The document introduces e-commerce and discusses the business pressures driving its growth. It defines e-commerce as the process of buying, selling, transferring, or exchanging products, services, and information via computer networks and the internet. Common e-commerce business models include business-to-business, business-to-consumer, consumer-to-consumer, and mobile commerce. The benefits of e-commerce to organizations are global reach, cost reduction, extended hours, customization, and lower communication costs. Benefits to consumers include ubiquity, more product/service options, cheaper options, instant delivery, and information availability. Managerial issues with e-commerce include budgets, project deadlines, technology changes, privacy, capital costs,

1. INTRODUCTION TO E-COMMERCE Rizal Hari Magnadi Management Department Economics and Business Faculty Diponegoro University

5. Business Pressure : Market and Economic Strong competition Global economy Regional trade agreement Low labor cost in some countries Frequent and significant changes in markets Increased power of consumers

6. Business Pressure : Societal Changing nature of workforce Government deregulation – more competition Shrinking government subsidies Increased importance of ethical and legal issues Increased social responsibility of organizations Rapid political changes

7. Business Pressures : Technological Increasing innovations and new technologies Rapid technological obsolence Increases in information overload

8. Digital economy an economy that is based on digital technologies , including digital communication networks, computers, software, and other related information technologies (Turban, 2002) With digital networking and communications infrastructures provide a global platform over which people and organizations interact , communicate , collaborate , and search information

9. E-Commerce The process of buying, selling, transferring, or exchanging products, services, and/or information via computer networks, including the internet

10. Common E-Commerce’s Business Models Business-to-Business (B2B) Business-to-Consumer (B2C) Consumer-to-Consumer (C2C) Peer-of-peer aplications Mobile commerce

11. EC’s Benefits to Organizations Global reach Cost reduction Extended hours: 24/7/365 Customization New business models Lower communication costs

12. EC’s Benefits to Consumers Ubiquity More products and services Cheaper products and services Instant delivery Information availibility Electronic communities

13. MANAGERIAL ISSUES OF e-COMMERCE Budgets Project deadlines Keeping up with technology Privacy issues High cost of capital expenditure Unrealistic management expectations Training Reaching new customers Improving customer ordering services Employee hiring revision