E-Commerce:

Fundamentals and Applications

Chapter 1 : Introduction

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 Outline

 Electronic commerce and physical commerce

 The DIGITAL phenomenon
 Looking at e-commerce from different perspectives
 Different types of e-commerce
 Examples of the types of e-commerce
 Some e-commerce scenarios
 Effect of e-commerce
 Advantages of e-commerce
 Myths about e-commerce development and implementation
 System model of this book

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 Types of Commerce

Commerce

Electronic Physical or Traditional Commerce

Commerce

Internet 
Commerce

Business Consumer focused

focused e-commerce 
e-commerce

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 Digital Phenomenon
 What do you think?
 What are the drivers of e-commerce?

Data networks
Intense competition
Globalization
Information age DIGITAL
Technologies
Automation
Low cost high quality products/services

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 E-commerce from different perspectives
 Three layer models for e-commerce (e.g. Zwass’s
model).
 E-business: a wider perspective than e-commerce.
 E-commerce improves the value chain.
 E-commerce provides an effective tool for building,
managing and enhancing these relationships.

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E-Commerce: Fundamentals and Applications 5  Wiley and the book authors, 2001
 Different types of E-Commerce

Business Customer
(organization) (individual)

Business B2B B2C

(organization) (e.g TPN) (e.g Amazon)

Customer C2B C2C

(individual) (e.g Priceline) (e.g eBay)

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 Examples

 B2C: www.amazon.com
 C2C: www.eBay.com
 B2B: www.tpn.com
 C2B: www.priceline.com

Let’s visit these web sites in turn and discuss its features.

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E-Commerce: Fundamentals and Applications 7  Wiley and the book authors, 2001
 E-commerce scenarios
 Retailing
 Servicing
 Publishing
 Supply chain management

Discussion: How are they changing?

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 What are the advantages of e-commerce?
 To consumers (think about the consumer buying
process: search, evaluate and execute):

 To businesses (think about the common objective of

every business):

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E-Commerce: Fundamentals and Applications 9  Wiley and the book authors, 2001
 Discussion
 How should different departments participate in an e-
commerce project?
 Management
 Marketing
 Production
 Finance
 Procurement
 Customer support

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E-Commerce: Fundamentals and Applications 10  Wiley and the book authors, 2001
 Transformation of a Compartmentalized
Organization into Integrated Organization

Production Marketing
Management

Management

Production Marketing Finance Personnel

Department Department Department Department

Finance Personnel

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E-Commerce: Fundamentals and Applications 11  Wiley and the book authors, 2001
 Three-tier Technical Model

Server side

Client side Service system Backend system

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E-Commerce: Fundamentals and Applications 12  Wiley and the book authors, 2001
 Architecture of Web-based E-
Commerce System

Service system Backend system

Web Server Application Server

Internet Database

Intranet
Firewall
(Secure)

Client side Server side

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