MD240 Electronic Commerce

1
MD240Electronic Commerce
2
Electronic Commerce (EC)

• In Electronic Commerce, business transactions
  take place via telecommunications networks
• EDI
• Internet/WWW
• E-business refers to a broader definition of EC,
  not just buying and selling, but also servicing
  customers, collaborating with business partners,
  and conducting electronic transactions within an
  organization
• Electronic marketplaces
• Inter-Organizational Systems

3
Electronic Markets

• Electronic Markets
• The business center is not a physical building
  but a network-based location where business
  interactions occur
• The principal participants - transaction
  handlers, buyers, brokers, and sellers - not only
  are at different locations but seldom even know
  one another

4
Inter-OrganizationalInformation Systems (IOS)

• Inter-Organizational Information Systems
• Involve information flows among two or more
  organizations
• Business-to-business (B2B) oriented
• Objective is efficient transactions between
  organizations

5
Inter-OrganizationalInformation Systems (IOS)

• Drivers of Interorganizational Systems
• Reducing costs
• Improving the quality of information
• Compressing cycle time
• Eliminating paper
• Making the trading process easy for users
• Types of Inter-Organizational Systems
• Electronic data interchange (EDI)
• Electronic funds transfer (EFT)
• Extranets
• Integrated messaging
• Shared databases

6
Corporate Extranet
EDI, VAN
Internet
The network organization How a company uses the
Internet, and internet and extranet
7
Benefits of E-Commerceto Organizations

• Decreasing information costs
• Reduced inventories
• Reduced cycle time
• Supports BPR
• Lowers telecommunication costs

8
Benefits of E-Commerceto Consumers

• More choice
• Less expensive products
• Quick delivery
• 24-hour availability
• Quick access to information
• Customized product at competitive prices
• Virtual auctions
• Interact with other EC customers

9
Benefits of E-Commerceto Society

• Lower air pollution
• Increase standard of living
• Enjoy products and services in third-world
• Facilitate delivery of public services

10
Limitations of E-CommerceTechnical

• Lack of security
• Insufficient telecommunication bandwidth
• Software tools still evolving
• Integration of internet and EC software
• Special Web servers
• Interoperability of software and hardware

11
e-Services on the Web
12
e-Services on the Web

• B2B business-to-business
• auctions, procurement
• B2C business-to-consumer
• retail, product support
• C2C consumer-to-consumer
• eBay, communication, chat
• C2B consumer-to-business
• selling/leasing personal information
• G2B government-to-business
• procurement, request-for-proposal
• G2C government-to-consumer
• tax forms, information, purchase T-bills
• G2G government-to-government
• welfare payment management (fed-to-county)

13
Emerging e-Services

• Collaborative commerce (c-commerce)
• Business partners collaborate electronically to
  achieve some goal of all organizations
  participating
• Ex manage supply chain
• Ex forecast demand
• Mobile commerce (m-commerce)
• E-commerce performed over wireless devices
• PDAs
• Cell phones

14
Consumer-Oriented e-Services Consumer Behavior,
Market Research, and Customer Support
15
Objective of Consumer e-ServiceOne-to-One Service
Treat Different Customers Differently

• A firm must be able to change how its products
  are configured or its services is delivered,
  based on the needs of individual customers

16
Objective of Consumer e-ServiceOne-to-One Service

• To change products based on customer needs,
  businesses must know about and continuously learn
  about the customer
• Market research techniques are used to study
  customers who participate in e-Services
• e-Service market research techniques are NOT the
  same ones as in traditional environments
• Involves some traditional marketing research
  techniques
• Adds in newer data mining techniques used in an
  online service environment

17
e-Services Marketing Model Cycle of Online
Marketing Research
18
Sense and Respond in e-Services Drivers of
Consumer Purchase Decision
19
B2B-Oriented e-Services
20
B2B-Oriented e-Services

• B2B e-Services come in a couple varieties
• B2B e-Services that are targeted at a companys
  employees can be very much like B2C e-Services,
  since an individual will use them
• B2B e-Services that are targeted at the
  organizations regular procurement needs often
  need to provide both
• personal e-Services for employees who monitor the
  procurement process
• high volume transactions to accomplish the
  regular procurement transactions without human
  interference

21
B2B-Oriented e-Services

• Sell-side Marketplace
• Organizations attempt to sell their products and
  services to other organizations (i.e., company
  role is as a supplier)
• Ex Forward Auction items are placed for sale,
  price bids move upward
• Buy-side Marketplace
• Procurement-oriented e-Service application
• Ex Reverse Auction request for procurement
  bids are made, potential suppliers bid the price
  downward until it wont go any lower
• Exchanges
• Bring together the buy side and the sell side
• For-Profit exchanges attempt to clear the market
  for a transaction fee paid to the exchange for
  each sale
• Many large companies are developing their own
  exchanges in cases where they have sufficient
  power in a market