li></ul><ul><li>12% buy regularly over web, 38% have bought (2002) </li></ul><ul><li>38% download music </li></ul><ul><li>58% bank from home via the web </li></ul><ul><li>64% of wired households use boardband (highpeed, non dial-up) </li></ul>
    • 25. The Internet Economy Business Growth Source:Forrester
    • 26. The Internet Economy Global Forecast $80 $170 $390 $970 $2,000 $3,200 Source: Forrester Hyper-growth begins $150B 1998 – 111M users 2000 – 320M users 2005 – 720M users $3.2T $1,000 $2,000 $3,000 0 Sales (billions) 1998 1999 2000 2001 2002 2003
    • 27. E-Commerce & E-Business <ul><li>E-Business is defined as the process of using electronic technology to do business </li></ul><ul><li>E-Commerce can be defined as a subset of E-Business, and is the subset of E-Business that focuses on commerce </li></ul>
    • 28. Business Models, Revenue Models, and Business Processes <ul><li>Business model </li></ul><ul><ul><li>A set of processes that combine to yield a profit </li></ul></ul><ul><li>Revenue model </li></ul><ul><ul><li>A specific collection of business processes used to: </li></ul></ul><ul><ul><ul><li>Identify customers </li></ul></ul></ul><ul><ul><ul><li>Market to those customers </li></ul></ul></ul><ul><ul><ul><li>Generate sales to those customers </li></ul></ul></ul>
    • 29.  
    • 30. The Emergence of E-Business Enterprise Resource Planning Supply Chain Management Customer Relationship Management Selling Chain Management Procurement Management Knowledge Management Supp liers Services Customers Distributers Customers Partners Government Agents Partners So Where’s the E-Commerce?
    • 31. The Sea of “E-” <ul><li>“E-” or “e-” has been added to the almost everything </li></ul><ul><li>E-mail </li></ul><ul><li>E-procurement </li></ul><ul><li>E-care </li></ul><ul><li>E-government </li></ul><ul><li>E-learning </li></ul><ul><li>others … </li></ul>Recently we have started to see the same with “ M- ” or “ m- ”.
    • 32. M-Commerce <ul><li>M-Commerce is E-Commerce over wireless communications and typically to smaller handheld devices </li></ul><ul><li>August, 2000 – DataMonitor predicted that the market for wireless E-Commerce solutions in the U.S. would grow 1000% by year 2005 </li></ul><ul><li>$1.2 billion US annually </li></ul>
    • 33. The Benefits of E-Commerce <ul><li>Opens new markets </li></ul><ul><li>Shortens business cycles </li></ul><ul><li>Reduces processing/paperwork </li></ul><ul><li>Extends reach beyond physical outlets </li></ul><ul><li>Permits customized products/service </li></ul>
    • 34. Limitations of E-Commerce <ul><li>Customer authentication </li></ul><ul><li>Web-site navigation </li></ul><ul><li>Web differentiation </li></ul><ul><li>Integration of Internet with other customer service channels (telephone, counter, kiosk, etc.) </li></ul>
    • 35. Language Issues <ul><li>To do business effectively in other cultures a business must adapt to those cultures </li></ul><ul><li>Researchers have found that customers are more likely to buy products and services from Web sites in their own language </li></ul><ul><li>Localization </li></ul><ul><ul><li>Translation that considers multiple elements of the local environment </li></ul></ul>
    • 36. Culture Issues <ul><li>An important element of business trust is anticipating how the other party to a transaction will act in specific circumstances </li></ul><ul><li>Culture: </li></ul><ul><ul><li>Combination of language and customs </li></ul></ul><ul><ul><li>Varies across national boundaries </li></ul></ul><ul><ul><li>Varies across regions within nations </li></ul></ul>
    • 37. What Is E-Commerce? Technology Perspective SQL HTTP Servlets HTML Servers Applets Browsers TCP/IP CGI Cookies POP Database JSPs Java MIME DW/DM SMTP FTP Authentication Encryption Wireless Pervasive Computing Smart Cards XML URL e-Payment SSL
    • 38. What is E-Commerce? Technology Perspective Cell-Phone PDA Laptop Desktop Web Application Servers Data and Transaction Servers Edge Server The Hardware The Software The Skill Sets The Methods
    • 39. Summary <ul><li>Commerce </li></ul><ul><ul><li>Negotiated exchange of goods or services </li></ul></ul><ul><li>Electronic commerce </li></ul><ul><ul><li>Application of new technologies to conduct business more effectively </li></ul></ul><ul><li>First wave of electronic commerce </li></ul><ul><ul><li>Ended in 2000 </li></ul></ul><ul><li>Second wave of electronic commerce </li></ul><ul><ul><li>New approaches to integrating Internet technologies into business processes </li></ul></ul>
    • 40. Summary (continued) <ul><li>Using electronic commerce, businesses have: </li></ul><ul><ul><li>Created new products and services </li></ul></ul><ul><ul><li>Improved promotion, marketing, and delivery of existing offerings </li></ul></ul><ul><li>The global nature of electronic commerce leads to many opportunities and few challenges </li></ul><ul><li>To conduct electronic commerce across international borders, you must understand the trust, cultural, language, and legal issues </li></ul>

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