e-commerce definition

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E-commerce & e-business
management
Textbook: D.Shaffey: e-business & e-commerce
magement. Strategy, Implementation and practice.
Prentice Hall
[email protected]
10-02-2012.
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Evolution: Spread of internet in
business 10 years ago
Study about ICT maturity including e-adoption and conclusions:
•companies have not yet implemented internet on a high level as
compared with the e-adoption path model
•They express their believe in the power of internet but evaluate their
own solutions as being of low quality
•The reason they gave: not a financial one! But: lack of expertise to
initiate this kind of projects
Internet companies:
1994: Amazon
1995: eBay
1996: hotmail
1998: Google
2001: Wikipedia
2003: skype
2004: facebook
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Consumer internet adoption
concumers internet adoption
= internet use by consumers
Using e-mail
Searching info about travel and touristic info
Bying some goods: tickets, books, …
Internet banking
Online news
Activities linked with education, courses, thesis, …
Downloading music
Downloading software
Social networks
blogging
3
Barriers internet adoption by companies
4
Evolution internet
5
Internet in an organization
6
E-commerce
e-commerce
definition:
All electronically mediated transactions between an organisation and any
third party it deals with
E-commerce is the exchange of info across electronic networks, at any
stage in the supply chain, whether within an organisation, between
businesses, between businesses and consumers, or between the public
and the private sector, whether paid or unpaid.
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E-commerce in the organization
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B2B,
B2C
B2G
C2C
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E-business, relation e-commerce
Definition: all electronically mediated info exchanges, both within an
organisation and with external stakeholders supporting the range of
business processes
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Internet/ e-commerce impact on
market place
Marketplace channel structure
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Changes of marketplace channel
structures
The relationship between a company and its channel partners can be
dramatically altered by the opportunities afforded by the internet. This
occurs because the internet offers a means of bypassing some of the
channel partners. This is the process of DISINTERMEDIATION
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Evolution: re-intermediation
Purchasers of products still needed assistance in the selection of
products and this led to the creation of NEW intermediaries;
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Online intermediary:
Sale of customer information
Directories ( Excite)
Search engines
Virtual resellers (Amazon)
Financial intermediaries: offering digital cash and checque
payment services (Digicash)
Virtual communities: user groups
Blog: a group communication
Portal: a gateway to information and services
Electronic marketplace: seller and buyer contact without
physical location
14
Internet/ e-commerce impact on business
company: decision about new business
model
Different types of business models:
e-shop, e-procurement, e-malls, e-auctions, virtual
communities,information brokerage, …
Which business models to adapt?
For existing businesses: they need to use the internet to build on current
business models, while at the same time experimenting with new
business models. Those can be important to gain competitive advantage
over existing competitors and to create roadblocks for new entrants.
(from “bricks and mortar” to “clicks and mortar”)
For start-up companies: the viability of a business model will be crucial
to funding from venture capitalists
15
e-business infrastructure
Question:
Which hardware and software technologies have to be used to build an
e-business infrastructure within an organisation and with its partners
Which are the hardware and software requirements necessary to enable
employee access to the Internet and hosting of
e-commerce services.
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Problems we can experience:
Web site communications too slow.
Web site not available.
Bugs on site through pages being unavailable or
information typed in forms not being executed.
Ordered products not delivered on time.
E-mails not replied to.
Customers’ privacy or trust is broken through security
problems such as credit cards being stolen or addresses
sold to other companies.
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Internet Standards
Networking standards: TCP/IP
http: presentation of info via browser
exchange/ transfer on information via internet: XML
Voice over IP
VoIP is a relatively new approach which can be used for
transmittinbg voice over LAN or on a wider scale IP stands for
internet protocol and so VoIP enables phone calls to be made
over the internet. IP enables a single network to handle all
typoes of communications needs of an organization
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Webservices and services oriented architecture
(SOA)
•Webservices: business applications and software
services are provided through internet; using SW on a
pay-per-use basis
•ASP: SW + HW
•SOA:focus of the IS is really on customer usage. A
collection of services is integrated in one architecture
and as a consequence the software processes or agents
communicate with each other to deliver the business
services requirements (no need for human
interventions and different applications and databases
can communicate with each other in realtime, thanks to
the webservices created and integrated. ( booking flight
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+ hotel + car)
EDI and Internet EDI (web EDI)
Ecxchange of documents between servers
Internet is becoming the communication channel
VPN: virtual private network
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