E-Commerce Fundamentals and Current Trends in the Philippines Presented by Mavic Pineda 1 March 2006, SJ 504Sponsored by the Business Management Society
Self-Diagnosis • How many use the internet daily? • What’s the average number of hours you spend using the internet daily? • How many made a purchase already thru the internet? • What products did you purchase or what services have you availed • How frequent do you transact or make a purchase thru the internet?
E-Commerce• “Encompasses the entire online process of developing, marketing, selling, delivering, servicing and paying for products & services transacted on internetworked, global marketplaces of customers, with the support of a worldwide network of business partners.” O’brien, J. Management Information Systems Fifth Edition, p. 162.
Pure Vs. Partial Electronic Commerce Three dimensions the product (service) sold [physical / digital]; the process [physical / digital] the delivery agent (or intermediary) [physical / digital] Traditional commerce all dimensions are physical Pure EC all dimensions are digital Partial EC all other possibilities include a mix of digital and physical dimensions
Virtual delivery agentThe Dimensions of Electronic Commerce Virtual process The core of Electronic electronic commerce commerce areas Digital Product Physical Digital process Virtual produc Product Physical process Physical Digital Traditional agent agent commerce Diagram is from Prentice Hall, 2000
Electronic Markets A market is a network of interactions and relationships where information, products, services, and payments are exchanged. The market handles all the necessary transactions. An electronic market is a place where shoppers and sellers meet electronically. In electronic markets, sellers and buyers negotiate, submit bids, agree on an order, and finish the execution on- or off-line.
Shopper/Purchaser Seller/Supplier Electronic commerce network (Infrastructure) Product/service information request Purchase request Purchase fulfillment request Payment or payment advice Purchase change request Electronic Market (Transaction Hander) Response to information request Response to fulfillment request Purchase acknowledgment Shipping notice Shipping notice Purchase/service delivery (if online) Payment acknowledgment Payment remittance notice Electronic transfer of funds Payment approval Electronic transfer of funds Electronic transfer of fundsShopper/Purchaser’s Bank Transaction Handler’s Bank Seller/Supplier’s Bank (Automated Clearing House) Electronic Markets Diagram is from Prentice Hall, 2000
Types of Interorganizational Systems Electronic data interchange (EDI) Extranets Electronic funds transfer (EFT) Integrated messaging systems Shared databases Electronically-supported supply chain management
Types of E-Commerce in the Phils. Business to Business (B-B) Business to Consumer (B-C) Consumer to Consumer (C-C) Business to Government to Consumer (B-G-C) Government to Business & Consumer (G-B/C) Government to Citizen (G-Z)
Developing an E-Business Plan • What are the goals in setting an e-business • Who is the target guests of the site— • What is the readiness level of the organization
Why engage in e-commerce?• Anytime, anywhere commerce and services• Cost-effective in providing information• Mobility, portability of services• Availability of shared services• Cost-effective utilization of services &• Better turn around time (for all parties involved)
Mavic G. Pineda• IT Dept- College of Computer Studies• Adviser, Moomedia SIG• Presently working on the marketing of the BS- Information Communications Technology Management program of the IT Dept.• Conducts lectures and workshops on E- commerce, Web and Interactive Multimedia Designs.
Converging TrendsTechnology Deregulation -Regulated Markets Opening Up-Electronic Commerce -Fewer Regulatory Impediments-Customer Information Technology in Business-“Death of Distance” -Single Currency Zones-Digital Everything -Regulators Outflanked by Changing-Information Content of Products Boundaries & Services IncreasingCompetitive Imperatives Customer Sophistication/-Imperatives Expectations - Real Growth -Demand for Better & More - Globalization Convenient Solutions - Customer Orientation Increased Emphasis on Service - Knowledge & Capability as Key Demand for Added ValueAssets Less Tolerance for Poor Standards - New Entrants -Just-in-Time Delivery-Enablers -Global Influences - Alliances - Outsourcing -Brand “Savvy”
E-Business Planning Process Key Insights Customer and Business Value Visioning E-Business Key Objectives Strategies and ModelsMore Questions E-Business IT Priorities Strategies and Architecture Feedback E-Business Application Development & Feedback Deployment
Component of E-Business Planning Process• Strategy development• Resource management• Technology architecture – Technology platform – Data resources – Applications architecture – IT organization
Dimensions of Change Management People Process Technology-Change Leaders -Ownership -Enterprise Architecture-Loose/Tight Controls -Design -Supplier Partnership-Executive Sponsorship -Enterprisewide Processes -Systems Integrators & Support -Interenterprise Processes -Outsourcing- Aligning on Conditions of Satisfaction-Recruitment -Change Control -Technology Selection-Retention -Implementation -Technology Support-Training Management -Installation Requirements-Knowledge Transfer -Support Processes
Managing Organizational Change Educate and Train Change Organizational Management Design Measurement Core and Competencies Rewards Development User Involvement