E-Commerce

BEB2213
Lesson Plan
• E-Commerce definition
• Advantages & Disadvantages of E-Commerce
• E-Commerce – threats & features
• E-Commerce business model
• E-Governance
• Types of communication network in E-
Commerce
 Electronic Commerce:
• E-commerce is conducting of business transactions,
sharing of business information, and maintaining
business relationships using computers connected to
telecommunication network.
• Technologies such as mobile commerce, electronic
funds transfer, supply chain management, Internet
marketing, online transaction processing, electronic
data interchange (EDI), inventory management
systems, and automated data collection systems.
• Data security and data privacy as well as compliance
with laws & SOP, need to be guaranteed.
E-Commerce Applications..
• Online shopping websites for retail sales direct to
consumers.
• Business-to-business buying and selling.
• Business-to-business electronic data interchange.
• Gathering data or conducting online marketing
survey.
• Marketing by email, sms, social media, etc.
• Pre-tail (launching) for new products & services.
• Etc.
 Advantages of E-Commerce
• Buying/selling variety of goods and services from
anywhere and at anytime
• Consumers can choose the best offerings for specific
goods or services
• World-wide – business beyond borders
• Convenience, cheaper and faster – ie. fund transaction
• Business can looking for world-wide suppliers/vendors
for the same kind of products.
 Disadvantages of E-Commerce

• Prone to cyber attacks especially on money transaction,

viruses, hackers
• Privacy of e-transactions is not guaranteed
• Electronic data interchange (EDI) is expensive for small
businesses.
• E-commerce de-personalises shopping
 Threats of E-Commerce
• Hackers attempt to steal customer information or
disrupting the website
• Imposters mirror the e-commerce site to steal the
money i.e Faked website of Internet banking
• Authorised administrators/users of an e-commerce
website accidentally downloading hidden active content
that attack the e-commerce system.
• A dissatisfied employee disrupting the e-commerce
system.
 Features of E-Commerce
• Ubiquity (something that occurs everywhere)
– Internet technology extends the marketplace beyond
traditional boundaries
– Global Reach - “from market-place to market-space”
• Universal Standards
– Information presented over Internet is universally accepted
standards.
– Search engine ie. LCD TV
• Richness
– Information richness – Interactive multimedia elements
• Interactivity
– Online chat/support, online testimonies, customer satisfaction
index
• Personalization/Customization
– Richness in consumer preferences
 E-Commerce Business Model
4 main types of model based on transaction party

B2C (Business-to-Consumer)
– In a B2C , companies sell their online goods to consumers (end users of
their products or services). Usually, web shops have an open access for any
visitor, no need to login in order to make any product related inquiry.

Business Organization

Orders
Customer Website
 E-Commerce Business Model
B2B (Business-to-Business)
– Companies sell their online goods to other companies without being
engaged in sales to consumers. In most B2B environments, the web shop
requires a log-in. B2B web shop usually contains customer-specific pricing,
customer-specific assortments and customer-specific discounts.

Wholesaler

Business
Order Processing

Sells

Website
Customer
 E-Commerce Business Model
C2B (Consumer-to-Business)
– Consumers usually post their products or services online on which
companies can post their bids. A consumer reviews the bids and selects the
company that meets his price expectations.

Website
Places money for
particular services
Processes
orders

Receives products

Business Organization Customer

Receives money
 E-Commerce Business Model
C2C (Consumer-to-Consumer )
– Consumers sell their online goods to other consumers. A well-
known example is eBay.com, mudah.my .

Website

Want to buy
Want to sell

Receives products

Consumer 1 Consumer 2
Receives money
E-Governance
• E-governance is the use of ICT for delivering
government services - Exchange of information
and communication, integration of various
systems and services between government-to-
business (G2B/ B2G), government-to-customer
(G2C) and government-to-government (G2G).
• Government services will be made available to
citizens in a convenient, efficient and transparent
manner.
 E-Governance Model
G2B (Government-to-Business)/B2G
– Variant of B2B
– Government uses IT platforms such as websites to approach
business organizations.
– Such websites support auctions, tenders and application
submission functionalities.

Government Website Business

E-Governance Model
Continued..
– Business organizations are using the IT platform to trade
products, services and exchange information with government
agencies
– Most contracts are granted in response to a request for
proposal (RFP) from an agency
– Be as modest as a small business providing IT support services
to a town council.
– Or, it can be as big as Boeing - builds helicopters, missile
defence systems, B-52 Bombers, and Air Force One, for the U.S.
Defence Department.
 E-Governance Model
G2C (Government-to-Citizen)
– Government uses G2C model website to approach citizen in
general.
– Main objectives of G2C website are to reduce average time for
fulfilling people requests for various government services.
– Example: Online services like registration for birth, marriage or
death certificates, driving licenses, payment of summons etc

Government Website
Citizen
E-Governance Model
G2G (Government-to-Government)
– Electronic sharing of data and/or information
systems between government agencies,
departments or organization
– The goal of G2G is to support e-
government initiatives by improving
communication, data access and data sharing

Government Website Government

Three-tier Technical Model
 Different Types of Communication
Networking For E-Commerce
• Internet
– A global network of computers that allows people
to send email, view websites, download files, chat
and conferences, messaging and forums and much
more.
– The Internet continues to evolve with it becoming
available on mobile phones and on televisions.
 Advantages of Internet
E-mail
Services
Essential communication tool business
and social. Many services are now provided on the
internet such as online banking,
The advantage to email is that it is free government services, job seeking and
compared to telephone, fax and postal applications, and hotel reservations.
services.

Information
There is a huge amount of information
available on the internet for just every Buy or sell products.
subject known to human
The internet is a very effective way to
Range of info from government law and buy and sell products all over the world.
services, trade fairs and conferences,
market information, new ideas and
technical support.
Internet Supports E-Commerce ..
• Communities of all types have sprung up on the internet. Its a great way
to meet up with people of similar interest and discuss common issues.
• A Leading-Edge Image Presenting your company or organization to
customers that you are financially strong, technologically savvy, and ready
for the 21st century.
• Improved Customer Service The Internet never sleeps. Whenever
customer needs information about any company, products or services,
they can access the company‘s Web Page.
• Market Expansion The Internet is a global system. There are millions of
people with access to the Internet, and the number is growing. By simply
posting a Web Page you are also addressing International markets.
• Low Cost (Marketing, Selling and Communication)
– Develop full colours of electronic product brochures, advertisement without having to
incur the costs of printers, wasted paper, long lead times between revisions, and more.
– Without the cost of direct selling potential customers can get detailed information about
your products or services at any time. And they can easily order your products over the
Internet, or request additional information be sent to them via a request form on your
Web page.
Different Types of Communication
Networking For E-Commerce
• Intranet
– Communication network within organization.
– An intranet is a computer network that uses
Internet Protocol technology to share information,
operational systems, or computing services within
an organization.
– The objective is to manage individual's desktop
with minimal cost, time and effort  more
productive, cost efficient, timely, and competitive.
Features of Intranet
• Collaboration tools to facilitate working in groups and
teleconferencing
• To provide accessible corporate directories, sales and
customer relationship management tools, project
management etc., to advance productivity.
• Being used as corporate culture-change platforms eg.
Employees forum – new idea
• Part of an intranet can be made accessible to
customers and others outside the business -Extranet.
Businesses can send private messages through the
public through secure connection.
Thanks