E-commerce

E-commerce classification

>>  Business-to-consumer EC

î  companies sell directly to consumers over the Internet

>>  Business-to-business EC

î  two (or more) businesses make transactions electronically

>>Intrabusiness EC

î  transactions take place within an organization

Electronic Business

>> Selling and buying

>>  Customer services:

î  Customer profiles and advertising

î  After-sale services

>>  Collaboration of business partners

>>  Support main business operation

Evolution of EC

>>  Began in the early 1970s

î  Electronic Funds Transfer (EFT)

î  Electronic Data Interchange (EDI)

>>  At the beginning of 90s

î   Internet and WWW

>>  Scope:

          home banking, shopping in electronic stores and malls, buying stocks, finding a job, conducting an auction, collaborating electronically with business partners around the globe, and providing customer service

Factors affecting EC

>>  People

>>  Public policy:

î  Taxes, lows, regulations, technical standards,

>>  Marketing

>>  Supply chain:

î  Structure and operation

E-commerce Infrastructure

>>  Common business service infrastructure

>>  Network infrastructure:

î  Common telecommunications carriers

î  Internet providers

î  Value added carriers

>>  Information interchange tools: EDI, EFT, WWW

>>  Interfacing infrastructure

Benefits of EC

For organizations:

>>  Expands market place

>>  Supports operations with business partners

>>  Decreases the time when products travel between organizations

>>  Minimize distribution channels

>>  Reduces paper-work

For customers:

>>  Decreases prices

>>  Gives more choices on the market

>>  Shopping around the clock

>>  Supports mass customization