Overview of E-commerce E-Commerce

8/13/2019 Overview of E-commerce E-Commerce

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Presented y


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Member of Strikers Group

Serial no. ID no. Name Of Member

1 M110203062 MD. AREFIN DEWAN

2 M110203049 NOAB SIKDER

3 M110203039 MAHMUDA AKTER

4 M110203006 LUTFUN NAHAR LUBNA

5 M110203057 SAIRA BEGUM


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Overview ofElectronic

Commerce


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Objective of the Chapter

Definition of electronic commerce

(EC) and its various categories

Framework, content and

classification of EC

Understanding the elements ofthe digital world

Drivers of EC related to business

pressure and organizational

responses

Some EC business modelsBenefits of EC to organizations,

consumers, and society

Limitations of EC


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Electronic Commerce

electronic commerce (EC)

The process of buying, selling, or exchanging products, services,

or information via computer networks.

EC defined from these perspectives

Communications

Business process

Service

Online

Collaborations

Community


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Electronic Commerce

e-business

E-business is a broader definition of EC that includes not just the

buying and selling of goods and services, but also

Servicing customers

Collaborating with business partners Conducting electronic transactions within an organization


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Pure Versus Partial ECEC takes several forms depending on the degree of digitization (thetransformation from physical to digital)

(1) the product (service) sold

(2) the process

(3) the delivery agent

The Dimensions of E-Commerce


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EC organizations1. Bric k-and-mo rtar organizat ions

Traditional commerce: all dimensions are physical

Old-economy organizations (corporations)

Perform all business off-line

Sell physical products by means of physical agents

2. Pure EC: all dim ensio ns are dig ital

Pure online (virtual) organizations

New-economy organization

Sell products or services only online

3. Click-and -mortal Partial EC

a mix of digital and physical dimensions

Click-and-mortar organizations

Conduct EC activities

Do their primary business in the physical world



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Where EC is conductedelectr on ic market (e-marketplace)

Buyers and sellers meet to exchange

Goods Services

Money InformationSuch as cellbazar.com, Bikroy.com etc

in terorganizat ional inform ation s yst ems (IOSs)

Between two or more organizations

Routine transaction processing Information flow

in traorganizat ional inform ation systems

Communication systems that enable e-commerce activities to goon within individual organizations



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The EC Framework

intranet

An internal corporate or government network that uses Internet

tools, such as Web browsers, and Internet protocols

extranet

A network that uses the Internet to link multiple intranets


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THE ELECTRONIC COMMERCE FIELD:

FRAMEWORK

An EC framework:The EC field is a diverse one, involving many activities, organizational

units and technologies are supported by infrastructure and the

following five areas:

People: sellers, buyers, information system and technologyspecialists, and other employees

Publ ic pol icy: Legal and other policy and regulatory issues, such as

privacy protection and taxation, technical standards

Market ing and advert isement: Important in business to commerce

(B2C) online transactionsSuppor t serv ices: content creation, payment, order delivery

Bus iness par tnersh ips: Joint ventures, exchanges and various

business partnership occur throughout the supply chain


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EC Classification

Classification by nature of the transactions or interactions

bus iness-to-bu siness (B2B)

E-commerce model in which all of the participants are businesses or

other organizations

Example: grainger.com

bus iness-to-con sum er (B2C)

E-commerce model in which businesses sell to individual shoppers

Example: Wallmart.com

business-to-business-to-consumer (B2B2C)

E-commerce model in which a business provides some product or

service to a client business that maintains its own customers

consumer-to-business (C2B)

E-commerce model in which individuals use the Internet to sell

products or services to organizations or individuals seek sellers to bid

on products or services they need


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EC Classification

intrabusiness ECE-commerce category that includes all internal organizational activities

that involve the exchange of goods, services, or information among

various units and individuals in an organization

business-to-employees (B2E)

E-commerce model in which an organization delivers services,information, or products to its individual employees

con sum er-to-consumer (C2C)

E-commerce model in which consumers sell directly to other consumers

e-learning

The online delivery of information for purposes of training oreducation

e-government

E-commerce model in which a government entity buys or provides goods,services, or information to businesses or individual citizens


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The Digital world

Digital economyAn economy that is based on digital technologies, including digital

communication networks, computers, software, and other related

information technologies; also called the Internet economy, the new

economy, or the Web

Digital enterprise

A new business model that uses IT in a fundamental way to accomplish

one or more of three basic objectives:

1. reach and engage customers more effectively,

2. boost employee productivity, and

3. improve operating efficiency.


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The Digital world

corporate portalA major gateway through which employees, business partners, and

the public can enter a corporate Web site

The digital society

The way people uses technology

social networks

Web sites that connect people with specified interests by providing

free services such as photo presentation, e-mail, blogging, etc.

Business networks

Business-oriented networks are social networks whose primary

objective is to facilitate business


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Business Environment Drives EC


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Business Environment Drives EC


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EC Business Models

business modelA method of doing business by which a company can generate

revenue to sustain itself

Six elements of a business model include descriptions of:

1. Customers to be served and the companys relationships with thesecustomers including customers value proposition

2. Allproducts and services the business will offer

3. The business process required to make and deliver the products andservices

4. The resources required and the identification of which ones are

available, which will be developed in house, and which will need tobe acquired

5. The organizations supply chain, including suppliers and otherbusiness partners

6. The revenues expected (revenue model), anticipated costs, sourcesof financing, and estimated profitability (financial viability)


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EC Business Models

Revenue ModelsDescription of how the company or an EC project will earn revenue

The major revenue models are:

Sales

Transaction fees

Subscription fees

Advertising fees

Affiliate fees

Other revenuesources

Value proposition

The benefits a company can derive from using EC


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Benefits of EC

Global Reach

Cost Reduction

Supply Chain Improvements Extended Hours

Customization

New Business Models

Vendors Specialization

Rapid Time-to-Market

Lower Communication Costs

Efficient Procurement

Improved Customer Relations Up-to-Date Company Material

No City Business Permits and

Fees

Other Benefits

Benefits to Organizations


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Benefits of EC

Ubiquity

More Products and Services

Customized Products and

Services

Cheaper Products and

Services

Instant Delivery

Information Availability

Participation in Auctions

Electronic Communities

No Sales Tax

Benefits to Consumers

Benefits to Society

TelecommutingHigher Standard of LivingHomeland SecurityHope for the PoorAvailability of Public Services


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Limitations of EC

Technological

Lack of universal standard for quality, security and reliability

The telecommunication bandwidth is insufficient

Software developing tools are still evolving

It is difficult to integrate internet and EC software with some existing

application and database

Special web services are needed in addition to the networks

serversInternet accessibility is still expensive and inconvenient

Order fulfill of large-scale B2C requires special automated

warehouses


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Limitations of EC

Non technological

Security and privacy concern deter customers

Lack of trust

People do not trust paperless transactionMany legal and public policy issues are not clear

National and international govt. regulation

It is difficult to measure some benefit of EC

Some customers like to feel products

Lack of profitability


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Conclusion

Overall, the growth of the field will continue to be

strong into the foreseeable future

Despite the failures of individual companies and

initiatives, the total volume of EC is growing by 15to 25% every year


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Thank you all for being with

us.

Overview of E-commerce E-Commerce

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