OVERVIEW OF E-BUSINESS AND E-COMMERCE
stocking, selling, shelf-price audit and price checks, re-ticketing, discontinuance,and customer inquiries.The employees like the new electronic commerce-based system too. It is veryuser friendly, both to learn and to operate, and the battery provides at least24hours of power, so charging can be done after hours. Finally, Hi-Life’semployees now have more time to plan, manage, and chat with customers. Moreimportant, faster and better decisions are enabled at headquarters, contributingto greater competitiveness and proﬁtability for Hi-Life.
LESSONS LEARNED FROM THIS CASE
The output of an information system is only as good as the inputted data. Whendata are inaccurate and/or delayed, the decisions that use the data are not the best, as in Hi-Life’s old system, which resulted in high inventories and lowcustomer satisfaction. The solution described in this case was provided by anelectronic-commerce system that expedited and improved the ﬂow of informationto the corporate headquarters. Electronic commerce (EC), which is the subjectof this chapter, describes the process of buying, selling, transmitting, orexchanging products, services, and information via computerized networks,primarily by the Internet (see Turban et al., 2004). This case illustrates anintrabusiness application, involving employees, and it is referred to business-to-employees (B2E) e-commerce. There are several other types of EC, and they allare the subject of this chapter. We also provide here an overview of the EC ﬁeldand comment on its relationship to other information systems.
(EC, or e-commerce) describes the process of buying,selling, transferring, or exchanging products, services, and/or information viacomputer networks, including the Internet. Some people view the term
as describing only transactions conducted between business partners.When this deﬁnition of commerce is used, some people ﬁnd the term elec-tronic commerce to be fairly narrow. Thus, many use the term e-businessinstead.
refers to a broader deﬁnition of EC, not just the buyingand selling of goods and services, but also servicing customers, collaboratingwith business partners, conducting e-learning, and conducting electronictransactions within an organization. Others view e-business as the “otherthan buying and selling”activities on the Internet, such as collaboration andintrabusiness activities.In this book we use the broadest meaning of electronic commerce, whichis basically equivalent to e-business. The two terms will be used
throughout the chapter and the remainder of the text.
PURE VERSUS PARTIAL EC.
Electronic commerce can take several formsdepending on the
degree of digitization
(the transformation from physical todigital) involved. The degree of digitization can relate to: (1) the
(ser-vice) sold, (2) the
or (3) the
(or intermediary). Choi et al.