Overview of Electronic Commerce
Upon completion of this chapter, you will be able to:
1. Define electronic commerce (EC) and describe its various categories. 2. Describe and discuss the content and framework of EC.
3. Describe the major types of EC transactions.
4. Describe some EC business models.
5. Describe the benefits of EC to organizations, consumers, and society. 6. Describe the limitations of EC.
7. Describe the role of the digital revolution in EC.
8. Describe the EC contribution to organizations responding to environmental pressures.
Marks & Spencer—A New Way to Compete
1.1Electronic Commerce: Definitions and Concepts
1.2The EC Framework, Classification, and Content
1.3E-Commerce Business Plans, Cases, and Models
1.4Benefits and Limitations of EC
1.5The Digital Revolution, Its Business Environment, and Organizational Responses 1.6Putting It All Together
Real World Case: E-Commerce Supports Field Employees at Maybelline
Answers to Pause/Break Section Review Questions
Section 1.1 Review Questions
1.Define EC and e-business.
Electronic commerce is the process of buying, selling, or exchanging products, services, and information via computer networks. E-business is a broader definition of EC that includes not just the buying and selling of goods and services, but also servicing customers, collaborating with business partners and conducting electronic transactions within an organization.
2.Distinguish between pure and partial EC.
Companies utilizing pure EC conduct all of their business online. Businesses utilizing partial EC conduct a portion of their business online and a portion of their business off-line.
3.Define click-and-mortar organizations.
These are organizations that conduct e-commerce activities, but do their primary business in the physical world.
4.Define electronic markets, IOSs, and intraorganizational information systems.
Electronic market – An online marketplace where buyers and sellers meet to exchange goods, services, money or information. IOSs – Communication systems that allow routine transaction processing and information flow between two or more organizations. Intraorganizational information systems – Communication systems that enable e-commerce activities to go on within individual organizations.
Section 1.2 Review Questions
1.List the major components of the EC framework.
The EC framework is made up of the following components: people, the public policy, technical standards and protocols, business partners and support services.
2.List the major transactional types of EC.
The major transactional types of EC include: business-to-business, business-to-consumer, business-to-business-to-consumer, consumer-to-business, consumer-to-consumer, mobile commerce, intrabusiness EC, business-to-employee, collaborative commerce, nonbusiness EC, electronic government and exchange-to-exchange.
3.Describe the major landmarks in EC history.
The major landmarks in EC history began with the use of EDI to transmit business information. This was followed by a wide public acceptance of the Internet. The next major landmark was the development of several early electronic commerce sites online and the growth of the "new economy." Another major landmark is the winding down of many of these "new economy" businesses.
4.List some EC successes and failures.
Student answers will vary.
Section 1.3 Review Questions
1.Define a business plan, business case, and business model.
A business plan is a written document that identifies the business goals and outlines the plan to achieve them. A business case is a written document that is used by managers to gather funding for specific applications for projects; its major emphasis is the justification...