1. PREPARED BY: NURUL UMMU SUHADA BT AHMAD NORDIN (2013912921) NUR AIDA BT MD ESA (2013525261) PREPARED FOR: SIR SHAMSUL BAHARIN SAIHANI MGT547 BM2463L TOPIC: (CHAPTER 1:THE REVOLUTION IS JUST BEGINNING)

2. WHAT IS E-COMMERCE The use of the Internet and the Web to carry out business transactions digitally Key words  “digitally enabled transactions”  Business transactions carried out digitally  commercial transactions”  It involves the exchange of value (buying and selling activities such as money) across organizational boundaries in return for products and/or services  Note: without exchange of value, commerce do not occur

3. WHAT IS E-BUSINESS Digitally enablement of transactions and processes within a firm, involving information systems under the control of the firm E-business turns into e-commerce when an exchange of value occurs  Key word “displaying information only”  Does not involve commercial transactions outside businesses or consumers

4. UNIQUE FEATURES OF E-COMMERCE Universal standard o E-commerce technology are shared by all nation around the world. o Network externalities benefits because everyone uses the same technology. Ubiquity  Commerce is available just about everywhere, at all times  It liberates the market from being restricted to a physical space  Marketspace (instead of marketplace)  Reduces limitations of temporal (time) and geographical locations (place)

5. Richness  Richness refers to the complexity and content of a message  Traditional markets  Provide personal, face-to-face services using aural and visual cues  Challenge of e-commerce is to find ways to overcome lack of richness when communicating with customers  The Web, multimedia technology and interactive nature of web sites have improved the richness of communication in business transactions  What it lacks in richness is compensated with reach Global reach  Permits commercial transactions to cross cultural and national boundaries far more convenient and cost effectively than in the past  Increases the potential market size