9 electronic commerce and e business topic

8/2/2019 9 Electronic Commerce and E Business Topic

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Slide 1

Electronic Commerce and E-Business


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Slide 2

Electronic Commerce in Perspective

Electronic commerce (e-commerce): sharingbusiness information, maintaining businessrelationships, and conducting businesstransactions through the use oftelecommunications networks


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Slide 3


E-commerce currently accounts for about 5 percent of

the total U.S. economy.Internet-related revenue growth is about 20 times the

growth rate of the overall U.S economy.Compared with U.S. business overall, a company

selling goods and services over the Internet is:


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Slide 4


A new aspect of e-commerce is mobile commerce

(m-commerce).

Historical and projected commerce growth

from 2000 to 2006


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Slide 5


E-Commerce Models Business-to-business (B2B)

B2B is an interorganizational information system in which a company handlestransactions within its own value chain or with other businesses and organizations.business-to-employee (B2E)


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Slide 6


Business-to-consumer (B2C)Retailing transactions between a company and individual customers are

B2C transactions.


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Slide 7


Consumer-to-consumer (C2C)Individuals selling and buying directly with eachother via a Web site are using C2C.


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Slide 8

Intranets: E-Commerce to Support Internal

Business Processes

Characteristics of a B2E Intranet

Intranet


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Business Processes

The physical elements of an intranet are:A network (can be a LAN or WAN )

At least one computer with server software installed (including TCP/IP)Additional computers with client software installed (including TCP/IP

and Web browsers)


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Slide 10


Business Processes

The communication software for an intranet includes middleware

and TCP/IP.

Middleware

TCP/IP


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Slide 11


Business Processes

An intranet also includes firewall software for security.User identification and authentication software, data encryption

software, and virus protection software


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Slide 12


Business Processes

How Organizations Use B2E Intranets

Information access for employeesCollaboration and teamwork in the United States

Internal business transactions


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Slide 13

Extranets to Connect Business Alliances

Extranet: a private interorganizational information system

Plays an important role in the global business strategy of many

companies


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Characteristics of a B2B Extranet

Organizations can set up an extranet in one of three ways:Secure private network


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Public network


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Virtual private network (VPN)Internet VPN


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How Business Alliances Use B2B Extranets

Benefits of using an extranetIncreases the speed of business-to-business transactions

Reduces errors in intercompany transactionsReduces costs of telecommunicationsIncreases the volume of business with partnersAllows exchange of business-to-business documentsStreamlines checking on inventory and order status from suppliers

Enables collaborating with business partners on joint projects


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Slide 18

B2C: The Customer Connection

Customer-Centered Web Design

Characteristics of effective B2C Internet sites:Speed of transactions

Large, up-to-date product selection

Ease of use

Secure transactions

After-sale features

Three interactive features are often included on public Web

sites: email, discussion groups, and chat rooms.


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Slide 19


Apples iTunes music store

allows consumers to buy

downloadable songs, which

can be burned to CDs, played

on a Mac or PC, and/or moved

to an iPod portable music

player.


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Slide 20


Customer Relationship Management

Customer relationship management, orCRM, canbe the difference between success and failure.


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Slide 21

Some Technical Requirements of E-Commerce

Web server requirements:


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Slide 22

Some Technical Requirements of E-Commerce

E-commerce software requirements:

Catalog display

On-demand customer service

Transaction processing


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Slide 23

Ethical Issues of E-Commerce

An organizations code of ethics should include:A clear, explicit statement of the organizations privacy policyA policy statement addressing situations in which a persons

permission must be secured before his/her ID, photo, ideas, or

communications are used or transmitted

A clear policy stating how the company will inform customers of theintended uses of personal information gathered during an online

transaction and how the company will secure permission from

customers for those usesA statement that addresses issues of ownership with respect to

network postings and communicationsA policy of how the company monitors, or tracks, user behavior on

Web sites


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Slide 24

Lesson Summary

E commerce is sharing business information, maintainingbusiness relationships, and conducting business transactionsthrough the use of telecommunications networks, especially the

Internet. E-commerce is also about reorganizing internal businessprocesses, fostering external business alliances, and creating newconsumer-oriented products.

There are three main e-commerce configurations using the

Internet: intranets, extranets, and public Web sites.


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Slide 25

Lesson Summary (continued)

An intranet is an internal information system based on Internettechnology, including TCP/IP protocols and Web tools, thatsupports value chain activities between individuals anddepartments within an organization.

An intranet comprises physical technology and informationcontent.

An extranet is a private interorganizational information systemconnecting the intranets of two or more companies in a business

alliance.


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Slide 26

Lesson Summary (continued)

An extranet extends the cross-functional activities betweentrusted business partners and facilitates their workingrelationships.

E-commerce also means conducting business transactions with

customers. Although e-commerce has many technical requirements, Webserver and e-commerce software requirements are particularlyimportant.

A company conducting business on the Internet should develop

an information code of ethics that ensures that users of the Website will be aware of the companys e-commerce policies.

9 electronic commerce and e business topic

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