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Introduction to e commerce


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Introduction to e commerce

  1. 1. INTRODUCTION TO E-COMMERCE Rizal Hari Magnadi Management Department Economics and Business Faculty Diponegoro University
  2. 5. Business Pressure : Market and Economic <ul><li>Strong competition </li></ul><ul><li>Global economy </li></ul><ul><li>Regional trade agreement </li></ul><ul><li>Low labor cost in some countries </li></ul><ul><li>Frequent and significant changes in markets </li></ul><ul><li>Increased power of consumers </li></ul>
  3. 6. Business Pressure : Societal <ul><li>Changing nature of workforce </li></ul><ul><li>Government deregulation – more competition </li></ul><ul><li>Shrinking government subsidies </li></ul><ul><li>Increased importance of ethical and legal issues </li></ul><ul><li>Increased social responsibility of organizations </li></ul><ul><li>Rapid political changes </li></ul>
  4. 7. Business Pressures : Technological <ul><li>Increasing innovations and new technologies </li></ul><ul><li>Rapid technological obsolence </li></ul><ul><li>Increases in information overload </li></ul>
  5. 8. <ul><li>Digital economy </li></ul><ul><li>an economy that is based on digital technologies , including digital communication networks, computers, software, and other related information technologies (Turban, 2002) </li></ul><ul><li>With digital networking and communications infrastructures provide a global platform over which people and organizations interact , communicate , collaborate , and search information </li></ul>
  6. 9. E-Commerce <ul><li>The process of buying, selling, transferring, or exchanging products, services, and/or information via computer networks, including the internet </li></ul>
  7. 10. Common E-Commerce’s Business Models <ul><li>Business-to-Business (B2B) </li></ul><ul><li>Business-to-Consumer (B2C) </li></ul><ul><li>Consumer-to-Consumer (C2C) </li></ul><ul><li>Peer-of-peer aplications </li></ul><ul><li>Mobile commerce </li></ul>
  8. 11. EC’s Benefits to Organizations <ul><li>Global reach </li></ul><ul><li>Cost reduction </li></ul><ul><li>Extended hours: 24/7/365 </li></ul><ul><li>Customization </li></ul><ul><li>New business models </li></ul><ul><li>Lower communication costs </li></ul>
  9. 12. EC’s Benefits to Consumers <ul><li>Ubiquity </li></ul><ul><li>More products and services </li></ul><ul><li>Cheaper products and services </li></ul><ul><li>Instant delivery </li></ul><ul><li>Information availibility </li></ul><ul><li>Electronic communities </li></ul>
  10. 13. MANAGERIAL ISSUES OF e-COMMERCE <ul><li>Budgets </li></ul><ul><li>Project deadlines </li></ul><ul><li>Keeping up with technology </li></ul><ul><li>Privacy issues </li></ul><ul><li>High cost of capital expenditure </li></ul><ul><li>Unrealistic management expectations </li></ul><ul><li>Training </li></ul><ul><li>Reaching new customers </li></ul><ul><li>Improving customer ordering services </li></ul><ul><li>Employee hiring revision </li></ul>