mis discussion material 03

8/13/2019 MIS Discussion Material 03

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Electronic Commerce


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E-Commerce

commerce accelerated & enhanced by

IT, particularly the Internet.

it enables customers, consumers, and

companies to form powerful new

relationships that would not be possible

without the enabling technologies.


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Anticipated Benefits from

Electronic Commerce

There are three main benefits of eCommerce!

1. Improved customer servicebefore, during,

and after the sale2. Improved relationships with suppliersand

the financial community

3. Increased economic returnon stoc"holder

and owner in#estments


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Electronic Commerce Constraints

Three constraints on ecommerce are as follows!

$. %igh costs

. 'ecurity concerns

(. Immature or una#ailable software


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'cope of Electronic Commerce

The amount of economic impact #aries from

industry to industry but about )*+ of

electronic commerce is BB lea#ing + for

BC Ecommerce is estimated to be growing at

between -+ and $-+ each year, though

may slow down, high growth in eCommerce

will li"ely continue for the net se#eral years


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usinessto

usinessB2B

usinesstoconsumer

B2C consumerto

usinessC2Bconsumerto

consumerC2C

Ecommerce

* ma/or perspecti#es!


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ecommerce between business

organi0ations.

1here most money will be spent

due to business transactions

between businesses.

Trade is global2 companies do

business with other companies allo#er the world

BB


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BC

Ecommerce sites that sell products and

ser#ices, or pro#ide information ser#ices

directly to consumers. 3ahoo, Ama0on.com, and 4andsEnd.com


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speed and con#enience in shopping

instantaneous price changes

integrated call centers with the web site

broadband telecommunications will

enhance the buying eperience

Ad#antages of BC E

Commerce


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Alternati#e BC Channels

etailer

pure plays

clic"sandmortar56bric"sandclic"s6

7commerce

interacti#e chat


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CC

'ector where consumers deal with each

other, either through an auction site such

as eBay or directly in one of the peer topeer networ"ing applications


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CB

'ector in which the Internet ma"es it

possible for many consumers who want to

buy the same or similar products to band

together in order to obtain #olumediscounts from a business. ;demand

aggregation)


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CB

=emand aggregation 9 the process of

combining purchase re>uests from

multiple buyers into a single large order to

warrant a discount from the business.

7ercata ;http!55www.mercata.com< 9

unsuccessful to try demand aggregate and

went out of business
http://www.mercata.com/http://www.mercata.com/


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ECommerce Internationally

?orth America has mostusers

Europe & Asia are close

Africa, 7iddle East& 4atin Americaare far behind

global digital di#ide


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=igital =i#ide

=ifferent peoples, cultures, and areas of

the world or within a nation do not ha#e

the same access to information and

telecommunication technologies.

@lobal digital di#ide 9 differences in IT

access and capabilities between different

countries or regions of the world.


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hilippine 'ituation

7 computers

T laptops

*$ I's

D internet cafes -7$).7 internet users

.7 to -.7 internet gamers

(T to -T etransactors *$7 Internet users by $*

$7 broadband Internet users in)


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1ireless

(7 mobile phone users

$B tet messages a day

7obile applications partnershipopportunities are fast growing


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roducts and 'er#ices to Be =eli#ered to the

Consumer F#er the Internet

&i'ital (roducts)such as songs, albums,

mo#ies, computer programs and their updates

and ser#ices

(h*sical (roducts) 'ales can be made o#erthe 1eb, but shipping has to be arranged.

The growth of pri#ate mail5shipping

companies has indirectly aided retail e

Commerce

A "ey difference between digital and physical

products is that digital products can be

consumed as soon as they are downloaded


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GThe Erocess Edge6

;eter Heen & 7ar" 7c=onald

mis discussion material 03

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