2. Learning Objectives:
• To explore how e-business and e-commerce fit
together.
• To identify the impact of e-commerce.
• To recognise the benefits and limitations of e-
commerce.
• To identify the different classification of E-
commerce.
• To identify the main barriers to the growth and
development of e-commerce.
CS3_ E-commerce Presentation
3. What is Electronic Commerce?
• Electronic commerce is sharing business information, maintaining
business relationships and conducting business transactions by
means of telecommunications networks.
• Electronic Commerce (EC) is where business transactions take
place via telecommunications networks, especially the Internet.
• Electronic commerce describes the buying and selling of products,
services, and information via computer networks including the
Internet.
• Electronic commerce is about doing business electronically.
• E-commerce, ecommerce, or electronic commerce is defined as the
conduct of a financial transaction by electronic means.
CS3_ E-commerce Presentation
4. What is E-business?
• E-business is the transformation of key business processes
through the use of Internet technologies. E-Business is not only
buying and selling but also servicing customers and collaborating
with business partners.
• An e-business is a company that can adapt to constant and
continual change.
• E-business is everything to do with back-end systems in an
organisation.
CS3_ E-commerce Presentation
6. HISTORY OF E-COMMERCE
• E-Commerce started over 40 years ago, and has evolved
over time.
• Before the widespread uptake and commercial use of THE
INTERNET, the Electronic Data Interchange (EDI), was
used as the platform for E-commerce.
• EDI uses private communications networks (VANs) to
transmit standardized transaction data between business
partners and suppliers
• The EDI system was very expensive, thus uptake was
limited largely to cash-rich multinational corporations.
CS3_ E-commerce Presentation
11. The Impact of Electronic Commerce
• Marketing
• Computer sciences
• Finance and accounting
• Economics
• Production and operations management
• Production and operations management
(manufacturing)
• Management information systems
• Human resource management
• Business law and ethics
CS3_ E-commerce Presentation
12. Benefits and Limitations of E-commerce to
Society
Benefits
• Enables more flexible
working practices
• Connects people.
• Facilitates delivery of
public services.
Limitations
• Breakdown in human interaction.
• Social division.
• Reliance on telecommunications
infrastructure, power and IT skills.
• Wasted resources.
• Difficulty in policing the Internet
CS3_ E-commerce Presentation
13. Benefits and Limitations of E-commerce to
Consumers
Benefits
• 24/7 access.
• More choices.
• Price comparisons.
• Improved delivery
processes.
• An environment of
competition
Limitations
• Computing equipment.
• A basic technical knowledge.
• Cost of access to the Internet.
• Cost of computing equipment.
• Lack of security and privacy of personal
data.
• Physical contact and relationships are
replaced by electronic processes.
• A lack of trust because they are
interacting with faceless computers.
CS3_ E-commerce Presentation
14. Benefits and Limitations of E-commerce to Organisations
BENEFITS
• Operational cost savings.
• Mass customisation.
• Enables reduced inventories.
• Lower telecommunications cost.
• Digitisation of products and
processes.
• No more 24-hour-time constraints
LIMITATIONS
• Lack of sufficient system
security, reliability, standards
and communication protocols.
• Rapidly evolving and
changing technology.
• Under pressure to innovate
• Facing increased competition
• Problems with compatibility of
older and ‘newer’ technology.
CS3_ E-commerce Presentation
15. Classification of E-commerce
The classification is done from different perspective
namely:
• The Macro-Environment Perspective
• The Identification of Transacting Partners
• The Degree of Digitisation
These frameworks help identify the elements of e-
commerce and how businesses can better understand
e-commerce and its practical applicability.
CS3_ E-commerce Presentation
16. Classifications of E-Commerce:
Macro-environment Perspective
The macro-environment perspective identifies the
interaction of :
• Technology
• People
•Organisations
• Policies and
• Technical standards working together to
enable e-commerce.
CS3_ E-commerce Presentation
17. Classifications of E-Commerce:
The Identification of transacting partners
This involves the Identification of the partners directly involved in
the transaction. The Image below gives a summary of the
classification under this Framework.
CS3_ E-commerce Presentation
18. Classifications of E-Commerce:
The Degree of Digitisation
The degree of digitisation categorises E-Commerce
based on the Product or Service Sold, the process
of the transaction and Delivery agents.
Based on these categories, Three main dimensions
can be deduced namely:
•Traditional Ecommerce
•Pure E- Commerce
•Partial Ecommerce
CS3_ E-commerce Presentation
19. Barriers to E-commerce
Internet infrastructure.
Technology infrastructure.
Security.
Commercial infrastructure.
Organisational structure and culture.
Lack of qualified personnel.
Lack of proven business models.
Interoperability of systems
CS3_ E-commerce Presentation
