Management information System
Content
Introduction to E Commerce
Presented to
Presented By
Learning Objectives
1.What is Electronic Commerce?
According to Zwass:
Electronic commerce( E Commerce) is
– The sharing of business information – Maintaining business relationships – Conducting business transactions by means of telecommunications networks
What is Electronic Commerce?
Selling
Accepting payments Delivering
Marketing
E-commerce encompasses the online process of…
Developing
Servicing
2.History of E Commerce
3.Scope of E Commerce
Electronic Commerce encompasses one or more of the following:
– EDI – E-mail on the Internet – Shopping on the World Wide Web – Product sales and services on the Web – Electronic banking or funds transfer – Outsourced customer and employee care – operations
Scope of E Commerce(cont’d)
Marketing/Discovery
Selling Process
Buying Process
4.Difference Between Traditional and E- Commerce
E-COMMERCE vs TRADITIONAL COMMERCE Key elements Value Creation Strategy E-commerce Information Sense and respond Simple rules Competitive edge Speed Competitive force Low barriers of entry Power of customers Resource focus Demand side Customer interface Screen-to-face Communication Technology-mediated channels Accessibility 24 x 7 Customer Self-service interaction Consumer behavior Personalization One-to-one marketing Promotion Word of mouth Product Commodity Traditional commerce Product/Service Classical Quality/Cost Power of suppliers Product substitution Supply side Face-to-face Personal Limited time Seller influenced Standardization Mass/one-way marketing Merchandising Perishables, feel & touch
5.Benefits of E-Commerce
• Enable buyers to:
– – – – – – – – – – inquire about products review product and service information place orders, authorize payment receive both goods and services on-line advertise products receive orders collect payments deliver goods electronically provide ongoing customer support to server as intermediates that accept payment authorization make
• Enable sellers to:
• Enable financial organizations
• Enable sellers to notify logistics organization
6.Technical Components
• • • • • • Client or Pc workstation Router Internet communication lines Transaction server Database server Database transaction
7.Limitations of e-commerce
• To organization
– – – – – Lack of sufficient system security, reliability Rapidly evolving and changing technology Under pressure to innovate Facing increased competition Problems with compatibility of older and ‘newer’ technology
A basic technical knowledge Cost of computing equipment Lack of security and privacy of personal data Physical contact and relationships
• To consumers
– – – –
Limitations of
e-commerce(Cont’d)
• To society
– Breakdown in human interaction – Social division – Reliance on telecommunications infrastructure – Wasted resources
Presented to
Presented By
Learning Objectives
1.What is Electronic Commerce?
According to Zwass:
Electronic commerce( E Commerce) is
– The sharing of business information – Maintaining business relationships – Conducting business transactions by means of telecommunications networks
What is Electronic Commerce?
Selling
Accepting payments Delivering
Marketing
E-commerce encompasses the online process of…
Developing
Servicing
2.History of E Commerce
3.Scope of E Commerce
Electronic Commerce encompasses one or more of the following:
– EDI – E-mail on the Internet – Shopping on the World Wide Web – Product sales and services on the Web – Electronic banking or funds transfer – Outsourced customer and employee care – operations
Scope of E Commerce(cont’d)
Marketing/Discovery
Selling Process
Buying Process
4.Difference Between Traditional and E- Commerce
E-COMMERCE vs TRADITIONAL COMMERCE Key elements Value Creation Strategy E-commerce Information Sense and respond Simple rules Competitive edge Speed Competitive force Low barriers of entry Power of customers Resource focus Demand side Customer interface Screen-to-face Communication Technology-mediated channels Accessibility 24 x 7 Customer Self-service interaction Consumer behavior Personalization One-to-one marketing Promotion Word of mouth Product Commodity Traditional commerce Product/Service Classical Quality/Cost Power of suppliers Product substitution Supply side Face-to-face Personal Limited time Seller influenced Standardization Mass/one-way marketing Merchandising Perishables, feel & touch
5.Benefits of E-Commerce
• Enable buyers to:
– – – – – – – – – – inquire about products review product and service information place orders, authorize payment receive both goods and services on-line advertise products receive orders collect payments deliver goods electronically provide ongoing customer support to server as intermediates that accept payment authorization make
• Enable sellers to:
• Enable financial organizations
• Enable sellers to notify logistics organization
6.Technical Components
• • • • • • Client or Pc workstation Router Internet communication lines Transaction server Database server Database transaction
7.Limitations of e-commerce
• To organization
– – – – – Lack of sufficient system security, reliability Rapidly evolving and changing technology Under pressure to innovate Facing increased competition Problems with compatibility of older and ‘newer’ technology
A basic technical knowledge Cost of computing equipment Lack of security and privacy of personal data Physical contact and relationships
• To consumers
– – – –
Limitations of
e-commerce(Cont’d)
• To society
– Breakdown in human interaction – Social division – Reliance on telecommunications infrastructure – Wasted resources
