The document summarizes the key topics presented in a lecture on e-commerce fundamentals and trends in the Philippines. It discusses definitions of e-commerce, types of e-commerce models, essential e-commerce processes, reasons for engaging in e-commerce, and components of developing an e-business plan including strategy, resources, and technology architecture. The presentation also covers converging technology and market trends driving changes in e-commerce and dimensions of managing organizational change.

1. E-Commerce Fundamentals
and Current Trends in the
Philippines
Presented by Mavic Pineda
1 March 2006, SJ 504
Sponsored by the Business Management Society

2. 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?

4. 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.

5. 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

6. Virtual delivery agent
The 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

7. 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.

8. 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 funds
Shopper/Purchaser’s Bank Transaction Handler’s Bank Seller/Supplier’s Bank
(Automated Clearing House)
Electronic Markets
Diagram is from Prentice Hall, 2000

9. Types of Interorganizational Systems
 Electronic data interchange (EDI)
 Extranets
 Electronic funds transfer (EFT)
 Integrated messaging systems
 Shared databases
 Electronically-supported supply chain
management

10. 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)

11. Business to business

12. Business to business

13. Business to consumers

14. Business to consumers

16. 3
1
2

17. Consumers to Consumers

18. Government to Citizen
www.dost.gov.ph
www.dti.gov.ph
www.census.gov.ph

20. http://www.passport.com.ph/ B->G->C

21. http://www.e-census.com.ph/ B->G->C

22. Can you classify the
type of e-commerce
employed?

27. Essential E-commerce Processes
• Access Control & Security
– Access control
– Authentication
– Security measures
• Profiling & Personalizing
– Profile management & personalizing
– Behavior tracking

28. Essential E-commerce Processes
• Search Management
– Content-based search
– Parametric-based search
– Rule-based search
Learn.com
• Content Management
– Dynamic content generation
– Data repository

29. Essential E-commerce Processes
• Catalog Management
– Pricing calculation
– Product configuration
– Catalog generation

30. Essential E-commerce Processes
• Payment
– Shopping cart
– Payment method support
– Payment verification

31. Essential E-commerce Processes
• Event Notification
– Event-driven
– Transaction messaging
– Message boards, newsgroups
– Message to e-mail
• Collaboration & Tracking
– Mediation negotiation
– Bidding/auctioning
– Online community

32. Essential E-commerce Processes
• Workflow Management
– Buying process automation
– Document management
– Rule & role-based content routing

34. 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

36. 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)

37. Any
Questions?
Magandang Hapon sa inyong lahat.

38. 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.

39. Organizational Planning Process
Analyze the Articulate the
Organization’s Organization’s
Environment Plan
Forecast Establish Develop
Team Building, - Vision
Internal & Modeling, & - Strategies
External - Mission - Policies
Consensus - Goals
Developments - Tactics
- Objectives
Develop
Evaluate
Implementation
Accomplishments
Methods &
& Resources
Controls
Feedback

40. Converging Trends
Technology 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 Increasing
Competitive 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 Value
Assets Less Tolerance for Poor Standards
- New Entrants -Just-in-Time Delivery
-Enablers -Global Influences
- Alliances - Outsourcing -Brand “Savvy”

41. E-Business Planning Process
Key Insights
Customer and
Business
Value Visioning
E-Business Key Objectives
Strategies and
Models
More Questions
E-Business IT Priorities
Strategies and
Architecture
Feedback
E-Business
Application
Development &
Feedback Deployment

42. Component of E-Business Planning Process
• Strategy development
• Resource management
• Technology architecture
– Technology platform
– Data resources
– Applications architecture
– IT organization

43. 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

44. Managing Organizational Change
Educate and
Train
Change Organizational
Management Design
Measurement Core
and Competencies
Rewards Development
User
Involvement