Management

Information ELECTRONIC
Systems
in Organizations COMMERCE
Prepared by: Jan Wong
The Learning Outcomes
At the end of this session you should be able


to:

E-Commerce, it’s scope ,

DESCRIBE benefits , limitations and
types
DISCUSS The importance and
activities of online
advertising
DESCRIBE B2B and emerging
applications such as B2E
 E - BUSINESS VS
E - COMMERCE
E-Business
 E-Co m m e rc e
 Broader definition of e- Describes the process of buying, selling,
commerce transferring, or exchanging products,
services, and/or information via computer
networks, including the Internet
 Beyond buying and
selling of goods and Can take several forms depending on the degree
services of digitization (the transformation from
physical to digital).
 Includes servicing 
customers, The degree of digitization relates to:
collaborating with the product (service) sold
business partners, the process
conducting e-learning, the delivery agent (or intermediary).
processing electronic
 E - COMMERCE
ORGANIZATIONS
 Brick-and-mortar (or old-economy)
S Pure physical organizations / corporations

 Virtual (or pure-play)

S Organizations that are engaged only in E-
Commerce

 Click-and-mortar (or click-and-brick)

S Conduct some e-commerce activities, yet their
primary business is done in the physical world
TRANSACTION MEDIUMS

 Most e-commerce is done over the Internet.

 Also be conducted on private networks, such as

value-added networks (VANs, networks that add
communication services to existing common
carriers), on local area networks (LANs) or wide
area networks (WANs)

 In other words:
S Intranet, Extranet and even the Enterprise Web
 8
 E-Commerce can happen
between various parties
TRANSAC - S Business-to-

 TION
TYPES
business(B2B):
S Both the sellers and the
buyers are business
organizations.
S Collaborative commerce
(c-commerce):
S In c-commerce,
business partners
collaborate
electronically.
S Usage of Extranets

S Business-to-consumers
(B2C):
S The sellers are
organizations, and
the buyers are
individuals.
S Consumers-to-businesses
(C2B):
 8
S Consumer-to-consumer
(C2C):
TRANSAC - S Individuals sell products


or services to other
TION individuals.

TYPES S Intrabusiness
(intraorganizational)
commerce:
S An organization uses EC
internally to improve
its operations. A
special case is known
as B2E (business to its
employees)

S Government-to-citizens
(G2C):
S A government
provides services to
its citizens

S
 COMPONENTS of
E - COMMERCE
“The field of e-commerce is broad, and


there are many of EC applications”

How can organizations support E-



Commerce Applications?
 E-Commerce Framework
5
S People:
S Sellers, buyers,
intermediaries, information
COMPONENTS / systems specialists and
other employees, and any

PILLARS
other participants.

S Public policy:
of E - COMM S Legal and other policy and
regulating issues, such as
privacy protection and
taxation.
“To execute these S Marketing and advertising:
applications, companies S Like any other business, EC
need the right usually requires the
support of marketing and
information, advertising.
infrastructure, and S Support services:
support services” S Many services are needed to
support EC. They range
from payments to order
delivery and content
creation.

S Business partnerships:
S Joint ventures, e-
marketplaces, and
 S Auctions are used in B2C,
B2B, C2B, e-government,
and C2C commerce
TYPES OF E - S Forward auctions
COMMERCE : S Sellers use as a selling
AUCTIONS channel to many
potential buyers. Items
are placed at sites for
“Electronic Auctions (e-

auction and buyers bid
Auctions): A market continuously for the
mechanism by which items.
sellers place offers and S 2 types of forward
buyers make sequential auctions
bids” S Reverse auctions
S Have one buyer, usually
an organization, that
wants to buy a product
or a service. Suppliers
are invited to submit
 S Enables an enterprise to form
electronic relationships with
its distributors, resellers,
suppliers, customers, and
TYPES OF E - other partners
COMMERCE : S Sell-Side Marketplaces:
B2B S Sell products or services to
other organizations
electronically, from their
“The buyers, own private e-
sellers, and marketplace
transactions S Similar to B2C E-Storefront /
involve only Market
organizations”
S Buy-Side Marketplaces:
S Buy products or services
from other organizations
electronically, usually
from their own private e-
marketplace
S One buy-side model is a
 S Examples:
S Allow employees to manage
their fringe benefits
TYPES OF E - S Take training classes
electronically.
COMMERCE : S Electronic corporate stores

B2E that sell a company’s

products to its
employees, usually at a
discount
“Companies are finding S Some other uses:
many ways to do S Sales force automation
business electronically S Order processing &
tracking, contact
with their own management,
employees by information sharing,
inventory monitoring
disseminating and control, employee
performance
information over the evaluation
Intranet” S E-Commerce Between
strategic business
units (SBUs)
S Buy / sell / trade between
BUs
S E.g. Group of companies
 S Government-to-Citizens
(G2C)
S Paying of bills
TYPES OF E - S Renewal of licenses
COMMERCE : S Information
E - GOVERNMENT S Funding

S Government-to-Business
“Use of Internet (G2B)
technology in general S Company registration
and e-commerce in S Project tenders
particular to deliver
information and public S Government-to-Government
services to citizens, (G2G)
business partners and S Online non-commercial
suppliers, and those interaction between
working in the public Government
organizations,
sector” departments, and
authorities
 S C2C Auctions
TYPES OF E -
COMMERCE : S Classified Ads
C2C S Personal Services
S Dating services, online
“E-commerce in which
 coaches, clubs, etc
both the buyer and the
S Support Services to C2C
seller are individuals
S Paypal, ToCheckOut,
(not businesses)”
iPay88
 S Mostly B2C
TYPES OF E - S In the past:
COMMERCE : S Home catalogs
E - TAILING S TV shopping channels
( e - storefronts / S Problems faced:
marketplaces ) S Expensive upkeep /
“Exchange of goods or
 production
S Printed catalogs not
services without a up-to-date
monetary transaction” S TV shopping is limited
to time

S Solution: E-Tailing. Why?

S Delivery of services
(buying an airline ticket or
stocks) can be done 100
percent electronically
(convenience)
S Cost reduction potential
 S Seen also in B2C Service
Industries
TYPES OF E - S Electronic banking

COMMERCE : S International and Multiple-

Currency Banking
E - TAILING S Online Securities Trading
( e - storefronts / S Online Job Market
marketplaces ) S Travel Services
S Real Estate
“Exchange of goods or


S However, also face major

services without a
issues:
monetary transaction” S Resolving channel conflict
S Resolving conflicts within
click-and-mortar
organizations
S Organizing order
fulfillment and
logistics
S Determining viability and
risk of online e-tailers
S Identifying appropriate
revenue models
 E - COMMERCE SUPPORT
SERVICES
 B2B and B2C applications require payments and
order fulfillment. Portals require content, etc

 These services include:

S e-infrastructure (mostly technology consultants,
system developers and integrators, hosting,
security, and networks)
S e-process (mainly payments and logistics)
S e-markets (mostly marketing and advertising)
S e-communities (different audiences and
business partners)
S e-services (CRM, PRM, and directory services)
S e-content (supplied by content providers)
WHY DO WE NEED
E - COMMERCE
SUPPORT SERVICES
 E - COMMERCE SUPPORT
SERVICES
 Electronic Payments are an integral part of doing
business, whether in the traditional way or
online.
S In most cases traditional payment systems are
not effective for EC, especially for B2B

 Types of E-Payments
S Electronic checks (e-checks)
S Electronic credit cards
S Purchasing cards,
S Electronic cash (e-cash)
S Electronic Bill Presentment and Payments
S E-wallets
S Virtual credit cards
E - COMMERCE ALSO
REQUIRES :
 MARKET RESEARCH & ONLINE
ADVERTISING / MARKETING
 MARKET RESEARCH

 For successful e-commerce (especially B2C)

S Important to find out who are the actual and
potential customers and what motivates them
to buy

 How?
1. Asking Customers What They Want
2. Observing Customer Behavior on the Web:
Ø Brand- and Vendor-Finding Agents and Price
Comparisons
Ø Search Agents
Ø Collaborative Filtering Agents
Ø Other Agents (e.g. Social Media Networks)
 MARKET RESEARCH :
CONSUMER BEHAVIOR MODEL
 MARKET RESEARCH

 Several models have been developed in an effort

to describe the details of the decision-making
process that leads up to and culminates in a
purchase

 Generic Purchasing-Decision Model

1. Need identification
2. Information search
3. Evaluation of alternatives
4. Purchase and delivery
5. After-Purchase­Evaluation
 ONLINE ADVERTISING /
MARKETING

 Advertisement is an attempt to disseminate

information in order to influence a
buyer–seller transaction
 Traditional advertising media
S Impersonal, one-way mass communications
S TV, Newspapers, Magazines, etc

 Internet advertising media

S Media-rich, dynamic, and interactive
 ONLINE ADVERTISING /
MARKETING

 Methods:
S Banners
Ø Electronic billboards and is the most commonly
used form of advertising on the Internet
S Pop-Up, Pop-Under, and Similar Ads
S E-Mail Advertising
S Electronic Catalogs and Brochures
S Other Forms of Internet Advertising
Ø Pay-Per-Click (Google Adwords)
Ø Sponsored search results
 ONLINE ADVERTISING /
MARKETING

 Online advertising issues & approaches:

S Unsolicited Advertising
Ø Spamming
S Permission Marketing
Ø Also known as: Opt-In marketing
S Viral Marketing
S Interactive Advertising and Marketing
S Online Promotions
Ø Coupons, events, attractions
Ø Search engine optimization
 ONLINE
ADVERTISING /
MARKETING …
CAN ALSO DRAW OFFLINE EXPOSURE &


SALES
 THINGS TO
TAKE NOTE OFF
 Difference between E-Commerce and E-Business
 Brick-and-Mortar, Virtual & Click-and-Mortar
 8 Transaction types in E-Commerce
 How organizations can sustain it’s E-Commerce
Applications (5 Components / Pillars)
 The types Online Advertising
 Why Market Research?
 What are E-Commerce Support Services
ELECTRONIC COMMERCE
Coming soon… next class
Management
Information ENTERPRISE SYS .:
Systems S . C . to ERP to
in Organizations
Understanding ERP and CRM
why organizations are moving to
CRM
CRM
 IT’S TIME FOR SOME
DISCUSSIONS !
 Differentiate the following terms:
S E-Commerce and E-Business
S Forward and Reverse Auctions
S Spamming and Permission Marketing

 What are: E-Bartering, E-Storefronts, E-Malls / Marketplace?

 What is Online Advertising? What are it’s benefits?
 List 5 reasons for E-Commerce failures and 5 suggestions for
it’s success
 Discuss the major limitations of E-Commerce. Which of them are
likely to disappear? Why?
 Discuss the benefits to both sellers and buyers of B2B
 What are the benefits of E-Government?