Understanding the New Internet
• The process of buying or selling goods or
services across a telecommunications
• Many technologies facilitate E-commerce
– Electronic funds transfer (EFT)
– Electronic data interchange (EDI)
– Internet / world wide web (WWW)
The World Wide Web
• The WWW or Web is one of the common
• A Web Server is able to serve or supply
Web pages containing text, graphics, and
E-Commerce v/s E-Business
E-commerce, informally, it the use of the
Internet and the Web to transact business.
E-business, refers primarily to the digital
enablement of transactions and processes
within a firm, involving information
systems under the control of the firm.
The Value Chain
• A value chain or network is the collection
of activities involved in the production of a
class of goods or services.
• E-commerce can facilitate these chains or
networks by using IT to exchange
information between network members.
Value Chains and E-Commerce
• E-Commerce can “shorten” a Value chain
by linking manufacturers with ultimate
• Can eliminate intermediaries such as
distributors, and in some cases retailers.
Business to Consumer B2C
• Direct to Customer commerce
• Shortens the supply chain to consumer
• Results in higher margin to business or
higher value for customer or both.
• Can take a variety of forms
Consumer to Consumer (C2C)
• Exchanges between consumers.
• Some sites similar to the “Want-Ads”
• eBay provides a C2C auction function
• InfoRocket provides a link to independent
expert consultants who answer questions for