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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”.

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

  • 1. MIS486- Electronic and Mobile Commerce Technologies in the New Era
  • 2. What is E-Commerce? Business Perspective
    • Commerce is all about buying and selling.
    • Everything has two prices:
    • In the difference lies all of human commerce
    Buy Low Sell High $ Markup $
  • 3. What is E-Commerce?
    • Initial Definition (c.1998): E-Commerce - The application of information technologies to enable commercial transactions between two parties.
    The Internet
  • 4. Why has E-Commerce become so important?
    • E-Commerce has evolved to mean more than just buying and selling.
      • Info sharing (Web catalogues, ads, communities)
      • Ordering (e-mail, e-forms)
      • Payment (traditional, credit cards, EDI, digital cash)
      • Fulfillment (Web-site, e-mail, fax, phone)
      • Service & support (Web notes, FAQs, bulletin boards, e-mail)
  • 5. Why has E-Commerce become so important?
    • The Driving Force  The Internet Economy
    • To reach 50,000,000 users
      • Radio took 38 years
      • Computers took over 16 years
      • TV took 13 years
      • The Internet took 4 years!
    • Over 75% of (12.3M)Australian homes now have PCs
  • 6. Electronic Commerce: The Second Wave
    • Electronic commerce (e-commerce)
      • Businesses trading with other businesses and internal processes
    • Electronic business (e-business)
      • Term used interchangeably with e-commerce
      • The transformation of key business processes through the use of Internet technologies
  • 7. Categories of Electronic Commerce
    • Five general e-commerce categories:
      • Business-to-consumer
      • Business-to-business
      • Business processes
      • Consumer-to-consumer
      • Business-to-government
    • Supply management or procurement
      • Departments are devoted to negotiating purchase transactions with suppliers
  • 8. Categories of Electronic Commerce (continued)
    • Transaction
      • An exchange of value
    • Business processes
      • The group of logical, related, and sequential activities and transactions in which businesses engage
    • Telecommuting or telework
      • Employees log in to company computers through the Internet instead of traveling to the office
  • 9.  
  • 10. E-Business Models
    • 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
    • Shopping-cart technology: shopping cart and merchant server (database) – www.amazon.com is a widely recognized example
    • Online shopping malls – purchase items from several shops from a mall in 1 transaction – www.mall.com
  • 11. Auction model
    • Place bids in open competition (with or without reserve price)
    • In 2000, $3.8 billion spent on person-to-person auctions
    • $52 billion was projected to be spent on B2B auctions
    • On eBay, people can buy/sell just about anything ( http:// www.ebay.com / )
  • 12. Portal model
    • Gives visitors the chance to find almost everything they are looking for in 1 place
    • Search engines are horizontal portals – provide broad range of topics
    • Vertical portals are more specific – offering a great deal of info in a single area of interest.
    • Sites: www.hotbot.com , www.about.com , www.altavista.com , www.yahoo.com
  • 13. Dynamic pricing models
    • Customers can name their prices – bargain hunting
    • Eg www.priceline.com , www.imandi.com
    • Name-your-price (priceline)
    • Comparison pricing model – customers can poll to find out the lowest price – www.bottomdollar.com
    • Demand-sensitive pricing model – customers to demand better, faster service at cheaper prices and shopping in groups to get group rate (www.mercata.com)
    • www.aol.com - 22 mill users in interactive mode for browsing/email/chatting and downloading
  • 14. Bartering model
    • Offering one item in exchange for another
    • www.ubarter.com
    • Other models: rebates, offering free products and services (www.hsx.com)
  • 15. B2B
    • Buying, selling, partnering, bartering or trading between 2 or more businesses
    • Procurement and effective chain management can be difficult and costly.
    • www.icgcommerce.com enables transactions on the internet
  • 16. Other models
    • Online trading and lending – securities, stocks ( www.etrade.com )
    • Getting a loan online ( www.eloan.com )
    • Recruiting on the web eg www.dice.com , www.guru.com .
    • Online news services ( www.espn.com )
    • Online travel services ( www.cheaptickets.com )
  • 17. Other models
    • Online entertainment
    • Online automotive sites
    • Energy online – energy commodities
    • Selling brainpower – buy patents and intellectual property
    • Online art dealers ( www.art.net )
    • E-learning ( www.click2learn.com )
  • 18. Generic Classification
    • Business-to-Business
      • eg. transactions using EDI, VANs, VPN
    • Business-to-Customer
      • eg. homebanking, stock-trading, on-line reservations, & purchase
    • Business-to-Government
    • Citizen-to-Government
    • Community (ie. Industry e-commerce)
      • eg. Intranets, supply-side e-commerce, demand-side e-business & customer service
  • 19.  
  • 20.  
  • 21. The Development and Growth of Electronic Commerce
    • Electronic funds transfers (EFTs)
      • Also called wire transfers
      • Electronic transmissions of account exchange information over private communications networks
    • Electronic data interchange (EDI)
      • Transmitting computer-readable data in a standard format to another business
  • 22. The Development and Growth of Electronic Commerce (continued)
    • Trading partners
      • Businesses that engage in EDI with each other
    • Value-added network (VAN)
      • Independent firm that offers connection and transaction-forwarding services to buyers and sellers engaged in EDI
  • 23.  
  • 24. Why has E-Commerce become so important?
    • The Canadian Statistics
    • Over 75% of (12.3M)Canadian homes now have PCs
    • Over 55% (6.7M) of those are Internet connected, up 51% over 2002
    • 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))
    • 12% buy regularly over web, 38% have bought (2002)
    • 38% download music
    • 58% bank from home via the web
    • 64% of wired households use boardband (highpeed, non dial-up)
  • 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
    • E-Business is defined as the process of using electronic technology to do business
    • E-Commerce can be defined as a subset of E-Business, and is the subset of E-Business that focuses on commerce
  • 28. Business Models, Revenue Models, and Business Processes
    • Business model
      • A set of processes that combine to yield a profit
    • Revenue model
      • A specific collection of business processes used to:
        • Identify customers
        • Market to those customers
        • Generate sales to those customers
  • 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-”
    • “E-” or “e-” has been added to the almost everything
    • E-mail
    • E-procurement
    • E-care
    • E-government
    • E-learning
    • others …
    Recently we have started to see the same with “ M- ” or “ m- ”.
  • 32. M-Commerce
    • M-Commerce is E-Commerce over wireless communications and typically to smaller handheld devices
    • August, 2000 – DataMonitor predicted that the market for wireless E-Commerce solutions in the U.S. would grow 1000% by year 2005
    • $1.2 billion US annually
  • 33. The Benefits of E-Commerce
    • Opens new markets
    • Shortens business cycles
    • Reduces processing/paperwork
    • Extends reach beyond physical outlets
    • Permits customized products/service
  • 34. Limitations of E-Commerce
    • Customer authentication
    • Web-site navigation
    • Web differentiation
    • Integration of Internet with other customer service channels (telephone, counter, kiosk, etc.)
  • 35. Language Issues
    • To do business effectively in other cultures a business must adapt to those cultures
    • Researchers have found that customers are more likely to buy products and services from Web sites in their own language
    • Localization
      • Translation that considers multiple elements of the local environment
  • 36. Culture Issues
    • An important element of business trust is anticipating how the other party to a transaction will act in specific circumstances
    • Culture:
      • Combination of language and customs
      • Varies across national boundaries
      • Varies across regions within nations
  • 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
    • Commerce
      • Negotiated exchange of goods or services
    • Electronic commerce
      • Application of new technologies to conduct business more effectively
    • First wave of electronic commerce
      • Ended in 2000
    • Second wave of electronic commerce
      • New approaches to integrating Internet technologies into business processes
  • 40. Summary (continued)
    • Using electronic commerce, businesses have:
      • Created new products and services
      • Improved promotion, marketing, and delivery of existing offerings
    • The global nature of electronic commerce leads to many opportunities and few challenges
    • To conduct electronic commerce across international borders, you must understand the trust, cultural, language, and legal issues