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BMIT 5103 Topic 6 E-Business and E-Commerce
BMIT 5103 Topic 6 E-Business and E-Commerce
Topic 6:
BMIT5103
Learning Outcomes
By the end of this topic, you should be able to:
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6.
Topic Overview
This topic highlights e-commerce and its benefits to organisations,
consumers and society. Nevertheless, it also has technological and nontechnological limitations. The current technological limitations are expected
to lessen with time. The major mechanism of e-commerce is the use of
electronic markets, which frequently include online catalogues. Another
mechanism of e-commerce is auctions. The Internet provides an
infrastructure for executing auctions at lower cost and with many more
involved sellers and buyers, including both individual consumers and
corporations. Two major types of auctions exist: forward auctions and
reverse auctions. Forward auctions are used in the traditional process of
selling to the highest bidder. Reverse auctions are used for buying, using a
tendering system to buy at the lowest bid.
B2C e-tailing can be pure (such as Amazon.com) or part of a click-andmortar organisation (such as Walmart). Direct marketing is done via solo
storefronts or in malls. It can be done via electronic catalogues or by using
electronic auctions. The leading online B2C service industries are banking,
securities trading, job markets, travel and real estate. The major issues faced
by e-tailers are channel conflict, conflict within click-and-mortar
organisations, order fulfilment, determining viability and risk, and identifying
appropriate revenue models.
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STUDY GUIDE
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The major B2B applications are selling from catalogues and by forward
auctions (the sell-side marketplace), buying in reverse auctions and in group
and desktop purchasing (the buy-side marketplace) and trading in electronic
exchanges. E-government commerce can take place between government
and citizens, between businesses and governments, or among government
units. It makes government operations more effective and efficient.
New electronic payment systems are needed to complete transactions on
the Internet. Electronic payments can be made by e-checks, e-credit cards,
purchasing cards, e-cash, stored-value money cards, smart cards, personto-person payments via services such as Paypal, electronic bill presentment
and payment, and e-wallets. Order fulfilments are especially difficult and
expensive in B2C because of the need to ship relatively small orders to
many customers. Several activities take place, some of which can be done
simultaneously; others must be done in sequence. Activities that take
place in order fulfilments include: (1) making sure the customer will pay;
(2) checking for in-stock availability; (3) arranging shipments; (4) insurance;
(5) replenishment; (6) in-house production; (7) use of contractors;
(8) contacts with customers; and (9) returns (if applicable). Ethical and legal
issues are persistent in e-commerce and must constantly be addressed.
Assigned Readings
Turban, E., & Volonino, L. (2012).
Information technology for
management, International student
version. Asia: John Wiley.
6.1
6.2
6.3
6.4
6.5
Chapter 6, pp 160167.
Chapter 6, pp 167171.
Chapter 6, pp 171173.
Chapter 6, pp 173176.
Chapter 6, pp 176182.
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6.6
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Chapter 6, pp 183184.
Extra Readings
Amazon.coms First Website, 1995
digitalenterprise.org/images/amazo
n.gif
e-Business forum
ebusinessforum.com
Content Summary
6.1
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6.2
x
x
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E-sourcing.
E-Procurement.
e-Government
x
x
x
6.6
6.5
6.4
6.3
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Web advertising.
Electronic payments.
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Study Questions
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