i) in) Chapter: 1 Introduction to Electronic Commerce. 1.0 ‘Definition of Commerce 1.1: Views of Commerce 1.1.1: Buyer's Perspectives 1.1.2: Seller's Perspective 1.3: Business Processes 1.4: Electronic Commerce (e-commerce) 1.4.0: Definition. Impact of e-commerce on organizations Value Chain Analysis 6.1: Typical Company Value Chain. 6.2: Re-configuring the Value Chain 1,7. Appropriateness of electronic technology in business processes 3 7 Processes well suited for e-commerce Processes not well-suited for traditional commerce Processes well suited for a combination of both Advantages of e-commerce Disadvantages of e-commerce 0 Evolution of e-commerce 10.1: Intemet and Its Charactenstics 10.2: Intranets and Its Characteristics 10.3: Extranet 1.11: Deployment of Intemet Technologies: Stages of Evolution 1.1L Reasons for this choice 1.12 Exercise 5: 6 1 1 7 171 1.7.2 1.73 8: 9 it 1 1 1 1.0 : Definition of Commerce Commerce refers to the negotiated exchange of valuable objects or services between at least two parties and includes all activities that each of the parties undertakes to complete the transaction. In commerce one member of a society creates something of value that another member of a society desires LL: Views of Commerce ‘At least two different perspectives exist: (@) The buyer’s viewpoint (0) The seller’s viewpoint Both perspectives illustrate that commerce involves a number of distinct, activities, called business processes LLL: Buyer’s Perspectives This perspective holds that commerce involves the following activities Identifying a specific need Searching for products or services that will satisfy that neediii) Selecting avendor iv) _ Negotiating a purchase transa inspection, testing and acceptance v) Making payment vi) Performing obtain maintenance ifnecessary 1.1.2: Seller's Perspective This perspective holds that commerce involves the following activities i) Conducting market research to identify customer needs ii) Creating a product or service to meet those needs iii) Advertising and promoting the product or service iv) _ Negotiating a sales transaction including delivery logistics, inspection, testing and acceptance v) Shipping goods and invoicing the customer vi) Receiving and processing customer payments vil) _ Providing after sales support and maintenance 1.3: Business Processes These are the activities involved in condi Funds transfer Ordering Invoicing Shipping etc. on including delivery logistics, ing commerce, They may include 14: Electronic Commerce (e-commerce) 14.0: Definition E-commerce is the process of buying and selling of goods andlor services where part, ifnot all, of the commercial transactions occur over an electronic medium such as the Internet. OR ‘This is the sharing of business information, maintaining business relationships and conducting business transactions by means of telecommunications networks. OR This is the use of electronic data transmission to implement or enhance any business activity eg. buyer sending an electronic purchase order to the seller, who sends back an electronic invoice Impact of e-commerce on organizations E-commerce is changing the way traditional business is conducted. How? i) Technology can help throughout the process including promotion, searching, selecting, negotiating, delivery and support. ii) The “value chain” is being reconfigured Specifically e-commerce impacts can be seen in each of the following ‘Structure/Connections Work routine CommunicationsMarketing Information Technology i) Impact on Structure a Supply Chain Integration b. Direct Sales —Elimination of the Middleman Decentralization Virtual Organizations o ©. Business Model ii) Impact on Work Routine a Intemational Business b. 24 Hour / 365 Days ©. Faster Tumaround d. Increased Automation iti) Impact on Communication a International b. Immediate Response ©. Indirect iv) Impact on Marketing ‘a Customer Characteristics Intemational Direct Sales Demographics b. Frequent Updates ©. More Public Information d. Search Engines and Directory v) Impact on IT a More Mission Critical 2417 Support Connectivity Data Integnty b. More Integration Projects Business Chain Integration Off-the-Shelf Product Integration Database Integration Networking and Security 1.6: Value Chain Analysis Value chain examines the activities performed within an organization to establish how they interact, and where improvements could be a source of competitive advantage ‘An organization is a"chain" of achuties, each providing a value.hence the tena value chain. Components of the value chain include a Research and development(R & D)- develops products b. Sales- promotes the products ©. Production- manufactures products d. Final Inspection- assures quality