The document discusses electronic commerce (e-commerce), describing its key components, types, and supporting services. It defines e-commerce and e-business, explaining that e-commerce specifically involves buying and selling online, while e-business is broader. There are various models of e-commerce organizations and several types of e-commerce transactions between businesses, consumers, and governments. Supporting e-commerce requires online payment processing, marketing/advertising, and other services like fulfillment.

1. ELECTRONIC ManagementInformation Systemsin Organizations COMMERCE Prepared by: Jan Wong

2. The Learning Outcomes At the end of this session you should be able to: E-Commerce, it’s scope, benefits, limitations and types DESCRIBE The importance and activities of online advertising DISCUSS B2B and emerging applications such as B2E DESCRIBE

4. Can take several forms depending on the degree of digitization (the transformation from physical to digital).

5. The degree of digitization relates to:

6. the product (service) sold

7. the process

9. TRANSACTION MEDIUMS Most e-commerce is done over the Internet. Also be conducted on private networks, such as value-added networks (VANs, networks that add communication services to existing common carriers), on local area networks (LANs) or wide area networks (WANs) In other words: Intranet, Extranet and even the Enterprise Web

10. E-Commerce can happen between various parties Business-to-business (B2B): Both the sellers and the buyers are business organizations. Collaborative commerce (c-commerce): In c-commerce, business partners collaborate electronically. Usage of Extranets Business-to-consumers (B2C): The sellers are organizations, and the buyers are individuals. Consumers-to-businesses (C2B): Consumers make known a particular need for a product or service, and suppliers compete to provide it. TRANSAC-TION TYPES 8

11. Consumer-to-consumer (C2C): Individualssell products or services to other individuals. Intrabusiness (intraorganizational) commerce: An organization uses EC internally to improve its operations. A special case is known as B2E (business to its employees) Government-to-citizens (G2C): A government provides services to its citizens Mobile commerce(m-commerce): When e-commerce is done in a wireless environment. TRANSAC-TION TYPES 8

12. COMPONENTS of E-COMMERCE “The field of e-commerce is broad, and there are many of EC applications” How can organizations support E-Commerce Applications? E-Commerce Framework

13. 5 People: Sellers, buyers, intermediaries, information systems specialists and other employees, and any other participants. Public policy: Legal and other policy and regulating issues, such as privacy protection and taxation. Marketing and advertising: Like any other business, EC usually requires the support of marketing and advertising. Support services: Many services are needed to support EC. They range from payments to order delivery and content creation. Business partnerships: Joint ventures, e-marketplaces, and partnerships are some of frequently occurring relationships in e-business COMPONENTS/PILLARSof E-COMM “To execute these applications, companies need the right information, infrastructure, and support services”

14. Auctions are used in B2C, B2B, C2B, e-government, and C2C commerce Forward auctions Sellers use as a selling channel to many potential buyers. Items are placed at sites for auction and buyers bid continuously for the items. 2 types of forward auctions Reverse auctions Have one buyer, usually an organization, that wants to buy a product or a service. Suppliers are invited to submit bids. TYPES OF E-COMMERCE :AUCTIONS “Electronic Auctions (e-Auctions): A market mechanism by which sellers place offers and buyers make sequential bids”

15. Enables an enterprise to form electronic relationships with its distributors, resellers, suppliers, customers, and other partners Sell-Side Marketplaces: Sell productsor services to other organizations electronically, from their own private e-marketplace Similar to B2C E-Storefront / Market Buy-Side Marketplaces: Buy productsor services from other organizations electronically, usually from their own private e-marketplace One buy-side model is a reverse auction. Companies wanting to buy items places a request for quotation (RFQ) on its Web site TYPES OF E-COMMERCE :B2B “The buyers, sellers, and transactions involve only organizations”

16. Examples: Allow employees to manage their fringe benefits Take training classes electronically. Electronic corporate stores that sell a company’s products to its employees, usually at a discount Some other uses: Sales force automation Order processing & tracking, contact management, information sharing, inventory monitoring and control, employee performance evaluation E-Commerce Between strategic business units (SBUs) Buy / sell / trade between BUs E.g. Group of companies E-Commerce Between and Among Employees Classified Ads E.g. Universities TYPES OF E-COMMERCE :B2E “Companies are finding many ways to do business electronically with their own employees by disseminating information over the Intranet”

17. Government-to-Citizens (G2C) Paying of bills Renewal of licenses Information Funding Government-to-Business (G2B) Company registration Project tenders Government-to-Government (G2G) Online non-commercial interaction between Government organizations, departments, and authorities TYPES OF E-COMMERCE :E-GOVERNMENT “Use of Internet technology in general and e-commerce in particular to deliver information and public services to citizens, business partners and suppliers, and those working in the public sector”

18. TYPES OF E-COMMERCE :C2C C2C Auctions Classified Ads Personal Services Dating services, online coaches, clubs, etc Support Services to C2C Paypal, ToCheckOut, iPay88 “E-commerce in which both the buyer and the seller are individuals (not businesses)”

19. Mostly B2C In the past: Home catalogs TV shopping channels Problems faced: Expensive upkeep / production Printed catalogs not up-to-date TV shopping is limited to time Solution: E-Tailing. Why? Delivery of services (buying an airline ticket or stocks) can be done 100 percent electronically (convenience) Cost reduction potential TYPES OF E-COMMERCE :E-TAILING(e-storefronts / marketplaces) “Exchange of goods or services without a monetary transaction”

20. Seen also in B2C Service Industries Electronic banking International and Multiple-Currency Banking Online Securities Trading Online Job Market Travel Services Real Estate However, also face major issues: Resolving channel conflict Resolving conflicts within click-and-mortar organizations Organizing order fulfillment and logistics Determining viability and risk of online e-tailers Identifying appropriate revenue models TYPES OF E-COMMERCE:E-TAILING(e-storefronts / marketplaces) “Exchange of goods or services without a monetary transaction”

21. E-COMMERCE SUPPORT SERVICES B2B and B2C applications require payments and order fulfillment. Portals require content, etc These services include: e-infrastructure (mostly technology consultants, system developers and integrators, hosting, security, and networks) e-process (mainly payments and logistics) e-markets (mostly marketing and advertising) e-communities (different audiences and business partners) e-services (CRM, PRM, and directory services) e-content (supplied by content providers)

22. WHY DO WE NEED E-COMMERCESUPPORT SERVICES

23. E-COMMERCE SUPPORT SERVICES Electronic Payments are an integral part of doing business, whether in the traditional way or online. In most cases traditional payment systems are not effective for EC, especially for B2B Types of E-Payments Electronic checks (e-checks) Electronic credit cards Purchasing cards, Electronic cash (e-cash) Electronic Bill Presentment and Payments E-wallets Virtual credit cards

24. E-COMMERCE ALSO REQUIRES: MARKET RESEARCH & ONLINE ADVERTISING / MARKETING

25. MARKET RESEARCH For successful e-commerce (especially B2C) Important to find out who are the actual and potential customers and what motivates them to buy How? Asking Customers What They Want Observing Customer Behavior on the Web: Brand- and Vendor-Finding Agents and Price Comparisons Search Agents Collaborative Filtering Agents Other Agents (e.g. Social Media Networks)

26. MARKET RESEARCH:CONSUMER BEHAVIOR MODEL

27. MARKET RESEARCH Several models have been developed in an effort to describe the details of the decision-making process that leads up to and culminates in a purchase Generic Purchasing-Decision Model Need identification Information search Evaluation of alternatives Purchase and delivery After-Purchase­Evaluation

28. ONLINE ADVERTISING / MARKETING Advertisement is an attempt to disseminate information in order to influence a buyer–seller transaction Traditional advertising media Impersonal, one-way mass communications TV, Newspapers, Magazines, etc Internet advertising media Media-rich, dynamic, and interactive

29. ONLINE ADVERTISING / MARKETING Methods: Banners Electronic billboards and is the most commonly used form of advertising on the Internet Pop-Up, Pop-Under, and Similar Ads E-MailAdvertising Electronic Catalogs and Brochures Other Forms of Internet Advertising Pay-Per-Click (Google Adwords) Sponsored search results

30. ONLINE ADVERTISING / MARKETING Online advertising issues & approaches: Unsolicited Advertising Spamming Permission Marketing Also known as: Opt-In marketing Viral Marketing Interactive Advertising and Marketing Online Promotions Coupons, events, attractions Search engine optimization

31. ONLINE ADVERTISING / MARKETING… CAN ALSO DRAW OFFLINE EXPOSURE & SALES

32. THINGS TO TAKE NOTE OFF Difference between E-Commerce and E-Business Brick-and-Mortar, Virtual & Click-and-Mortar 8 Transaction types in E-Commerce How organizations can sustain it’s E-Commerce Applications (5 Components / Pillars) The types Online Advertising Why Market Research? What are E-Commerce Support Services

33. ELECTRONIC COMMERCE

34. Coming soon… next class ENTERPRISE SYS.: ManagementInformation Systemsin Organizations S.C. to ERP to CRM Understanding ERP and why organizations are moving to CRM

35. IT’S TIME FOR SOME DISCUSSIONS! Differentiate the following terms: E-Commerce and E-Business Forward and Reverse Auctions Spamming and Permission Marketing What are: E-Bartering, E-Storefronts, E-Malls / Marketplace? What is Online Advertising? What are it’s benefits? List 5 reasons for E-Commerce failures and 5 suggestions for it’s success Discuss the major limitations of E-Commerce. Which of them are likely to disappear? Why? Discuss the benefits to both sellers and buyers of B2B What are the benefits of E-Government?