MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE Definitions  eBusiness The use of computer based information systems for the management and coordination of business processes.  eCommerce eCommerce is the process of buying and selling goods and services electronically using computer based information systems and networks.

MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE The Role & Development of EC

MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE The Role & Development of EC History  1970's EFT  EDI  Dial up access  1990's - www  Growth of networking

MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE Virtual Process Virtual Player Virtual Product Pure EC Traditional Commerce Physical Agent Digital Agent Digital Product Physical Product Physical Process Digital Process Electronic Commerce Areas Pure versus partial EC

MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE Perspectives  communications  business process  service  online

MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE Dimensions TechnologyPeople Task Structure

MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE Classification by Transaction  B2B  B2C  C2C  C2B  Nonbusiness EC  Intrabusiness EC

MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE Classification by process  electronic markets  interorganisational systems  customer service

MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE Interorganisational systems  Includes customers and\or suppliers  Moving from proprietary communications links to the Internet  Types  EDI  Extranets  Electronics Funds Transfer  Electronic forms  Integrated messaging  shared databases  supply chain management

MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE Interdisciplinary Nature  Marketing  Computer Science  Consumer behaviour and psychology  Finance  Economics  Management Information Systems  Accounting and Auditing  Management  Business law and ethics  Other

MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE Home User Logs On Home Page CataloguePurchase Order & Transaction Processing Order Information Legacy Systems Payment Options User Profile Legacy IntegrationBank

MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE Future of EC  eCommerce revenues in the Asian ‑ Pacific region will rise from US$76.8 billion at year ‑ end 2001 to an exponential $338.5 billion by the end of 2004 (eMarketer)  Over $40 billion per annum in USA in % growth per annum (US Govt)

MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE Growth in US eCommerce

MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE Benefits & Limitations

MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE Benefits to Organisations  Expands marketplace  Decreases cost of handling paper  Create specialised businesses (niche markets)  reduced inventories through “pull” supply chain management  competitive advantage through new systems  reduces time between outlay of capital and receipt of product (reduced cycle time)  lowers telecommunications costs  improved customer service  research

MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE Benefits to Consumers  24/7 shopping  more choices  conduct quick comparisons  quick delivery (especially digital products)  detailed information  virtual auctions  increases competition (global market)  interaction with other customers

MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE Benefits to society  work at home  lower prices  makes services and goods available to people in remote areas  delivery of public services

MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE Limitations of EC  security  authentication  lack of trust & user resistance  privacy  integration with existing applications and systems  incompatible software\hardware (lack of standards)  bandwidth

MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE Limitations of EC (Cont.)  high development costs and low ROI (what is the value of intangibles)  legal issues  support services (especially transport)  lack of critical mass of buyers & sellers  breakdown of human relationships

MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE Organisation Technology Market Society Information Technology

MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE Driving forces for EC A New world Order of Business?  Highly competitive environment  consumers are the focus  Business environment can change quickly  Business environment can change unpredictably

MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE Driving forces for EC (Cont.) Market & Economic pressures  strong competition  global economy  regional trade agreements  low labour costs in third world countries  frequent & significant changes in markets  increased power of consumers

MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE Driving forces for EC (Cont.) Societal & Environmental pressures  changing nature of the workforce  government deregulation  shrinking government subsidies  increased importance of ethical and legal issues  increased social responsibility of organisations  rapid political changes

MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE Driving forces for EC (Cont.) Technological pressures  Increased innovation  information overload  rapid decline in technology costs v  s performance ratio

MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE Economic and Global Issues in EC

MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE The Marketspace  Match Buyers and Sellers  Determination of Product Offerings  Search of Buyers for Sellers and Vice a Versa  Price Discovery  Intermediaries

MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE The Marketspace (Cont.)  Facilitate Transactions  Logistics  Settlement  Trust  Provide Institutional Infrastructure  Legal  Regulatory

MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE IT Increases Market Efficiencies by  Expediting Or Improving Market Functions  Lowering Buyers’ Search Cost  Enabling Speedy Comparisons  Lowering Prices  Reducing geographical constraints  Lowering barriers to entry (especially small firms)  Increasing information to parties  Allowing greater product differentiation

MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE Firm Size (Employees) Transaction Cost  Reducing transactions costs

MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE Firm Size (Employees) Agency Costs  Reducing Agency Costs