eb_intro_00
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Definition of e-Commerce Formulating commercial transactions at a site remote
from the trading partner and then using electroniccommunications to execute that transaction.
The definition includes business to business andbusiness to consumer transactions.
Further definitions are given in Chapter 1,Section 1.2. Many definitions are much broadercovering, for example, the commercial use ofe-mail.
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E-Commerce technologies
The three e-Commerce technologies are: Electronic Markets
Electronic Data Interchange
Internet CommerceE-Commerce David Whiteley/McGraw-Hill,2000 3
ElectronicMarkets
Internet
Commerce
EDI
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Electronic markets The use of information and communications technology to
present a range of offerings available in a market segmentand hence enable:
the purchaser to compare the prices (and other attributes); make a purchase decision.
The usual example of an electronic market is an airlinebooking system.
There is the potential for new electronic markets to becreated using Internet technologies.
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Generic trade cycles The trade cycle varies depending on:
The nature of the parties to the transaction
The frequency of trade exchanges
The nature of the goods or services being exchanged.
Three generic trade cycles can be identified: Regular, repeat transactions between commercial trading
partners (Repeat) Irregular transactions between commercial trading partners
(Credit)
Irregular transactions in once-off trading relationships(commercial or retail) (Cash)
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Electronic markets Emphasis on the search phase of the trade cycle
Typically an inter-organisational credit trade cycle
Limited applications airline seat bookings andfinancial sector the operation of the electronic marketis not necessarily in the vendors interests.
See Chapter 7 for further discussion.
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Search
Negotiate
Order
Deliver
Invoice
Payment
After Sales
Pre-Sale
Execution
Settlement
After Sale
EM
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Electronic Data Interchange Used for standardised, repeat, inter-organisational
transactions
Notable users of EDI are vehicle assemblers,
component suppliers, and supermarkets (and othermultiple retailers), ordering the goods to restock theirshelves.
See Chapters 8 through 11 for further discussion
E-Commerce David Whiteley/McGraw-Hill,2000 11
Search
Negotiate
Order
Deliver
Invoice
Payment
After Sales
Pre-Sale
Execution
Settlement
After Sale
EDI
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e-Commerce in perspective e-Commerce is not appropriate to all business
transactions and, within e-Commerce, there is noone technology that can or should be appropriateto all requirements.
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Electronic
Internet
Comerce
EDI
Markets
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Chapter 1 Exercise 1A European Union web site defines e-Commerce as:
Electronic Commerce is a general concept coveringany form of business transactions or informationexchange executed using information andcommunication technology, between companies,between companies and their customers, or betweencompanies and public administrations.Electronic Commerce includes electronic trading of
goods, services and electronic material.
List technologies and applications that could becovered by this list and decide, in discussion, if theyare usefully/appropriately classified as e-Commerce.
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