Electronic CommerceElectronic Commerce

Electronic Commerce: Electronic Commerce: Definitions and ConceptsDefinitions and Concepts

electronic commerce (EC)electronic commerce (EC)-- The process of buying, selling, or The process of buying, selling, or exchanging exchanging products, services, or products, services, or information via computer networksinformation via computer networks

-[In another definition of e--[In another definition of e-commerce is defined as the trade, commerce is defined as the trade, which refers to a wide range of which refers to a wide range of immediate trade activities for immediate trade activities for products and servicesproducts and services

Where EC is conductedWhere EC is conducted

electronic market (e-marketplace)electronic market (e-marketplace)

An online marketplace where buyers and sellers An online marketplace where buyers and sellers meet to exchange goods, services, money, or meet to exchange goods, services, money, or informationinformation

inter-organizational information systems inter-organizational information systems (IOSs)(IOSs)

Communications system that allows routine Communications system that allows routine transaction processing and information flow transaction processing and information flow between two or more organizationsbetween two or more organizations

intra-organizational information systemsintra-organizational information systems

Communication systems that enable e-commerce Communication systems that enable e-commerce activities to go on within individual organizationsactivities to go on within individual organizations

EC ClassificationEC Classification

Classification by nature of the Classification by nature of the transactions or interactionstransactions or interactions

business-to-business (B2B)business-to-business (B2B)E-commerce model in which all of the E-commerce model in which all of the participants are businesses or other participants are businesses or other organizationsorganizations

business-to-consumer (B2C)business-to-consumer (B2C)E-commerce model in which businesses E-commerce model in which businesses sell to individual shopperssell to individual shoppers

EC ClassificationEC Classification

consumer-to-business (C2B)consumer-to-business (C2B) E-commerce model in which E-commerce model in which

individuals use the Internet to sell products individuals use the Internet to sell products or services to organizations or individuals or services to organizations or individuals seek sellers to bid on products or services seek sellers to bid on products or services they needthey need

consumer-to-consumer (C2C)consumer-to-consumer (C2C) E-commerce model in which E-commerce model in which

consumers sell directly to other consumersconsumers sell directly to other consumers

EC ClassificationEC Classification

-- mobile commerce (m-mobile commerce (m-commerce)commerce)E-commerce transactions and activities E-commerce transactions and activities conducted in a wireless environmentconducted in a wireless environment

EC ClassificationEC Classification

location-based commerce (l-commerce)location-based commerce (l-commerce)M-commerce transactions targeted to individuals M-commerce transactions targeted to individuals in specific locations, at specific timesin specific locations, at specific times

intra-business ECintra-business ECE-commerce category that includes all internal E-commerce category that includes all internal organizational activities that involve the exchange organizational activities that involve the exchange of goods, services, or information among various of goods, services, or information among various units and individuals in an organizationunits and individuals in an organization

The Future of ECThe Future of EC

Overall, the growth of the field will Overall, the growth of the field will continue to be strong into the continue to be strong into the foreseeable futureforeseeable future

Despite the failures of individual Despite the failures of individual companies and initiatives, the total companies and initiatives, the total volume of EC is growing by 15 to volume of EC is growing by 15 to 25% every year25% every year

Benefits of ECBenefits of EC

Global ReachGlobal Reach Cost ReductionCost Reduction Supply Chain Supply Chain

ImprovementsImprovements Extended HoursExtended Hours CustomizationCustomization

Lower Communication Lower Communication CostsCosts

Efficient ProcurementEfficient Procurement Improved Customer Improved Customer

RelationsRelations New Business ModelsNew Business Models Rapid Time-to-MarketRapid Time-to-Market

Benefits to Organizations

Benefits of ECBenefits of EC

UbiquityUbiquity More Products and More Products and

ServicesServices Cheaper Products Cheaper Products

and Servicesand Services

Instant DeliveryInstant DeliveryInformation Information

AvailabilityAvailabilityParticipation in Participation in

AuctionsAuctionsElectronic Electronic

CommunitiesCommunitiesNo Sales TaxNo Sales Tax

Benefits to Consumers

Benefits of ECBenefits of EC

Benefits to SocietyBenefits to Society

– TelecommutingTelecommuting– Higher Standard of LivingHigher Standard of Living– Homeland SecurityHomeland Security– Availability of Public ServicesAvailability of Public Services

Managerial IssuesManagerial Issues

1.1. Is it real?Is it real?

2.2. Why is B2B e-commerce so attractive?Why is B2B e-commerce so attractive?

3.3. There are so many EC failures—how can There are so many EC failures—how can one avoid them?one avoid them?

4.4. How do we transform our organization How do we transform our organization into a digital one?into a digital one?

5.5. What should be my company’s strategy What should be my company’s strategy toward EC?toward EC?

6.6. What are the top challenges of EC?What are the top challenges of EC?