IT final (chapter10)

Electronic commerce (e-commerce, EC)

The process of buying, selling via computer networks, including the Internet.

E-business

internal more genral processes (collaboration, e-learning, etc.)

Virtual organization

Organization in which the product, the process, and the delivery agent are all digital; also called pure – play organization

Click-and– mortar

Organization in which the product, the process, and the delivery agent may be physical or digital

Types of E-Commerce Transactions

• b2b

• b2c

• c2c

• c2b

• collabrative commerce

• intrabusiness commerce

• b2e

• g2c

• g2b

• m commerce

Business-to-Business (B2B)

E-commerce in which business sells to other businesses

Collaborative commerce ( c-commerce)

E commerce in which business partners collaborate electronically

Business-to-Consumers (B2C)

E-commerce in which businesses sell to customers

Consumer-to-Consumer(C2C).

E-commerce in which an individual sells to each others

customer -to-Business (C2B).

E-commerce in which customers set needs, business offer

Intrabusiness( intraorganizational) commerce.

E-commerce in which an organization uses EC internally to improve its operations.

B2E( business to employees) EC

A special case of intrabusiness , business to employee.

Government–to–Citizens(G2C)

E-commerce in which a government provide services to its citizen via EC technologies.

Government-to–business (G2B)

E-commerce in which a government does business with other governments as well as with businesses.

Mobile Commerce (m-commerce)

E-commerce conducted in a wireless environment.

mobile based commerce

Business Model .

The method by which a company generates revenues to sustain itself

EC applications supported by

• people

• public policy

• marketing and advertising

• support services

• business partnerships

Benefits of E-commerce to organization

• The availability of natural and international markets,

• The decreased cost of processing, distributing, and retrieving information.

Benefits of E-commerce to customer

The access to a vast number of products and services, around the clock.

Benefits of E-commerce to society

The ability to deliver information, services, and product to people in cities, in rural areas and in developing countries

Technological Limitations of EC

• The lack of universally accepted security standards.

• Insufficient telecommunication bandwidth.

• Expensive accessibility

Nontechnological Limitations

• EC might not be secure

• legal issues

• lack of a critical mass of sellers and buyers

Major EC Mechanism

• Electronic Catalogs

• Electronic Auctions (E-auction)

• Electronic battering

Electronic Catalogs .

Product listings with search, multimedia

Electronic Auctions (E-auction).

A market mechanism by Sellers list, buyers bid (Forward/Reverse)

Electronic battering.

The exchange of goods or services without a monetary transaction.

Electronic catalogs classified according to three dimension

• The dynamic of the information presentation.

• The degree of customization.

• The degree of integration with other business process or features.

Types of Electronic Auctions

• Forward auction: An auction that sellers use as a selling channel to many potential buyers; the highest bidder wins the item.

• Reverse auction: An auction in which one buyer, usually an organization, seeks to buy a product or a service, and suppliers submit bids; most common model for large purchase.

Business-to-Consumer Applications

• Electronic relating (e-tailing)

• cyberbanking

• virtual bank

Electronic relating (e-tailing)

The direct sale of products and services through electronic storefronts or electronic malls

popular shopping location online

• Electronic storefront

  The website of a single company, with its own Internet address, at which orders can be placed.

• Electronic malls (cyber mall)

  A collection of individual shops under one Internet address.

Cyberbanking

Various Banking from home or mobile instead of at a physical bank location

Virtual bank

online only bank

Phases in Customer Service Life Cycle

• Phase 1: Requirement: the customer to determine needs by providing photographs of a product, video presentation, textual descriptions, articles or reviews, sound bites on a CD, and downloadable demonstration files.

• Phase 2: Acquisition:

  Help the customer to acquire a product or service.

• Phase 3:Ownership:

  Support the customer on an ongoing basis

• Phase 4:Retirement:

  Help the client to dispose of a service or product

Issues in E-tailing

• Resolving channel conflict

• Resolving conflicts within click organizations–and-mortar

• Organizing order fulfilment and logistics.

• Determining viability and risk of online e tailers.

• Identifying appropriate revenue models

Online Advertising improvment

• can be updated any time at minimal cost

• can reach very large numbers of potential buyers all over the world

• sometimes cheaper

• can be interactive and targeted to specific interest groups and / or to individuals.

• It makes sense to move advertising to the Internet, where the number of viewers is growing

Shortcomings

most of which relate to the difficulty in measuring the effectiveness and cost-justification of the ads.

Advertising Method

• Banners: Electronic billboards, which typically contain a short text or graphical message to promote a product or a vendor

  .

• Keyword banner: Banner advertising that appears when a predetermined word is queried from a search engine.

• Random banner: Banner advertising that appears randomly.

• Pop-up ad: An advertisement that is automatically launched by some trigger and appears underneath the active window.

Online Promotions

• Making the top of the list of search engine.

• Online events, promotion and attractions.

• Online coupons.

Major B2B Models

• Sell-side marketplace.

  single seller sells to many buyers

• Buy-side marketplace.

  single buyer buys from many sellers , reverse auction

• E-procurement. Purchasing by using electronic support

The key mechanisms in the sell–side model are

• Electronic catalogs that can be customized for each large buyer and

• Forward auctions

Group Purchasing

Multiple buyers combine their orders to negotiate volume discounts from suppliers. Often organized by industry groups.

Desktop Purchasing

E-procurement method in which supplier’s catalogs are aggregated into an internal master catalog on the buyer’s server for use by the company’s purchasing agents.

consumer to consumer applications/fields

• C2C auctions

• classified ads

• personals services

• support services to C2C

Electronic payments

• electronic checks

• electronic credit card

• purchasing

• electronic cash

• electronic bill presentment and payment

• paying bills at atm

Intrabusiness

E- commerce within an organization

• Business to its Employees (B 2E) commerce

• between and among units within the business

• between and among corporate Employees.

E-government

The use of e-commerce to deliver information and public services to citizens, business partners and suppliers of government entities, and those working in public sector

Three forms of electronic cash

Person- to-Person Payment: e-cash that enables the transfer of funds between two individuals, without a credit card.

Stored-value money card: fix amount of prepaid card

Smart card : e-cards, that contains a microprocessor that has information and can proses

Security in Electronic Payment

• Authentication

• integrity

• Nonrepudiation

• privacy

• safety

ethical issues in e business

• Privacy

• Loss of Jobs

Legal Issues Specific to E-Commerce

• Fraud on the internet

• Domain names

• Taxes and other fees.

• copyright