Professional Documents
Culture Documents
e c o m m e r c e
An introduction to e-Commerce outlining: The three basic e-Commerce technologies The trading exchanges to which they apply
of everything; ..............................They just make the best of everything they have !!"
Lecture No.1
Definition of e-Commerce
Formulating commercial transactions at a site remote from the trading partner and then using electronic communications to execute that transaction. In Simple Words: Electronic commerce is an emerging concept that describes the process of buying and selling or exchanging of products, services and information via computer networks including the internet. The definition includes business to business and business to consumer transactions.
4
E-Commerce Classification
A common classification of EC is by the nature of transaction:
Business-to-business (B2B): electronic market transactions that take place between organizations. Business-to-consumer (B2C): retailing transactions with individual shoppers typical shopper at Amazon.com is a consumer. Consumer-to-consumer (C2C): consumer sells directly to consumers, examples - individuals selling in classified ads, auction sites allowing individuals to put up items for auction e.g. e-bay
EC Classification
Consumer-to-Business (C2B): individuals who sell products or services to organizations and those who seek sellers and conclude a transaction. Intra-business (organizational) EC: all internal organizational activities involving exchange of goods, services or information, selling corporate products to employees, online training and cost reduction activities. Non-business EC: academic institutions, not-forprofit organizations, religious/social organizations and government agencies using EC to improve their operations, customer service and reduce expenses.
Basics
Web client- machine that initiates internet request Web server machine that services internet request Browser - software at the client side to interact with web data Intranet an internal network of computers confined to a single place Extranet when two or more intranets are connected with each other, they form an Extranet e.g. VPN (Virtual Private Network) Internet a global network of networks.
What is a network?
1. A network can be anything from a simple collection of computers at one location connected through a connectivity media to the internet (a global network of networks) 2. Local Area Network (LAN) is a server-based network confined to a particular area/place 3. Most LANs consist of many clients and a few servers
10
11
Prime Candidate
12
E-Commerce technologies
Electronic Markets
EDI
Internet Commerce
The three e-Commerce technologies are: Electronic Markets Electronic Data Interchange - EDI Internet Commerce
13
Electronic markets
The use of ICTs (information and communications technology) to present a range of offerings available in a market segment and hence enable: the purchaser to compare the prices (and other attributes); make a purchase decision. The usual example of an electronic market is an airline booking system. There is the potential for new electronic markets to be created using Internet technologies.
14
15
Internet commerce
Information and communications technologies can also be used to advertise and make once-off sales of a wide range of goods and services. This type of e-Commerce is typified by the commercial use of the Internet. The Internet can, e.g. be used for the purchase of books that are then delivered by post or the booking of tickets that can be picked up by the clients when they arrive at the event. It is to be noted that the Internet is not the only technology used for this type of service and this is not the only use of the Internet in e-Commerce.
16
Cash Pre-Sale
Execution
Electronic markets
Emphasis on the search phase of the trade cycle Typically an inter-organisational credit trade cycle
Search Negotiate Order Deliver Invoice Paym ent After Sales
EM
Pre-Sale
Execution
Limited applications airline seat bookings and financial sector the operation of the electronic market is not necessarily in the vendors interests.
20
Order
Deliver Invoice Paym ent After Sales
EDI
Execution
Notable users of EDI are vehicle assemblers, component suppliers, and supermarkets (and other multiple retailers), ordering the goods to restock their shelves.
21
Internet commerce
Used for once-off transactions consumer or interorganisational transactions.
Search Negotiate Order Deliver Invoice Paym ent After Sales Pre-Sale
In e e t rn t
Execution
Can apply to Search, Execution / Settlement and / or After Sales. Consumers pay at time of ordering businesses may have credit arrangements with the suppliers.
22
e-Commerce in perspective
e-Commerce is not appropriate to all business transactions and, within e Commerce, there is no one technology that can or should be appropriate to all requirements.
Ele ron ct ic
M rk t a es
ED I
In e e t rn t Com rce e
23
Amazon.com has relatively few employees and no retail outlets; and yet, it has a higher market capitalization than Barnes & Noble, which has more than one thousand retail outlets. Nonetheless, Barnes & Noble is fighting back by creating its own Web-based business. In this way, the Internet may spawn hybrid business strategiesthose.
24
Amazon.com, Inc. is a US-based multinational electronic commerce company. Headquartered in Seattle, Washington, it is America's largest online retailer, with nearly three times the Internet sales revenue of the runner up, Staples, Inc., as of January 2010.[3] Jeff Bezos founded Amazon.com, Inc. in 1994 and launched it online in 1995. The company was originally named Cadabra, Inc. The name Amazon.com was chosen because the Amazon River is the largest river in the world, and so the name suggests large size. Revenue US$ 24.509 billion (2009) Employees 31,200 (2010) [2]
2 "Company Profile for Amazon.com Inc (AMZN)". http://phx.corporate-ir.net/phoenix.zhtml?c=97664&p=irol-newsArticle&ID=1485834&highlight=. Retrieved 2010-11-02. 3 "amazon.com". amazon.com. 2009-09-09. http://www.amazon.com. Retrieved 2010-08-29.
25
Thanks to Allah
26
Suggested Books
E-commerce Strategy, Technologies and Applications by David Whiteley Electronic Commerce (4th edition) by Gary P. Schneider Electronic commerce A Managerial Perspective by Turban et al.
27