eCommerce
Presented By:
Henry Vasquez
Collene Kelly
Vinh Phan
Tanya Lastrilla
Outline
History of Ecommerce
 Online Ecommerce Sites
 SCM & Its Technologies
 Security of Ecommerce
 Demand of Ecommerce
 Pros & Cons of Ecommerce

What is eCommerce?
The Buying and Selling of goods over the
internet.
History

1960 - Computers first made their way into commercial
applications in the with ERMA (the Electronic Recording
Machine Accounting).

1970s and 1980s - businesses extended their
computing power beyond the company's walls, sending
and receiving information with business partners and
suppliers electronically via EDI.
- 1984 – EDI or electronic data interchange
guarantees that companies would be able to
complete transactions with one another reliably.
History continued…

1992 offers online retail products to its
customers. This gives people the first chance to buy
things off their computer.

1994 arrived. Providing users a
simple browser to surf the Internet and a safe online
transaction technology called Secure Sockets Layer.

1995 - Two of the biggest names in e-commerce are
launched: Amazon.com and eBay.com.
Supply Chain Management
Reason to Adapt SCM
Meet customers’ satisfaction
 Reduce Cost
 Gain competitive advantage

Supply Chain Management
Sharing inventory with its loyalty suppliers.
 The suppliers use the same software that
Dell use to manage its inventory.
 Share demand forecast with suppliers on
monthly basis.

I2 Technology

i2 technology is the new tool for the new generation
of supply chain management.




Visibility: Providing a clear, unobstructed view of operations
up and down a supply chain is critical for success
Planning: include demand-driven, constraint-based tools
designed to improve sales and operations planning and
factory planning, while also helping companies manage risk
Collaboration: Improved collaboration with supply chain
partners can break down the walls separating companies,
enabling an extended supply chain to compete as a single
system
Control: successfully monitor and manage the system will
improve decision-making and have the ability to rapidly
replan based on changing business dynamics.
i2 Customers
Automotive and Industrial: Toyota, Volvo,
Ford, etc..
 High Tech: Dell, IBM, LG, etc..
 Consumer Industries: Unilever, Sunbeam,
3M Canada, etc..
 Retail: Best Buy, Payless Shoes Sources,
Louis Vuitton, etc..

What is a Secure Site?

uses the HTTPS protocol to ensure that
information cannot be stolen by a third
party

SSL Certificate
 allows
the web browser to verify the identity of
a secure site before sending private personal
information
What is a SSL Certificate?

Secure Socket Layer
 create
endpoints for communication and
make connections between those ends

SSL encryption allows the seller to verify
the identity of the buyer the business
transaction is being negotiated with
Popular Products
Biggest Five Online E-Commerce
Sites 2006

Ebay.com

Yahoo.com

Amazon.com

Google.com

Buy.com

According to a Forrester Inc.
report, online retail sales will
grow at a 25% annual growth
rate over the next five years.
Online retail sales will reach
nearly $230 billion and account
for 10% of total US retail sales
by 2008. On Ebay, more than
430,000 people are making a
full- or part-time living from the
auction site. Online sales
including travel will rise to
$172.4 billion this year." -Forrester
Some Ask…
Why the Hype?
Demand

"...the estimate of U.S.
retail e-commerce sales
for the third quarter of
2005, adjusted for
seasonal variation and
holiday and trading-day
differences, but not for
price changes, was
$22.3 billion, an
increase of 5.7 percent
(±1.7%) from the
second quarter of
2005."-- U.S. Census
Bureau
…and more Demand

"Online ad growth of 33.7 percent is
expected in 2005 to $12.7 billion,
raising a previous estimate of $11.5
billion for the year. eMarketer had
estimated 2004 ad revenue at $9.5
billion." -- eMarketer
Positives and Negatives



Online Visits Increase
Store Sales
Online Coupons
Decrease in Store
Sales.
-Shipping Stores
-Brick-and-Mortars
-Movie Rentals
Questions?
Thank You