E commerce Sri hermawati What is Ecommerce Distributing

E commerce Sri hermawati

What is E-commerce › Distributing, buying, selling and marketing products and services over electronic systems › E-business for commercial transactions › Involves supply chain management, e-marketing, online marketing, EDI › Uses electronic technology such as: - Internet - Extranet/Intranet - Protocols 2

E-commerce as the Networked Economy l l l Create value largely through gathering, synthesizing and distribution of information Formulate strategies that make management of the enterprise and technology convergent Compete in real time rather than in “cycle time” Operate in a world characterized by low barriers to entry, near-zero variable costs of operation and shifting competition Organize resources around the demand side rather than supply side Manage better relationships with customers through technology 3

E-commerce Today › The Internet is the perfect vehicle for e-commerce because of its open standards and structure. › No other methodology or technology has proven to work as well as the Internet for distributing information and bringing people together. › It’s cheap and relatively easy to use it as a medium for connecting customers, suppliers, and employees of a firm. › No other mechanism has been created that allow organizations to reach out to anyone and everyone like the Internet. 4

E-commerce Today › The Internet allows big businesses to act like small ones and small businesses to act big. › The challenge to businesses is to make transactions not just cheaper and easier for themselves but also easier and more convenient for customers and suppliers. › It’s more than just posting a nice looking Web site with lots of cute animations and expecting customers and suppliers to figure it out › Web-based solutions must be easier to use and more convenient than traditional methods if a company hopes to attract and keep customers. 5

Four Categories of E-Commerce Business originating from. . . Business Consumers Business B 2 B Consumers B 2 C C 2 C And selling to. . . 6

Distinct Categories of E-Commerce l Business to Business (B 2 B) refers to the full spectrum of e-commerce that can occur between two organizations. This includes purchasing and procurement, supplier management, inventory management, channel management, sales activities, payment management &service and support. Examples: Free. Markets, Dell and General Electric l Business to Consumer (B 2 C) refers to exchanges between business and consumers, activities tracked are consumer search, frequently asked questions and service and support. Examples: Amazon, Yahoo and Charles Schwab & Co 7

Distinct Categories of E-Commerce (cont’d) l Peer to Peer (C 2 C) exchanges involve transactions between and among consumers. These can include third party involvement, as in the case of the auction website Ebay. Examples: Owners. com, Craiglist, Monster l Consumer to Business (C 2 B) involves when consumers band together to present themselves as a buyer in group. Example: www. planetfeedback. com 8

Key Drivers of E-commerce › Technological – degree of advancement of telecommunications infrastructure › Political – role of government, creating legislation, funding and support › Social – IT skills, education and training of users › Economic – general wealth and commercial health of the nation 9

Key Drivers of E-business › Organizational culture- attitudes to R&D, willingness to innovate and use technology › Commercial benefits- impact on financial performance of the firm › Skilled/committed workforce- willing and able to implement and use new technology › Requirements of customers/suppliers- in terms of product and service › Competition- stay ahead of or keep up with competitors 1 0

Conducting E-Commerce Seven C’s of Website Design ›Context ›Content ›Community ›Communication ›Connection ›Commerce l. Customization 1 1

The 7 C’s of Website design Context Content Site’s layout and design Text, pictures, sound and video that web pages contain Commerce Community Site’s capabilities to enable commercial transactions The ways sites enable user-touser communication Connection Customization Degree site is linked to other sites Site’s ability to self-tailor to different users or to allow users to personalize the site Communication The ways sites enable site-touser communication or two-way communication 1 2

Seven Unique Features of E-commerce Technology and Their Business Significance INTRODUCTION TO E-COMMERCE - G 53 DDB 13

Benefits of E-commerce › To consumers: 24/7 access, more choices, price comparisons, improved delivery, competition › To organizations: International marketplace (global reach), cost savings, customization, reduced inventories, digitization of products/services › To society: flexible working practices, connects people, delivery of public services 1 4

Benefits to Consumers Convenience Buying is easy and private Provides greater product access and selection Provides access to comparative information Buying is interactive and immediate 1 5

Benefits to Organizations Powerful tool for building customer relationships Can reduce costs Can increase speed and efficiency Offers greater flexibility in offers and programs Is a truly global medium 1 6

Benefits to Society More individuals can work from home Benefits less affluent people Third world countries gain access Facilitates delivery of public services 1 7

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