1. Bachelor of Business Administration Program ©Mathieu CHAUVET – 2014/2015 1

2. Welcome on board! Ramkhamhaeng Institute of International Studies and I are pleased to welcome you on this module of « Introduction to E-Commerce and Information for International Business » « Safety » and Identity controls 2

3. This is your « captain » speaking 3

4. 4

5. 5

6. 6

7. 7

8. 8

9. 9

10. 10

11. 11

12. 12

13. 13

14. 14

15. 15

16. Your destination This course provides a global study of roles and procedures of electronic commerce in order to manage business information in arrangement of planning, controlling production and planning of administration. As practical objectives, the aim of this class is to describe you: - how to market on the Web legally and ethically, - how to plan for electronic commerce 16

17. Agenda Introduction to Electronic Commerce: The Internet and the World Wide Web Selling on the Web: Revenue Models and Building a Web Presence Marketing on the Web Business-to-Business Activities Online Auctions, Virtual Communities, and Web Portals The Environment of Electronic Commerce: Legal, Ethical, and Tax Issues Electronic Commerce: Technologies and Infrastructure Integration: Planning for Electronic Commerce 17

18. Bachelor of Business Administration Program ©Mathieu CHAUVET – 2014/2015 18

19. Learning objectives In this chapter, we will address: What electronic commerce is and how it has evolved into a second wave of growth Why companies concentrate on revenue models and the analysis of business processes instead of business models when they undertake electronic commerce initiatives How economic forces have created a business environment that is fostering the second wave of electronic commerce 19

20. I) Internet and the World Wide Web 20

21. Origins of the Internet Early 1960s US Defense Department and risks of nuclear attacks Started to use powerful computers (large mainframes) But used leased telephone company lines Single connection Wish to communicate by using multiple channels (packets) 1969 Advanced Research Projects Agency (ARPA) Packet network connected four computers ARPANET: earliest network (became the Internet) Academic research use (1970s and 1980s) 21

22. New uses for the Internet 1970s: other uses E-mail (1972) Networking technology Remote file transfer and computer access Mailing lists E-mail address forwards message to subscribed users 1979: Usenet (User’s News Network) Read and post articles Newsgroups (topic areas) 22

23. 1980s: personal computer use explosion 1989: National Science Foundation (NSF) permitted two commercial e-mail services MCI Mail and CompuServe Commercial enterprises could send e-mail 1995: privatization of the Internet Operations turned over to privately owned companies Internet based on four network access points (NAPs) Emergence of network access providers Sell Internet access rights directly to larger customers Use Internet service providers (ISPs) Sell to smaller firms and individuals 23

24. 24

25. II) E-Commerce: Definition and types 25

26. Definition 26 Electronic commerce Shopping on the Web Businesses trading with other businesses Internal company processes Broader term: electronic business (e-business) Electronic commerce includes: All business activities using Internet technologies Internet and World Wide Web (Web) Wireless transmissions on mobile telephone networks Dot-com (pure dot-com) Businesses operating only online

27. Types of E-Commerce Business-to-consumer (B2C) Consumer shopping on the Web Business-to-business (B2B): e-procurement Transactions conducted between Web businesses Supply management (procurement) departments Negotiate purchase transactions with suppliers Business processes Using Internet technologies to support organization selling and purchasing activities Consumer-to-consumer (C2C) 27

28. 28

29. III) Evolution of the E-Commerce 29

30. 30 E-Commerce evolution Electronic commerce history Mid-1990s to 2000: rapid growth “Dot-com boom” followed by “dot-com bust” 2000 to 2003: overly gloomy news reports 2003: signs of new life Sales and profit growth return Electronic commerce growing at a rapid pace Electronic commerce becomes part of general economy 2008 general recession Electronic commerce hurt less than most of economy Second wave underway

31. Why such a development? People more and more engaging in global commerce: Adopt available tools and technologies Internet Changed way people buy, sell, hire, organize business activities More rapidly than any other technology Electronic Funds Transfers (EFTs) Wire transfers Electronic transmissions of account exchange information Uses private communications networks 31

32. E-commerce waves of development 32

33. International nature of E-Commerce Internet connects computers worldwide When companies start using Web to improve business process, t hey automatically operate in global environment  Emergence of key international-commerce issues Trust Culture Language Government Infrastructure 33

34. Trust issues on the Web 34

35. Privacy and identity theft Important to establish trusting relationships with customers Rely on established brand names Difficult for online businesses Anonymity exists in Web presence Difficult to precisely determine an actor’s size or how well established it is 35 Trust issues on the Web

36. Cultural issues Culture Combination of language and customs Varies across national boundaries, regions within nations  Important element of business trust Anticipating how the other party to a transaction will act in specific circumstances Examples: - Privacy in Europe Vs. USA - Trust in payment methods 36

37. Language issues Languages may require multiple translations Separate dialects Business must adapt to local cultures “Think globally, act locally” Provide local language versions of Web site Customers more likely to buy from sites translated into their own language 50 percent of Internet content in English Half of current Internet users do not read English In 2015, it is expected that 70% of e-commerce transaction will involve at least one party outside of the United States 37

38. Government issues Online discussion inhospitable to cultural environments Government controls in some cultures Unfettered communication not desired Unfettered communication not considered acceptable Denounced Internet material content Unrestricted Internet access forbidden Filter Web content Regularly reviews ISPs and their records Impose language requirements… 38

39. Infrastructure issues Internet infrastructure Computers and software connected to Internet Communications networks’ message packets travel Infrastructure variations and inadequacies exist Local connection costs Inability to handle order Example: Google lays fibre network in Uganda's capital Kampala with “Project Link” 39

40. IV) E-Commerce: Benefits and disadvantages 40

41. Advantages E-commerce increases sales and decreases costs Virtual community: gathering of people online Using Web 2.0 technologies E-commerce buyer opportunities Increases purchasing opportunities Identifies new suppliers and business partners Efficiently obtains competitive bid information Easier to negotiate price and delivery terms Increases speed, information exchange accuracy Wider range of choices available 24 hours a day Immediate access to prospective purchase information 41

42. Benefits towards general society welfare Lower costs to issue and secure: Electronic payments of tax refunds Public retirement Welfare support Provides faster transmission Provides fraud, theft loss protection Electronic payments easier to audit and monitor Reduces commuter-caused traffic, pollution Due to telecommuting Products and services available in remote areas Amazon Prime Air 42

43. Disadvantages of Electronic Commerce All items cannot be sold through electronic commerce Perishable foods and high-cost, unique items Disadvantages will disappear when: E-commerce matures Becomes more available to and accepted by general population Critical masses of buyers become equipped, willing to buy through Internet Online grocery industry example 43

44. Intensified problems Calculating return on investment Recruiting and retaining employees Technology and software issues Cultural differences Consumers resistant to changes Conflicting laws 44

45. Summary 45

46. Electronic commerce Application of new Internet and Web technologies Helps individuals, businesses, other organizations conduct effective business Adopted in waves of change First wave ended in 2000 Second wave focuses on improving specific business processes Technology improvements Create new products and services Improved promotion, marketing, delivery of existing offerings 46

47. Technology improvements (continued) Improve purchasing and supply activities Identify new customers Operate finance, administration, human resource management activities more efficiently Reduce transaction costs Create network economic effects Leads to greater revenue opportunities  Electronic commerce fits into markets, hierarchies, networks…but depend on multiple variable and issues 47