E-COMMERCE AND
OPERATIONS MANAGEMENT
¿E-COMMERCE?
 Electronic commerce is any form of
transaction or exchange of
information for commercial purposes
in which the parts interact using
information technology and
communication rather than doing it
by direct physical contact or
exchange.
Applications related to E-commerce
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E-mail and messaging
Documents, spreadsheets, database
Accounting and finance systems
Orders and shipment information
Enterprise and client information reporting
Domestic and international payment systems
Newsgroup
On-line Shopping : EBAY
Messaging :BLACKBERRY
Conferencing
Benefits of E-commerce
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Expand Geographical Reach
Expand Customer Base
Increase Visibility
Provide Customers valuable information about your business
Never Close
Build Customer Loyalty
Reduction of Marketing and Advertising Costs
Collection of Customer Data
Increase sales, decreasing costs
Provide price quotes
Reduces costs with telecommunications and physical
maintenance
Encourages competition between small and large online
retailers
Limitations of E-commerce
 Credit Card security is a serious issue if vulnerable
 Costs involved with bandwidth and other computer and
server costs
 Extensive database and technical knowledge and
experience required
 Customer apprehension about online Credit Card orders
 Constantly changing technology may leave slow
businesses behind
 Some customers need instant gratification, and shipment
times interrupt that
 Search utilities far surpasses the speed used to find
products through catalogs
E-commerce safety
 The lack of privacy on the Internet is a major
concern to many consumers. In online
transactions, the merchants will have the ability to
keep a record of all the purchases made by a
consumer as well as knowing which items were
examined, for how long and at what point in time.
 New technology is being developed to which has
the capability of filtering out Web sites which are
not privacy rated. It is envisaged that third party
rating services will be established to monitor
privacy.
EXAMPLES OF E-COMMERCE
 http://www.123live.co.uk/ecommerce
-website-design.htm
THREE TYPES OF E-COMMERCE
 B2B :Commerce Business to Business
(commonly used to exchange inputs
or supplies )
 C2B :Electronic Commerce Business
to Consumer
 C2C :Electronic Commerce from
consumer to consumer
B2B
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The ultimate goal of e-Marketplaces is the buying and selling of
goods or services by means telematics, and the most frequent
channel is the Internet.
Some examples of B2B are:
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BizBuyer.com offers a unique online marketplace for small business
owners. Their service allows small businesses to receive price
quote on a wide variety of products and services, from thousands
of vendors.
Paperexchange.com interact with a global network of suppliers and
buyers through our English, French and German speaking
professionals.
Newview Technologies Inc. is headquartered in Fort Worth, Texas,
and delivers value for customers that include DaimlerChrysler, Ford
Motor Company, Honda, Delphi, BHP Billiton.
C2B
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C2B is an electronic commerce business model in which consumers
(individuals) offer products and services to companies and the
companies pay them.
Examples:
 Online Advertising sites : Google Adsense
 Affiliation platforms : Commission Junction
 Affiliation programs : Amazon
 Online surveys : Survey Monkey
The revolution is the
C2B model
C2C
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C2C involves the electronically-facilitated transactions between
consumers through some third part. An example is the online
auction, in which a consumer posts an item for sale and other
consumers bid to purchase it; the third party generally charges
a flat fee or commission. The sites are only intermediaries, just
there to match consumers.
The most important and popular example for C2C is :
 EBAY
EDI
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In terms of wikipedia definition:set of standards for structuring
information that is to be electronically exchanged between and
within businesses, organizations, government entities and
other groups.
'The transfer of structured data,by agreed message
standards,from one computer system to another without
human intervention’
Advantages of using EDI :
 benefits of storing and manipulating data electronically
without the cost of manual entry
 reduces the handling costs of sorting, distributing,
organizing, and searching paper documents
ebXML
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ebXML is a modular suite of specifications that enables
enterprises of any size and in any geographical location to
conduct business over the Internet. Using ebXML, companies
now have a standard method to exchange business messages,
conduct trading relationships, communicate data in common
terms and define and register business processes.
There is a lot of websites, documents and articles on internet
which talks about ebXML:
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http://www.ebxml.org/
http://www.gca.org/papers/xmleurope2001/papers/html/s182a.html
http://www.oasisopen.org/committees/tc_home.php?wg_abbrev=ebxml-bp
http://www.ibm.com/developerworks/xml/library/x-ebxml/
E-business
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Electronic business is the conduct of business on the Internet,
not only buying and selling but also servicing customers and
collaborating with business partners.
The term "e-Business" was coined by Lou Gerstner,CEO of IBM.
Today, major corporations are rethinking their businesses in
terms of the Internet and its new culture and capabilities.
Companies are using the Web to buy parts and supplies from
other companies, to collaborate on sales promotions, and to do
joint research. Exploiting the convenience, availability, and
world-wide reach of the Internet, many companies, such as
Amazon.com, the book sellers, have already discovered how to
use the Internet successfully.
E-Procurement
 E Procurement is also known as supplier exchange.
 electronic procurement is the business-to-business or
business-to-consumer purchase and sale of supplies and
services through the Internet as well as other
information and networking systems.
 E-procurement Web sites allow qualified and registered
users to look for buyers or sellers of goods and services.
 Buyers or sellers may specify costs or invite bids.
Transactions can be initiated and completed. Ongoing
purchases may qualify customers for volume discounts
or special offers. E-procurement software may make it
possible to automate some buying and selling.
E-Procurement
 Six main types of e-procurement:Web-based ERP
(Electronic Resource Planning), e-MRO
(Maintenance, Repair and Operating), e-sourcing,
e-tendering, e-reverse auctioning, e-informing.
 The e-procurement value chain consists of Indent
Management, eTendering, eAuctioning, Vendor
Management, Catalogue Management, and Contract
Management.
 Here you can find more interesting information about eprocurement:
 http://www.cyberindigo.net/articles/eprocurement.htm
Online auction
 The online auction business model is
one in which participants bid for products
and services over the Internet. The
functionality of buying and selling in an
auction format is made possible through
auction software which regulates the
various processes involved.
 eBay is the world's largest online auction
site.
Online catalogue
 An online catalog might refer to:
 The retail product offerings of an online
shop.
 An electronic library catalog.