Download E-commerce: business. technology. society.

Chapter 1
The Revolution Is Just Beginning
What Is E-commerce?
 Use of Internet and Web to transact
business
 More formally:
 Digitally enabled commercial transactions
between and among organizations and
individuals
Slide 1-2
 E-Commerce
or Electronics Commerce is
a methodology of modern business,
which addresses the need of business
organizations, vendors and customers
to reduce cost and improve the quality
of goods and services while increasing
the speed of delivery.
Slide 1-3
E-commerce refers to the paperless
exchange of business information using
the following ways:
 Electronic Data Exchange (EDI)
 Electronic Mail (e-mail)
 Electronic Bulletin Boards
 Electronic Fund Transfer (EFT)
 Other Network-based technologies
Slide 1-4
Why Study E-commerce?
E-commerce technology is different, more
powerful than previous technologies
 E-commerce brings fundamental changes to
commerce
 Use of Internet and Web to transact business
Involves digitally enabled commercial
transactions
between
and
among
organizations and individuals.

Slide 1-5
Why Study E-commerce?
Digitally enabled transactions include all
transactions mediated by digital technology
 Commercial
transactions involve the
exchange of value across organizational or
individual boundaries in return for products
or services
More formally: Digitally enabled commercial
transactions
between
and
among
organizations and individual.

Slide 1-6
E-Commerce provides the following
features:
 Non-Cash
Payment:
E-Commerce
enables the use of credit cards, debit
cards, smart cards, electronic fund
transfer via bank's website, and other
modes of electronics payment.
Slide 1-7
24x7 Service availability: E-commerce
automates the business of enterprises and
the way they provide services to their
customers. It is available anytime, anywhere.
 Advertising/Marketing:
E-commerce
increases the reach of advertising of products
and services of businesses. It helps in better
marketing management of products/services.

Slide 1-8
Improved Sales: Using e-commerce, orders
for the products can be generated anytime,
anywhere without any human intervention.
It gives a big boost to existing sales volumes.
 Support: E-commerce provides various ways
to provide pre-sales and post-sales assistance
to provide better services to customers.

Slide 1-9
Inventory
Management:
E-commerce
automates inventory management. Reports
get generated instantly when required.
Product inventory management becomes
very efficient and easy to maintain.
 Communication improvement: E-commerce
provides ways for faster, efficient, reliable
communication with customers and partners.

Slide 1-10
Difference Between e-commerce and ebusiness
 e-commerce is an abbreviation used for
electronic commerce. It is the process
through which the buying, selling, dealing,
ordering and paying for the goods and
services are done over the internet is known
as e-commerce. In this type of online
commercial transaction, the seller can
communicate with the buyer without having
a face to face interaction.
Slide 1-11
Definition of e-business

Electronic Business, shortly known as ebusiness, is the online presence of business.
It can also be defined as the business which is
done with the help of internet or electronic
data interchange i.e. is known as E-business.
E-commerce is one of the important
components of e-business, but it is not an
essential part.
Slide 1-12
Eight Unique Features of
E-commerce Technology
1.
2.
3.
4.
5.
6.
7.
8.
Ubiquity
Global reach
Universal standards
Information richness
Interactivity
Information density
Personalization/customization
Social technology
Slide 1-13
Ubiquity

Because E-Commerce is ubiquitous, the
market is able to extend its traditional
operating hours. Online the stores
never close, it is available everywhere
at anytime. Ubiquity lowers transaction
costs for the consumer/buyer.
Slide 1-14
Global reach

E-commerce extends local markets to global
markets. The Internet and Web sites allow
international visitors all over the globe to access
company Web sites, purchase products and make
business interactions. E-commerce technology
permits commercial transactions to cross cultural
and national boundaries far more conveniently and
cost-effectively than is true in traditional commerce
e-commerce technologies enable a business to
easily reach across geographic boundaries.
Slide 1-15
Universal Standards

The universal technical standards of the
internet and e-commerce greatly lower
market entry costs which is the cost that
merchants must pay simply to bring their
goods to the market. At the same time, for
consumers, universal standards reduce search
cost which is the effort required to find
suitable products.
Slide 1-16
Information Richness

Advertising and branding are an important
part of commerce. E-Commerce can deliver
video, audio, animation, etc. to introduce
products. Individual may see information
richness if a post contains a video related to a
product and hyperlinks that allow him to look
at or purchase the product and send
information about the post via text message
or email.
Slide 1-17
Interactivity

Consumer can interact with the content. The Web
offers a two way communication process which was
not afforded through traditional mediums such as
newspapers, magazines, radio and television. The
Web allows consumers to control what information
will be presented, in what order, and for how long. A
Web site can be categorized according to the control
of the consumer over the communication process;
therefore, different levels of interactivity may be
found. E-commerce can collect information from
consumers more easily and efficiently with forms
and surveys.
Slide 1-18
Information density
 The
total amount and quality of
information available to all market
participants.
The
e-commerce
technology reduces information costs
and raises the quality of information. It
makes information accurate, inexpensive
and plentiful.
Slide 1-19
Personalization/customization

Technologies within E-Commerce allow for
the personalization and customization of
marketing messages groups or individuals
receives. Personalization and Customization
are tailoring messages and products to
consumers based on their preferences.
Websites like MSN let you customize your
homepage to all the information you want
and they also place advertising on your page
based on your preferences.
Slide 1-20
Social technology
 Social
networks use E-Commerce
technologies to allow members, the
general public, to share content with the
worldwide community. Consequently,
consumers with accounts can share
personal and commercial information to
promote a product or service.
Slide 1-21
Types of E-commerce
 May be classified by market relationship or technology
 Business-to-Consumer (B2C)
 Business-to-Business (B2B)
 Consumer-to-Consumer (C2C)
 Peer to Peer
 Mobile e-commerce (M-commerce)
Slide 1-22
Business -to -Business

Business or transactions conducted directly
between a company and consumers who are
the end-users of its products or
services. Business to consumer as a
business model differs significantly from the
business to business model, which refers to
commerce between two or more businesses.
Slide 1-23
Business -to -Business

A website following the B2B business model
sells its products to an intermediate buyer
who then sells the product to the final
customer. As an example, a wholesaler places
an order from a company's website and after
receiving the consignment, sells the endproduct to the final customer who comes to
buy the product at one of its retail outlets.
Slide 1-24
Business -to -Business
Slide 1-25
Business -to -Consumer

A website following the B2C business model
sells its products directly to a customer. A
customer can view the products shown on the
website. The customer can choose a product
and order the same. The website will then
send a notification to the business
organization via email and the organization
will dispatch the product/goods to the
customer.
Slide 1-26
Business -to -Consumer
Slide 1-27
Consumer -to -Consumer

A website following the C2C business model
helps consumers to sell their assets like
residential property, cars, motorcycles, etc.,
or rent a room by publishing their
information on the website. Website may or
may not charge the consumer for its services.
Another consumer may opt to buy the
product of the first customer by viewing the
post/advertisement on the website.
Slide 1-28
Consumer -to -Consumer
Slide 1-29
Peer to Peer
Peer to peer technology enables Internet
users to share files and computer resources
directly without having to go through a
central Web server.
 Entrepreneurs and venture capitalists have
attempted to adapt various aspects of peer to
peer technology into peer to peer (P2P) ecommerce.

Slide 1-30
Mobile e-commerce
M-commerce refers to the use of wireless
digital devices like cell phones, handheld
devices and personal computers on the web
to enable transactions on web.
 Once connected mobile consumers can
conduct transactions including stock trades,
in-store price comparisons, banking travel
reservation and more.

Slide 1-31
The Internet and
the Evolution
of Corporate
Computing
Figure 1.11, Page 41
Slide 1-32
Insight on Society: Class Discussion
Facebook and the Age of Privacy

Why are social network sites interested in collecting
user information?

They collect data to learn more about the users. This
allows companies to provide users with a more
engaging experience of information they are actually
interested in. On other hand they also are able to
profit from your personal information, advertisers
pay top dollar to advertise to targeted users.

Potential advertisers want to know what kinds of
people use the sites and the sites have to be
prepared to tell them. The advertisers want to know
Slide 1-33
Growth of the Internet and the Web
 The
World Wide Web (abbreviated
WWW or the Web) is an information
space where documents and other web
resources are identified by Uniform
Resource Locators (URLs), interlinked by
hypertext links, and can be accessed via
the Internet.
Slide 1-34
Uniform Resource Locator
A
Uniform Resource Locator (URL),
commonly informally termed a web
address is a reference to a
web
resource
that
specifies
its location on a computer network and a
mechanism for retrieving it. ... Most web
browsers display the URL of a web page
above the page in an address bar.
Slide 1-35
Internet
A
global computer network providing a
variety
of
information
and
communication facilities, consisting of
interconnected
networks
using
standardized communication protocols.
Slide 1-36
Number of Internet Hosts with
Domain Names
Slide 1-37
Origins & Growth of E-commerce
Slide 1-38
The History Of Ecommerce

Ecommerce was introduced 40 years ago and,
to this day, continues to grow with new
technologies, innovations, and thousands of
businesses entering the online market each
year. The convenience, safety, and user
experience of ecommerce has improved
exponentially since its inception in the 1970’s
Slide 1-39