e commerce
DESCRIPTION
DENEMETRANSCRIPT
e-Commerce
Presented by Kerem SARIOGLU
e-Commerce• Definition
• Types of e-Commerce
• History
• Electronic Data Interchange (EDI)
• The choice of the technology: the Internet
• Challenges & Difficulties
• e-Commerce strategies
• The change in business practice
• Future trends of the e-Commerce
Definition • Conducting of business communication
and transactions over networks and through computers.
• Electronic commerce is the buying and selling of goods and services, and the transfer of funds, through digital communications.
• EC also includes all inter-company and “intra-company functions” (such as marketing, finance, manufacturing, selling, and negotiation)
e-Commerce
e-Commerce
• Business to BusinessOver 30 years
• Business to Consumer
• Consumer to Consumer
Types of e-Commerce
History
• Exchange of data across network.• Interorganizational data exchange.• Electronic Data Interchange EDI• Increasing standardization of EDI• Electronic Markets (Nasdaq)• Public Protocols, public network infrastructures:
Value Added Networks VAN, Internet• Internet Commerce
e-Commerce
e-Commerce
Definition:
“A series of standards which provide computer to computer exchange of business documents over interorganizational or intraorganizational networks”
• Purchase orders• Shipping documents• Invoices• Invoice payments
EDI - Electronic Data Interchange
e-Commerce
• Motives:– To increase efficiency in order processing– To reduce costs (just in time)– Greater ability to customize products and services– Competitive advantage (In 1980’s)
Sabre airline booking system
• Early adoptions are very proprietary:– Private Networks are very limited and close systems– Put into place by dominant firms– Only very large firms can afford it.
EDI
e-Commerce
• ANSI ASC X12– American National Standards Committee
• Accredited Standards Committee (1979)
• UN/EDIFACT– International Standards settings under the
United Nations.
EDI Standard Formats
Example of EDI Systeme-Commerce
Local Store Main Office
Suppliers
1. A Sale transaction information is stored into a local store information system
2. The sale info is distributed to the Main Office
3. Main office’IS finds out theneed of inven-tory of each store
4. Main office IS sends a purchase order to the suppliers’ IS
5. Suppliers fill the order, sending directly to the store
e-Commerce
• Exchange business documents with one or two trading partners:
• To be connected to an electronic market via a VAN
Connection ?
Customized Network Solutions
Value AddedNetworks VAN
VAN:A privately owned network that provides a specific service, such as legal research or access to a specialised database,for a fee.
e-Commerce
e-Commerce
WHY?
The Choice of Technology:The Internet
Other Choices
• VAN’s (IBM Global Network)• Dial Up Connections (Teletel-France)
e-Commerce
• Global connectivity at very low cost
• Reduced transaction costs and delivery time
• Easy data collection
• Easy and fast customer support
• Allow bypassing intermediaries
The Choice of Technology:The Internet Why?
e-Commerce
• Management Challenges– Organizational Changes– The applicability of a business model on the
Internet for the company– Centralization or Decentralization
• Technical Challenges– Security– Speed
Difficulties & Challenges
e-Commerce
– SSL - Secure Socket Layer– DC - Digital Certificate– SET - Secure Electronic Transaction– PCT - Private Communication Technology– Firewall– Digital Signature– For B2B e-commerce VPI - Virtual Private
Internet
Security Solutions
e-Commerce
• A product to offer• A web site
– Professional look– Rich content
– Build it– Buy it– Borrow it– Buddy-up (Partner)
– User friendly– Speedy download– Integrated with off-line
business
The Needs to Conduct e-Commerce on the Internet
e-Commerce
• An internet service provider (ISP)• A Domain name• A Web host• Web tools – Software
– A professional e-mail program– Auto responders– A text editor , A macro program– Graphic Programs & Html editor– Shopping cart System & secure purchase with credit card– Search engine submission software– Web position analyzer software
Needs to conduct e-Commerce on the Internet (Cont’d)
e-Commerce
• The Magnet EffectThe new way of selling; Build an audience and then look for something to sell.
• Spiral MarketingTo keep the audience attraction:– Use passive media– Use the Web site– Use e-mail
• Domino EffectA way to predict when technology trends will impact your business
Surviving Marketing Strategies in e-Commerce
e-Commerce
• Faster Access
• High Security
• More Customization
• Extranet
The Future Trends of the e-Commerce
e-Commerce
QUESTIONS?