Introduction to E-Commerce

CONTENTS Features of E-commerce Technology E-business Examples of E-Business Applications E-Commerce Examples of E-Commerce E-Business vs E-Commerce Features of E-commerce Technology Advantages of E-commerce Disadvantages of E-commerce

E-business All electronically mediated information exchanges, both within an organization and with external stakeholders supporting the range of business processes Examples: Purchasing from suppliers (e-procurement) A company intranet Supplying partners with information through an extranet BACK

Examples of E-Business Applications Cisco (financial management) Nike (product design) Jet Blue Airlines (customer service & ticketing) Dell Computer (customer ordering & service) Boeing (flight manuals, maintenance documents, spare parts to order) Garden.com (drop ship) AlliedSignal (operations scheduling & supply chain) Starbucks (smart cards & web access) BACK

E-Commerce ‘All electronically mediated information exchanges between an organization and its external stakeholders’ Examples: Buying books online (transactional) Selecting a car online (informational) Interacting with brand online (relationship building ) Asking a customer service query, e.g. www.easyJet.com BACK

Examples of E-Commerce Retailing and Marketing Entertainment and Travel Education and Learning Banking and Investment Health-Care Auction Personal and Business Service BACK

E-Business vs E-Commerce Improving business performance through low cost and open connectivity: New technologies in the value chain Connecting value chains across businesses in order to : Improve service/reduce costs Open new channels Transform competitive landscapes E-Commerce: marketing selling buying of products and services on the Internet This is our definition. Yours may be just as valid. e-Commerce is largely what you see in the press: transactions using open networks. Often also concentrated on consumer commerce over the world wide web. e-Business is the use of information networks to gain competitive advantage Universal connectivity between enterprises and value chains Process enhancement Innovative business models e-Business is different than e-commerce - e-business is about blowing up your business model - much broader than selling books on the Internet BACK E-Business is more than selling and marketing online!

Features of E-commerce Technology Ubiquity: Internet/Web technology available everywhere: work, home, etc., anytime. Effect: Marketplace removed from temporal, geographic locations to become “marketspace” Enhanced customer convenience and reduced shopping costs

Global reach: The technology reaches across national boundaries, around Earth Effect: Commerce enabled across cultural and national boundaries seamlessly and without modification Marketspace includes, potentially, billions of consumers and millions of businesses worldwide

Universal standards: One set of technology standards: Internet standards Effect: Disparate computer systems easily communicate with each other Lower market entry costs—costs merchants must pay to bring goods to market Lower consumers’ search costs—effort required to find suitable products

Richness: Supports video, audio, and text messages Effect: Possible to deliver rich messages with text, audio, and video simultaneously to large numbers of people Video, audio, and text marketing messages can be integrated into single marketing message and consumer experience

Interactivity: The technology works through interaction with the user Effect: Consumers engaged in dialog that dynamically adjusts experience to the individual Consumer becomes co-participant in process of delivering goods to market BACK

Advantages of E-commerce You can buy products at anytime. You can save money by not travelling. You can shop from your own home. There are no heavy bags to carry. You don’t have to deal with crowds. You can get discounts on prices. BACK

Disadvantages of E-commerce Security concerns with peoples personal details which includes credit card details. The quality of the product may not be the same as in the shop. The appearance of the product on the website might be different to the product shown that the customers receives. The shop might not send the product you ordered. It can be expensive to return the goods. You need to be present at home to receive the product. BACK

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