Chapter 1 introduction to e-commerce
- 2. E-Commerce - The buying and selling, marketing and servicing of products and services via computer networks
- 3. E-Business - The use of the internet to network and empower business processes, electronic commerce, organizational communication and collaboration within a company and with its customers, suppliers, and other stakeholders. Stakeholders – groups and individuals that affect or that is affected by the organization Include buyers, suppliers, competitors, government and regulatory agencies
- 4. Figure 1.1 The relationship between e-business and e- commerce E-Business E-Commerce Buying and selling electronically Sell-side e-commerce Electronic Procurement Buy-side e-commerce Electronic Distribution Electronic Marketing Secure transactions Automation of Processes Electronic Collaboration
- 5. Issues Old Economy New Economy Economy Factors Markets Stable Dynamic and complex Competition National International and Global Structure Manufacturing Service Value Driver Physical Capital Human Capital The Development of the New Economy
- 6. Issues Old Economy New Economy Business Factors Organization Hierarchy Network or Virtual Production Mass Flexible, customized Growth Driver Capital and Labor Innovation and Knowledge Technology Driver Machines Digital and Electronic Competitive Advantage Low cost/high production Innovation, speed, quality Relationships Independent Collaborative
- 7. Issues Old Economy New Economy Consumer Factors Tastes Stable Dynamic, Segmented Skills Specialized Multiple and Flexible Educational Needs Trade oriented Liflelong Learning Workplace relations Confrontational Collaborative Nature of Employment Stable Insecure, opportunistic
- 8. Types of E-Business Business-to-Business (B2B) – E-business services across the supply chain or in parts of the supply chain such as e-procurement, logistics, stock control, ordering, payments and distribution. Ex.
- 9. Types of E-Business Business-to-Consumer (B2C) - involve those that sell products or services to customers - highest number of entrants Ex.
- 10. Types of E-Business Consumer-to-Consumer (C2C) - bringing consumers together for specific purposes Ex.
- 11. The Growth of E-Business World Wide Web (WWW) - extended the functionality of the internet by introducing hypertext that linked documents held on the internet servers - facilitated access to particular parts of documents or even to other relevant documents held on other servers called the Hypertext Transfer Protocol (HTTP) and derived from a mark-up language called Hypertext Markup Language (HTML)
- 12. Universal resource locators (URL’s) - unique address given to each document or page within the server Mid 1900’s – firms ‘born on the internet’ emerged Electronic Data Interchange (EDI) - describes the exchange of documents between organisations in standardised electronic form directly between computer applications Ex. Purchase orders, invoices and material releases
- 14. The key benefits associated with EDI: • Lower costs in administration and processing • Lower costs in posting and preparation of transactions • Increased efficiency in transaction processing • Eliminating paper-handling tasks • Reducing errors • Quick exchange of documents which reduces the business cycle • Lower inventory costs • Increased customer service.
- 15. Wireless Technology Wireless Applications Protocol (WAP) - standard that transfers data and information to wireless devices
- 16. 3G and 4G – 3rd generation (384 kbits/s) and 4th Generation (100 mbits/s)
- 17. Bluetooth - short- range radio communication s among mobile devices Wireless Fidelity (Wi-fi) - high-speed local- area network enabling wireless access to the internet for mobile, office and home users
- 18. Other technologies: • Internet Protocol - a system that facilitates the convergence of voice and video with existing forms of internet communication • Voiceover Internet Protocol (Voip) - making telephone calls over the internet • Voice Recognition • Internet Television (IPTV) - enables viewers to choose from a vast archive of film and television programmes
- 20. Other technologies: • Mobile Phone Television • Interactive Television • Payment Systems
- 21. Advantages of using the Internet Firms • Ease of access • Ease of use • Access to wider market • Potential economies of scale • Marketing economies • Improved logistics • Automated Processes • Network Externalities • Improved customer knowledge • Lower costs • Increased Efficiency
- 22. Advantages of using the Internet Consumers • Ease of access • Ease of use • Access to market information • Convenience • Lower Prices • Personalization • Customization • Network Externalities • One-to-one customer service • Access to internet community • Empowerment
- 23. Trend of Internet in the Philippines