UBAI3013 E-COMMERCE

Overview of E-Commerce

E-Commerce Definition
The process of buying, selling or exchanging products, services and information via computer networks. (Turban, 2010) The marketing, buying and selling of products and services on the Internet. (Awad, 2004, pg 2) Business activities conducted using electronic data transmission technologies, such as those used on the Internet and the World Wide Web. (Schneider, 2007, pg 5)

E-Commerce Definition
Technology-mediated exchanges between parties (individuals, organisations or both) as well as the electronically based intra- or interorganisational activities that facilitate such exchanges. (Rayport and Jaworski, 2001, pg 3)
The use of the Internet and the Web to transact business. (Laudon, 2007, pg 10)

E-Business Definition
Broader definition, not just the buying and selling of goods and services, but also servicing customers, collaborating with business partners, conducting e-learning and conducting electronic transactions within an organisation. (Turban, 2010) Connecting critical business systems and constituencies directly via the Internet, extranets and Intranets. (Awad, 2007, pg 8)

Pure and Partial E-Commerce

Brick-and-mortal e-commerce Virtual e-commerce (Pure Play) Click-and-mortal e-commerce

Electronic Market (E-Marketplaces)

An online marketplace where buyers and sellers meet to exchange goods, services, money or information To be discussed in details in Lecture 2

Classification of E-Commerce
Business originating from
Business Consumers

And selling to

Business

B2B

C2B

Consumers

B2C

C2C

Classification of E-Commerce
B2B2C (Business-to-Business-Consumer) P2P (Peer-to-Peer application) Mobile commerce Intrabusiness e-commerce B2E (Business-to-Employee) Collaborative commerce Nonbusiness e-commerce E-Learning E2E (Exchange-to-Exchange) E-government

E-Commerce 2.0
Social computing
An approach aimed at making the human-computer interface more natural

Web 2.0
The second-generation of Internet-based services that let people collaborate and share information online in new ways, such as social networking sites, wikis, communication tools, and folksonomies

E-Commerce 2.0
social network
A category of Internet applications that help connect friends, business partners, or individuals with specific interests by providing free services such as photo presentations, e-mail, blogging, and so on using a variety of tools

social network service (SNS)

A service that builds online communities by providing an online space for people to build free homepages and that provides basic communication and support tools for conducting different activities in the social network

social networking
The creation or sponsoring of a social network service and any activity, such as blogging, done in a social network (external or internal

Revenue Models
Sales Revenue from sales of goods or services Transaction fees commissions paid on volume of transactions Subscription fees monthly or yearly fixed amount paid to get some services Advertising fees payments from advertisers Affiliate fees commissions for referring customers Other revenue sources

Benefits of E-Commerce
Organisation Global reach Cost reduction Supply chain improvements Extended hours: 24/7/365 Customization New business models Vendors specialization Organisation Rapid time-to-market Lower communication costs Efficient procurement Improved customer relations Up-to-date company material No city business permits and fees Other benefits

Benefits of E-Commerce
Customers Ubiquity More products and services Cheaper products and services Instant delivery Information availability Participation in auctions Electronic communities Get it your way No sales tax Society Telecommuting Higher standard of living Hope for the poor Availability of public services

Limitations of E-Commerce
Technological Lack of universally accepted standards Insufficient telecommunications bandwidth Software development tools are still evolving Difficulties in integrating the Internet and e-commerce software with existing (legacy) applications and databases Special web servers are needs - added cost Internet accessibility is still expensive and inconvenient Order fulfillment of large-scale B2C requires special automated warehouses.

Limitations of E-Commerce
Non-Technological Security and privacy concerns Lack of trust in e-commerce Legal and public policy issues unresolved National and international government regulations Lack of mature measurement methodology to measure the benefits of e-commerce Some customers like to feel and touch products. People do not yet sufficiently trust paperless, faceless transactions Insufficient number (critical mass) of sellers and buyers Increasing amount of fraud on the Internet Difficult to obtain venture capital due to the dot.com disaster

Summary
Definitions: E-Commerce and E-Business Pure and partial e-commerce E-commerce framework Classification of e-commerce E-commerce business plan, cases and models Benefits and limitations of e-commerce

Acknowledgements & Note

Acknowledgement:
This PowerPoint presentation contains materials complied from various source. Credits are hereby given to the original contributors. Please refer to the reading list for details.

Note for students:

This PowerPoint slides serve only as a reference. Students are encouraged to refer to the main textbook for detailed discussions.