chapter1 introduction to e-commerce-student

8/10/2019 Chapter1 Introduction to E-commerce-student

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CONTENT

1. Theory: 30 periods, includes 5 chapters

- Chapter 1: Introduction to e-commerce

- Chapter 2: Models of e-commerce

- Chapter 3: E-marketing

- Chapter 4: E-contract and digital signature- Chapter 5: Law on e-transactions (self-study)

2. Practice on building website: 15 periods



EVALUATION

- Attendance: 10% (group discussion)

- Mid-term score: 30%, includes+ 20%: mid-term test

+ 10%: practice on bulding website

- Final test: 60%



PRACTICE ON BUILDING WEBSITE

• Practice on 2 days

• Copy (or download) resources: xampp, Joomla

1.5.6, power point file of instruction...

• Bring your laptop to practice at class

• Requirement: know basically how to build and

manage a website



SCHEDULE

DATE CONTENT PARTICIPANT

1st -> 8th Theory All class

9th Presentation All class

10th Mid-term test All class

11th Practice Group 1 -> 6




15th

Rapporteur All class



REFERENCES

1. Law on e-transactions (Vietnam), No. 51/2005/QH11

2. Vietnam E-commerce Report (from 2005 to 2013)3. Vietnam E-business Index (2012, 2013)

4. Newspaper, books.....



Chapter 1: INTRODUCTION TO E-COMMERCE

E-COMMERCE



Chapter 1: Introduction to E-commerce (EC)

1

2

Definitions of E-commerce

History of E-commerce

4

The overview of Vietnam E-commerce3

Benefits and limitations of E-commerce



QUESTION

E-commerce activities ???

1. Send messages to the operator to vote favorite

contestants of Vietnam Idol 20132. ANZ staffs called to some potential customers to offer

credit card opening in their bank

3. Enterprises exchange information with partners by fax.

4. Co.opmart supermarket established one page on

facebook.com to increase its reaching ability to

customers.



QUESTION

E-commerce activities ???

5. Use Iphone5 to place an order to buy a book on website tiki.vn

6. Download a song on zing.mp3.vn

7. Put a banner ad on a page of vnexpress.net

8. Book an air ticket from HCM-HN at jetstar.com

9. Search for information about cheap tours on some websites

10. Customers were only allowed to buy tickets of Saigon Railway

Station if they had booked the tickets on website vetau.com.vn.



The narrow sense

Business’s view and State’s view (UNCTAD)

- The broad sense

1. Definitions of E-commerce



COMMERCIAL ACTIVITIES

Commercial activities mean activities for the purpose

of generating profits, including: sale and purchase ofgoods, provision of services, investment, commercial

promotion and other activities for the profit purpose.

Source: Clause 1, Article 3, Commercial law,

No. 36/2005/QH11



ELECTRONIC MEANS

An electronic means is a means that operates based on

electric, electronic, digital, magnetic, wireless, optical,electro-magnetic technologies or similar technologies.

Source: Clause 10, Article 4, Law on e-transactions,

No. 51/2005/QH11



TELECOMUNICATION NETWORKS

Telephone networks;

Television networks;

Intranet;

Extranet;

Internet;

3G networks;

4G networks;

….



(ii) Definitions of EC from UNCTAD

From the point of business person(horizontally): MSDP

From the point of State (vertically):IMBSA

Soure: UNCTAD (United Nations Conference on Trade and Development )



MSDP

Marketing Sales Distribution Payment



E-Marketing

E-marketing activities

• Market research

• Website marketing

• E-mail marketing

• Search engine marketing

• Mobile marketing

• Social networks

• …



E-sales

+ Place an online order

+ Shopping cart

+ Customer database

+ Traffic management

+ Automated sales process



E-distribution

+ Downloads (digital goods)

+ Effective improvement of distribution system

(traditional goods)• e-logistics

• e-customs

• e-C/O

•e-warehouse

• e-supply chain management

• e-delivery management



E-payment

Many methods of e-payment

• Convenience

• Safety



IMBSA

Infrastructure

Message

Basic rules

Specific rules

Application



Infrastructure

Electronic means (computer, laptop, mobile…)

Telecommunication networks (Internet)



A data message means information

created, transmitted, received and stored

by electronic means.

Source: Clause 12, Article 4, Law on e-transactions,

No. 51/2005/QH11

Message



Legal validity of data message

Information in data messages cannot have its

legal validity disclaimed for the sole reason that

it is expressed in the form of data messages.

Source: Article 11, Law on e-transactions,

No. 51/2005/QH11

Message



Basic & Specific Rules

(Source: Vietnam E-commerce Report 2013)



E-COMMERCE

Commerce

LawTechnology

EC



The birth of EC

The EC development levels in a company

2. History of E-commerce



2.1. The birth of EC

1975-1995: Institutional phase

- 1989: World wide web based on HTML was born;

- 1991: NSF lifts restrictions on commercial use of Internet;- 1993: Mosaic was invented (the first graphical Web browser);

- 1994: the first banner advertisements appeared on

Hotwired.com

1995-present: comercialization phase- 1995: Jeff Bezos founded amazon.com; Pierre

Omidyar formed AuctionWeb (eBay)

- 2008: “cloud computing” became a billion

dollar industry

1961-1974:

Innovation phase of Internet

- 1961: packet switching was born;- 1969: ARPANET was created;

- 1971: Email invented;

- 1974: TCP/IP invented.



I-COMMERCE

T-COMMERCE

C-BUSINESS

2.2. The EC development levels in a company



(iii) C-BUSINESS

ORGANIZATION

SUPPLIERS

STATEAGENCIES

CUSTOMERS

BANKS



EDI

EDI

EDI

EDI

Electronic Data Interchange

EDI is the structured

transmission of data between

organizations by electronic means



ORGANIZATION

E-ERP

E-SCME-CRM

APPLICATIONS



Application



Ordering on the

Dell Website

Delivering to

customers

Assembly and

distribution

2

3

4

1

The part

suppliers

ILLUSTRATION OF

PROCEDURES DELL BUSINESS

1



VIETNAM E-COMMERCE

2005

2007

2009

2011

- ECVN portal hosted by the Ministry

of Industry and Trade was officially

put into operation from 8/2005- Law on E-transactions was

approved in 11/2005 and effected

from 03/2006

- 6/2006: published Law on

information technology- 25/6/2007: Vietnam E-commerce

Association was established - Marked the end of 5 years’

implementation of the Master

Plan on E-commerce

Development for the 2006 – 2010 period.

- 6/2008: establish Root Certification Authority

(belong to Authority of Information and

Communications application)

- Implement TrustVn program

- E-payment gateway “Smartlink – MasterCard”

was launched on 16/3/2009

- Law on telecommunication was approved in

11/2009

- Enterprises strongly applied specialized software

(such as: CRM, SCM, ERP...) and started using

online public services provided by state agencies

(such as: electronic tax filling, electronic customs,electronic import/export procedures, electronic

C/O...)

- Start implementing the

Master Plan on E-

commerce Developmentfor the 2011-2015 period



4.1

4.2

Benefits

Limitations

4. THE BENEFITS and LIMITATIONS OF E-COMMERCE



4.1. Benefits

To the

organization

Build and develop

customer relationship

Reduce cost,

Increase revenue

Improve

competitiveness



4.1. Benefits

To the

customer

Lower price

More convenience



4.1. Benefits

To the

society

Public sevices are

provided better

More online activities

-> result?

Get knowledge from

developed society



4.2. Limitations

Technical Limitations:

• There are no international standards for quality, safety andreliability.

•Tools in software-building are still in the developingstage.

• Difficult in combination e-commerce software withapplication software and the original database.

• There should be special e-commerce servers (highercapacity and safety), thus requiring more investmentcosts.



4.2. Limitations

Technical Limitations:

• Security and privacy are two psychological barriers to e-

commerce participants. Buyers often lack confidence in e-

commerce and sellers because of not in direct meeting.• Many matters of laws, policies, taxes have not been

clarified. Some policies do not truly support and create

conditions for the development of e-commerce.

• The method of evaluating the effectiveness of e-commerce is not fully completed.



4.2. Limitations

Commercial limitations:

• It takes time to transform the consumer behaviors in

consuming from the real to the virtual shops.

•

To making confident in the parties of transaction in paperless and indirect business environment needs to

waste time.

• The number of participants in e-commerce is not

much• The increasing number of fraudulent e-commerce due

to its characteristics.

chapter1 introduction to e-commerce-student

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