Electronic Commerce 1 Electronic Commerce EC Electronic Commerce
- Slides: 15
Electronic Commerce 1
Electronic Commerce (EC) § Electronic Commerce involves making business transactions via telecommunications networks, primarily the Internet. ü It is also sometimes referred to as e-business (or e-biz) § Evolution of EC: ü Electronic commerce applications began in the early 1970 s. ü Electronic data interchange (EDI) extended the types of participating companies. ü EC applications expanded rapidly with the commercialization of the Internet in the early 1990 s. 2
The Field of EC The field of EC can be divided into two segments: 1. Electronic markets, or e-marketplaces networks of interactions and relationships where information, products, services, and payments are exchanged. ü B 2 C, company-centric, and B 2 B transactions. 2. Interorganizational information systems (IOS) information flow among two or more organizations. ü Applies to B 2 B applications only 3
Benefits of EC Some benefits of EC to organizations are: § EC allows vendors to reach a large number of customers, anywhere around the globe, at a very low operating cost. § Companies can procure materials and services from other companies rapidly and less expensively. § Marketing distribution channels can be drastically cut or eliminated. § EC decreases the cost of based information by as much as 90%. § Customer services and relationships are facilitated by interactive, one-to-one communication, at a low cost. 4
Benefits of EC (cont. ) Some benefits of EC to consumers are: § EC often provides customers with less expensive products and services by allowing them to shop in many places. § EC provides customers with more choices. § EC enables customers to shop 24 hours a day, year round, from almost any location. § Customers can receive relevant and detailed information and other services in seconds. § EC enables consumers to get customized products and services. 5
Benefits of EC (cont. ) Some benefits of EC to society are: § EC is a major facilitator of the digital economy. § EC enables more individuals to work at home, resulting in less traffic and lower air pollution. § EC allows some goods to be sold at lower prices, so less affluent people can buy them, increasing their standard of living. § EC enables people in developing countries and rural areas to enjoy products and services previously unavailable. § EC facilitates a superior delivery of public services. 6
Models of EC Ø Business-to-Business (B 2 B) Ø Business-to-Consumers (B 2 C) Ø Consumer-to-Organizations (C 2 O) Ø Consumer-to-Consumer (C 2 C) Ø Intrabusiness (Intraorganizational) Commerce Ø Government-to-Citizens (G 2 C) Ø Collaborative commerce (ccommerce) Ø Mobile Commerce (m-commerce) 7
Other EC Activities § Intrabusiness and Business to Employees (B 2 E) ü Buying, selling and collaborative EC can be conducted within the company, usually using the Intranet and corporate portal. § E-government ü Government-to-citizens (G 2 C) • Electronic benefits transfer (EBT) - governments transfer Social Security, pensions, and other benefits directly to recipients’ bank accounts or smart cards. ü Government-to-business (G 2 B) ü Government-to-government (G 2 G) 8
Electronic Payment Systems § Security Requirements ü e. g. Authentification, Privacy, Integrity, Non-repudiation, Safety § Single-Key (Symmetric) Encryption § Public-Key Infrastructure ü Public and Private Keys ü Digital Signatures ü Electronic Certificates § Protocols ü Secure Socket Layer (SSL). ü Secure Electronic Transaction Protocol (SET) 9
Electronic Payment Systems (cont. ) § Electronic Credit Cards § Electronic Checks (e. Checks) § Purchasing Cards § Electronic Payment From Cellular Phones § Electronic funds transfer (EFT) § Electronic cash (e-cash) ü E Cash for Micropayments ü Stored-Value Cards ü Enhanced Smart Cards ü Person-to-Person (P 2 P) Payment. ü Electronic Wallets 10
Fraud on the Internet § Internet Stock Fraud § Fraud in Electronic Auctions § Other Financial Fraud ü e. g. Selling bogus investments § Federal Trade Commission ü provides a list of 12 scams most likely to arrive on the net • e. g. Bulk mail solicitors, Chain letters, Work-athome schemes § Buyer Protection is critical to the success of any commerce, and especially EC, where buyers do not see the sellers. § Seller Protection safeguards vendors against consumers who refuse to pay or who pay with bad checks. 11
EC-related Legal Issues § Domain Name ü Problems arise when several companies compete over a domain name. § Taxes and Other Fees ü Federal, state, and local authorities are scrambling to figure out how to get a piece of the revenue created electronically. § Copyright ü Protecting software and other intangible creations is difficult over the Web. 12
Ethical Issues § Privacy and Web tracking. ü Privacy issues are related to both customers and employees. § The human element. ü The implementation of EC may lead to personnel dissatisfaction and loss of salespeople’s income § Disintermediation. ü The use of EC may result in the elimination of a company’s employees as well as brokers and agents. 13
EC Failures § The major wave of EC failures started in 2000, as secondary funding that was needed by Internet-based EC began to dry up. § Here are some examples; ü Point. Cast, a pioneer in the personalized Web-casting, folded in 1998 due to an incorrect business model. ü An Internet mall, operated by Open Market, was closed in 1996 due to an insufficient number of buyers. ü E-toys, a virtual toy retailer that impacted the entire toy industry folded in 2001 due to inability to generate profit. ü Advertising company Advertexpress. com, in the U. K. , failed due to lack of second-round funding. 14
Limitations of EC Technical Limitations Non-Technical Limitations § Lack of universally accepted standards § Legal issues § Insufficient bandwidth § National and international government regulations § Still-evolving software development tools § Difficulty of measuring EC benefits § Difficulties in integrating the Internet and EC software § Customer resistance § Lack of a critical mass 15
- Location-based commerce (l-commerce)
- Explain edi in ecommerce
- Ltravelocity
- Pure electronic commerce
- Electronic commerce payments inc
- Payment systems for electronic commerce
- Proses bisnis dalam kerangka electronic commerce
- Web based tools for electronic commerce
- Legal environment of e commerce
- Remedi electronic commerce group
- Electronic contract law
- Online stored value system
- Define edi in e commerce
- Enterprise-class electronic commerce software:
- Electric commerce
- Tgmxm