Chapter1

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Chapter1

  1. 1. Basics Exploring E-Commerce
  2. 2. What is e-Commerce and e-business? <ul><li>Electronic commerce (EC, or e- commerce) describes the process of buying , selling , transferring, or exchanging of products, services , and/or information via computer networks, including the Internet. </li></ul><ul><li>E-business refers to a broader definition of EC, not just the buying and selling of goods and services, but also servicing customers, collaborating with business partners, conducting e-learning, and conducting electronic transactions within an organization. </li></ul>
  3. 3. Definitions by different means:- <ul><li>From a communication perspective , e-commerce is the delivery of information, products or payments via telephone lines, computer networks or any other means. </li></ul><ul><li>From a business perspective , e-commerce is the application of technology toward the automation of business transactions. </li></ul><ul><li>From a online perspective , e-com provides capability of buying & selling products & information on the internet. </li></ul>
  4. 4. Commerce E (Electronic) - Commerce Traditional Commerce Internet Commerce Mobile Commerce Business Focused E-Commerce Consumer focused E-Commerce
  5. 5. E-Commerce consists of: <ul><li>Electronic retailing (e-tailing) </li></ul><ul><li>EDI (Electronic Data interchange) </li></ul><ul><li>EFT (electronic Funds Transfer) </li></ul>
  6. 6. Types of E-commerce <ul><li>Four Major Domain on which E-Commerce Works </li></ul>Business (Organization) Business (Organization) Consumer (Individual) B2B Brokering sites B2C e.g. Amazon Consumer (Individual) C2B e.g Priceline C2C e.g eBay
  7. 7. Types of E-Commerce <ul><li>Business-to-Business(B-to-B) site: is a website that is dedicated to exchange of information, goods and services to other business rather than final consumers. </li></ul><ul><li>Business-to-Customer(B-to-C) site: is a website where all transections take place between a business house and the final consumer. </li></ul><ul><li>Consumers-to-businesses (C2B): In C2B, consumers make known a particular need for a product or service, and suppliers compete to provide the product or service to consumers. An example is Priceline.com, where the customer names a product and the desired price, and Priceline tries to find a supplier to fulfill the stated need. </li></ul><ul><li>Consumer-to-consumer (C2C): is a website where all the transections take place between a consumer and the website acting asa a platform that brings the buyer and the seller togther. </li></ul>
  8. 8. Other types of E-Commerce are: <ul><li>Government-to-Consumer(G-to-C) site: website is an attempt by the government to reach out to people in general. </li></ul><ul><li>Business-to-Government(B-to-G) site: website is a variation of the B-to-B web site. This web site used by the government to exchange information with various business houses across the world. </li></ul>
  9. 9. Types of E-Commerce Sites <ul><li>Educational sites </li></ul><ul><li>Financial sites </li></ul><ul><li>Auction sites </li></ul><ul><li>News sites </li></ul><ul><li>Entertainment sites </li></ul>
  10. 10. History of E-commerce The U.S government extended the moratorium on Internet taxes until at least 2005. 2000 Retail spending over the Internet reaches $20 billion, according to Business.com . 1999 DSL, or Digital Subscriber Line, provides fast, always-on Internet service to subscribers across California. This prompts people to spend more time, and money, online. 1998 Two of the biggest names in e-commerce are launched: Amazon.com and eBay.com . 1995 Netscape arrived. Providing users a simple browser to surf the Internet and a safe online transaction technology called Secure Sockets Layer. 1994 Compuserve offers online retail products to its customers. This gives people the first chance to buy things off their computer. 1992 EDI, or electronic data interchange, was standardized through ASC X12. This guaranteed that companies would be able to complete transactions with one another reliably. 1984 Event Year
  11. 11. Advantages of E-Commerce <ul><li>Able to conduct business 24 x 7 x 365 </li></ul><ul><li>Access the global marketplace </li></ul><ul><li>Speed </li></ul><ul><li>Opportunity to reduce cost </li></ul><ul><li>Platform independent </li></ul><ul><li>Customer self service </li></ul><ul><li>Large purchase per transaction </li></ul><ul><li>People can shop in different ways </li></ul><ul><li>Large catalogs </li></ul><ul><li>Improved customer relation </li></ul>
  12. 12. Disadvantages of e-commerce <ul><li>Time for delivery of physical products </li></ul><ul><li>Limited and selected sensory information </li></ul><ul><li>Returning goods </li></ul><ul><li>Privacy, security, payment, identity </li></ul><ul><li>Personal service </li></ul>
  13. 13. Types of E-commerce <ul><li>Inter-organizational e-commerce(B-to-B) </li></ul><ul><ul><li>Supplier management </li></ul></ul><ul><ul><li>Inventory management </li></ul></ul><ul><ul><li>Distribution management </li></ul></ul><ul><ul><li>Payment management </li></ul></ul><ul><li>Intra-organizational e-commerce(within business) </li></ul><ul><ul><li>Workgroup communication </li></ul></ul><ul><ul><li>Electronic publishing </li></ul></ul><ul><li>Customer-to-Business e-commerce </li></ul><ul><li>Business-to-customer e-commerce </li></ul><ul><li>Customer-to-customer e-commerce </li></ul>
  14. 14. Features of E-Commerce
  15. 15. Ubiquity <ul><li>Marketplace is created or extended beyond traditional boundaries and removed from a geographic location. </li></ul><ul><li>Shopping can take place anywhere. </li></ul><ul><li>Reduced shopping costs. </li></ul><ul><li>Customer convenience enhanced </li></ul>Internet Technology is available everywhere, at work, at home, and elsewhere via mobile device, anytime Business Significance Technology Dimension
  16. 16. Global Reach <ul><li>Commerce is enabled across cultural and national boundaries seamlessly and without modification. </li></ul><ul><li>Marketplace includes potentially billions of consumers and millions of businesses world wide </li></ul>Technology reaches beyond national boundaries Business Significance Technology Dimension
  17. 17. Universal Standards <ul><li>Lower market entry costs, </li></ul><ul><li>Reduce product search cost and by creating a single , one market place, price discovery becomes simpler, faster and more accurate </li></ul><ul><li>Easily find all the suppliers, prices, and delivery terms of a specific product anywhere in the world </li></ul>There is one set of technology standard, namely Internet Standards Business Significance Technology Dimension
  18. 18. Richness <ul><li>E-Commerce technologies have changed the traditional tradeoff between Richness and the Reach. </li></ul><ul><li>The Internet and web can deliver to an audience of millions rich marketing messages in a way not possible with traditional technologies like radio, TV and magazines. </li></ul>Video, Audio and Text Messages are possible Business Significance Technology Dimension
  19. 19. Interactivity <ul><li>Consumers are engaged in a dialogue that dynamically adjusts the experience to the individual, and make the consumer a co- participant in the process of delivering goods to the market. </li></ul><ul><li>Similar to face-to-face experience but on a massive global scale </li></ul>The technology that allows two way communication between merchant and consumer Business Significance Technology Dimension
  20. 20. Information Density <ul><li>Information processing, storage and communication costs drop dramatically while currency, accuracy and timeliness improve greatly. </li></ul><ul><li>Information becomes plentiful, cheap and accurate </li></ul>The technology reduces information cost and raises quality Business Significance Technology Dimension
  21. 21. Customization <ul><li>Personalization of marketing messages and customization of products and services are based on individual characteristics </li></ul>Technology allows personalized messages to be delivered to individuals as well as groups Business Significance Technology Dimension
  22. 22. Need for E-Commerce <ul><li>Increased competition </li></ul><ul><li>Reduction time to market </li></ul><ul><li>Improvement in payment process </li></ul><ul><li>Electronic data interchange </li></ul><ul><li>Popular with consumers and suppliers </li></ul><ul><li>To improve productivity and to generate profit </li></ul>
  23. 23. Interdisciplinary nature of e-commerce <ul><li>Marketing </li></ul><ul><li>Computer sciences </li></ul><ul><li>Consumer behavior </li></ul><ul><li>Finance </li></ul><ul><li>Economics </li></ul><ul><li>MIS </li></ul><ul><li>Accounting and auditing </li></ul><ul><li>Management </li></ul><ul><li>Business laws and ethics </li></ul>
  24. 24. Forces fueling e-commerce <ul><li>Economic forces </li></ul><ul><li>Market forces </li></ul><ul><li>Technology forces </li></ul>
  25. 25. In Future <ul><li>While E-Commerce may not completely replace other forms of Commerce, it is likely to be the dominant mode of the commercial transactions in the future . </li></ul><ul><li>Colleges and Schools including Business Schools should reflect this trend in the curriculum to train the future generation of Managers. </li></ul>

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