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Information Systems CS-507 Lecture 41

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1 Information Systems CS-507 Lecture 41

2 Introduction Electronic Commerce (e-commerce or EC) describes the buying, selling, and exchanging of products, services, and information via computer network, primarily the internet. (8.13) E-business is a broad definition of EC, not just buying and selling, but also servicing customers, collaborating with business partners, and conducting electronic transactions within an organization. (Use if there is a need)

3 E-Commerce “E-business is all about time, cycle, speed, globalization, enhanced productivity, reaching new customers, and sharing knowledge across institutions for competitive advantage.” (12.16)

4 What E-commerce Does? In the age of global competition, e-commerce can play a critical role in helping organizations to boost sales at high margins due to the high economies of scale. It is something which is becoming need of the day. 18.52

5 E-Commerce Vs. E-Business
E-business means using the internet and online technologies to create operating efficiencies, and therefore increase value to the customer. It is internally focused. Think swift integration of planning, sourcing, manufacturing, management, execution, and selling using IT infrastructure. 20.00

6 E-Commerce Vs. E-Business
Concerns for e-business usually are which are broader than: Has e-business increased your effectiveness? Were our processes faulty before we moved them online? Are we gaining efficiencies in specific areas? Have relationships with suppliers or customers improved? Are our web-enabled systems assisting in decision making, or just providing access to information? Does our e-business strategy fit with our overall corporate strategy? (21-23)

7 If there is a direct financial transaction involved with the electronic process using Internet technologies it is e-commerce. If there is a non-financial transaction with an electronic process using Internet technologies it is e-business. (20.00)

8 E-Commerce Vs. E-Business
Any transaction with an electronic process using Internet technologies is e-business. Examples: Ordering a book on is e-commerce and e-business. Creating a map with directions from your home to the post office on google maps is e-business (no e-commerce involved). The above confusion is quite similar to what exists between Marketing and sales. Sales is part of Marketing. Marketing includes other activities, such as Advertising which is not Sales. (if there is a need)

9 Forms of E-Business Business to Consumer (B2C)
Business to Business (B2B), Business to Employee (B2E), Consumer to Consumer (C2C) and E-Government Government to Citizens/Customers (G2C) Government to Business (G2B) Government to Government (G2G) (27.52)

10 Electronic Data Interchange
Electronic Data Interchange (EDI) is a set of standards for structuring information to be electronically exchanged between and within businesses, organizations, government entities and other groups. The standards describe structures that emulate documents, for example purchase orders to automate purchasing. The term EDI is also used to refer to the implementation and operation of systems and processes for creating, transmitting, and receiving EDI documents. (37.23)

11 Consumer to Consumer (C2C)
An increasing number of individuals are using the Internet to conduct business or to collaborate with others. Auctions are so far the most popular C2C e-commerce activity. (37.23) Some other C2C activities are: Classified: Individuals used to sell items by advertising in the classified section of the newspaper. Today, they are using the Internet for this purpose. Some classified services are provided for free.

12 Consumer to Consumer (C2C)
Some other C2C activities are: Personal Services: A variety of personal services are offered on the Internet, ranging from tutoring and astrology to legal and medical advice. Personal services are advertised in the classified areas, in personal web pages, on Internet communities’ bulletin, and more. Be very careful before you buy any personal services. You need to be sure of the quality of what you buy. Peer-to-Peer and file exchange: An increasing number of individuals are using the P2P services of companies. Individuals can exchange online digital products, such as music and games.

13 E Government The terms refer to government’s use of information and communication technology (ICT) to exchange information and services with citizens, businesses, and other arms of government. E-Government may be applied by legislature, judiciary, or administration, in order to improve internal efficiency, the delivery of public services, or processes of democratic governance. The primary delivery models are Government-to-Citizen or Government-to-Customer (G2C) Government-to-Business (G2B) and Government-to-Government (G2G).

14 Government to Citizen (G2C)
Government-to-Citizen (abbreviated G2C) is the online non-commercial interaction between local and central Government and private individuals. Many government entities in pakistan are making it more convenient for the citizens to interact with them. For example 43.46 CBR offering services regarding ( Online verification Sales tax registration status Online availability of tax returns 44.00 NADRA registration system ( NIC registration process Bill Payment Kiosks Guidance notes Contact information Complaints section for applicants

15 Government to Business (G2B)
Government-to-Business (abbreviated G2B) is the online non-commercial interaction between local and central government and the commercial business sector. (44.32) The basic difference between the G2C setup and G2B set up is that government is dealing with private individuals (citizens) in case of G2C and commercial sector in case of G2B. For Example: Trade development authority of Pakistan, formerly Export Promotion Bureau (EPB). (, providing Facilitation for exporters Exporters’ database Guidance on regulations Registration and complaints procedures (45.17)

16 M-Commerce M-Commerce (mobile commerce) refers to the conduct of e-commerce via wireless devices. These devices can be connected to the Internet, making it possible for users to conduct transactions from anywhere. (49.10) The employees need to collaborate and communicate with office employees and to access corporate data, rapidly and conveniently. Such a capability is provided by m-commerce. (49.26)

17 The Characteristics of m-commerce
Mobility Reachability

18 Security Concerns Physical details of the products are not available in case of internet shopping than in case of walking around. In case they are available, they need to be accurate and supported with images of the product. That is lack of physical feel of the product should be electronically supported. 50.55 Although there are means of increasing security of digitally transmitted transaction data (such as using encryption technology and digital certificates), the threat of hackers getting at your personal information is always a real one – perhaps not from your computer, but may be from vendors or his business partners systems. 52.28

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