Faculty of Business Management
Lecture 6: E-Business and E-Commerce
3 November, 2022
Presented By: Gehan Ameresekere Ms c
E-Business
and
E-Commerce
Chapter 7 and 8
Chapter 7: e-Business Systems
Describes how information systems integrate and support enterprise wide
business processes, especially customer relationship management,
enterprise resource planning, and supply chain management, as well as
the business functions of marketing, manufacturing, human resource
management, accounting, and finance, and discusses the benefits and
challenges of these major enterprise applications.
Chapter 8: e-Commerce Systems
Introduces the basic process components of e-commerce systems, and
discusses important trends, applications, and issues in e-commerce.
Chapter 7: e-Business Systems
Contrary to popular opinion, e-business is not synonymous with ecommerce. E-business is much broader in scope, going beyond
transactions to signify use of the Net, in combination with other
technologies and forms of electronic communication, to enable any type of
business activity .
Many companies today are using information technology to develop
integrated cross-functional enterprise systems that cross the boundaries of
traditional business functions to re-engineer and improve vital business
processes all across the enterprise.
Chapter 7: e-Business Systems
Contrary to popular opinion, e-business is not synonymous with ecommerce. E-business is much broader in scope, going beyond
transactions to signify use of the Net, in combination with other
technologies and forms of electronic communication, to enable any type of
business activity .
Many companies today are using information technology to develop
integrated cross-functional enterprise systems that cross the boundaries of
traditional business functions to re-engineer and improve vital business
processes all across the enterprise.
Chapter 7: e-Business Systems
ERP Systems -..Enterprise re-source planning (ERP) concentrates on the efficiency of a firm’s
internal production,distribution, and financial processes.
CRM Systems - Customer relationship management (CRM) fo-cuses on acquiring and retaining
profitable customers via marketing, sales, and ser-vice processes.
PRM Systems- Partner relationship management (PRM) aims at acquiring and retaining
partners who can enhance the selling and distribution of a firm’s products and services.
Supply chain management (SCM) focuses on developing the most efficient and effective
sourcing and procurement processes with suppliers for the products and services needed by a
business.
Knowledge management (KM) applications focus on providing a firm’s employees with tools
that support group collaboration
and decision support..
Chapter 7: e-Business Systems – How they fit together
Chapter 7: e-Business Systems
Managing the full range of the customer relationship involves two related
objectives:
One, to provide the organization and all of its customer-facing employees with a
single, complete view of every customer at every touch point and across all
channels; and, two, to provide the customer with a single, complete view of the
company and its extended channels .
ERP
Businesses of all kinds have now implemented enterprise resource planning
(ERP) systems. ERP serves as a cross-functional enterprise backbone that
integrates and automates many internal business processes and information
systems within the manufacturing, logistics, distribution, accounting, finance,
and human resource functions of a company. (Common ERP Systems?)
Chapter 7: e-Business Systems
SCM
Fundamentally, supply chain management helps a company get the right
products to the right place at the right time, in the proper quantity and at an
acceptable cost. The goal of SCM is to manage this process efficiently by
forecasting demand; controlling inventory; enhancing the network of business
relationships a company has with customers, suppliers, distributors, and others;
and receiving feedback on the status of every link in the supply chain.
How does a business interconnect its cross-functional enterprise systems?
EAI
Enterprise application integration (EAI) software is being used by many
companies to connect their major e-business applications.
Chapter 7: e-Business Systems
Transaction processing systems (TPS) are cross-functional information
systems that process data resulting from the occurrence of business
transactions. We introduced transaction processing systems in Chapter 1 as one
of the major application categories of information systems in business.
Enterprise collaboration systems (ECS) are cross-functional information
systems that enhance communication, coordination, and collaboration among
the members of business teams and workgroups
Chapter 7: e-Business Systems
Functional Business Systems
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Marketing
Computer Integrated Manufacturing
Human Resource Management
Accounting
Financial Management Systems
E-Commerce
Electronic commerce is more than just buying and selling products online. Instead, it encompasses the
entire online process of developing, marketing, selling, delivering, servicing, and paying for products and
services transacted on inter-networked, global marketplaces of customers, with the support of a
worldwide network of business partners.
Scope of E-Commerce
E-commerce involves accomplishing a range of business
processes to support the electronic buying and selling
of goods and services.
Scope of E-Commerce
The advantages of e-commerce allow a business of
virtually any size that is located virtually anywhere on
the planet to conduct business with just about anyone,
anywhere.
Scope of E-Commerce
• Pre-sales, subcontracts, supply
• Financing and insurance
• Commercial transactions: ordering, delivery, payment
• Product service and maintenance
• Co-operative product development
• Distributed co-operative working
• Use of public and private services
• Business-to-administrations (e.g. customs, etc)
• Transport and logistics
• Public procurement
• Automatic trading of digital goods
• Accounting
• Dispute resolution
TYPES OF E-COMMERCE
B2B - Business to Business: The two businesses pass information electronically to each other. B2B
e-commerce currently makes up about 94% of all e-commerce transactions.
B2C - Business to Consumer: This is where the consumer accesses the system of the supplier. It is
still a two way function but is usually done solely through the Internet.
C2B - Consumer to Business: Consumer to Business is a growing arena where the consumer
requests a specific service from the business.
B2E - Business to Employee: Business to Employee e-commerce is growing in use. This form of Ecommerce is more commonly known as an ‘Intranet’.
C2C - Consumer to Consumer: The consumer lists items for sale with a commercial auction site.
Other consumers access the site and place bids on the items. The site then provides a connection
between the seller and buyer to complete the transaction.
CLASSIFICATIONS OF E-COMMERCE
APPLICATIONS
Electronic Markets:
The principle function of an electronic market is to
facilitate the search for the required product or service.
Airline booking systems are an example of an electronic
market
.
Electronic Data Interchange (EDI):
Electronic Data Interchange (EDI) is the electronic
exchange of business documents in a standard,
Online Shopping
The act of purchasing products or services over the Internet.
Online shopping has grown in popularity over the years, mainly because
people find it convenient and easy to bargain shop from the comfort of their
home or office.
One of the most enticing factor about online shopping, particularly during a
holiday season, is it alleviates the need to wait in long lines or search from
store to store for a particular item.
Online Stores
You are able to browse and search for items, as you
would in a regular store; there is a wider range of
products, sizes, and colors of products, as you would
find in a warehouse; and most online stores contain
reviews of products by people who have already
purchased and tried out the product.
Benefits of Online Shopping
• Convenience
• Selection
• Price
Disadvantages of Online Shopping
• Hands-On Inspection
• Shipping
• Wait Time
• Privacy
• ONLINE SAFETY (Discussion)
E-Commerce Success Factors

Selection and Value. Attractive product selections, competitive prices, satisfaction guarantees, and customer
support after the sale.
 Performance and Service. Fast and easy navigation, shopping, and purchasing, and prompt shipping and
delivery.
 Look and Feel. Attractive Web storefront, Web site shopping areas, multimedia product catalog pages, and
shopping features.
 Advertising and Incentives. Targeted Web page advertising and e-mail promotions, discounts, and special
offers, including advertising at affiliate sites.
 Personal Attention. Personal Web pages, personalized product recommendations, Web advertising and e-mail
notices, and interactive support for all customers.
 Community Relationships. Virtual communities of customers, suppliers, company representatives, and others
via newsgroups, chat rooms, and links to related sites.
 Security and Reliability. Security of customer information and Web site transactions, trustworthy product
information, and reliable order fulfillment.
 Great Customer Communication. Easy-to-find contact information, online order status, product support
specialists.
Mobile app for e-Commerce
You really need a mobile app? ( discussion )
 Why ?
 Advantage / Disadvantage
Mobile app for e-Commerce
 Mobile Commerce is Trending Up
 Consumers Prefer Mobile Apps
 Gain a Competitive Advantage
 Higher Conversion Rates
 Improve Marketing Communication
 Create a Personalized Shopping Experience
 Increase Customer Loyalty
 Offer Enhanced Customer Service
 Increase Retention Rates
Electronic Bidding
Electronic bid means the bidder, in response to an
advertised
invitation
to
bid,
submits
all
documentation, except for information and
documents specified in the invitation to bid, only
through an electronic process to an identified secure
electronic mail account that will not be opened by the
Office or an agency until the close of the bidding
period. In this process, no hard copy documentation
shall be submitted to the Office or an agency prior to
the award of the contract.
SAAS (Software As A Service)
Software as a service (SaaS) is a software distribution
model in which a third-party provider hosts
applications and makes them available to customers
over the Internet.
There are SaaS applications for fundamental business
technologies, such as email, sales management,
customer relationship management (CRM), financial
management, human resource management (HRM),
billing and collaboration.
Click here
Leading SaaS providers include Salesforce, Oracle,
SAP, Intuit and Microsoft.
PAAS (Platform As A Service)
Platform-as-a-service (PaaS) is a type of cloud
computing offering in which a service provider delivers
a platform to clients, enabling them to develop, run,
and manage business applications without the need to
build and maintain the infrastructure such software
development processes typically require.
IAAS (Infrastructure As A Service)
Infrastructure as a service (IaaS) is a form of cloud
computing that provides virtualized computing
resources over the internet.
IaaS quickly scales up and down with demand, letting
you pay only for what you use. It helps you avoid the
expense and complexity of buying and managing your
own physical servers and other datacenter
infrastructure.
SAAS, PAAS & IAAS
Ethical & Implementation Issues
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Privacy
Web Tracking
Loss of Jobs
Disintermediation and Reintermediation
Group Activity
• Visit an e-commerce website and identify at least 5
different ways it makes revenue.
• Visit and identify at least three specific elements of
its personalization and customization features.
• Purchase something online?
Thank You !
Questions?