E-BUSINESS, E-COMMERCE AND M-COMMERCE

Internet, Business, Worldwide Web

E-business Structure

Internet

foundation of e-business. The internet provides the platform that connects businesses to customers, suppliers, partners and other stakeholders around the globe.

Business

This represents the core operations conducted online, including selling goods, managing supply chains, customer relationship management and online payment and logistics.

Worldwide Web

a service that runs on the internet. It’s the system of interlinked hypertext documents via accessed via web browsers.

E-Business

refers to the conduct of business activities using electronic means, primarily the internet. Buying and selling products and services, online marketing, electronic transactions, supply chain management, and customer relationship management

Electronic Business

refers to the conduct of business operations and activities using electronic means. Includes exchange of products or services, online marketing, electronic transactions and business strategy.

Online Presence

E-business allows organizations to establish a global presence without the limitations of physical locations (e.g., through websites, online marketplaces, and social media platforms, businesses can showcase their products and services, reach a larger audience, and operate 24/7, expanding their market reach beyond traditional boundaries)

E-commerce

E-commerce platforms enable businesses to sell products directly to customers thus eliminating the need for intermediaries(reduced costs, increased efficiency, and improved customer convenience)

Digital Marketing

Businesses can utilize search engine optimization (SEO), social media marketing, email marketing, content marketing, and pay-per-click advertising to enhance brand visibility, engage with customers, and drive sales

Electronic Payments

Online payment gateways, such as GCash, Maya, PayPal, Stripe, and digital wallets, ensure fast and secure transactions between businesses and customers (enhance convenience, speed up payment processing, and enable businesses to cater to customers worldwide without the constraints of traditional payment methods)

Supply Chain Management

Automated inventory management, online procurement, and electronic data interchange (EDI) enable seamless coordination between suppliers, manufacturers, distributors, and retailers (improved inventory control, reduced costs, faster order fulfillment, and better collaboration across the supply chain)

Customer Relationship Management

Customer databases, contact management tools, and automated communication systems enable businesses to personalize customer experiences, track customer preferences, and offer targeted marketing campaigns (CRM systems facilitate customer retention, enhance customer satisfaction, and support long-term customer relationships)

Data Analytics

Data analytics tools and techniques help businesses understand customer behavior, identify trends, and make informed decisions (by analyzing data from website traffic, customer purchases, and social media interactions, businesses can optimize their marketing strategies, improve operational efficiency, and enhance overall performance)

Security and Privacy

Businesses must implement robust security measures to protect customer data, prevent unauthorized access, and ensure secure online transactions. Technologies such as encryption, secure socket layers (SSL), and firewall systems are essential to maintaining the integrity and confidentiality of e-business operations

Intranet, Extranet, Internet

Networks used for E-Business

Intranet

internal network of a business primary purpose is to facilitate internal communication, collaboration, and information sharing.

Restricted

Access to an intranet is typically __ to authorized users within the organization’s network

Extranet

internal network of a business with a limited external access. Is an extension of intranet that allows controlled access to specific external users, it enables organizations to establish secure communication channels with external stakeholders without granting them full access to the internal intranet resources.

Internet

global network of interconnected devices and computer networks, a public network that facilitates worldwide communication and information exchange. It is not owned or controlled by a single entity but is a network of networks operated by various organizations and service providers.

Example of internet

Amazon, Facebook, Google, YouTube

Examples of Intranet (Private to Organization)

Employee portal, HR system

Examples of Extranet (Partners, Clients, authorized external users)

Supplier login, client dashboard.

Reach, Richness, Affiliation

E-business opportunities

Reach

potential local and international customers as well as products and services covered by the consumer interface (businesses can tap into new markets, target niche audiences, and expand their customer base without the need for physical storefronts or distribution channels)

Richness

detailed information about a certain product or service (accuracy, reliability, and security of information transmitted through communication channels)

Affiliation

effectiveness of linkages between business organizations (collaborative models enable businesses to leverage external resources, access specialized skills, and explore new business opportunities) Business organizations, have the opportunity to build a strong and closer relationship with existing clients online to achieve customer retention

Security and privacy

cybersecurity threats, such as hacking, data breaches, malware, and phishing attacks, pose a significant risk

Fraudulent activities

credit card fraud, identity theft, and other fraudulent transactions

Technical downtime

technical failures, system glitches, or network outages can disrupt operations, cause downtime, and impact customer experience

Legal and regulatory compliance

businesses must comply with laws related to data protection, consumer rights, intellectual property, online advertising, and electronic transactions

Online reputation management

negative customer reviews, social media backlash, or viral incidents can harm a company's brand image and impact customer perception

Intense competition

lowered entry barriers, enabling increased competition from both domestic and international players (switching cost is low)

Technical obsolescence

rapid advancements in technology can render existing e-business platforms, software, or infrastructure obsolete

Third-party dependence

dependence on these providers introduces risks related to service disruptions, data security, and contractual obligations

Electronic Commerce

refers to commercial transactions executed online and involves the electronic exchange of goods, services, and payments between businesses, consumers and other entities. Includes sharing of business information, supporting business relationships, managing business transactions, and monitoring feedback from consumers.

Efficiency, Timeliness, Convenience, Cost effectiveness, Accessibility

Advantages of electronic commerce

Features of Electronic commerce

Ubiquity and Richness, Global Reach and Security, Universal standards, interactivity and information density.

Ubiquity and Richness

accessible anytime and volume of content of website for full customer experience

Global Reach and Security

worldwide access and protection of customer information and privacy

Universal Standards

website operated in a standard platform which follows identified methods and systems

Interactivity

face to face customer meetings when conducting business transactions

Information Density

amount of products that can fit on a computer screen

Business to Business (B2B)

involves the online exchange of products, services, or information between businesses. Involves procurement and supply chain management, electronic data interchange and online marketplace. It streamlines purchasing processes, reduces costs and enhances collaboration between suppliers, manufacturers, distributors and retailers.

Business to Consumer (B2C)

refers to online exchange of goods, services, or information between a business and an individual consumer. Sell products or services directly to end consumers

Consumer to Consumer (C2C)

enables individuals to engage in online transactions with other individuals. Sel;s products or services directly to other consumers through online platforms or marketplaces

Consumer to Business (C2B)

involves consumers selling their skills, expertise or creative services to businesses. Freelance platforms, user-generated content platforms and referral programs. A model where individual consumers provide products, services, or information to businesses.

Google AdSense and Shuttershock

Example of consumer to business.

Business to Government (B2G)

involves businesses providing products, services, or information to government agencies or entities. Examples are government procurement, licensingand permits and vote counting machines.

RA No. 9184, PH Procurement Law

AN ACT PROVIDING FOR THE MODERNIZATION, STANDARDIZATION AND REGULATION OF THE PROCUREMENT ACTIVITIES OF THE GOVERNMENT AND FOR OTHER PURPOSES

Government to Business (G2B)

involves government agencies and instrumentalities providing products, services or information to businesses. Examples are government portals, regulatory compliance and tax filing. includes government portals or platforms that offer businesses access to government services

Government to Consumer

involves government agencies and instrumentalities providing products, services or information directly to the citizens through online platforms. Examples are government portals, regulatory compliance and tax compliance. includes government portals or platforms that offer businesses access to government services

Electronic commerce security systems

auditability, encryption, authenticity, integrity, availability, non-repudiation, confidentiality, stability.

Auditability

data should be documented in such a way that it can be audited for the real requirements

Authenticity

there should be procedures to authenticate a user providing access

Availability

information is readily present and time-bound

Confidentiality

uninterrupted during transmission

Encryption

encryption and decryption policies

Integrity

unmodified during transmission over a network

Non-repudiation

a person involved in the contract or in communication cannot refute the authenticity of their signature on a document

Stability

ensures the long-term viability of e-commerce platforms

Trading merchandise

Definition of E-commerce

Conducting Business

Definition of e-business

Commercial transaction

type of transaction in e-commerce

Business transaction

type of transaction in e-business

E-commerce is focused on monetary transaction, e-business is not

Difference in focus

Website or mobile application

e-commerce requires

Website, CRM, ERP and SCM

E-business requires

Internet

required network for e-commerce

Internet, Intranet and Extranet

required network for e-business

Mobile commerce

refers to e-commerce transactions conducted by using wireless devices such as smartphones and tablets. It leverages mobile applications and payment systems, optimizes websites, uses location-based services, provides convenient and personal shopping experience.

M-Commerce encompasses

including B2C, B2B, C2C but with a specific focus on mobile devices 4th and 3rd Generation Technologies, Wireless Application Protocol (WAP), iMode Access Platforms, Personalized Services

Guidelines and Laws Governing Electronic Commerce

Taxes, Intangible Assets, Logistics and Business Restrictions, Inventory Licenses and Permits

Examples of guidelines

Digital taxes

Electronic Commerce Act of 2000 (Republic Act No. 8792)

This law provides the legal framework for e-commerce in the Philippines. It recognizes the validity and enforceability of electronic data messages, electronic signatures, and electronic contracts. It also establishes rules for the formation and validity of electronic contracts, promotes the use of electronic transactions in government agencies, and addresses issues related to electronic documents and evidence.

Data Privacy Act of 2012 (Republic Act No. 10173)

This law governs the protection of personal data in the Philippines. It establishes the rights of individuals regarding their personal information, sets guidelines for the collection, processing, and storage of personal data, and requires organizations to implement security measures to protect personal data from unauthorized access, use, or disclosure. The National Privacy Commission (NPC) is the regulatory body responsible for enforcing the Data Privacy Act.

Consumer Act of the Philippines (Republic Act No. 7394)

The Consumer Act covers a wide range of consumer rights and protections, including those applicable to e-commerce transactions. It mandates businesses to provide accurate and truthful information about their products or services, prohibits unfair or deceptive practices, and grants consumers the right to seek redress for faulty or misrepresented products or services. The law also provides guidelines for warranty and return policies.

Cybercrime Prevention Act of 2012 (Republic Act No. 10175)

This law addresses various forms of cybercrime, including offenses related to hacking, identity theft, fraud, and cybersex. It defines cybercrime and provides for penalties for those who commit such offenses. The law also establishes the Cybercrime Investigation and Coordinating Center (CICC) as the government agency responsible for coordinating and monitoring efforts to combat cybercrime.

BIR, DTI, and NPC Regulations

RMC 60-2020 and 55-2013 (all persons doing business and earning income through digital means to ensure that their businesses are registered, or their registrations are updated)

House Bill No. 7425 – imposition of VAT on digital transactions (12% VAT on the supply by a resident or non-resident seller of electronic devices, the online sale of services that includes online advertisement services and provision for digital advertising space, digital services in exchange for a regular subscription fee, and the supply of other electronic and online services that can be delivered through the internet). The bill proposes to add another section in the Tax Code which requires non-resident Digital Service Providers (DSPs) to collect and remit the VAT in transactions that go through its platform (they are precluded from claiming any creditable input tax)