e-commerce chapter 1

7/29/2019 e-commerce chapter 1

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IntroductionE-Commerce Lecture 1


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Course Description

Application and Implementation of E-Commerce (EC)

EC Business Models

EC Applications

IT Components that support EC

EC Support Services

Management of EC

Ethical & Social Issues of EC


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Course Introduction

Literature

Turban, E., e.a. (2008). Electronic Commerce: A

Managerial Perspective 2008. Pearson InternationalEdition

Extra references will be provided


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Ground Rules

Max. 15 mins late

Late submissions of assignments will not be accepted

Penalty for plagiarism: automatic 100% discount off theproject grade

Be original, creative, reasonable (use your common sense)

and independent.

Effort counts! ALWAYS!^^No stressing! Have fun! ^^


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Other Course Matters

Grading Composition

Assignments: 10%

Project: 25%Midterm exam: 30%

Final exam: 35%

Assignment submission + course materials --> Pulse

Enrollment key: EC1112


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Foreword

Internet has become a major communication channel

Support E-Commerce/E-Business

E-business is greatly changing

Market structures & industries

Business structures, products & services

Consumer behavior

Society


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Definitions & Concepts

E-Commerce

The process of buying, selling or exchanging products,

services and information via computer networks

Can be defined from different perspectives

Business processes

Service

Learning

Collaborative

Community

Bizprocess:ECisdoingbusinesselectronicallybycomple8ngbusinessprocessesoverelectronicnetworks,therebysubs8tu8nginforma8onforphysicalbizprocesses

Service:ECisatoolfororganiza8onstocutservicecostswhileimprovingthequalityofcust.Serviceandincreasedeliveryspeed

Learning:enablerofonlinetrainingandeduca8on

Collabora8ve:ECisaframeworkforinter-andintraorganiza8onalcollabora8on

Community:ECprovidesagatheringplaceforcommunitymemberstolearn,transactandcollaborate.Mostpopularform:socialnetworks


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Definitions & Concepts

E-business

A broader definition of e-commerce

Not just buying and selling of goods and services, but alsoservicing customers, collaborating with business partners and

performing business transaction within an organization, over

computer networks or any other electronic means

In other words:

Business done over the Internet

Also includes non-buying activities such as collaboration &intrabusiness activities

MckayandMarshall(2004):EbizzistheuseofInternettechandotherinforma8ontechtosupportcommerceandimprovebizperformances


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Who Undertakes EC?

Just about everybody

Public sector

Private sectorDistinction is often made between the extent of EC as a

total of business

Pure PlayBrick and Mortar

Click and Brick or Click and Mortar

FormsofECdependontheproduct/servicesold,process(e.gordering,payment,fulfillment)anddeliverymethod


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EC as A Total of Business

virtual(pure-play)organizationsOrganizations that conduct their business activities solely

online (e.g. iTunes Store, detik.com)

brick-and-mortarorganizationsOld-economy organizations (corporations) that perform

most of their business off-line, selling physical products by

means of physical agents

click-and-mortar(click-and-brick)organizationsOrganizations that conduct some e-commerce activities, but

do their primary business in the physical world (e.g.

amazon.com, gramedia.com, bhinneka.com)


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Dimensions of EC


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Internet vs Non-Internet EC

EC can also be conducted on private networks

VAN (value-added networks)

LAN (local area networks)Example: buying food from a vending machine where youpay with a smart card

Non-internet EC

Sales reps equipped with mobile handwriting-recognition

Keywords: electronic market, Interorganizational information

systems (IOS), intraorganizational information systems

Electronicmarket(e-marketplace):onlinemarketplacewherebuyersandsellersmeettoexchangegoods,services,moneyorinfo

IOS:communica8onsystemsthatallowrou8netransac8onprocessingandinfoflowbetween2ormoreorgs

Intraorganiza8onalinfosys:comm.SystemsthatenableECac8vi8estogoonw/inindiv.Orgs.


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EC Framework

E-commerce applications are supported by infrastructure

and by five support areas:

PeoplePublic Policy

Marketing and advertising

Support services

Business partnerships


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EC Framework


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Classifications of EC

(Major Types of Transaction)Between who?

Standard business arrangements

B2B, B2C, B2B2C, C2B, CollaborativeBetween customers (C2C)

Mobile Commerce (Wireless)

Intra Business (B2E)

Government (G2B, G2C)

Other

P2P

Exchange to Exchange

E-Learning, Nonbusiness

B2B:tootherorganiza8ons/business:Dell,Marks&Spencersover5%ECvolumetodayisB2B

B2C:toindividualshoppers:Dell,Amazon(alsoknownase-tailing)

B2B2C:abizprovidessomeproductorservicetoaclientbiz:ISP,travelagencies,Godiva

M-commerce:e.g.mobilebanking;ifloca8onspecificataspecific8me!loca8on-basedcommerceorl-commerceIntrabusiness:allinternalorganiza8onalac8vi8esthatinvolvetheexchangeofgoods,servicesorinfoamongvariousunits/individualsinthatorg.


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Interdisciplinary Nature of EC

Major EC Disciplines

Computer Science

Marketing

Consumer Behavior

Finance

Economics

Human Resources

Management

Engineering

Accounting

Management

Information Systems

Business Law

Robotics

Public Administration


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The Interdisciplinary Nature of EC

The Google Revolution (2001)

Failures: lack of marketing and financial skills, enough inventory

and proper distribution setup

Future of EC

Web 2.0

The global spread of innovative web sites

Keywords: focus on simplicity, joy of use, ajax, usability,social, blogs, audio/video, mobility RSS, DataDriven, Webstandards, CSS Design, participation, user centered,collaboration

Web2.0:2ndgenera8onofInternet-basedservicesthatletpeoplecollaborateandshareinfoonlineinperceivednewways:socialnetworking,wikis,commtoolsetc.


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EC Successes & Failures

Success

Google.com

Amazon.com

Dell.com

IBM.com

Barnes and Nobles

Failures

Lippo Shop

Lippo Star

eToys


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Assignment

Topic: Whatmakesagoodwebsite?Write the name of two e-commerce websites which you think

are the best EC websites youve ever used

For each website:

Provide at least three reasons why you consider it to be

the best

According to your personal opinion & idea, how can this

website be improved to become even better?

Individual assignment

Deadline: Friday, 12 August 2011 via Pulse

Documents

e-commerce chapter 1