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Electronic Commerce

Electronic Commerce E-Commerce Definitions

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Electronic Commerce

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  1. Electronic Commerce

  2. E-Commerce Definitions E-Commerce is a modern business methodology that addresses the needs of organizations, merchants, and consumers to cut costs while improving the quality of goods and services and increasing the speed of service delivery. The term also applies to the use of computer networks to search and retrieve information in support of human and corporate decision making.

  3. E-Commerce Definitions E-Commerce is associated with the buying and selling of information, products, and services over the internet.

  4. Factors to the Growth of E-Commerce • Affordable PC • WWW (HTTP, html, xml) • User friendly applications (browsers and multimedia content) • Greater public access. • Business re-engineering.

  5. Benefits of E-Commerce • Reduced costs • Better and new products • Greater customer satisfaction • Better decision making • Faster customer response • Improved service quality • Lower product cycle time

  6. E-Commerce vs conventional shopping • Automate transactions • Automatically organize, route, process, track transaction. • Improve transaction management. • New markets. • Whole world as a potential market. • Improve customer service and loyalty.

  7. E-Commerce Statistics • CREC • View2

  8. Categories of E-Commerce 1. Customer to Customer (C2C) 2. Business to Customer (B2C). 3. Business to Business (B2B).

  9. C2C Examples • eBay • uBid

  10. B2C Examples • Shopping • Online banking • Entertainment • Online customer service (See B2B)

  11. Dell Direct Sell Model • Dell Computer was founded in 1984 • Faced operating loss in 1993 • Direct sell in 1997 • Effects: • Order-shipping process 36 hrs vs. regular 75-100 days • Reduced suppliers from 204 in 1992 to 47 • Direct monitor shipping from suppliers • Cash flow cycle reduced to 24 hrs comparing to Gateway 16.5 days and Compaq 35 days.

  12. Newly-Started E-business Knowledge-based stock information service • TradeTrek.com • started in 1998 with a seed capital $100,000 • now expanded to Taiwan and Hong Kong • available cash $6 Million now • first dividend 33% of the initial investment B2B Company example • eAnyway and eMobile • Headquartered in San Diago • Produce OEM cellular phones • Started in June 2000 with the initial investment $300 million Let’s watch http://www.forion.com/

  13. E-Commerce in Education Education-on-Demand • COllaborative Distance Education (CODE) • Network-based Collaborative Training for Europe and China (NCEC) • Global Education & Training (GET), a Finnish company for education-on-demand

  14. More E-commerce Examples Online stock broker - E*trade, Ameritrade, Datek, SureTrade, etc. On-demand distance education - Collaborative On-Demand Distance Education (CODE) Web broadcasting (using streaming technology) - Real Networks’ Realplayer Internet telephony

  15. Issues in E-commerce • Security • Legal issues • non-reputability • copyright • tax • cyber crimes • Products - how products are produced and delivered • Pricing - granularity of price (micro payment), pricing policy • Firms - appearance of a company, virtual organizations • Consumers • Marketing Information - information completeness, symmetricity • Network service quality

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