2Overview of E-commerce Definition:Electronic Commerce (EC) describes the process of buying, selling, transferring, or exchanging products, services, and information using computer network and the Internet. It also include servicing customers, collaborating with business partners, conducting e-learning, intra business activities, and conducting electronic transactions within an organization.
3E-commerce formsEC can take several forms depending on the degree of digitization of :1-product 2-process 3-Deleivary agent.All of them can be physically or digitally.examples: buying SW is pure digitally, buying a shirt is partially digital and partially physically.Any transaction that is partially digital is an E-commerce transaction.
4EC organization are pure physically organizations, but companies engaged only in EC are virtual organizations.EC can done over the:1-Internet 2-Value-Added networks ( VAN) that add communication services to existing common carriers such as LAN.* For example: buying food from vending machine, buying with smart cards or cell phone are all EC activities.
5Types of EC transactions 1-Business to business (B2B): seller and buyer are organizations.2- collaborative commerce (c-commerce): sharing business activities electronically.3-Business to consumer (B2C): seller is an organization, buyers are individuals.4-consumer to business (C2B): consumer names a service, the organization try to fulfill it. (it looks for a supplier to the service).
65-consumer-to-consumer (C2C): individual sells product to other individual. 6-intra business (intraorganization) commerce: internally improve org. functions.7-government to citizens (G2C) or others: government provides services to citizens using EC technologies. It can do business to other governments.8- mobile commerce (MC): EC is done in a wireless environment, using cell phones to access the Internet.
7EC models Some of the major EC models are: 1-Online direct marketing sell directly to customers.2-Name-your-price (use priceline.com)3-Find the best price: specify your need, compare prices, choose the best price.4-virtual marketing: spread your brand on the NET.5-membership model: for members only.
8EC benefits To organization: 1- Expands a company’s market place to national and international markets.2- decreases cost of creating, processing, distributing, storing, and retrieving information by digitized process.3-enables companies to get material and services from other companies faster and cheaper.4-enables small business to compete with large ones.
9EC benefits To customers 1-provide less expensive products and services provided by online services.2- gives customers more choices to select from.3-makes it possible for people to work and study at home.4-allows consumers to communicate and exchange ideas.5-enables customers to shop 24 hours daily.6-delivers detailed information in seconds.
10EC benefitsTo society1- enable individual to work at home, and do less traveling.2- allows some good to be sold at low prices which increase the living standards.3-enables people in developing countries to enjoy products and services that are not available in these countries.
11Limitations and failures of EC There are technical and not technical limitations which slowed the growth of EC, some of which are:A- Technical limitations:1-lack of universally accepted standards.2-insufficient telecommunications bandwidth3-still-evolving SW development tools.4-difficulties of integrating the Internet and EC applications and SW with some existing applications and DBs (especially legacy).5-need for special WEB servers.6-expensive and inconvenient Internet accessibility.
12B- Non Technical limitations: 1-unresolved legal issues (for quality, security, and reliability).2-lack of national and international government regulations and industry standards.3-lack of mature methods for measuring EC benefits.4-many sellers and buyers wait for EC to stabilize before they take part.5-customers resistance to change from real to virtual store.6-thinking that EC is expensive and unsecured.
13EC mechanisms The most common are: A-Electronic auctions B-Portals A mechanisms where sellers place offers and buyers make sequential bids. It uses competitive nature for reaching a final price.The Internet provide an efficient infrastructure,a less expensive and with many participants of sellers and buyers.
14Auction types1- Forward: used as a selling channel for one seller to many buyers.- products are placed in a site like eBay.com. Sellers and buyers can individuals. They bid continuously and the heights bidder wins the items.2- Reverse auctions: there is one buyer, (an organization) that wants to buy a product or services. Then suppliers are invited to submit bids. Online bidding is fast and attracts many bidders. The lowest bid wins.
15Auction Benefits Benefits to sellers: Increase revenues in a short period of time.More buyers means more optimized selling prices.Saves auction fees, administrative expenses.Enables more liquidation
16Benefits to buyers- increased chances to find unique products.Chance to bargain instead of buying a fixed price.Entertainment buyers enjoy e-buying.Anonymity buyers remain anonymous.
17Portals E-commerce portals(المداخل الى التجارة الالكترونية): As the Internet and Intranets are widely used, more and more information are gathered which (overload) . Information is scattered across documents, messages, and database in different locations and systems. This makes finding accurate and relevant information takes time and requires access to multiple systems.
18To solve this problem PORTALS are used. Portal is an information gateway. It attempts to address information overload through an intranet-based environment to search and access relevant information from disparate IT system and Internet using advanced indexing and search techniques.
19Information portal:A single point of access through a Web browser to critical business information located inside and outside an organization and it can be personalized.
20Types of PortalsPortals vary according to audiences and contents. We consider five types:1- commercial (public): offer routine contents for different audiences, most popular on the Internet, intended for broad audiences.Examples : yahoo.com, lycos.com2-publishing portals: intended for specific groups of specific interests. They provide extensive on line search.examples: techweb.com and zdnet.com
213-personal portals: contain specific filtered information for individuals. Offer narrow contents for one audience. Example any personal web page.4-mobile portals: accessible from mobile devices.5-voice portals: web sites with audio interface, they can be accessed by a standard phone or cell phone.
22Functionality of Portals Functionality vary from simple information portals that stores data and enables users to navigate and query them to more sophisticated one that allows collaboration.Collaborative commerce refers to non-buying and selling EC transactions. It refers to joint product design, joint forecasted demand and other decision making activities among organizations. Example, collaboration between a company and a vender who is designing a product or part of it.
23Legal and Ethical issues in E-Commerce When buyers and sellers do not know each other and can not even see each other (they may be in different countries), there is a chance that dishonest people will commit fraud and other crimes over the Internet.Internet fraud has grown very fast even faster than the Internet itself.
24E-commerceProcess of buying, selling, transferring, exchanging products, services, or information over computer networksPure versus partialBased on degree of digitizationProductProcessIntermediaryPure requires all three components to be fully digitizedInternet versus non-InternetMost are Internet basedMay be value-added networks or local area networks
25E-commerce Transactions Business-to-business (B2B)Business-to-consumer (B2C)Consumer-to-consumer (C2C)Consumer-to-business (C2B)Government-to-citizens (G2C)Collaborative commerce between partnersBusiness to employeesIntrabusiness/Intraorganizational commerceMobile commerce (M-commerce)
26Scope of E-commerce Applications supported by infrastructure HardwareSoftwareMessaging, multimedia, interfaces, business servicesNetworkscommunicationsSupport areasPeopleLegal and public policy and regulationsMarketing and advertisementsSupport services ranging from payments to order deliveryBusiness partnerships like joint ventures, e-marketplaces, affiliations
27Advantages Advantages: Expands marketplace globally Expands availability of resourcesShortens marketing-distribution channelsDecreases expensesReduces inventoryAids small businesses in competingEnables specialized nichesQuicker delivery of informationEnables individuals to work from homeFacilitates delivery of public servicesAllows for purchase of goods at lowered pricesEnables customization, personalizationDecreases costs to customers, while increasing their choicesAllows for 24 hour shoppingMakes electronic auctions possibleEnables people to interact in electronic communities
28Limitations Limitations: Lack of universal standards Insufficient bandwidthSoftware-development tools are still evolvingIntegration difficultiesNeed for special Web servers in addition to network serversAccessibility expensiveUnresolved legal issuesLack of national and international governmental regulationsLack of mature methodologies to measure benefits and justifyCustomer resistanceSecurity questionsInsufficient number of buyers and sellers for profitable e-commerce operations
29E-commerce Mechanisms Electronic auctionsCompetitive market mechanismsForward auctionsSellers place offers and buyers make sequential bidsعروضReverse auctionsSellers are invited to submit bids on product or service buyer wantsBarteringمقايضهExchange of goods or services without money transactionsPortalsبوابات الانترنتInformation gatewaysSingle point of access through Web browser
30Portals Commercial Publishing Personal Mobile Offer content to broad audiencesRoutineLittle personalizationPublishingBased on specific interestsExtensive search capabilitiesPersonalTarget specific filtered informationNarrow contentPersonalizedMobileAccessible through mobile devices
31Portals Voice Corporate Audio interfaces Accessible through phones Access to business information located both within and outside of organizationRich contentLimited communitiesOrganized focal pointSuppliersCustomersEmployeesSupervisors
32Legal and Ethical Issues FraudSeller’s and buyer’sBuyer protectionSeller protectionUnwarranted repudiationIntellectual property rightsDomain namesPrivacy issuesCookiesWeb trackingSales of listsMonitoring s and site visitsTaxationDisintermediationIntellectual Property issues