e-Commerce refers to conducting business over digital networks and computers. It includes business-to-business, business-to-consumer, and consumer-to-consumer transactions as well as inter- and intra-company functions like marketing and finance. Early e-commerce took the form of electronic data interchange over private networks, while the growth of the internet allowed e-commerce to reach global scale at low cost, facilitating easy data collection, customer support, and bypassing intermediaries. Current and future trends include increasing internet speeds, stronger security measures, more customized experiences, and use of extranets for business transactions.

1. e-Commerce
Presented by Kerem SARIOGLU

2. e-Commerce
• Definition
• Types of e-Commerce
• History
• Electronic Data Interchange (EDI)
• The choice of the technology: the Internet
• Challenges & Difficulties
• e-Commerce strategies
• The change in business practice
• Future trends of the e-Commerce

3. e-Commerce
Definition
• Conducting of business communication and
transactions over networks and through
computers.
• Electronic commerce is the buying and selling
of goods and services, and the transfer of
funds, through digital communications.
• EC also includes all inter-company and
“intra-company functions” (such as
marketing, finance, manufacturing, selling,
and negotiation)

4. e-Commerce
Types of e-Commerce
• Business to Business
Over 30 years
• Business to Consumer
• Consumer to Consumer

5. e-Commerce
History
• Exchange of data across network.
• Interorganizational data exchange.
• Electronic Data Interchange EDI
• Increasing standardization of EDI
• Electronic Markets (Nasdaq)
• Public Protocols, public network infrastructures:
Value Added Networks VAN, Internet
• Internet Commerce

6. e-Commerce
EDI - Electronic Data Interchange
Definition:
“A series of standards which provide computer to
computer exchange of business documents over
interorganizational or intraorganizational
networks”
• Purchase orders
• Shipping documents
• Invoices
• Invoice payments

7. e-Commerce
EDI
• Motives:
– To increase efficiency in order processing
– To reduce costs (just in time)
– Greater ability to customize products and services
– Competitive advantage (In 1980’s)
Sabre airline booking system
• Early adoptions are very proprietary:
– Private Networks are very limited and close systems
– Put into place by dominant firms
– Only very large firms can afford it.

8. e-Commerce
EDI Standard Formats
• ANSI ASC X12
– American National Standards Committee
• Accredited Standards Committee (1979)
• UN/EDIFACT
– International Standards settings under the
United Nations.

9. e-Commerce
Example of EDI System
2. The sale info is distributed to
the Main Office
Local Store Main Office
3. Main office’
1. A Sale transaction information IS finds out the
is stored into a local store need of inven-
information system tory of each store
5. Suppliers fill the 4. Main office IS sends
order, sending a purchase order to
directly to the store the suppliers’ IS
Suppliers

10. e-Commerce
Connection ?
• Exchange business documents Customized
with one or two trading partners: Network Solutions
• To be connected to an electronic Value Added
market via a VAN Networks VAN
VAN:A privately owned network that provides a specific
service, such as legal research or access to a specialised database,
for a fee.

11. e-Commerce

12. e-Commerce
The Choice of Technology:
The Internet
WHY?
Other Choices
• VAN’s (IBM Global Network)
• Dial Up Connections (Teletel-France)

13. e-Commerce
The Choice of Technology:
The Internet Why?
• Global connectivity at very low cost
• Reduced transaction costs and delivery time
• Easy data collection
• Easy and fast customer support
• Allow bypassing intermediaries

14. e-Commerce
Difficulties & Challenges
• Management Challenges
– Organizational Changes
– The applicability of a business model on the
Internet for the company
– Centralization or Decentralization
• Technical Challenges
– Security
– Speed

15. e-Commerce
Security Solutions
– SSL - Secure Socket Layer
– DC - Digital Certificate
– SET - Secure Electronic Transaction
– PCT - Private Communication Technology
– Firewall
– Digital Signature
– For B2B e-commerce VPI - Virtual Private
Internet

16. e-Commerce
The Needs to Conduct e-Commerce
on the Internet
• A product to offer
• A web site
– Professional look
– Rich content
– Build it
– Buy it
– Borrow it
– Buddy-up (Partner)
– User friendly
– Speedy download
– Integrated with off-line
business

17. e-Commerce
Needs to conduct e-Commerce on
the Internet (Cont’d)
• An internet service provider (ISP)
• A Domain name
• A Web host
• Web tools – Software
– A professional e-mail program
– Auto responders
– A text editor , A macro program
– Graphic Programs & Html editor
– Shopping cart System & secure purchase with credit
card
– Search engine submission software
– Web position analyzer software

18. e-Commerce
Surviving Marketing Strategies in e-Commerce
• The Magnet Effect
The new way of selling; Build an audience and
then look for something to sell.
• Spiral Marketing
To keep the audience attraction:
– Use passive media
– Use the Web site
– Use e-mail
• Domino Effect
A way to predict when technology trends will
impact your business

19. e-Commerce
The Future Trends of
the e-Commerce
• Faster Access
• High Security
• More Customization
• Extranet

20. e-Commerce
QUESTIONS?