Basic Computer Concepts

What is Commerce?

Ø

Ø

Commerce, or doing business, is a negotiatedexchange of valuable objects or servicesbetween at least two parties and includes allactivities that each of the parties undertake tocomplete the transaction.

Commerce is the activities of buying andselling.

TransactionProcess “Buyer”“Seller”

Trends and Issues - Ecommerce

Trends and Issues - Ecommerce

Basic Computer Concepts

Defining E-Commerce(EC)

Ø

Ø

Electronic commerce is an emerging conceptthat describes the process of buying andselling or exchanging of products, services andinformation via computer networks includingthe Internet.

E-Commerce can be defined from theseperspectives:

v

v

v

v

communications perspectivesbusiness process perspectiveservice perspectiveonline perspective

Trends and Issues - Ecommerce

Basic Computer Concepts

Origins and Growthof E-Commerce

Ø

Ø

Electronic funds transfers (EFTs or wiretransfers): electronic transmissions of accountexchange information over private networks.

Electronic data interchange (EDI): occurs whenone business transmits computer-readable datain a standard format to another business.

Trends and Issues - Ecommerce

Basic Computer Concepts

Features of E-CommerceTechnology

Unique of E-commerce Technology and theirBusiness Significance:

ØØØØØØØ

is ubiquitoushas global reachoperates according to universal standardsprovides information richnessis interactiveincreases information densitypermits personalization

Trends and Issues - Ecommerce

Basic Computer Concepts

Advantages of E-Commerce

E-Commerce benefits to merchants:

üüüüü

üüüüüü

Increase sales opportunities for the sellerReduce operational costsIncrease purchasing opportunities for the buyerProvide wide range of choicesUse the web to target their offers to a nichemarket"The store is always open!"Establish better relationships with customersLow cost information distributionIncreased speed to marketExpanded delivery channelsGlobal exposure and reach

Trends and Issues - Ecommerce

Basic Computer Concepts

Advantages of E-Commerce

E-Commerce benefits to consumers:

üüü

üüüüüü

ConvenienceInformativeValue presented upfront: Demo and freedownloadNo long wait timesEasy flow and navigationSearch capabilitiesEngaging presentationConstant updatesEasy to buy

Trends and Issues - Ecommerce

Basic Computer Concepts

Disadvantages ofE-Commerce

ûûûû

Cost and JustificationSecurity and PrivacyLack of trust and user resistanceOther limiting factors

Trends and Issues - Ecommerce

Basic Computer Concepts

Major Types ofE-Commerce

§ Market relationships§

§

§

Business-to-Consumers (B2C)Business-to-Business (B2B)Consumer-to-Consumer (C2C)

§ Technology-based§

§

Peer-to-Peer (P2P)Mobile Commerce (M-Commerce)

“Seller”

Business

Business

Consumer

Consumer

“Buyer”

Business

Consumer

Business

Consumer

TransactionProcess

B2B

B2C

C2B

C2C

Trends and Issues - Ecommerce

Basic Computer Concepts

B2B E-Commerce

Ø

Ø

Electronic means for business to businessinteraction

Examples:vv

v

Online purchasingOnline supplier integrationOnline information services

Ø Largest form of e-commerce

Ø Other models have developed§ e-distributors§ infomediaries§ B2B service providers

Trends and Issues - Ecommerce

Basic Computer Concepts

B2C E-Commerce

Ø

Ø

Ø

Ø

Electronic means for business to customerinteraction

Examples:• online shopping• online service• online technical support

Most commonly discussed type

Online businesses attempt to reach individualconsumers

Trends and Issues - Ecommerce

Basic Computer Concepts

C2B E-Commerce

Ø

Ø

Electronic means for customer to businessinteraction

Examples:• Answering to surveys• Sharing/selling customer’spreferences

• Providing reviews, ratings,etc.

Trends and Issues - Ecommerce

Basic Computer Concepts

C2C E-Commerce

Ø

Ø

Electronic means for customer to customerinteractionExamples:

• Online auctions (with intermediary?)• Online classified ads• Online communities

Ø Provide a way for consumers to sell to eachother

Ø Consumer:§ prepares the product for market§ places the product for auction or sale§ relies on market maker to provide catalog,

search engine, and transaction clearingcapabilities

Trends and Issues - Ecommerce

Basic Computer Concepts

P2P E-Commerce

Ø

Ø

Peer-to-Peer technology enables Internet usersto share resources without going through acentral server

Ex: Napster: uses P2P to find and share onlinemusic

Trends and Issues - Ecommerce

Basic Computer Concepts

M-Commerce

Ø

Ø

Ø

Wireless digital devices enabletransactions on the Web

Uses personal digital assistants (PDAs) toconnect

Used most widely in Japan and Europe