E-commerce
Characteristic Features
• Internet technology available everywhere; at
work, home or elsewhere via mobile device.
• Provides a universal and easy-to-use set of
technologies and technology standards that
can be adopted by all organizations
• Direct communication between trading
partners:
Disintermediation
removes
intermediate layers, streamlines process
Characteristic Features
• Round-the-clock service: Web sites available
to
consumers
24
hours
a
day
• Richness of text, audio and video data.
• Reduced transaction costs:
searching for buyers, sellers, etc.
Costs
of
Benefits of E-commerce
• Easy-to-use, universal Web interface
• Low start-up costs
• Richer, more responsive information
environment
• Reduced information distribution costs
Benefits of E-commerce
•
Information asymmetry: One party in a
transaction has more information than
the other
•
Increases richness: Depth and detail of
information
•
Increases reach: Number of people
contacted
E-commerce Business Models
• Virtual storefront: Sells goods, services
online.
• Information broker: Provide info on products,
pricing, etc.
• Content provider: Creates revenue through
providing client for a fee, and advertising.
– provide information content like news, reports,
music, photos, videos etc.
E-commerce Business Models
•
Transaction Broker: process transactions
for customers. e.g. e-trade.com.
– Charge
commissions
that
are
considerably less than traditional brokers.
•
Portal: provide powerful web search tools
and integrated package of content and
services like news, email instant messaging
etc.
Auction: provides digital platform for buyers
and sellers to agree on a price and transact.
e.g. eBay.com; ebid.com; epier.com
•
E-commerce Business Models
• Online service provider: Provides service,
support for hardware, software products.
• Syndicator: aggregates content produced
by others from several sources sold to other
companies.
– licensed games or videos collected from owners
an distributed.
Categories of E-Commerce
• Business-to-customer (B2C): Retailing of
products and services directly to individual
customers
• Business-to-business (B2B): Sales of goods
and services among businesses
• Consumer-to-consumer (C2C): Individuals
use Web for private sales or exchange
Business-to-Consumer (B2C)
E-Commerce
• Customer-centered
retailing: Closer, yet
more
cost-effective
relationship
with
customers.
e.g.
Amazon
• Portals: Provide web search tools as well as
integrated information on products, services,
like news, email, music downloads etc. at one
place. E.g. Yahoo!
Business-to-Consumer
E- Commerce
• Disintermediation:
The
removal
of
organizations or business process layers
responsible for certain intermediary steps in a
value chain.
• Reintermediation: The shifting of the
intermediary role in a value chain to a new
source
Business-to-Business (B2B)
E- Commerce
• Digital marketplace where suppliers
commercial buyers can do transactions.
and
•Automation of purchase, sales transactions from
business to business.
• Coordination between companies for efficient
supply chain management and collaborative
activities
• Net marketplaces: Online marketplaces, pointto-point connections, integrated information
Net Market Place
Net Market Place
• Exchanges: Third-party net marketplace
• Primarily transaction oriented
• Connects
purchasing
buyers
and
suppliers
for
spot
Business-to-Business (B2B)
Business models
• E-distributor
- Supply products and services directly to
individual business organizations.
• B2B service providers
– sell business services to other firms. like
accounting, financial services, HRM etc.
–Application service provider sells access to
internet based software applications to other
companies.
E-Commerce Information
Flows
Categories of E-Commerce
• Consumer-to-Government (C2G)
Include tax payment, issuance of certificates
and other documents.
• Business to Government (B2G)
applications include taxation, materials
procurement, custom control of exports or
imports.
Electronic Fund Transfer (EFT)
• Paperless payment.
• use IT to capture and process money and credit
transfers between banks and businesses and
their customers.
• System of transferring funds on request using
wide area networks.
Electronic Fund Transfer (EFT)
• Covers a wide range of transaction services like:
- Banking services
– Funds transfer between the accounts of same bank
or at different banks.
– Stockbrokerage services
• Provides advantages like
-Reduced need for customers to carry cash or cheque
- Immediate transfer of funds from customer’s bank
account to service providers’ bank account.
Electronic Data Interchange
(EDI)
•
Direct computer-to-computer exchange of
structured business documents between
the computer systems of trading partners.
Electronic Data Interchange
EDI
•Paperless mechanism that involves electronic
exchange of business documents.
•Covers business data like purchase order,
invoices, delivery instructions etc.
• Addresses the problem of traditional system viz.
–Exhaustive paper work.
– repetitive entry of data
– delay
E-Commerce Payment
Systems
• Digital credit card Payment – credit card
payment process.
• Digital wallet-software stores credit card and
other information
• Stored value payment system – enables the
customers to make instant payments based
on value stored in digital account. e.g. smart
cards
E-Commerce Payment
Systems
• Peer to peer payment system- sends money
via web to persons or vendors. e.g.Paypal
• Digital accounting balance payment system– allows users to make micro payments
– pay for the entire purchase at the end of month.
– e.g. qpass
M-Commerce Defined
• Buying and selling of
goods and services
through wireless
handheld devices.
M-commerce and m-business is any ecommerce or e-business activities performed in
a wireless environment.
M-Commerce
• Wireless devices used to conduct both
business-to-consumer and business-to-business
e-commerce transactions over the Internet
• Extend personalization by delivering new VAS
directly to customers at any time and place.
•With the launch of 3G technologies, bandwidth
constraints will be overcome.
M-Commerce and E-Commerce
M-commerce Business Applications
Entertainment
•
•
•
•
Communications
Music
Games
Graphics
Video
•
•
•
•
•
M- commerce
Transactions
•
•
•
•
•
•
•
Banking
Broking
Shopping
Auctions
Betting
Booking &
reservations
Mobile wallet
•
Short Messaging
Multimedia Messaging
Unified Messaging
e-mail
Chatrooms
Video - conferencing
Information
•
•
•
•
•
•
•
News
City guides
Directory Services
Maps
Traffic and weather
Corporate information
Market data
Astrology; News, Finance; Travel, Cricket match scores; Games; Ring tones,
Songs, TV guide etc
Summary
• E-commerce encompasses the entire
online process of developing, marketing,
selling, delivering, servicing, and paying for
products and services.
• The basic categories of e-commerce
include B2C, B2B and C2C.
Summary
• Many e-business enterprises are moving
toward offering full service B2C and B2B models
supported by integrated customer-focused
processes and internet worked supply chains.
• Evaluate a variety of e-commerce integration
and other alternatives; benefits, trade-offs when
choosing a clicks and bricks strategy and ecommerce channel.
Summary
• For selling products and services at ecommerce websites
–attractive Web pages, multimedia catalogs
– interactive order processing,
– secure electronic payment systems,
– online customer support