Introduction to E-Commerce Chapter 1 the Revolution is Just Beginning

E-Commerce

Use of Internet and web to transact business securely and privately. Commerce

Ø Commerce is the exchange of items of value between persons or companies

Ø Any exchange of money for a product, service or information is considered a transaction of commerce

Ø Commerce is the branch of business. It is concerned with the exchange of goods & services. It includes all those activities, which directly or indirectly facilitate that exchange.

E-Business

Digital enablement of transaction and processes system within a firm, involving information system under firm’s control.

Functions of Business

Research & Development, HRM, Sales & Distribution and Marketing.

Difference Between E-Commerce and E-Business

                                                               1.

E-Commerce covers outward facing process that touches customers, suppliers and external partners.    

E-Business covers internal processes such as Production, inventory management, product development, risk management, finance, knowledge management and human resources.            

                                                                        2.                                                             

E-commerce and e-business intersect at the business firm boundary at the point where internal business systems link up with suppliers. For instance, e-business turns into e-commerce when an exchange of value occurs across firm boundaries.

Information System  ( You can also Read Accounting Information Systems)

An information system is a collection of methods, practices, algorithms and methodologies that transforms data into information and knowledge desired by and useful for, individual and group users in organizations and other entities.  This system can involve a combination of work practices, information, people, and technologies organized to accomplish goals in an organization.

Enterprise Resource Planning

Ø Enterprise Resource Planning integrates internal and external management functions across organization.

Ø The purpose of ERP is to facilitate the flow of information between all business functions inside the boundaries of the organization and manage the connections to outside stakeholders.

Uses of Enterprise Resources Planning

Enterprise Resource Planning integrates different functional areas of a business of a company. These uses in different business functional areas are:

Ø Account Department

 

                 General Ledger Fixed Assets, Payables, ect.

Ø Managerial Department

    Budgeting, Costing, Cost Management, etc.

Ø Human Resource Management

    Recruiting, Training, Payroll, benefits, etc.

Ø Manufacturing

    Engineering, Manufacturing process, etc.

Ø Sales & Distribution

Order processing, Dispatching & Invoicing, Order analysis, Forecasting, Sales analysis, Budgets & Controls, etc.

Why we use E-Commerce

We use E-Commerce, because it has following advantages:

Ø Much cheaper and quicker to set-up

Ø For Global Reach

Ø Open for business 24x7 - unlimited store hours

Ø Increases brand and product awareness

Ø Potential to lower costs - fewer sales staff, no need for a physical location etc.

What is a  Marketplace

A marketplace is a physical place you visit in order to transact. For example, television and radio typically motivate the consumer to go some place to make a purchase.

A marketspace is a marketplace that is extended beyond traditional boundaries because it is removed from the restrictions of geography and time. The ubiquity of e-commerce technologies liberates the market from these limitations.

Eight Unique Features/Dimensions of E-Commerce Technology

Ø Ubiquity

           Is the ability all the time everywhere.

Ø Global Reach

The total number of users or customers an e-commerce business can obtain. We can sell in international market more conveniently and cost-effectively.

Ø Universal Standards

Standards that are shared by all nations around the world. Unlike, traditional commerce, these are common around the world and thus reduce search cost (the effort required to find suitable products) and market entry cost (the cost merchants must pay just to bring their goods to market).

Ø Richness

The complexity and content of a messge.

Which types of mediums are required to complete information? Which type of innovation is required?

Ø Interactivity

Technology that allows for two-way communication between merchant and consumer.

Interactivity allows an online merchant to engage a consumer in ways similar to a face-to-face experience, but on a much more massive, global scale.

Ø Information density

The total amount and quality of information available to all market participants, consumers, and merchants

Due to information density, information becomes more plentiful, less expensive and of higher quality.

Ø Personalization/Customization

Personalization

It means of making your product and service more personalized to your customer to meet his/her needs more effectively and efficiently and also making interactions with them speedy and easily, increasing customer satisfaction and the likelihood of repeat purchases or visits.

Amazon.com is a perfect example of Personalization.

Customization

It means tailoring or designing of your product or services for your customer according to his/her need and requirement. In which customer suggest you to add or subtract new or existing product features.

Dell is a perfect example of Customization.

Ø Social Technology

Such technology, which is used for social interaction.

Facebook, Twitter and other social networking websites are used for social interaction among merchant, suppliers, partners and customers, friends and relatives.

Difference between Customer and Consumer

Customer

Is one who purchases the goods & services.

Consumer

Is one who consumes or uses the goods & services.

Types of E-Commerce

Ø Business-to-Consumer (B2C) E-commerce

Online businesses selling to individual consumers.

Examples:

Ø Bluefly

Ø Yahoo

Ø Expedia

Ø Wsjonline.com

Ø Business-to-Business (B2B) E-commerce

Online businesses selling to other businesses.

Examples:

Ø Grainger.com

Ø Ariba

Ø PerfectCommerce

Ø Quadram

Ø Consumer-to-Consumer (C2C) E-commerce

Consumers selling to other consumers.

Examples:

Ø Half.com

Ø Velvetbazaar

Ø Ubid

Ø Oldandsold

Ø Peer-to-Peer (P2P) E-commerce

Use of peer-to-peer technology, which enables Internet users to share files and computer resources directly without having to go through a central Web server, in e-commerce.

Examples:

Ø Streamcast Networks

Ø eMule-Project.net

Ø Frostwire

Ø Mobile Commerce (M-commerce)

Use of wireless digital devices to enable transactions on the Web.

Mobile commerce, or m-commerce, is the buying and selling of services and goods using a mobile device. It is a branch of electronic commerce, or e-commerce.

Examples:

Ø iPhones

Ø Android G1s

Ø BlackBerries

Ø Clouds

A cloud storage service is a business that maintains and manages its customers’ data and makes that data accessible over a network, usually the Internet.

In Personal computer, data may be lost or destroyed, so it is important to store important and secret data on clouds.

Examples:

Ø Google Drive

Ø Onedrive

The Online Student Resources can be available at the following link

Welcome to the Companion Website for E-Commerce

   So "Introduction to E-Commerce Chapter 1 the Revolution is Just Beginning" is very helpful and good chapter for learning the basis of E-Commerce.