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eCommerce Lecture Series

Lecture 2
E-Commerce & E-Business Concepts and Components
Keeran Jamil

Learning objectives
• • • • • Understand and be able to define e-Commerce Understand barriers and drivers to going On-line Understand types of e-Commerce Understand and be able to define e-Business Understand the difference between eCommerce and e-Buisness


• You are asked to distinguish between ecommerce and e-business at a job interview. • Write down your definitions. • Use examples to illustrate your points.


E-Commerce Defined
• Electronic-Commerce The buying and selling of information, products, and services via computer networks and distributed media, usually the World Wide Web.


E-commerce Defined (II)
• „All electronically mediated information exchanges between an organization and its external stakeholders‟

• Examples:
– Buying books online (transactional) – Selecting a car online (informational) – Interacting with brand online (relationship building / experiential, e.g. – Asking a customer service query, e.g. •5

The distinction between buy-side and sell-side e-commerce

The distinction between buy-side and sell-side e-commerce

Activity – drivers and barriers to adoption
• You are in a team of advisers at a local Business Link (a local government agency encouraging adoption of e-commerce) • List: – Drivers to adoption of sell-side e-commerce by business and how you can reinforce these by marketing benefits – Barriers to adoption of sell-side e-commerce by business and how you can reinforce these by stressing benefits •7

Business Drivers to Going Online
1 Reduced costs 2 Increase reach to new markets 3 Customer demand

Marketing approach
Give real examples Give examples of SME Data on those researching and buying online

4 Competitive threats



Business Barriers to Going Online
1 Security
2 No need 3 Costs 4 Skills

Marketing approach
Illustrate with data of businesses researching and buying online Illustrate low cost options Summarise skills alternatives •9

Drivers for e-commerce

•Figure 1.6 Attitudes to benefits of online technologies
•Source: DTI (2002) •10

Barriers to e-commerce

•Figure 1.7 Barriers to development of online technologies •Source: DTI (2002) •11

Types of e-Commerce
• Business-to-Consumer
– E-commerce between organizations and individual consumers

• Business-to-business (e-Business)
– E-commerce between businesses – Accounts for a much larger portion of ecommerce than business-to-consumer.

• Business-to-administration

• Consumer-to-administration •12

e-Business Definition
 Electronic-Business: The conduct of transactions by means of electronic communications networks (e.g., via the Internet and/or possibly private networks) end-to-end.


e-Commerce vs. e-Business
• Compared with e-Commerce, e-Business is a more generic term; it refers not only to information exchanges related to buying and selling but also to servicing customers and collaborating with business partners, distributors and suppliers. • e-Business encompasses sophisticated business-to-business interactions and collaboration activities at a level of enterprise applications and business processes. •14

e-Commerce vs. e-Business

• e-Business processes are integrated end-to-end across the company, with key partners, suppliers and customers & can respond with flexibility and speed to customer demands and market opportunities. – Companies link their internal and external processes more efficiently & flexibly, work more closely with suppliers to satisfy the needs & expectations of their customers. – Internal or back-office processes include distribution, manufacturing and accounting while external or front-office processes include these processes that connect an organization to its customers and suppliers.

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