E commerce Sri hermawati

What is E-commerce Distributing, buying, selling and marketing products and services over electronic systems E-business for commercial transactions Involves supply chain management, e- marketing, online marketing, EDI Uses electronic technology such as: - Internet - Extranet/Intranet - Protocols

E-commerce as the Networked Economy Create value largely through gathering, synthesizing and distribution of information Formulate strategies that make management of the enterprise and technology convergent Compete in real time rather than in “cycle time” Operate in a world characterized by low barriers to entry, near-zero variable costs of operation and shifting competition Organize resources around the demand side rather than supply side Manage better relationships with customers through technology

E-commerce Today The Internet is the perfect vehicle for e- commerce because of its open standards and structure. No other methodology or technology has proven to work as well as the Internet for distributing information and bringing people together. It’s cheap and relatively easy to use it as a medium for connecting customers, suppliers, and employees of a firm. No other mechanism has been created that allow organizations to reach out to anyone and everyone like the Internet.

E-commerce Today The Internet allows big businesses to act like small ones and small businesses to act big. The challenge to businesses is to make transactions not just cheaper and easier for themselves but also easier and more convenient for customers and suppliers. It’s more than just posting a nice looking Web site with lots of cute animations and expecting customers and suppliers to figure it out Web-based solutions must be easier to use and more convenient than traditional methods if a company hopes to attract and keep customers.

Business originating from... Four Categories of E-Commerce Business originating from... Business Consumers Business B2B C2B And selling to... Consumers B2C C2C

Distinct Categories of E-Commerce Business to Business (B2B) refers to the full spectrum of e-commerce that can occur between two organizations. This includes purchasing and procurement, supplier management, inventory management, channel management, sales activities, payment management &service and support. Examples: FreeMarkets, Dell and General Electric Business to Consumer (B2C) refers to exchanges between business and consumers, activities tracked are consumer search, frequently asked questions and service and support. Examples: Amazon, Yahoo and Charles Schwab & Co

Distinct Categories of E-Commerce (cont’d) Peer to Peer (C2C) exchanges involve transactions between and among consumers. These can include third party involvement, as in the case of the auction website Ebay. Examples: Owners.com, Craiglist, Monster Consumer to Business (C2B) involves when consumers band together to present themselves as a buyer in group. Example: www.planetfeedback.com

Key Drivers of E-commerce Technological – degree of advancement of telecommunications infrastructure Political – role of government, creating legislation, funding and support Social – IT skills, education and training of users Economic – general wealth and commercial health of the nation Tele comm factors – infrastructure, architecture, pricing, range of service available, speed of development Political – gov’t incentive to use and support technology, laws supporting or restricting use Social – skill of workforce, number of users, accessibility to computers, level of education, PZc skills, computer literacy Economic – GDP, average income, cost of technology, cost of access

Key Drivers of E-business Organizational culture- attitudes to R&D, willingness to innovate and use technology Commercial benefits- impact on financial performance of the firm Skilled/committed workforce- willing and able to implement and use new technology Requirements of customers/suppliers- in terms of product and service Competition- stay ahead of or keep up with competitors Comm benefits, in terms of cost savings and improved efficiency Requirements if you are not up to date customers go somewhere else

Conducting E-Commerce Seven C’s of Website Design Context Content Community Communication Connection Commerce Customization

The 7C’s of Website design Context Site’s layout and design Content Text, pictures, sound and video that web pages contain Commerce Site’s capabilities to enable commercial transactions Community The ways sites enable user-to-user communication Connection Degree site is linked to other sites Customization Site’s ability to self-tailor to different users or to allow users to personalize the site Communication The ways sites enable site-to-user communication or two-way communication

Seven Unique Features of E-commerce Technology and Their Business Significance Introduction to e-commerce - G53DDB

Benefits of E-commerce To consumers: 24/7 access, more choices, price comparisons, improved delivery, competition To organizations: International marketplace (global reach), cost savings, customization, reduced inventories, digitization of products/services To society: flexible working practices, connects people, delivery of public services Turns a single marketplace into a borderless marketplace, access to people all around the world, cost of creating, processing, distributing etc., has decreased in a paper based env., enables products to be configured to cust specs., ‘pull’ type supply chain mgmt. based on collecting orders and delivering through JIT manufacturing (Dell). In case of software/music sent directly to cust. Immediate to online tracking of products, competition for discounts, bulk ordering. Work from home, reduces travel time, people in rural areas to connect, health services, doctor’s information, etc.

Benefits to Consumers Convenience Buying is easy and private Provides greater product access and selection Provides access to comparative information Buying is interactive and immediate

Benefits to Organizations Powerful tool for building customer relationships Can reduce costs Can increase speed and efficiency Offers greater flexibility in offers and programs Is a truly global medium

Benefits to Society More individuals can work from home Benefits less affluent people Third world countries gain access Enables more individuals to work at home, resulting in less traffic on the roads, less traveling and lower air pollution Allows some merchandise to be sold at lower prices, benefiting less affluent people Enables people in Third World countries and rural areas to enjoy products and services which otherwise are not available to them Facilitates delivery of public services at a reduced cost, increases effectiveness, and/or improves quality Facilitates delivery of public services

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