Overview of electronic commercePertemuan 1-2

Mata kuliah : M0204 - Konsep E-BusinessTahun : 2010

Bina Nusantara University

3

Learning Objective

1.Define electronic commerce (EC) and describe its various categories2.Describe the content and framework EC3.Describe the major type of EC transacction4.Describe the Benefit EC5.Describe the limitation of EC6.Understand the forces that drive the widespread use of electronic commerce7.Describe and discuss the changes that will be caused by electronic commerce

8.Discuss some major managerial issues regarding electronic commerce

Electronic Commerce is the process of buying, selling, transferring or exchanging product, services and / or information via computer networking.

EC can also be defined from the following perspective :1. Business Process2. Service3. Learning4. Collaborative5. Community

Benefit of E-Commerce

•Global Reach•Cost Reduction•Supply Chain improvement•Lower Inventories

BENEFIT FOR ORGANIZATION

Reduces the time between the outlay of capital and the receipt of products and servicesSupports business processes reengineering (BPR) effortsLowers telecommunications cost - the Internet is much cheaper than value added networks (VANs)

BENEFIT FOR CUSTOMERCustomers can receive relevant and detailed information in seconds, rather than in days or weeksMakes it possible to participate in virtual auctionsAllows customers to interact with other customers in electronic communities and exchange ideas as well as compare experiencesElectronic commerce facilitates competition, which results in substantial discounts.

Technological Limitation of EC•Lack of Technology•Insufficient bandwidth for telecommunication•Software Development tools is evolving

Non Technological Limitation•Security and privacy concern•Lack of trust•Many legal and public issue

Pure Vs. Partial Electronic CommerceThree dimensions

» the product (service) sold [physical / digital]

» the process [physical / digital] » the delivery agent (or intermediary)

[physical / digital]

Traditional commerce» all dimensions are physical

Pure EC

» all dimensions are digital

Partial EC

» all other possibilities include a mix of digital and physical dimensions

A Framework for Electronic Commerce 9

Electronic Commerce Applications

• Stocks Jobs • On-line banking

• Procurement and purchasing• Malls • On-line marketing and advertising

• Home shopping • Auctions • Travel • On-line publishing

People:

Buyers, sellers,

intermediaries,

services, IS people,

and management

Public

policy,

legal, and

privacy

issues

Technical standards

for documents,

security, and

network protocols

payment

Organizations:

Partners,

competitors,

associations,

government services

Infrastructure

(1)

Common business

services infrastructure

(security smart

cards/authentication

electronic payment,

directories/catalogs)

(2)

Messaging and

information distribution

infrastructure

(EDI, e-mail, Hyper Text

Transfer Protocol)

(3)

Multimedia content

and network

publishing infrastructure

(HTML, JAVA, World

Wide Web, VRML)

(4)

Network infrastructure

(Telecom, cable TV

wireless, Internet)

(VAN, WAN, LAN,

Intranet, Extranet)

(5)

Interfacing

infrastructure

(The databases,

customers, and

applications)

Management© Prentice Hall, 2000

Figure 1.2 shows that the EC applications are supported by infrastructures, and their implementation is dependent on four major areas (shown as supporting pillars) people, public policy, technical standards and protocols, and other organizations.

The EC management coordinates the applications, infrastructures, and pillars. It also includes Internet marketing and advertisement.

The Driving Forces of Electronic Commerce

The New World of Business•Business pressures•Organizational responses•The role of Information Technology (including electronic commerce)

Major Business PressuresMarket and

economic pressures

Societal and

environmental pressures

Technological pressures

Strong competition

Global economy

Regional trade agreements (e.g. NAFTA)

Extremely low labor cost in some countries

Frequent and significant changes in markets

Increased power of consumers

Changing nature of workforce

Government deregulation of banking and other services

Shrinking government budgets subsides

Increased importance of ethical and legal issues

Increased social responsibility of organizations

Rapid political changes

Rapid technological obsolescence

Increase innovations and new technologies

Information overload

Rapid decline in technology cost Vs. performance ratio

Business Process Reengineering

Reducing cycle time and time to market Empowerment of employees and collaborative

work Knowledge management Customer-focused approach Business alliances — virtual corporation

Other Changes in the Workplace

Transforming OrganizationsWork will changeTechnology learningOrganizational learningRedefining OrganizationNew product capabilities

New business models

Question1. Jelaskan perbedaan antara pure, partial dan traditional commerce dan berikan contohnya ?2.Bagaimana kondisi atau karateristik dari product yang dijual yang lebih sesuai jika dijual dengan pure, partial atau traditional commerce3.Berikan penjelasan tentang Framework Electronic commerce?

QUESTION FOR DISCUSSION

Give an example of pure and partial Electronic Commerce for product and services?And what is the reason companies that use for different EC?

QUESTION1. Explain the Definition of electronic commerce (EC) and describe its various categories2. Explain the content and framework EC3. Describe the major type of EC transacction4. Describe the Benefit EC5.Explain the limitation of EC6. Explain the forces that drive the widespread use of electronic commerce7. Describe and discuss the changes that

will be caused by electronic commerce