CMPE 484 - Fundamentals of Electronic Commerce

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CMPE 484 - Fundamentals of Electronic Commerce

• Spring 2001
• Dr. Ayse Basar Bener

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About the Course

• Technical majors
• Team projects- teams will be assigned
• Weekly assignments
• Guest lecturers
• Web site for course www.cmpe.boun.edu.tr/cmpe484.
  html
• The course is run in collaboration with GWU
  (course code Csi 701)

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Project Requirements

• Design and Implement an E-business
• Business Plan
• Complete architecture design implement
• Each team
• install a webserver
• Java servlet module
• MSQL DBMS
• for technical lecture, need extra time slot

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Sooner or later the internet will become an
indispensable part of our lives - resistance is
futile. It is here to stay!
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Essential to E-business
E-Business
Communication
Commerce
Collaboration
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What is Communication

• Communication
• The building block of a revenue generating
  e-business activity. It involves the setting up
  of web-sites on the internet

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What is Collaboration

• Collaboration
• Is a critical requirement for e-business.
  Currently, EDI is being used to meet
  requirements, but clearly, the future belongs to
  XML or extensible markup language. Emerging needs
  such as open buying on the internet and open
  tracking protocol can be embedded in XML

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What is Commerce

• Commerce involves a whole gamut of issues
  including
• Legal rights of respective trading partners,
  (more so, if they are from different countries)
• Exchange of business transactions between the
  supplier/s, enterprise and the customer/s

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What is Commerce

• Marketing of products and services
• The actual marketing/selling on internet took a
  long time to find acceptance as customers were
  cagey about the security of financial
  transactions on the internet

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Electronic Commerce - Definitions

• Modern business methodology that addresses the
  needs of organizations, merchants, and consumers
  to
• cut costs
• improve quality of goods and services
• increase speed of service delivery
• increase market share
• modern gold rush

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Electronic Commerce - Definitions

• Communications
• delivery of information, goods/services via
  phone, computer or other e-means
• Business
• application of technology to automation of
  business transactions

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More Definitions

• Service
• tool for firms wanted to cut service costs and
  improve quality of goods and speed of delivery
• On-line
• capability of buying an selling on-line
• converts digital inputs to value-added outputs
  through set of intermediaries
• Not electronic cash

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Electronic Commerce - Definitions

• Use of computer networks to search and retrieve
  information in support of human and corporate
  decision making
• E-commerce is associated with the buying and
  selling of information, products and services via
  computer networks
• Commercialization of the Internet
• cheap to get going
• easy to reach millions

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Electronic Transactions

• Any transaction is an exchange
• Series of steps that must run to completion so
  that an exchange can be recorded
• Not new
• ATM (Automated Teller Machine)
• Value exchange transactions
• not just digital money
• new ways of working

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Building Blocks

• Common business services for facilitating buying
  and selling
• Messaging and information distribution
• Multimedia content and network publishing
• Information Superhighway
• Any successful e-commerce requires the E-6 the
  way regular commerce requires the one-way
  interstate roads

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Pillars of E-commerce

• Public policy
• universal access
• privacy
• information pricing
• Technical standards
• nature of information publishing
• user interfaces
• transport and compatibility across the network

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Model for commercial transaction

• establishing trust
• customer enters store
• customer makes prior choices
• merchant and customer trust each other
• negotiating a deal
• payment and settlement
• consummation of online transaction

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Online commerce integrators

• hardware
• software
• network connections
• labor and programming involved for digital
  storefront
• payment and settlement systems
• linking online transaction to existing
  organizational systems

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Online commerce vs Electronic Payment System

• online commerce is all encompassing
• connected in that people have to pay for stuff

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Currency

• Function
• medium of exchange
• store of value
• Began in primitive barter
• Intermediate good
• trade a for b
• trade b for c
• b becomes intermediary
• medium of exchange

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Currency

• gold was generally medium of exchange
• heavy
• paper replaced coins but paper was redeemable for
  gold
• silver certificates
• now trust
• three centuries of banking systems

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Banking Systems

• Government today has the exclusive right to print
  money
• Today centralized banking

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Internet advantage

• open system
• no ownership
• world wide web capability

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M Y T H
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Electronic commerce is about a new way of doing
business...
Electronic Economy Year 2000
Agrarian Economy
Industrial Economy
that will forever change todays business
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Evolution of the Web
The impact of this New Electronic Economy is just
emerging
to
E-Magnon
Cro-Magnon
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that changes how companies must think about web
enabling their business
with unique characteristics
Its all about a new business model...

• Customer Choice
• Product Breadth and Convergence
• Economic models based on high volume, low margins
  and high service

• Recognizing new strategies for winning
• Preparing for the onset of buyer value networks
• Transforming to an electronic economy competitor

Its not about new products. Its about a new
business model where the greatest risk is
irrelevancy
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E-commerce

• E-commerce is buying and selling of products,
  services, and information via computer networks
  including the Internet
• Companies who do business on the net and/ or who
  carry their businesses to the net
• business-to-business B2B
• business-to-consumer B2C
• consumer to consumer C2C
• consumer to business C2B
• Companies that provide infrastructure to enable
  others to do business on the net.