Mata kuliah : M0204 - Konsep E-Business
Tahun
: 2010
Overview of electronic commerce
Pertemuan 1-2
Learning Objective
1.Define electronic commerce (EC) and describe its various
categories
2.Describe the content and framework EC
3.Describe the major type of EC transacction
4.Describe the Benefit EC
5.Describe the limitation of EC
6.Understand the forces that drive the widespread use of
electronic commerce
7.Describe and discuss the changes that will be caused by
electronic commerce
8.Discuss some major managerial issues regarding electronic
commerce
Bina Nusantara University
3
Electronic Commerce is the process of buying,
selling, transferring or exchanging product, services and
/ or information via computer networking.
EC can also be defined from the following perspective :
1. Business Process
2. Service
3. Learning
4. Collaborative
5. Community
Benefit of E-Commerce
•Global Reach
•Cost Reduction
•Supply Chain improvement
•Lower Inventories
BENEFIT FOR ORGANIZATION
Reduces the time between the outlay of capital
and the receipt of products and services
Supports business processes reengineering
(BPR) efforts
Lowers telecommunications cost - the Internet is
much cheaper than value added networks
(VANs)
BENEFIT FOR CUSTOMER
Customers can receive relevant and detailed
information in seconds, rather than in days or
weeks
Makes it possible to participate in virtual auctions
Allows customers to interact with other customers
in electronic communities and exchange ideas as
well as compare experiences
Electronic commerce facilitates competition, which
results in substantial discounts.
Technological Limitation of EC
•Lack of Technology
•Insufficient bandwidth for telecommunication
•Software Development tools is evolving
Non Technological Limitation
•Security and privacy concern
•Lack of trust
•Many legal and public issue
Pure Vs. Partial Electronic Commerce
Three dimensions
» the product (service) sold [physical / digital]
» the process [physical / digital]
» the delivery agent (or intermediary) [physical /
digital]
Traditional commerce
» all dimensions are physical
Pure EC
» all dimensions are digital
Partial EC
» all other possibilities include a mix of digital
and physical dimensions
Electronic Commerce Applications
• Stocks Jobs • On-line banking
• Procurement and purchasing• Malls • On-line marketing and advertising
• Home shopping • Auctions • Travel • On-line publishing
People:
Buyers, sellers,
intermediaries,
services, IS people,
and management
Public
policy,
legal, and
privacy
issues
Technical standards
for documents,
security, and
network protocols
payment
Organizations:
Partners,
competitors,
associations,
government services
Infrastructure
(1)
Common business
services infrastructure
(security smart
cards/authentication
electronic payment,
directories/catalogs)
(2)
Messaging and
information distribution
infrastructure
(EDI, e-mail, Hyper Text
Transfer Protocol)
(3)
(4)
Multimedia content
Network infrastructure
and network
(Telecom, cable TV
publishing infrastructure
wireless, Internet)
(HTML, JAVA, World
(VAN, WAN, LAN,
Wide Web, VRML)
Intranet, Extranet)
(5)
Interfacing
infrastructure
(The databases,
customers, and
applications)
Management
© Prentice Hall, 2000
A Framework for Electronic Commerce
9
Figure 1.2 shows that the EC applications are
supported by infrastructures, and their implementation
is dependent on four major areas (shown as
supporting pillars) people, public policy, technical
standards and protocols, and other organizations.
The EC management coordinates the applications,
infrastructures, and pillars. It also includes Internet
marketing and advertisement.
The Driving Forces of Electronic Commerce
The New World of Business
•Business pressures
•Organizational responses
•The role of Information Technology
(including electronic commerce)
Major Business Pressures
Market and
economic pressures
Societal and
environmental pressures
Technological pressures
Strong competition
Global economy
Regional trade agreements (e.g. NAFTA)
Extremely low labor cost in some countries
Frequent and significant changes in markets
Increased power of consumers
Changing nature of workforce
Government deregulation of banking and other services
Shrinking government budgets subsides
Increased importance of ethical and legal issues
Increased social responsibility of organizations
Rapid political changes
Rapid technological obsolescence
Increase innovations and new technologies
Information overload
Rapid decline in technology cost Vs. performance ratio
Business Process Reengineering
Reducing cycle time and time to market
Empowerment of employees and collaborative
work
Knowledge management
Customer-focused approach
Business alliances — virtual corporation
Other Changes in the Workplace
Transforming Organizations
Work will change
Technology learning
Organizational learning
Redefining
Organization
New product capabilities
New business models
Question
1. Jelaskan perbedaan antara pure, partial dan traditional commerce dan
berikan contohnya ?
2.Bagaimana kondisi atau karateristik dari product yang dijual yang lebih
sesuai jika dijual dengan pure, partial atau traditional commerce
3.Berikan penjelasan tentang Framework Electronic commerce?
QUESTION FOR DISCUSSION
Give an example of pure and partial Electronic Commerce
for product and services?
And what is the reason companies that use for different EC?
QUESTION
1. Explain the Definition of electronic commerce (EC)
and describe its various categories
2. Explain the content and framework EC
3. Describe the major type of EC transacction
4. Describe the Benefit EC
5.Explain the limitation of EC
6. Explain the forces that drive the widespread
use of electronic commerce
7. Describe and discuss the changes that
will be caused by electronic commerce