E-Business, E-Commerce, and M-Commerce

E-Business refers to any online-run business. It is also considered as a technique used by

business organizations to:

 Improve business strategy

 Be more productive
 Profitable through the use of Information Technology

Internet (International Network) is a large network used by business organizations to

establish e-business and e-commerce websites.
 Computers connect to each other through the internet.
 It provides business organizations opportunities to build relationships with their
customers and suppliers to help improve services and customer retention.
 Customers and suppliers are encouraged to use e-business services as a new and
convenient channel to do business transactions online.

World Wide Web (WWW) provides unrestricted access to and publishing of information
over the internet using web browsers.

Computer Networks -refers to the connection between computers to share information

and resources.

Personal Area Network (PAN) -refers to a computer network that is used to allow
communication between devices close to each other. The allowable distance for these
devices to connect ranges from 20 to 30 feet or approximately six to nine meters away
from each other.

Local Area Network (LAN) -this one is the most commonly used computer networks
that cover a small area such as a house, room, or building.

Campus Area Network (CAN) -this type of computer network is specifically used for
academic institutions where LANs are interconnected in a limited geographical area.
Metropolitan Area Network (MAN) -this type of computer network is within the area
of a town or city where it connects two or more LANs or CANs.

Wide Area Network (WAN) -this type of computer network is used within regional or
national areas.

International Network (Internet) -this is considered as the largest computer network

that allows users to access without restrictions.

Network Used for E-Business

 Internet creates connections between computers around the world.

 Extranet creates connections beyond (or outside) an organization.
 Intranet creates connections inside an organization.

E-Business Opportunities - with the use of e-business, small and large business
organizations are provided with great opportunities to compete in the global market.
- According to a research study conducted by Evans and
Wurster entitled Strategies and the New Economics of Information (1997), there are
three basic characteristics of information when combined with the internet
technologies, namely, REACH, RICHNESS, AND AFFILIATION.

E-Business Opportunities

REACH -refers to the potential number of local and international customers of a

business organization that can interact with each other through the use of the internet.
This includes catalogues, websites, and so on.

RICHNESS -refers to the information that business organizations can share to their
consumers. This may include detailed information about a certain product which
includes the product name, description, price, and availability.

AFFILIATION -refers to the effectiveness of the linkages between business organizations.

For example, Google, Yahoo!, and eBay have tremendously and successfully formed
partnerships that provide them diverse information, thus making them the leading
online businesses today.

Risks and Barriers to E-Business Adoption

E-business services open a lot of opportunities to business organizations. However,

these opportunities need to be balanced against the risks that may arise when
conducting e-business. These risks may include strategic and practical risks.

 An example of a strategic risk is when a business makes a wrong decision to

invest in e-business.

 Many companies gain a competitive advantage, but others invest too much and
fail which may possibly be caused by inappropriate approaches and execution.

 On the other hand, there are also practical risks associated with e-business
which, if not addressed, could hurt a business.

For example, poor customer service manifested through slow or no connection,

unsecured systems, issues on privacy and data protection, problems with online orders,
and neglected customer emails.

E-commerce (Electronic commerce)-refers to commercial transactions executed online

using the internet. E-commerce is displayed through technologies such as:
 Automated data collection systems
 Electronic funds transfer
 Electronic data interchange
 Internet marketing
 Inventory systems
 Online transaction processing
 Mobile commerce
 Supply chain management
E-commerce uses the World Wide Web (WWW) for its transactions.
Buy-Side and Sell-Side E-Commerce - The difference between buy-side e-commerce and
sell-side e-commerce is that the former focuses on supplier, and the latter focuses on
the consumers or customers.

Sell-side e-commerce has four types of online presence and each type has its own
objective and market.
 Transactional and E-commerce websites
 Portal or Media websites
 Brand Building websites
 Service Oriented websites.

ADVANTAGES OF E-COMMERCE
 Efficient transactions done anytime and anywhere.
 Quick electronic funds transfer.
 Convenient buying or selling from home or place of business.
 Reduced cost and time of order processing.
 Simpler, faster, and cheaper supply chain management.
 Quick reaching of target customers for small-and medium-sized enterprises
(SMEs).
 User-friendly ordering systems.

DISADVANTAGES OF E-COMMERCE
 Lack of privacy of e-transactions.
 Unsecured use of the Internet (presence of viruses, hackers, and so on.)
 Depersonalized shopping.

THREATS - Servers containing important files and customer information being stolen.
- Impostors duplicating e-commerce sites to steal customers’ money.
- Hackers attempting to steal customer information or mess up the site.
- Authorized users with hidden motives attacking e-commerce systems and/or
selling information to competitors.

1. UBIQUITY -this means that the marketable transaction or activity is accessible at any
time, anywhere in the world.
2. GLOBAL REACH AND SECURITY -also known as worldwide access, is the maximum
number of possible consumers a business can reach.
3. UNIVERSAL STANDARDS -refers to a website that can be operated on a standard
platform which follows identified methods and systems.
4. INTERACTIVITY -refers to the relationship between a consumer and an e-commerce
website.
5. INFORMATION DENSITY -refers to the amount of products that can fit on a computer
screen.

BUSINESS MODELS OF E-COMMERCE

BUSINESS-TO-BUSINESS (B2B) -is a marketing type of business wherein businesses for
the productions of goods, business operations, or reselling of products
Examples of B2B websites in the Philippines:
 Philippine Companies – Filipino Business Directory
 Pinoy Listing - This website provides a free listing of a Filipino businesses.
 Yalwa - Founded in 2006, it is a global website that provides a descriptive
directory for businesses of varying industries.

BUSINESS-TO-CONSUMER (B2C) - is the type of commercial transaction in which

businesses sell products or services directly to consumers.
In the Philippines, the following are the top e-commerce websites:
 Lazada Philippines
 Shopee Philippines
 Zalora Philippines
 Metrodeal
 Globe Online Shop
 eBay Philippines
CONSUMER-TO-CONSUMER (C2C) -is used similarly as the classified advertising section
of a local newspaper or an auction page.
-is a convenient way for consumers to buy and sell
goods without physically going to a store.
BUSINESS-TO-GOVERNMENT (B2G) -is a business model that refers to a business that
sells products, services, or information to governments and/or government agencies.

GOVERNMENT-TO-BUSINESS (G2B) -refers to government agencies that provide

services or information to a business organization.
Examples of G2B model websites are those that support AUCTIONS, as well as BENDER
AND APPLICATION SUBMISSIONS.

GOVERNMENT-TO-CITIZEN (G2C) -is being used by the government to approach and

communicate with citizens in general.
This model implements provides services such as:
 Birth registration
 Marriage and death certificates from the Philippine Statistics Authority (PSA)
 Car registration from the Land Transportation Office (LTO)

E-COMMERCE SECURITY SYSTEMS

 AUDITABILITY -data should be documented in such a way that can be audited for
the real requirements.
 AUTHENTICITY –there should be procedures to authenticate a user before giving
him/her access to the required information.
 AVAILABILITY –it is a requirement that information must be available anytime
and anywhere, and it must be bound by a time limit.
 CONFIDENTIALITY –information should be kept and not be accessible by an
unauthorized user. It should not be interrupted during the transmission.
 ENCRYPTION –information must be secured through the encryption and
decryption of an authorized user.
 INTEGRITY –information must not be modified during its transmission over a
network. Honesty and strong moral principles must be applied.
 NON-REPUTATION –there should be assurance that someone cannot rebuff on
something.

Mobile Commerce, also known as m-commerce, refers to the use of wireless handheld
devices, such as mobile phones, to conduct business-related transactions online.
M-commerce transactions conquer online businesses transactions, which include the
purchasing and selling of a wide range of products and services, online banking, bills
payment, and information delivery.

BENEFITS OF MOBILE TECHNOLOGIES:

1. UBIQUITY –they allow users access anywhere.
2. REACHABILITY –users are easy to reach.
3. CONVENIENCE –there is no need for users to have fixed-line connection.
 4. SECURITY –they ensure that user information is free from the risk of loss or theft
through authentication.
5. PRIVACY –the degree of privacy is higher compared to a desktop PC.
6. AVAILABILITY –users can freely access them at any time of the day.

M-COMMERCE FORCES
 Fourth (4th) and Third (3rd) Generation Technologies
 Wireless Application Protocol (WAP)
 iMode Access Platforms
 Personalized Services

DIFFERENCES BETWEEN E-BUSINESS AND E-COMMERCE

E-commerce and e-business are two evolving methods of conducting business that are
gaining importance with the passage of time.

IBM defined e-business as “the transformation of key business processes through the
use of internet technologies.”
On the other hand, e-commerce is best described as the buying and selling of goods
around the web, which is commonly known as online transactions.

The main difference between the two are the end-user and integration.

DIFFERENCES BETWEEN E-COMMERCE AND M-COMMERCE

Technology has helped make people’s lives better. With the use of the
internet, everything is available at one’s fingertips. Purchasing products
no longer requires physical appearances in stores owing to technologies
such as e-commerce and m-commerce.
M-commerce refers to the operation of business transactions through the
internet using mobile devices, such as smartphones, while E-commerce
makes use of computer desktops or laptops.

GUIDELINESS AND LAWS GOVERNING E-COMMERCE

The following are challenges that may interfere with starting an online business:
1. TAXES
-Every state and/or country has different rules and laws regarding
taxes. Therefore, conducting research and understanding your target
market are necessary to avoid problems about taxation.
2. TRADEMARKS, PATENTS, AND COPYRIGHTS
-there are misconceptions about the definitions of the three above-
mentioned words, especially with each one of them having different legal
implications. The United States Patent and Trademark Office provides
the following definitions for the three words:
Trademark –it is a distinguishing word, phrase, symbol, and/or
design that identifies the uniqueness of a product or service of one part
from the others.
Patent –it is a property right granted by the US Patent and Trademark
Office to an invention for its public disclosure for a limited period of time.
Copyright –it protects works of authorship, such as writings, music, and
works of art, that have been tangibly expressed.
3. SHIPPING RESTRICTIONS
-shipping companies have different restrictions on products or
goods. Doing research will help identify which shipping companies could
best serve a business.
The following are products typically restricted for shipping:
a. Air bags
b. Animals
c. Perishable materials, such as fresh fruits and vegetables and
alcohol
d. Hazardous materials, such as aerosols, ammunition, cigarettes,
dry ice, explosives, nail polish, perfumes, and poisons
4. INVENTORY
-there are certain rules and prohibitions that align with lease, deed,
or zoning codes when it comes to stock inventory for businesses.

5. BUSINESS RESTRICTIONS
-different types of insurance exist for small businesses such as
general, product, professional, and commercial liability insurances and
hone-based insurance. The insurance depends on the location and
nature of a business.
6. LICENSES AND PERMITS
-a license is needed to sell products or services. Licenses are
dependent on the location of a business and are distributed by a local
licensing department.
7. PAYMENT CARD INDUSTRY (PCI) COMPLIANCE
-PCI compliance serves as protection for online businesses,
especially software-as-a-service (SaaS) e-commerce platforms, from
problems such as data theft.

LAWS AND LEGAL REQUIREMENTS REGARDING THE SECURITY OF CUSTOMER

INFORMATION
REAL-WORLD EXAMPLES OF E-COMMERCE AND M-COMMERCE
E-COMMERCE WEBSITES:
1. Amazon
-it is an American e-commerce website that gives users an
opportunity to buy products online worldwide.
2. eBay
-it is an American e-commerce website that provides various
services to consumers such as auctions, online payments, and online
shopping.
3. Alibaba
-it is a well-known Chinese company that is now part of the global
market of e-commerce. It specializes in retail, the internet, and
technology.

M-COMMERCE WEBSITES:
1. Mobile vouchers
-Purchasing of a gift voucher using a mobile app.
2. eToro Mobile App
-it is a platform that can be used to invest in stocks or trading.