oism session 21 new trend and challenges - is perspective session 9

8/18/2019 OISM Session 21 New Trend and Challenges - Is Perspective Session 9

1/18

OIS Session 7 1Zahid Hussain

nternet and Electronic

Commerce

Internet has emerged from academic researchers

Millions of users and they are ever increasing

Internet has found a new use in business

“Internet is a global network of millions of smaller networks linked by

terrestrial and extra-terrestrial communication channels” (E+! "##$%&')*

Internet is often referred to as ,et

Email is a most &o&ular use of Internet


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What is the origin of the Internet as we knowtoday?? The ARPAet ! Ad"an#ed Resear#h Pro$e#ts Agen#y%

A &S 'efen#e 'e(art)ent (ro$e#t*

The Wor+d Wide We, - .uro(ean /oun#i+ foru#+ear Resear#h !/.R*

0onitored ,y Internet .ngineering Task or#e !I.T*

Wor+d Wide We, /onsortiu) !W3/*


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Business Uses of Internet Ad"ertising and se++ing on +ine

Ansoff4s A((roa#hes !1556s* to Produ#t Inno"ation

.sta,+ishing and #onso+idating eisting (rodu#ts in

eisting )arkets

'e"e+o(ing new (rodu#ts for eisting )arkets

Introducing existing products to new markets

Developing new products for new markets

B2C (Business to Customer)

C2C (Customer to Customer)

B2B (Business to Business)

G2C (Government to Customer)


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Examples

92/ - a)a:on% f+i(#art% e,ay% on+ine

reser"ations% ,anking ser"i#es et#

/2/ - e,ay% O;


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OIS Session 7 @Zahid Hussain

Web browsers

arious we, ,rowsers

ets#a(e0i#rosoft .(+orer

Info seek

0osai#

Hot Ba"a


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OIS Session 7 CZahid Hussain

Definitions...

. Electronic /ommerce (E/* is where business transactions take &lace viatelecommunications networks! es&ecially the Internet0

. Electronic commerce describes the buying and selling of &roducts! services! andinformation via com&uter networks including the Internet0

. 1he infrastructure for E/ is a networked computing environment in business!home! and government0

. E-2usiness describes the broadest definition of E/0 It includes customer serviceand intrabusiness tasks0 It is fre3uently used interchangeably with E/0

. 4 global networked environment is known as the Internet

. 4 counter&art within organi5ations! is called an intranet

. 4n extranet extends intranets so that they can be accessed by business &artners0

Electronic Commerce


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Pure vs Partial Electronic Commerce

. 6imensions for defining the ty&es of commerce

. the &roduct (service* sold 7&hysical 8 digital9:

. the &rocess 7&hysical 8 digital9

. the delivery agent (or intermediary* 7&hysical 8 digital9

. 1raditional commerce. all dimensions are &hysical

. ;ure E/

. all dimensions are digital

. ;artial E/

. all other &ossibilities include a mix of digital and &hysical dimensions


8/18

OIS Session 7 DZahid Hussain

Physical

agent

Digital

agent

Digital

Product

Physical

Product Physical process

Digital process

Virtual process

Virtual delivery agent

V i r t u

a l p r o d u c t

Electronic

commerce areas

The core of

electronic commerce

The Dimensions of Electronic

Commerce

Traditional

commerce


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. 1he next figure shows that the EC applications are su&&orted by

infrastructures! and their im&lementation is de&endent on four ma


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. 1he next figure shows that the EC applications are su&&orted by

infrastructures! and their im&lementation is de&endent on four ma


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A Frmewor! for Electronic Commerce

Electronic Commerce A""lictions

# $toc!s %obs # &n'line bn!in

# rocurement n* "urchsin# +lls # &n'line mr!etin n* *vertisin

# ,ome sho""in # Auctions # Trvel # &n'line "ublishin

Peo(+e

9uyers% se++ers%

inter)ediaries%

ser"i#es% IS (eo(+e%

and )anage)ent

Pu,+i#

(o+i#y%

+ega+% and

(ri"a#y

issues

Te#hni#a+ standards

for do#u)ents%

se#urity% and

network (roto#o+s

(ay)ent

Organi:ations

Partners%

#o)(etitors%

asso#iations%

go"ern)ent ser"i#es

Infrstructure

(-)

Common business

services infrstructure(securit. smrt

cr*s/uthentiction

electronic ".ment0

*irectories/ctlos)

(2)

+essin n*

informtion *istributioninfrstructure

(EDI0 e'mil0 ,."er Te1t

Trnsfer rotocol)

()

+ultime*i content

n* networ!"ublishin infrstructure

(,T+30 %A4A0 Worl*

Wi*e Web0 45+3)

(6)

7etwor! infrstructure

(Telecom0 cble T4wireless0 Internet)

(4A70 WA70 3A70

Intrnet0 E1trnet)

(8)

Interfcin

infrstructure(The *tbses0

customers0 n*

""lictions)

0anage)ent


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11

Sho((erEPur#haser Se++erESu((+ier

Electronic +r!et

(Trnsction ,n*ler)

Electronic commerce

networ!

(Infrstructure)

Produ#tEser"i#e infor)ation re=uest

Pur#hase re=uest

Pay)ent or (ay)ent ad"i#e

Pur#hase fu+fi++)ent re=uest

Pur#hase #hange re=uest

Res(onse to fu+fi++)ent re=uest

Shi((ing noti#e

Pay)ent a((ro"a+.+e#troni# transfer of funds .+e#troni# transfer of funds

$ho""er/urchser9s Bn!

Pay)ent re)ittan#e noti#e

.+e#troni# transfer of funds

Trnsction ,n*ler9s Bn!

(Automte* Clerin ,ouse)

$eller/$u""lier9s Bn!

Electronic +r!ets

Res(onse to infor)ation re=uest

Pur#hase a#know+edg)ent

Shi((ing noti#e

Pur#haseEser"i#e de+i"ery !if on+ine*

Pay)ent a#know+edg)ent


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The !enefits of

Electronic Commerce

. Ex&ands the market&lace to national and international markets

. 6ecreases the cost of creating! &rocessing! distributing! storing and

retrieving &a&er-based information

. 4llows reduced inventories and overhead by facilitating “&ull” ty&esu&&ly chain management

. 1he &ull ty&e &rocessing allows for customi5ation of &roducts and

services which &rovides com&etitive advantage to its im&lementers

. =educes the time between the outlay of ca&ital and the recei&t of

&roducts and services

. u&&orts business &rocesses reengineering (2;=* efforts

. >owers telecommunications cost - the Internet is much chea&er than

value added networks (?4,s*

!enefits to "rgani#ations


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!enefits to Customers

. Enables customers to sho& or do other transactions '@ hours a day! all yearround from almost any location

. ;rovides customers with more choices

. ;rovides customers with less ex&ensive &roducts and services by allowing

them to sho& in many &laces and conduct 3uick com&arisons. 4llows 3uick delivery of &roducts and services in some cases! es&ecially with

digiti5ed &roducts

. /ustomers can receive relevant and detailed information in seconds! ratherthan in days or weeks

. Makes it &ossible to &artici&ate in virtual auctions

. 4llows customers to interact with other customers in electronic communitiesand exchange ideas as well as com&are ex&eriences

. Electronic commerce facilitates com&etition! which results in substantialdiscounts0


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OIS Session 7 1@Zahid Hussain

The $imitations of

Electronic Commerce

. >ack of sufficient systems security! reliability! standards! and

communication &rotocols. Insufficient telecommunication bandwidth

. 1he software develo&ment tools are still evolving and changing ra&idly

. 6ifficulties in integrating the Internet and electronic commerce softwarewith some existing a&&lications and databases

. 1he need for s&ecial Aeb servers and other infrastructures! in addition tothe network servers (additional cost*

. ;ossible &roblems of intero&erability! meaning that some E/ softwaredoes not fit with some hardware! or is incom&atible with some o&eratingsystems or other com&onents

1echnical >imitations of Electronic /ommerce


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OIS Session 7 1CZahid Hussain

%on&Technical $imitations

. /ost and


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. Cther limiting factors are%

. >ack of touch and feel online

. Many unresolved legal issues

. =a&idly evolving and changing E/

. >ack of su&&ort services

. Insufficiently large enough number of sellers and buyers

. 2reakdown of human relationshi&s

. Ex&ensive and8or inconvenient accessibility to the Internet

%on&Technical $imitations (cont.)


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OIS Session 7 1DZahid Hussain

0a$or 9usiness Pressures

'arket and

economic pressures

(trong competition

)lo*al economy

+egional trade agreements ,e.g. %-T-

Extremely low la*or cost in some countries

re/uent and significant changes in markets

Increased power of consumers

(ocietal and

environmental pressures

Changing nature of workforce

)overnment deregulation of *anking and other services

(hrinking government *udgets su*sides

Increased importance of ethical and legal issues

Increased social responsi*ility of organi#ations

+apid political changes

Technological pressures+apid technological o*solescence

Increase innovations and new technologies

Information overload

+apid decline in technology cost Vs. performance ratio

oism session 21 new trend and challenges - is perspective session 9

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