UNIVERSITAT JAUME I

CHAPTER 5:
Electronic Commerce and Organizations
 CHAPTER 5. Electronic Commerce and Organizations

5.1. Introduction
5.2. Electronic commerce between companies (B2B)
5.3. Electronic commerce between companies and consumers
(B2C)
5.4. Electronic commerce intra-organitzacional (B2E)
5.5 Electronic commerce with the public administration (B2A)
5.6. Trade between consumers (C2C)
5.7. Conclusions
BASIC REFERENCES
Gómez Vieites, A. y Suárez Rey, C. (2006), Sistemas de Información. Herramientas prácticas para la
gestión empresarial. RA-MA Editorial.
Lapiedra, R., Devece, C. y Guiral., J. (2011), Introducción a la gestión de sistemas de información en la
empresa. Colección sapientia UJI.

Other references
Cobarsí-Morales, J. (2011), Sistemas de información en la empresa. Editorial UOC.
Laudon, K.C. y Laudon, J.P. (1996), Administración de los Sistemas de Información. Organización y
Tecnología. Prentice Hall Hispanoamericana, 3ª ed., México.
Andreu, R.; Ricart, J. y Valor, J. (1991), Estrategia y Sistemas de Información. McGraw-Hill, Madrid.
Cap.2.
 5.1. INTRODUCTION

• Initially, Internet is a communication

tool.
•Soon, Internet changes everything
•A new digital economy appears
 5.1. INTRODUCTION

• Currently, one out of four Spaniards

makes commercial transactions through
the Internet*
• Given this scenario, the Internet gives
new opportunities to companies
•The Internet affects the relationships
between competitors, customers and
suppliers.

* Tomás, 2012. El comercio electrónico 2012. Online Business School.

 5.1. INTRODUCTION

•Electronic commerce or e-commerce can

be defined as the purchase and sale of
products and services through electronic
systems, mainly the Internet*.

* Spanish Association for the Digital Economy.

 5.1. INTRODUCTION

• Through electronic commerce you can:

•Present products through electronic
catalogs (Ex .: IKEA).
•Make online purchase orders
•Pay electronically. Credit cards or
payment platforms (eg: paypal).
•Fill orders efficiently
•Provide customer service
•Provide maintenance and help
•Accelerate access to information
5.2. ELECTRONIC COMMERCE BETWEEN
COMPANIES
 5.2. ELECTRONIC COMMERCE BETWEEN
COMPANIES (B2B)

• The Internet affects businesses and the

relationships between them.
•Exchange of goods or services:
•Through internet.
•By Intranet, restricted (sectoral, union,
associates, clients)
 

 
 5.2. ELECTRONIC COMMERCE BETWEEN
COMPANIES (B2B)

• Networks:

 They boost the competitive position of

companies
 They develop key competences
 Effective coordination through IT

 
 5.2. ELECTRONIC COMMERCE BETWEEN
COMPANIES (B2B)

• Advantages of B2B:

 It increases the punctuality and the

level of detail of the information
Transaction costs are reduced
Improves risk management
Coordination costs are reduced.
 5.2. ELECTRONIC COMMERCE BETWEEN
COMPANIES (B2B)

• Through Inter-Organizational Information

Systems:

 Transactions and payments are

automated.
Inventories are managed efficiently.
A greater number of suppliers and
buyers are accessed.
Processes are cheaper.
 5.2. ELECTRONIC COMMERCE BETWEEN
COMPANIES (B2B)

• Through Inter-Organizational Information

Systems :

 Outsourcing is facilitated.
You get greater autonomy
Increase the degree of coordination
through the use of organizational
networks

 
5.3. ELECTRONIC COMMERCE BETWEEN
COMPANIES AND CONSUMERS
 5.3. ELECTRONIC COMMERCE BETWEEN
COMPANIES AND CONSUMERS (B2C)

• The traditional visit to the shop or trade

centre is replaced by a relationship with the
customer through the Internet.

Fuente: http://www.interbank.com.pe/tarjeta-virtual-compra
 5.3. ELECTRONIC COMMERCE BETWEEN
COMPANIES AND CONSUMERS (B2C)

• Advantages for companies:

 Increase the bargaining power.

Intermediaries are reduced.
Elimination of entry barriers.
Reduction of costs derived from the
automation of sales
More efficient online advertising
Lower costs of customer services. 
 
 5.3. ELECTRONIC COMMERCE BETWEEN
COMPANIES AND CONSUMERS (B2C)
• Advantages for companies :
 Decreases the distribution cost
eliminating intermediate stages.
It facilitates the expansion of the
range of products.
Access to specific market segments.
Direct interaction with the client
Enter niche markets globally.
 5.3. ELECTRONIC COMMERCE BETWEEN
COMPANIES AND CONSUMERS (B2C)
• Advantages for consumers :
 Global access to producers of goods
and services.
More information on prices, qualities,
benefits ...
Direct interaction with the producer.
Personalization of products and
services
You can share more information with
other consumers.
 5.3. ELECTRONIC COMMERCE BETWEEN
COMPANIES AND CONSUMERS (B2C)
• Advantages for consumers:
 It saves time in purchases.
It facilitates to carry out transactions
from anywhere.
Impersonal transactions are facilitated
when you want to maintain anonymity.

 
Fuente: https://www.bankimia.com/blog/asi-son-las-tarjetas-virtuales-para-hacer-compras-a-traves-de-
internet/2014/09/23/
 5.3. ELECTRONIC COMMERCE BETWEEN
COMPANIES AND CONSUMERS (B2C)
• Some restrictions:
 Security of transactions (economic
transaction, data privacy, product
quality, etc.)
Inconsistent or non-existent regulations
Digital gap (decreasing)
Excess of information (infoxication)
It can be an inappropriate channel for
some products (transport cost, direct
contact is required ...)
 5.4. ELECTRONIC INTRA-
ORGANIZATIONAL COMMERCE
 5.4. ELECTRONIC INTRA-ORGANIZATIONAL COMMERCE

• It is about electronic commerce within the

organization itself. Between departments,
subsidiaries, business units, etc.
•The advantages of communications and IT
are extended to the entire company.
•Sometimes it is closely linked to the
existence of Intranets.
5.4. ELECTRONIC INTRA-ORGANIZATIONAL COMMERCE

Fuente: http://redes-t2-p3-ing-sistema-aldea-macaro.blogspot.com.es/2010_05_01_archive.html
 5.4. ELECTRONIC INTRA-ORGANIZATIONAL COMMERCE

Business-to-Employee (B2E):
It is related to transactions that are focused on the
internal employees of the company.
It makes use of intra-organizational networks.
Automate corporate processes related to employees.
Examples:
 The management of employees insurance.
 The special offers to employees
 The management and control of employee benefits.
5.5. ELECTRONIC COMMERCE WITH THE
PUBLIC ADMINISTRATION
 5.5. ELECTRONIC COMMERCE WITH THE
PUBLIC ADMINISTRATION

ELECTRONIC ADMINISTRATION

It is the use of ICT in Public Administrations, combined

with organizational changes and new skills, in order to
improve public services and democratic processes and
strengthen support for public policies.
In some cases electronic administration is obligatory.
The electronic means are of obligatory use for the
Public Administrations, entities with legal representation
and the professional collegiates.
 5.5. ELECTRONIC COMMERCE WITH THE
PUBLIC ADMINISTRATION

ELECTRONIC SITE OF PUBLIC ADMINISTRATION

SERVICES
It is the electronic address, available to citizens through
telecommunications networks, whose ownership
corresponds to a Public Administration.

The establishment of an electronic site entails the

responsibility of the owner with respect to the integrity,
veracity and updating of the information and services
that can be accessed through it.
 5.5. ELECTRONIC COMMERCE WITH THE
PUBLIC ADMINISTRATION

IDENTIFICATION AND ELECTRONIC SIGNATURE

To access the services of the electronic site it is necessary first to
have been identified. Nevertheless, in order to make some
requests it will be necessary to sign.

Electronic identification is the process of using the identification

data of a person in electronic format that uniquely represent a
natural or legal person. In general, to carry out any action foreseen
in the administrative procedure, it will be sufficient for the
interested parties to previously prove their identity through any of
the means of identification provided in the Law.
The electronic signature of the interested parties is required, for
example, in the case of filling an application form to make a
request.
 5.5. ELECTRONIC COMMERCE WITH THE
PUBLIC ADMINISTRATION

SYSTEMS FOR IDENTIFICATION AND SIGNATURE

Electronic certificate. Signing tool issued by a certification service provider
that links signature verification data to a signer and confirms their identity
(ACCV, FNMT, DNIe ...).
Cl@ve. System oriented to unify and simplify the electronic access of citizens to
public services. Its main objective is that the citizen can identify himself in front
of the Administration through coded keys (user and password), without having
to remember different passwords to access to the different services. Cl@ve
complements the current access to systems through DNI-e and electronic
certificate, and offers the possibility of signing in the cloud with personal
certificates stored in remote servers. It is a common platform for identification,
authentication and electronic signature, an interoperable and horizontal system
that prevents Public Administrations from having to implement and manage their
own identification and signature systems, and citizens having to use different
identification methods to interact electronically with the Administration.
Source: http://clave.gob.es/
 5.5. ELECTRONIC COMMERCE WITH THE
PUBLIC ADMINISTRATION

Some examples of electronic services sites :

• Working life report :
https://sede.seg-social.gob.es/

• Notifications of the National Tax Agency:

https://www.agenciatributaria.gob.es/

• Check university degrees :

http://www.mecd.gob.es/servicios-al-ciudadano-
mecd/catalogo/general/educacion/997950/ficha/997950.html

• Certificate of not Criminal record :

https://sede.mjusticia.gob.es/cs/Satellite/Sede/es/tramites/certificado-antecedentes

• Data of the census of inhabitants of my city council:

https://seuelectronica.vilareal.es/portal/sede/se_contenedor1.jsp?
seccion=s_fdes_d4_v2.jsp&codbusqueda=630&language=ca&codResi=1&codMenuPN=4
01&codMenu=644&layout=se_contenedor1.jsp&layout=se_contenedor1.jsp
 5.6. ELECTRONIC COMMERCE BETWEEN
CONSUMERS (C2C)

• Electronic transactions between consumers through a

third party.
•Online auctions
•Websites act as brokers, matching sellers and buyers.
•Examples: e-Bay, Craiglist, Wallapop
 
 5.7. CONCLUSIONS

• IT has become very important in the

business world.
•However, IT by itself is rarely effective.
•IT require the simultaneous existence of a
human and organizational component to be
effective.
 5.7. CONCLUSIONS

• According to Max Hopper (American Airlines)

“Today it is more dangerous than ever to

ignore the power of information technology,
but it is still more dangerous to believe that
an information system by itself can provide a
sustainable competitive advantage to a
company”.