CHAPTER 1 OVERVIEW OF E COMMERCEedited

Topics: Electronic commerce, Electronic Data Interchange, Strategic management Pages: 44 (1437 words) Published: January 1, 2015
CHAPTER 1:
Overview of Electric
Commerce

Content
1.1 Basic concept of EC
1.1.1 Define EC concept
1.1.2 The evolution of EC
1.1.3 EC attributes
1.1.4 EC infrastructure
1.2 Cycles of EC
1.3 EC business model
1.4 EC benefits & limitation
Electronic Commerce

Prentice Hall © 2006

2

1.1 Definition and Concept

Electronic commerce (EC)
The process of buying, selling, or
exchanging products, services, or
information via computer networks

Electronic Commerce

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3

EC Definition
• EC








is defined through these perspectives
Communications
Commercial (trading)
Business process
Service
Learning
Collaborative
Community

Electronic Commerce

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4

Definition
 E-business

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.
Electronic Commerce

Prentice Hall © 2006

5

The Difference between E-commerce
and E-Business

6

EC Concept
 Pure vs Partial EC
 EC forms depends on the degree of
digitization (transformation from physical to
digital)
 product/ service sold
 process (ordering, payment)
 delivery method

Electronic Commerce

Prentice Hall © 2006

7

EC Concept

Electronic Commerce

Prentice Hall © 2006

8

EC Concepts
 EC organizations
• brick-and-mortar organizations
Old-economy organizations
(corporations) that perform most of their
business off-line, selling physical
products by means of physical agents
• virtual (pure-play) organizations
Organizations that conduct their
business activities solely online
Electronic Commerce

Prentice Hall © 2006

9

EC Concepts
•click-and-mortar (click-andbrick)
organizations
Organizations that conduct some ecommerce activities, but do their primary business in the physical
world

Electronic Commerce

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10

EC Concepts
 Where EC is conducted
• electronic market (e-marketplace)
An online marketplace where buyers and
sellers meet to exchange goods, services,
money, or information
• Inter-organizational information
systems (IOSs)
Communications system that allows routine
transaction processing and information flow
between two or more organizations

Electronic Commerce

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11

• Intra-organizational information
systems
Communication systems that enable ecommerce activities to go on within individual organizations

Electronic Commerce

Prentice Hall © 2006

12

A Framework for EC

Electronic Commerce

Prentice Hall © 2006

13

1.1.2 Evolution of EC
• EC applications first
developed in the
early 1970s
Electronic funds
transfer (EFT)

• Limited to:
– Large corporations
– Financial
institutions
– A few other daring
businesses

14

1.1.2 Evolution of EC (cont.)
• Electronic data
interchange (EDI)—
electronic transfer of
documents:
– Purchase orders
– Invoices
– E-payments
between firms
doing business

• Enlarged pool
of participants to
include:
– Manufacturers
– Retailers
– Service providers

15

1.1.2 Evolution of EC (cont.)
• Interorganizational systems (IOS)
– Stock trading
– Travel reservation systems
• Internet became more commercialized in
the early 1990s
– Almost all medium-and large-sized
organization in the world now has a
Web site
– Most large corporations have
comprehensive portals
16

1.1.2 Evolution of EC (cont.)









EC Successes
1999: B2C to B2B
2001: B2B to B2E
C-COMMERCE
E-GOVERNMENT
E-LEARNING
M-COMMERCE
SOCIAL NETWORK
– Pure online
• eBay
• VeriSign
• AOL
• Checkpoint

– Click-and-mortar





GE
IBM
Intel
Schwab

• EC Failures
– E-tailors began to fail
in 1999
– This does not mean
that EC’s days are
numbered
– Large EC companies...
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