presentation on e-commerce

CS3_ E-commerce Presentation

INTRODUCTION TO E-COMMERCE


Learning Objectives:• To explore how e-business and e-commerce fit together.• To identify the impact of e-commerce.• To recognise the benefits and limitations of e-commerce.• To identify the different classification of E-commerce.• To identify the main barriers to the growth and development of e-commerce.


What is Electronic Commerce?

• Electronic commerce is sharing business information, maintaining business relationships and conducting business transactions by means of telecommunications networks.

• Electronic Commerce (EC) is where business transactions take place via telecommunications networks, especially the Internet.

• Electronic commerce describes the buying and selling of products, services, and information via computer networks including the Internet.

• Electronic commerce is about doing business electronically.

• E-commerce, ecommerce, or electronic commerce is defined as the conduct of a financial transaction by electronic means.


What is E-business?

• E-business is the transformation of key business processes through the use of Internet technologies. E-Business is not only buying and selling but also servicing customers and collaborating with business partners.

• An e-business is a company that can adapt to constant and continual change.

• E-business is everything to do with back-end systems in an organisation.


Major differences in E-commerce and E-business


HISTORY OF E-COMMERCE

• E-Commerce started over 40 years ago, and has evolved over time. • Before the widespread uptake and commercial use of

THE INTERNET, the Electronic Data Interchange (EDI), was used as the platform for E-commerce.• EDI uses private communications networks (VANs) to

transmit standardized transaction data between business partners and suppliers • The EDI system was very expensive, thus uptake was

limited largely to cash-rich multinational corporations.


Key Drivers of E-commerce

• Technological factors

• Political factors

• Social factors

• Economic factors


Key drivers of E-business

• Organisational culture

• Commercial benefits

• Skilled and committed workforce

• Requirements of customers and suppliers

• Competition


Key Drivers of Business


The Impact of Electronic Commerce

•Marketing • Computer sciences• Finance and accounting • Economics• Production and operations management• Production and operations management (manufacturing)•Management information systems• Human resource management• Business law and ethics


Benefits and Limitations of E-commerce to Society

Benefits

• Enables more flexible working practices

• Connects people.

• Facilitates delivery of public services.

Limitations• Breakdown in human interaction.

• Social division.

• Reliance on telecommunications

infrastructure, power and IT

skills.• Wasted resources.

• Difficulty in policing the Internet


Benefits and Limitations of E-commerce to Consumers

Benefits • 24/7 access.

• More choices.

• Price comparisons.

• Improved delivery processes.

• An environment of competition

Limitations• Computing equipment.

• A basic technical knowledge.

• Cost of access to the Internet.

• Cost of computing equipment.

• Lack of security and privacy of personal data.

• Physical contact and relationships are replaced by electronic processes.

• A lack of trust because they are interacting with faceless computers.


Benefits and Limitations of E-commerce to Organisations

BENEFITS

• Operational cost savings.

• Mass customisation.

• Enables reduced inventories.

• Lower telecommunications cost.

• Digitisation of products and processes.

• No more 24-hour-time constraints

LIMITATIONS

• Lack of sufficient system security, reliability, standards and communication protocols.

• Rapidly evolving and changing technology.

• Under pressure to innovate

• Facing increased competition

• Problems with compatibility of older and ‘newer’ technology.


Classification of E-commerce

The classification is done from different perspective namely:• The Macro-Environment Perspective• The Identification of Transacting Partners • The Degree of Digitisation

These frameworks help identify the elements of e-commerce and how businesses can better understand e-commerce and its practical applicability.


Classifications of E-Commerce:Macro-environment Perspective

The macro-environment perspective identifies the interaction of :

•Technology•People•Organisations•Policies and•Technical standards working together to enable e-commerce.


Classifications of E-Commerce:The Identification of transacting

partners This involves the Identification of the partners directly involved in the transaction. The Image below gives a summary of the classification under this Framework.


Classifications of E-Commerce:The Degree of

DigitisationThe degree of digitisation categorises E-Commerce based on the Product or Service Sold, the process of the transaction and Delivery agents.Based on these categories, Three main dimensions can be deduced namely:•Traditional Ecommerce•Pure E- Commerce•Partial Ecommerce


Barriers to E-commerce Internet infrastructure.

Technology infrastructure.

Security.

Commercial infrastructure.

Organisational structure and culture.

Lack of qualified personnel.

Lack of proven business models.

Interoperability of systems


THANK YOU!!!

presentation on e-commerce

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