Semester3

1. Subject Name Code Credit Hours
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Unit 9
E-Commerce:
Fundamentals and Applications

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E-commerce
E-Commerce
Electronic commerce or e-commerce as it is popularly known refers to the
paperless exchange of business information using Electronic Data
Interchange, Electronic mail, Electronic Bulletin Boards, Electronic Fund
Transfer and other network based technologies. Electronic Commerce (EC)
not only automates manual process and paper transactions, but it also helps
organizations to move into a fully electronic environment and change the way
they usually operate.
11/6/2016
Liang -Lincoln University
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Digital Phenomenon
• What do you think?
• What are the drivers of e-commerce?

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Data networks
Intense competition
Globalization
Information age
Technologies
Automation
Low cost high quality products/services
DIGITAL

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E-commerce from different
perspectives
• Three layer models for e-commerce (e.g.
Zwass’s model).
• E-business: a wider perspective than e-
commerce.
• E-commerce improves the value chain.
• E-commerce provides an effective tool for
building, managing and enhancing these
relationships.

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Different types of E-Commerce/types of transaction
Business
(organization)
Customer
(individual)
Business
(organization)
Customer
(individual)
B2C
(e.g Amazon)
C2B
(e.g Priceline)
C2C
(e.g eBay)
B2B
(e.g TPN)

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Examples
• B2C: www.amazon.com
• C2C: www.eBay.com
• B2B: www.tpn.com
• C2B: www.priceline.com
Let’s visit these web sites in turn and discuss its
features.

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E-commerce scenarios
• Retailing
• Servicing
• Publishing
• Supply chain management(logistic)
Discussion: How are they changing?

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Advantages of E-Commerce
• To consumers (think about the consumer
buying process: search, evaluate and execute):
• To businesses (think about the common
objective of every business)

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Advantages of E-commerce
• Consumer
– Convenience
– Time saving
– Different Options
– Easy to compare
– Easy to find reviews
– Coupons and deals
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11. Subject Name Code Credit Hours
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Advantages of E-commerce(cont’)
• Businesses
– Increasing customer base
– Rise in sales
– Operation run 24/7
– Expand business reach
– Instant transactions(Cash business)
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Disadvantages of E-commerce(cont’)
• Customers
– Privacy and security
– Quality
– Hidden costs
– Delay in receiving goods
– Need access to internet
– Lack of personal interaction
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Disadvantages of E-commerce(cont’)
• Business
– Security issues
– Credit card issues
– Sufficient internet service
– Constant upkeep(outdated technology might not
be supported by latest browser or database
model)

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Discussion
• What changes had made by different
departments in order to participate in an e-
commerce project?
– Management
– Marketing
– Production
– Finance
– Procurement(Buy)
– Customer support

15. Subject Name Code Credit Hours
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Transformation of a Compartmentalized
Organization into Integrated Organization
Management
Production
Department
Finance
Department
Marketing
Department
Personnel
Department
Management
Production Marketing
Finance Personnel
ALL IN ONE

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Three-tier Technical Model
Client side Service system Backend system
Server side

17. Subject Name Code Credit Hours
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Architecture of Web-based E-
Commerce System
Backend system
Firewall
Internet
Server side
Intranet
(Secure)
Web Server Application Server
Database
Service system
Client side