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E-Commerce:

Fundamentals and Applications

Chapter 1 : Introduction

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Outline

Electronic commerce and physical commerce The DIGITAL phenomenon Looking at e-commerce from different perspectives Different types of e-commerce Examples of the types of e-commerce Some e-commerce scenarios Effect of e-commerce Advantages of e-commerce Myths about e-commerce development and implementation System model of this book

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Types of Commerce

Commerce

Electronic Commerce

Physical or Traditional Commerce

Internet Commerce

Businessfocusede-commerce

Consumer focusede-commerce

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Digital Phenomenon

What do you think? What are the drivers of e-commerce?

Data networksIntense competitionGlobalizationInformation ageTechnologiesAutomationLow cost high quality products/services

DIGITAL

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E-commerce from different perspectives

Three layer models for e-commerce (e.g. Zwass’s model).

E-business: a wider perspective than e-commerce. E-commerce improves the value chain. E-commerce provides an effective tool for building,

managing and enhancing these relationships.

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Different types of E-Commerce

Business(organization)

Customer(individual)

Business (organization)

Customer(individual)

B2C (e.g Amazon)

C2B(e.g Priceline)

C2C(e.g eBay)

B2B (e.g TPN)

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Examples

B2C: www.amazon.com C2C: www.eBay.com B2B: www.tpn.com C2B: www.priceline.com

Let’s visit these web sites in turn and discuss its features.

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E-commerce scenarios

Retailing Servicing Publishing Supply chain management

Discussion: How are they changing?

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What are the advantages of e-commerce?

To consumers (think about the consumer buying process: search, evaluate and execute):

To businesses (think about the common objective of every business):

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Discussion

How should different departments participate in an e-commerce project?

Management Marketing Production Finance Procurement Customer support

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Transformation of a Compartmentalized Organization into Integrated Organization

Management

Production Department

Finance Department

Marketing Department

Personnel Department

Management

Production Marketing

Finance Personnel

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Three-tier Technical Model

Client side Service system Backend system

Server side

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Architecture of Web-based E-Commerce System

Backend system

Firewall

Internet

Server side

Intranet(Secure)

Web Server Application Server

Database

Service system

Client side