Electronic Commerce

1
Electronic Commerce

• Stacie Hirota
• Bongkil Kim
• Liane Kunimura
• Christopher Osaki
• Julie Yoshioka

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What is Electronic Commerce?

• Also known as E-Commerce
• E-Commerce is the online exchange of goods,
  services, and money between firms, and between
  firms and their customers.

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What is Electronic Commerce?

• Ecommerce uses the Internet to support business
  activities such as
• streamlining operations
• selling products
• providing customer support
• connecting suppliers and many other business
  related activities.

4
Categories of E-Commerce

• Business to Business
• Business to Consumer
• Consumer to Consumer
• Business to Employee

Business
Employee
Consumer
Business
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Opportunities and Benefits

• Supplier Opportunity
• Global Presence
• Improved Competitiveness
• Mass Customization Customerization

• Customer Benefits
• Global Choice
• Quality of Service
• Personalized Products Services

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Opportunities and Benefits Contd

• Supplier Opportunity
• Shorten eradicate supply chains
• Cost savings
• Novel business opportunities

• Customer Benefits
• Rapid response to needs
• Price reductions
• New products services

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Business-to-Business E-Commerce

• What is Business-to-Business E-Commerce?
• Business to Business
• Selling and buying online

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Business-to-Business E-Commerce

• Electronic Data Interchange (EDI)
• Developed in 1960s
• Reduce paperwork
• Minimize human errors
• Value-added networks (VANs)

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Business-to-Business E-Commerce

• Standard document formats
• American National Standards Institute (ANSI X.12)
• United Nations Rules for Electronic Data
  Interchange for Administration, Commerce and
  Transport (UN/EDIFACT)

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Business-to-Business E-Commerce

• Many different formats
• Highly trained technicians
• Time consuming training
• Costly to implement and maintain
• Monopoly of large companies

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Business-to-Business E-Commerce

• Internet technology
• Opportunity for small companies
• Cost effective
• Human teller -- 2.93
• ATM transaction -- 0.27
• Internet cost -- 0.01

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Business-to-Business E-Commerce

• What is a hub?
• A single collection point
• Types of hubs
• Closed hubs
• Firm centric and Industry alliance
• Open hubs
• Catalog, auction, exchange and community

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Business-to-Business E-Commerce

• Industry alliance
• Collective purchasing power
• Covisint
• DaimlerChrysler, Ford, General Motors
• Formed in 2000
• Half-a-trillion dollars

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Business-to-Business E-Commerce

• Why use a hub?
• Lower cost, Efficiency, Easier business practices
• Redundancy, rogue purchasing
• Gartner Group report
• 3 trillion in 2004

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Business-to-Business E-Commerce

• Growth of Expenditure
• Average 57.7 from 1999 to 2003
• 22.6 billion in 1999 to nearly 35.7 billion in
  2003

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Business-to-Consumer E-Commerce

• What is Business to Consumer E-Commerce?
• According to Kotler, of the book Principals of
  Marketing, it is the online selling of goods and
  services to final consumers
• Business to Consumer E-commerce is also known as
  B2C.

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Business-to-Consumer E-Commerce

• B2C revenue in 2003 has surpassed the 380
  Billion mark.
• When people think of B2C, they think of
• Amazon.com
• Launched in 1995
• Gap.com
• United.com

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Business-to-Consumer E-Commerce

• In addition to online consumers, B2C has grown to
  include other services.
• Online banking (boh.com)
• Travel Services (alohaairlines.com)
• Online auctions
• Health information
• Real Estate sites

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Business-to-Consumer E-Commerce

• Online Consumers
• Changing image of the typical user
• Nerd
• Young, techy, upscale male professional
• Anyone

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Business-to-Consumer E-Commerce

• Whats with all the hype?
• Dotcoms posed a threat to traditional brick and
  mortar businesses
• But, with the fall of the Nasdaq, the e-commerce
  initiative came back under the corporate fold.

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Business-to-Consumer E-Commerce

• Major Challenges of B2C
• Getting browsers to buy things
• Building customer loyalty
• Fulfillment

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Business-to-Consumer E-Commerce

• B2C Websites
• Find a site for buying almost all products on the
  market.
• Websites most useful for products and services
  when the consumer seeks greater ordering
  convenience or lower cost.
• A disadvantage would be when selling products
  that must be touched or examined.

Patton, Susannah http//www.cio.com/ec/edit/b2cabc
.html
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Business-to-Consumer E-Commerce

• Why buy on the Internet?
• Ease of placing an order
• Large selection on products
• Cheaper prices
• Fast service and delivery
• Detailed and clear product information
• No sales pressure
• Easy payment procedure

Mississippi State University Website.
http//msucares.com/business_assistance/homebusine
ss/ecommerce.html
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Consumer-to-Consumer E-Commerce

• What is Consumer-to-Consumer E-Commerce?
• A type of business that occurs when an ordinary
  person sells products to another person.
• eBay
• Reference www.Ebay.com

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Consumer-to-Consumer E-Commerce

• eBay Overview
• Founded in September 1995
• Has local sites that serve around the world
• User Agreement
• Membership Eligibility
• Fees and Services
• eBay is a Venue

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Consumer-to-Consumer E-Commerce

• How it works
• Seller lists an item on eBay
• Online auction
• Fixed price listings that offer
• Paypal

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Consumer-to-Consumer E-Commerce

• eBay challenges
• Legal issues
• The multiday crash

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Consumer-to-Consumer E-Commerce

• The success of eBay
• Total Income and Revenue for 2002
• Spawn of copycats
• Future with eBay

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Business-to-Employee E-Commerce

• Definition
• The empowering of employees to serve themselves
  via the Internet or an intranet.
• Otherwise known as B to E or B2E

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Business-to-Employee E-Commerce

• Focuses less on selling things to employees and
  more on offering relevant tools and information
• Training services
• Financial services
• Industry news

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Business-to-Employee E-Commerce

• Why use Business-to-Employee E-Commerce?
• Reduce Cost
• Streamline operations
• Shorten fulfillment times
• Increase productivity
• Increase order-tracking accuracy
• Reduce inventories

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Business-to-EmployeeE-Commerce

• Uses in the Workplace
• At first B to E was used for the requisitioning
  of office supplies by employees

• Evolved into an important tool
• Access / update personal information
• Shift investments in their 401k plan
• Maintain their internal resume

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Impact of E-Commerce

• Occurring worldwide
• Redefine the market
• Create a new market
• Change a persons lifestyle

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The Conclusion

• The Future
• Industrial Revolution of the 21st Century
• Internet retail sales reach 6.4 billion
• Internet usage to reach 1 billion people
• Prices may decrease
• Security will increase