Chapter Five:

Electronic Commerce and Enterprise System

Andualem T.

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 Introduction to Electronic Commerce
• E-Commerce (electronic commerce): is the
activity of electronically buying or selling of products on
online services or over the Internet.
• It is the use of the Internet and the Web to transact
business such as to purchase, sell, transport, or trade
data, goods, or services

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 What is E-commerce?
 It is a any form of business transaction or information exchange
executed using information and communication technologies
(ICT’s)
 E-commerce draws on technologies such as 
• mobile commerce
•  electronic funds transfer(EFTs)
•  supply chain management
•  Internet marketing
•  online transaction processing
•  electronic data interchange (EDI)
•  inventory management systems, and
• automated data collection systems. 
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Electronic Commerce Categories

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Electronic Commerce Categories

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 Electronic Commerce Categories Example

 You are a computer manufacturing company who

performs the following activities on the Internet:
 Sells computers to individuals (B2C)
 Purchases parts (e.g. hard drives, power supplies etc.) from a supplier
(B2B)
 Hires staff, manage customer accounts, advertise, etc. (Business
processes)
 Sells computers to the Government to be used in schools (B2G)
 On eBay.com individuals buy and sell this brand of computers (C2C)

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Electronic and Mobile Commerce Applications

• Mobile commerce or m-commerce: refers to the

use of wireless digital devices to enable transactions on
the Web.
• It means engaging users in a buy or sell process via a
mobile device. For instance, when someone buys an
Android app or an iPhone app, that person is engaged
in m-commerce. There are a number of content assets
that can be bought and sold via a mobile device such as
games, applications, ringtones, subscriptions etc.

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Electronic and Mobile Commerce Applications

• M-commerce: involves the use of wireless

networks to connect cell phones, handheld devices such
as blackberries and personal computer to the web.
• Once connected, mobile consumers can conduct
transactions, including stock trades, in-store price
comparisons, banking, travel reservations, and more.

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Applications of M-Commerce

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Applications of M-Commerce

• Mobile Ticketing and Booking: mobile ticketing is the process

where the customers order, pay for, obtain and validate ticket
from any location and at any time using mobile phone
• Making bookings and receiving your tickets on the mobile.
• It is used for airline ticketing, cinema ticketing, railway and bus
ticketing and concert ticketing etc.
• Mobile Money Transfer: refers to payment service which is
performed by using mobile phone. We can transfer money from
one person to other using mobile phone.
• Mobile Banking: Using a mobile website or application to
perform all your banking functions and other financial
transaction.

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Applications of M-Commerce

• Location based service: the location of the mobile phone user is

important piece of information used during m-commerce
transaction. Eg. Tacking and monitoring of people
• E-bills: This includes mobile vouchers, mobile coupons to be
redeemed and even loyalty points or cards system.
• Auctions: Online sales having now been developed to be made
available via mobile phones as well.
• Mobile purchase
• Mobile marketing and advertising
• Stock Market Reports and even stock market trading over
mobile applications.

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Enterprise System

 Enterprise systems also known as an enterprise resource

planning (ERP) system, is a cross-functional information system
that provides organization-wide coordination and integration of
the key business processes and helps in planning the resources of
an organization.
 They allow for collaboration and communication across the
organization through collection of data that is accessible and
usable by multiple departments.
 Enterprise systems (ES) are mainly large scale application
programming packages that support business processes, data
streams, reporting, and data analytics in complex associations.

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 Benefits of Enterprise Resource Planning (ERP) Systems

• Communicate the critical firm-wide information on the business

performance to managers all across the organization quickly, so
as to enable them to make better decisions and at the right time.
• Reduce the cost involved in transaction processing, hardware,
software, and IT support staff in a significant manner.
• Improve the quality and efficiency of customer service,
production, and distribution by integrating the company’s
internal business processes in sales, finance, production, custom
logistics, etc.
• Help to create a more uniform organizational culture where
everyone

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 Thank You

?
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