introduction to e commerce
TRANSCRIPT
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INTRODUCTION TO E-COMMERCE
Rizal Hari MagnadiManagement Department
Economics and Business FacultyDiponegoro University
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Business Pressure : Market and Economic
Strong competition Global economy Regional trade agreement Low labor cost in some countries Frequent and significant changes in markets Increased power of consumers
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Business Pressure : Societal
Changing nature of workforce Government deregulation – more competition Shrinking government subsidies Increased importance of ethical and legal
issues Increased social responsibility of organizations Rapid political changes
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Business Pressures : Technological
Increasing innovations and new technologies Rapid technological obsolence Increases in information overload
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Digital economy an economy that is based on digital technologies, including digital communication networks, computers, software, and other related information technologies (Turban, 2002)
With digital networking and communications infrastructures provide a global platform over which people and organizations interact, communicate, collaborate, and search information
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E-Commerce
The process of buying, selling, transferring, or exchanging products, services, and/or information via computer networks, including the internet
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Common E-Commerce’s Business Models
Business-to-Business (B2B) Business-to-Consumer (B2C) Consumer-to-Consumer (C2C) Peer-of-peer aplications Mobile commerce
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EC’s Benefits to Organizations
Global reach Cost reduction Extended hours: 24/7/365 Customization New business models Lower communication costs
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EC’s Benefits to Consumers
Ubiquity More products and services Cheaper products and services Instant delivery Information availibility Electronic communities
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MANAGERIAL ISSUES OF e-COMMERCE
Budgets Project deadlines Keeping up with technology Privacy issues High cost of capital expenditure Unrealistic management expectations Training Reaching new customers Improving customer ordering services Employee hiring revision