INTRODUCTION TO E-COMMERCE

CS3_ E-commerce Presentation

Learning Objectives:
To explore how e-business and e-commerce fit together. To identify the impact of e-commerce. To recognise the benefits and limitations of ecommerce. To identify the different classification of Ecommerce. To identify the main barriers to the growth and development of e-commerce.
CS3_ E-commerce Presentation

What is Electronic Commerce?

Electronic commerce is sharing business information, maintaining business relationships and conducting business transactions by means of telecommunications networks.

Electronic Commerce (EC) is where business transactions take place via telecommunications networks, especially the Internet.
Electronic commerce describes the buying and selling of products, services, and information via computer networks including the Internet. Electronic commerce is about doing business electronically. E-commerce, ecommerce, or electronic commerce is defined as the conduct of a financial transaction by electronic means.
CS3_ E-commerce Presentation

What is E-business?
E-business is the transformation of key business processes through the use of Internet technologies. E-Business is not only buying and selling but also servicing customers and collaborating with business partners. An e-business is a company that can adapt to constant and continual change. E-business is everything to do with back-end systems in an organisation.
CS3_ E-commerce Presentation

Major differences in E-commerce and E-business

CS3_ E-commerce Presentation

HISTORY OF E-COMMERCE
E-Commerce started over 40 years ago, and has evolved over time. Before the widespread uptake and commercial use of THE INTERNET, the Electronic Data Interchange (EDI), was used as the platform for E-commerce. EDI uses private communications networks (VANs) to transmit standardized transaction data between business partners and suppliers The EDI system was very expensive, thus uptake was limited largely to cash-rich multinational corporations.
CS3_ E-commerce Presentation

CS3_ E-commerce Presentation

Key Drivers of E-commerce

Technological factors
Political factors Social factors Economic factors

CS3_ E-commerce Presentation

Key drivers of E-business

Organisational culture Commercial benefits Skilled and committed workforce Requirements of customers and suppliers Competition

CS3_ E-commerce Presentation

Key Drivers of Business

CS3_ E-commerce Presentation

The Impact of Electronic Commerce

Marketing Computer sciences Finance and accounting Economics Production and operations management Production and operations management (manufacturing) Management information systems Human resource management Business law and ethics
CS3_ E-commerce Presentation

Benefits and Limitations of E-commerce to Society

Benefits
Enables more flexible working practices Connects people.

Limitations
Breakdown in human interaction.

Social division.
Reliance on telecommunications infrastructure, power and IT skills. Wasted resources. Difficulty in policing the Internet
CS3_ E-commerce Presentation

Facilitates delivery of public services.

Benefits and Limitations of E-commerce to Consumers

Benefits 24/7 access. Limitations
Computing equipment. A basic technical knowledge. Cost of access to the Internet.

More choices.
Price comparisons.

Cost of computing equipment.

Improved delivery processes.

An environment of competition

Lack of security and privacy of personal data.

Physical contact and relationships are replaced by electronic processes. A lack of trust because they are interacting with faceless computers.
CS3_ E-commerce Presentation

Benefits and Limitations of E-commerce to Organisations

BENEFITS
Operational cost savings.
Mass customisation. Enables reduced inventories. Lower telecommunications cost. Digitisation of products and processes.

LIMITATIONS
Lack of sufficient system security, reliability, standards and communication protocols. Rapidly evolving and changing technology.

Under pressure to innovate

Facing increased competition

Problems with compatibility of older and newer technology.

CS3_ E-commerce Presentation No more 24-hour-time constraints

Classification of E-commerce
The classification is done from different perspective namely:
The Macro-Environment Perspective The Identification of Transacting Partners The Degree of Digitisation

These frameworks help identify the elements of ecommerce and how businesses can better understand e-commerce and its practical applicability.
CS3_ E-commerce Presentation

Classifications of E-Commerce: Macro-environment Perspective

The macro-environment perspective identifies the interaction of : Technology People Organisations Policies and Technical standards working together to enable e-commerce.
CS3_ E-commerce Presentation

Classifications of E-Commerce: The Identification of transacting partners

This involves the Identification of the partners directly involved in the transaction. The Image below gives a summary of the classification under this Framework.

CS3_ E-commerce Presentation

Classifications of E-Commerce: The Degree of Digitisation

The degree of digitisation categorises E-Commerce based on the Product or Service Sold, the process of the transaction and Delivery agents. Based on these categories, Three main dimensions can be deduced namely: Traditional Ecommerce Pure E- Commerce Partial Ecommerce
CS3_ E-commerce Presentation

Barriers to E-commerce
Internet infrastructure.

Technology infrastructure.
Security.

Commercial infrastructure.
Organisational structure and culture. Lack of qualified personnel. Lack of proven business models. Interoperability of systems
CS3_ E-commerce Presentation

THANK YOU!!!
CS3_ E-commerce Presentation