1. lecture1 on e-commerce

8/18/2019 1. lecture1 on e-commerce

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E-commerce

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ELECTRONIC COMMERCE


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Instructor

Collin Isabirye Robbert

Email: [email protected]

[email protected]

0772613892

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mailto:[email protected]:[email protected]:[email protected]:[email protected]


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Reference Books

• Internet technology and e-commerce by Alison

Cawsey and Rick Dewar.

• Laurdon & Traver e- commerce book

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E-commerce


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Course Outline• Introduction to -commerce

• Traditional Commerce and lectronic Commerce

• -commerce business models and conce!ts

• The Internet and "orld "ide "eb

• #uilding an -commerce website• $ecurity and ncry!tion

• Legal as!ects o% electronic commerce

• "eb ayment $ystems

• "eb 'arketing Conce!ts

• "eb 'arketing Communications

• Auctions( ortals( and Communities

• ro)ect resentation

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Lecture 1

• INTRODUCTION TO E-COMMERCE

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Learning Objectives

Todays lesson will cover:• Definition of commerce

• Elements of commerce

• Definition of E-commerce

• Objectives of E-commerce

• E-Business

• Comparison E-Commerce & E-Business

• Examples of EC in Service Inustr!

• Business "rocesses #ell-suite to particular t!pe of

commerce• Some EC Concepts$%raitional commerce "ure EC "artial EC'

• *A+s,value-added networks

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Definition of Commerce

• Commerce may be de%ined as The e/change or buying andselling o% commodities es!ecially the e/change o% merchandise

on a large scale between di%%erent !laces or communities

• C0''RC always involves e/change o% goods and services

%or money

• Consists o%

Buyers - these are !eo!le with money who want to !urchase a

good or service.

Sellers - these are the !eo!le who o%%er goods and services to

buyers.

Producers - these are the !eo!le who create the !roducts and

services that sellers o%%er to buyers.


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Elements of Commerce

• 2ou need a roduct or service to sell• 2ou need a lace %rom which to sell the !roducts• 2ou need to %igure out a way to get !eo!le to come

to your !lace.

• 2ou need a way to acce!t orders.• 2ou also need a way to acce!t money.• 2ou need a way to deliver the !roduct or service(

o%ten known as fulfillment.

• $ometimes customers do not like what they buy( soyou need a way to acce!t returns.

• 2ou need a customer service and technical su!!ortde!artment to assist customers with !roducts.


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Definitions

-commerce is )ust a new way o% conducting business

Electronic Commerce (EC) is the !rocesso% buying( selling( or e/changing !roducts( services( and

in%ormation via com!uter networks including the internet.

It may also mean Distributing( buying( selling and marketing

!roducts and services over electronic systems

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• lectronic Commerce 3C4 Is an area o% study that is

concerned with develo!ing methodologies and systemsthat su!!ort

• Creation o% in%ormation sources5

• %%ective and e%%icient interactions among sellers(

consumers( intermediaries and !roducers5• 'ovement o% in%ormation across global networks.

• -commerce re!resents the reali6ation o% digital( as

o!!osed to !a!er-based( commercial transactions(

between a business and its consumers( or between agovernment and its citi6ens or constituent business.

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Objecties of e!commerce• $!eeding u! the transactions %or business !artners.

• +o need to cover long distances.

• Develo!ment o% new markets.

• Trading round the clock.

• Im!rovement o% customer service.

• Lower costs %or !roduct distribution.

• limination o% intermediate trade. That is to say the

middle men are eliminated %rom the transactions made.In summary( Com!anies save time and reduce costs

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Electronic Business• E-business is a broader definition of EC that

includes not just the buying and selling of goods

and services, but also• Servicing customers(complaints, feedbacks)

• Collaborating with business partners

• Conducting electronic transactions within an

organization

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Comparison E-Commerce & E-Business

The line between e-commerce and e-business is7uite thin( both e-commerce and e-business

involve in%ormation e/change over the Internetand other Com!uter +etworks( however( e- business has a broader meaning than e-commerce.

-Commerce-business

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• E-usiness as a term re%ers to a collection o% business conce!ts

and !rocesses that are enabled by a variety o% electronic andonline solutions .

• In particular t(ese processes inclue

) elivering information to customers via Internet

) implementing customer relations(ip managements!stem

) connecting toget(er branc(es of a compan! usingcorporate Intranet or ot(er electronicall! istributemet(os*

• +(et(er t(e compan! as a #(ole or onl! parts of it ismanage using electronicall! enable processes all oft(ese practices are referre to as e-business

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Examples of EC in Service Industry

• Online Bill Payin - t(is is t(e abilit! to pa! bills

online*

Examples of major existing billing presentation anpa!ment s!stems are ,

- utomatic pa!ment of mortgages. customer

aut(orises its ban/ to pa! t(e mortgage

automaticall! ever! mont(- utomatic transfer for funs to pa! mont(l! utilit!

bills e*g* customers pa! t(eir #ater bills

automaticall! from t(eir ban/ a0c

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• Cy!er !an"in - also /no#n as electronic ban/ing(ome ban/ing online ban/ing* %(is inclues majorban/ing activities $from pa!ing for bills to securing aloan' conucte from (ome business or even ont(e roa instea of going to t(e ban/ p(!sicall!*Benefits

• Customer side inclue saving on timeconvenienceBan" Side - Expane customer base save oncost of paper transactionsServices offere inclue savings & c(ec/ingaccounts certificates of eposit joint accountsloans pa!ment of bills etc*

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Online #o! $ar"et -• Internet offers a perfect environment for job see/ers an

companies searc(ing for (ar-to-fin emplo!ees*

• %(ousans of companies an government agencies avertise

available positions*

%(e mar/et is use b! t(e follo#ing parties ,-

- 1ob see/ers 2 repl! to emplo!ment as

- 1ob offerers 2 avertise openings on t(eir o#n #ebsites

-3ecruiting firms 2 job bro/ers- 4e#sgroups 2 post jobs in certain categories

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%dvantaes of Electronic #o! $ar"et

#o! See"ers -• bilit! to fin information on a number of available jobs

• bilit! to communicate 5uic/l! #it( potential emplo!ers

• bilit! to #rite an post resumes 5uic/l! at lo# cost

• bilit! to searc( for jobs 5uic/l!

Employers• bilit! to avertise to a large number of job see/ers• bilit! to save on cost of avertising• bilit! to post job openings 5uic/l!• Lo#er cost of processing applications using electronic

application forms• bilit! to provie e5ual opportunit! to job see/ers

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Business Processes well-suited to

particular type of e-commerce

• $ale8!urchase o% books and CDs ( travel service(

(insurance services

• 0nline delivery o% so%tware

• 0nline shi!ment tracking

• $ale8!urchase o% automobiles and real estate

• Roommate matching service

• 0nline banking

• $ale8!urchase o% im!ulse items %or immediate use.• tc

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$O%E EC Conce&ts

• Traditional commerce

• all imensions are p(!sical

• Partial EC

• inclue a mix of igital an p(!sical imensions

• Pure EC

• all imensions are igital

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'ur EC

Pure EC! "ll dimensions "re di#it"l

• ure online 3virtual4 organi6ations

• $ell !roducts or services only online

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EC Definitions ( Conce&ts )cont*

• P"rti"l EC! " mi$ of di#it"l "nd %&ysic"l dimensions

• Click-and-mortar organi6ations 3aka #ricks-and-

clicks4

• Do their !rimary business in the !hysical world and

also take advantage o% internet.

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"ure Vs. "artial EC

• Base on t(e egree of igiti6ation of,

• Product:

• Can be p(!sical or igital• Process:

• Can be p(!sical or igital

• elivery %ent• Can be p(!sical or igital

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EC Definitions ( Conce&ts )cont*+

• +on-Internet C• 'Ns*"lue-"dded net+or,s

• A value-added network 3*A+4 is a !rivate network

!rovider that is hired by a com!any to %acilitate

electronic data interchange 3DI4 or !rovide othernetwork services.

• #e%ore the arrival o% the """( some com!anies

hired *A+s to move data %rom their com!any to

other com!anies. Com!anies now %ind it more cost-

e%%icient to move their data over the Internet.

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1. lecture1 on e-commerce

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