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EC5001 Lecture1 Overview

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EC5001 Lecture1 Overview

Uploaded by

chenhuan.vi
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Lecture 1

Overview of EC
Learning Objectives
 Define electronic commerce
 Describe the unique features of electronic commerce
 Describe the major types of electronic commerce
Electronic Commerce
 Online exchange of goods, services, and money
What are E-Commerce &
E-Business?
 Electronic Commerce (e-commerce):
 The online exchange of goods, services, and money
among firms, between firms and their customers, and
between customers
 Electronic Business (e-business):
 Any process that an organization (for-profit,
governmental, or nonprofit entity) conducts over a
computer network
E-Commerce vs. E-Business
 E-business is a broader definition
 E-commerce refers to buying and selling (goods and
services)
 E-business includes
 buying and selling
 customer service
 collaborating with business partners
 collaboration & communication within organization
 electronic transactions
 Distinction often blurred
Learning Objectives
 Define electronic commerce
 Describe the unique features of electronic commerce
 Describe the major types of electronic commerce
EC Framework
 EC Applications (online banking, e-purchasing, m-
commerce, online publishing)
 Support Areas
 Support Services
 Infrastructure

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EC Framework

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Unique Features of EC
1. Ubiquity
2. Global reach
3. Universal standards
4. Richness
5. Interactivity
6. Personalization/Customization
7. Social Technology
Unique Features of EC: Ubiquity
Unique Features of EC: Global
Reach
Unique Features of EC:
Universal Standards
Unique Features of EC:
Richness
Unique Features of EC:
Interactivity
Unique Features of EC:
Personalization/Customization
Unique Features of EC:
Social Technology
Unique Features of EC: Results
 Costs (admin, purchasing, cost of customer
acquisition)
 Sales opportunities
 Product, place, and price benefits
 Disintermediation
 The Long Tail
The Long Tail
 Traditional stores
 Focus on mainstream
needs
 Target the average
customer

 E-commerce
 Can focus on niche
markets
Unique Features EC: Limitations
 Lack of direct product experience
 Trust
 Integration with existing systems or processes
Learning Objectives
 Define electronic commerce
 Describe the unique features of electronic commerce
 Describe the major types of electronic commerce
Pure versus partial EC
 EC takes several forms depending on the “degree of
digitization”
1. the products (services) sold,
2. the processes,
3. the players / delivery agents (or intermediaries)

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Pure versus partial EC

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Types of companies
 Brick & Mortar
 purely physical
operations

 Click only - Dot.coms


 purely virtual (online)
operations
 Amazon.com
 E-bay, Taobao, …

 Click & Mortar (a.k.a. bricks & clicks)


 combination of both physical & virtual operations
 many businesses nowadays
E-commerce interactions (major)
Sellers
Business Consumer

B2B C2B
Business

(alibaba) (shutterstock)
Buyers

B2C C2C
Consumer

(TMall, (ebay,
parknshop.com) Taobao)
E-commerce interactions
 Business-to-business (B2B)
 All of the participants are businesses or other
organizations: e.g., online transactions /purchases with
other business

 Business-to-consumer (B2C)
 Online transactions: businesses sell to individual
shoppers (e-tailing)
E-commerce interactions
 Consumer-to-business (C2B)
 Individuals use the Internet to sell products or services
to organizations

 Consumer-to-consumer (C2C)
 Consumers sell directly to other consumers
 Often used as platform for small entrepreneurs
E-commerce interactions
 Mobile commerce (m-commerce)
 Electronic transactions conducted using a wireless,
mobile device and mobile networks
 that lead to the transfer of real or perceived value in exchange
for information, services, or goods
 Location-based services
 highly personalized mobile services based on a user’s location
 Social Commerce (social business)
 Use of social network(s) and or Web2.0 software in the
context of e-commerce transactions

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E-commerce interactions
 Electronic market (e-marketplace)
An online marketplace where buyers and sellers meet to
exchange goods, services, money, or information
 intranet
An internal corporate or government network that uses
Internet tools, such as Web browsers, and Internet protocols
 extranet
A network that uses the Internet to link multiple intranets
 E-government

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E-commerce interactions

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Electronic Commerce
 Web 2.0
 The second generation of Internet-based services that
lets people collaborate and share information online in
new ways, such as social networking sites, wikis,
communication tools, and folksonomies
 Social Computing
 An approach aimed at making the human–computer
interface more natural

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Electronic Commerce
 Social Networks
 A category of Internet applications that help connect friends,
business partners, or individuals with specific interests by providing
free services such as photo presentation, e-mail, blogging, and so on
using a variety of tools
 social networking service (SNS)

A service that builds online communities by providing an online


space for people to build free homepages and that provides basic
communication and support tools for conducting different
activities in the social network
 social networking

The creation or sponsoring of a social network service and any


activity, such as blogging, done in a social network (external or
internal)
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Summary
 E-Commerce vs E-Business
 Unique Features of EC
 E-commerce interactions
 E-Commerce Applications (Web 2.0, Social
Computing, Social Networks)

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Group Project
 Propose a business idea that leverages computer
networks as a technical platform.
 Provide an overview introducing the reader to the
business you propose, a description of the products
and services, business model and revenue model, and
an implementation plan covering managerial and
technical aspects.

Course Overview 32
Project Team
 Form a team of 8 members to work on the group
project and tutorial assignments.
 Upload the team details (Student ID, Student Name,
Team Name) to the Canvas
 Teams must be finalized by Week 2

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