Introduction ICT432: E-Commerce

Learning Objectives Copyright © 2009 Lempogo Forgor  Define e-commerce and describe how it differs from e-business  Identify the unique features of e-commerce technology and their business significance  Describe the major types of e-commerce

Amazon.com Copyright © 2009 Lempogo Forgor  Most well-known e-commerce company  Conceived by Jeff Bezos in 1994  Opened in July 1995  Four compelling reasons to shop  Selection (1.1 million titles)  Convenience (anytime, anywhere)  Price (high discounts on bestsellers)  Service (automated order confirmation, tracking, and shipping information)

E-commerce Copyright © 2009 Lempogo Forgor  E-commerce involves:  Digitally enabled commercial transactions between organizations and individuals.  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

E-business Copyright © 2009 Lempogo Forgor  E-business involves:  Digital enablement of transactions and processes within a firm, involving information systems under the control of the firm  E-business does not involve commercial transactions across organizational boundaries where value is exchanged

The Difference Between E-commerce and E-Business Copyright © 2009 Lempogo Forgor

Uniqueness of E-commerce Technology and Their Business Significance Copyright © 2009 Lempogo Forgor  E-commerce:  is ubiquitous  has global reach  operates according to universal standards  provides information richness  is interactive  increases information density  permits personalization

Seven Unique Features of E-commerce Technology and Their Business Significance Copyright © 2009 Lempogo Forgor

Major Types of E-Commerce Copyright © 2009 Lempogo Forgor  Market relationships  Business-to-Consumers (B2C)  Business-to-Business (B2B)  Consumer-to-Consumer (C2C)  Technology-based  Peer-to-Peer (P2P)  Mobile Commerce (M-commerce)

Business-to-Business E-commerce Copyright © 2009 Lempogo Forgor  Businesses focus on sell to other businesses  Largest form of e-commerce  Primarily involved inter-business exchanges at first  Other models have developed  e-distributors  B2B service providers  etc

Business-to-Business e-commerce – B2B Lempogo Forgor © 2009 Business-to-Business e-Commerce involves both electronic business marketplaces and direct market links between businesses. For example, many companies offer secure Internet or extranet e-commerce catalog websites for their business customers and suppliers. Some B2B e-commerce portals provide auction and exchange marketplaces for businesses.

Business-to-Consumer E-commerce Copyright © 2009 Lempogo Forgor  Most commonly discussed type  Online businesses attempt to reach individual consumers

Business-to-Customer e-commerce – B2C Lempogo Forgor © 2009 In Business-to-Customer e-Commerce, businesses develop attractive electronic marketplaces to sell products and services to consumers. For example: Many companies offer e-commerce websites that provide:  virtual storefronts and multimedia catalogs,  interactive order processing,  secure electronic payment systems,  online customer support.

Customer-to-Customer e-Commerce– C2C Lempogo Forgor © 2009  Customer-to-Customer e-Commerce involves customers selling directly with/to other customers.  The huge success of online auctions like eBay

Consumer-to-Consumer E-commerce Copyright © 2009 Lempogo Forgor  Provide a way for consumers to sell to each other  Consumer:  prepares the product for market  places the product for auction or sale  relies on market maker to provide catalog, search engine, and transaction clearing capabilities

Major Types of E-Commerce Copyright © 2009 Lempogo Forgor

Peer-to-Peer E-commerce Copyright © 2009 Lempogo Forgor  Enables Internet users to share files and computer resources  Napster

Mobile E-commerce Copyright © 2009 Lempogo Forgor  Wireless digital devices enable transactions on the Web  Uses personal digital assistants (PDAs) to connect  Used most widely in Japan and Europe

Origins and Growth of E-Commerce Copyright © 2009 Lempogo Forgor  Baxter Healthcare  Primitive form of B2B using telephone-based modem to permit hospitals to reorder supplies (early 1970s)  PC-based remote order entry system (1980s)  Electronic Data Interchange (EDI) standards developed that permitted firms to exchange commercial documents and conduct digital commercial transactions across private networks (1980s)

Origins and Growth of E-Commerce Copyright © 2009 Lempogo Forgor  French Minitel videotext system  First B2C arena (1981)  15 million in use throughout France  World Wide Web  1993 first browsers  1995 first banner ads

Understanding E-Commerce: Organizing Themes Copyright © 2009 Lempogo Forgor  Technology: Infrastructure  development and mastery of digital computing and communications technology  Business: Basic Concepts  new technologies present businesses and entrepreneurs with new ways of organizing production and transacting business  Society: Taming the Juggernaut  global nature of e-commerce poses public policy issues of equity, equal access, content regulation, and taxation

The Internet and the Evolution of Corporate Computing Copyright © 2009 Lempogo Forgor

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