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
The Dimensions of E-Commerce
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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
The Dimensions of E-Commerce
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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.