by: jude johnson, nikkilynn lara, mike kazarian, jake kemble, rachel mann
TRANSCRIPT
The buying and selling of goods and services over public and private computer networks
This definition is restricted to purchasing and selling transactions
Merchant Companies by goods for resale Non-Merchant Companies arrange for the
purchase and resale of goods without taking ownership
What is E-Commerce?
Originally, electronic commerce meant the facilitation of commercial transactions electronically, primarily by using Electronic Data Interchanges (EDI) and Electronic Funds Transfers (EFT)
Allowed the transfer of purchase orders and invoices electronically
In the 80’s, ATMs and credit cards were added to the e-commerce
The 90’s included enterprise resource planning systems (ERP), data mining, and data warehousing.
Early Development
In 1994, as the Internet gains popularity, E-Commerce becomes more prevalent
It took about four years to develop the security protocols and DSL to allow rapid access and a persistent connection to the Internet
Early Development Cont.
Business to ConsumerCustomers enter the web-site and manage their
orders Business to Business
Raw materials and other goods are sold and distributed between companies
Business to GovernmentSuppliers, distributors, and retailers sell goods to
the Government
Merchant Companies
Auction housesMatches buyers and sellers by using an e-
commerce version of a standard auction Clearing houses
Goods and services provided at a specific price and arranged for delivery, but the clearing house never takes the title to the good
Electronic exchanges
Non-Merchant Companies
*B2B e-commerce occurs when a business sells products and services to other businesses
*MRO items: maintenance, repair, operations
Business to Business
*E-marketplace is an interactive market space where multiple buyers and suppliers engage in e-commerce activities*Sharing critical information
*Development of products and parts
*Collaborating new ideas
*Undergoing project applications
B2B E-Marketplaces
Horizontal E-Marketplace:
connects buyers and sellers across many industries, primarily for MRO materials commerce
Vertical E-Marketplace: connects buyers and sellers in a given industryExamples: oil, raw materials, and retail items
2 E-Marketplaces
*long-term relationship
*more business actions: negotiations on
-prices
-specifications
-delivery time
Marketing Mix
*marketplace for businesses to interact with each other in order to undergo e-commerce for mutual benefits
*enables the real-time flow of information between businesses regardless of standards, language barriers, or geographic location
*world’s largest global platform
*2005: processes more than 4 BILLION business documents
GSX: Global Services Exchange
Plays a vital part of e-commerce HTML-Hypertext Markup Language Hyperlinks Three tier architecture
Web Technology
New technologies are developing due to success of e-commerce
They develop due to increasing competition.
Examples are:Amazon.com-One click, which keeps customer’s
credit card infoiPix’s 360 degree images-greater dimension to
pictures.Ajax-pulls relevant data forward to allow for
seemless shopping
New Techonolgies
Effective tool for competitive strategies Use of RFM
Find out who is shopping:Recent, Frequent, and how much they spend
Customers can leave comments
Information Systems
Information Technology
3 Types Businesses Use: Electronic Data Interchange (EDI) Electronic Fund Transfer (EFT) Secure Socket Layer (SSL)
“EDI” is the transfer of data between different Businesses using networks.
The most common type of networks used are:VANSEthernet
EDI replaces the process of faxing and mailing papers, making the Business more efficient while reducing costs.
Electronic Data Interchange (EDI)
Electronic Fund Transfer is when:A cardholder makes a transaction using a
payment card. (Ex. ATM/Credit card)An Electronic payment is made from a business.
(Ex. Paycheck) An Electronic check is used for payment by a
business.
Electronic Fund Transfer (EFT)
Many types of transactions can be performed by businesses such as:Sale - EnquiryRefund - E top-upWithdrawal - AdministrativeDepositCash backInter-account transfer
Electronic Funds Transfer
Single Message Clearing: Is when a financial network authorizes and
clears the transaction in the same message.
Dual Message Clearing Is when a “hold” for the total amount purchased
is placed on the funds authorized for a specific time, until the transaction is cleared.
EFT Authorization Types:
A protocol that uses a cryptographic system.
This system uses two keys to encrypt data.The key is used for the business to decipher the
incoming data. Businesses use this system in order to give
and obtain confidential information such as credit card numbers.
Secure Socket Layer (SSL)
E-commerce improves Market Efficiency by:Disintermediation Improved flow of price informationKnowledge of price elasticity
B2B markets are built around open standards and communication infrastructures of the internet.
Provide open-networks Aggregate product and price information
and match supply and demand to facilitate transactions between buyers and sellers
Advantages
Security weaknesses pose a constant threat User Interface components ( toolbars, keys,
etc.) may be overwhelming Information sharing between buyers and
sellers are limited Vendor trustworthiness is compromised by
e-commerce through its anonymity, impersonality and automation
Disadvantages