CHAPTER 1

OVERVIEW OF ELECTRONIC COMMERCE

Definition of E-commerce
* EC that not just includes the buying and selling of goods and srvices but also
servising customers, collobrating with business partners and conducting electronic
transaction within an organization.

CONCEPTS
Why e-commerce?

Reach new
markets

Make the use

of existing and Build customer
emerging loyalty
technology

Create new
Enrich human
products and
capital
services
 FRAMEWORK

Business
Consumer Intrabusin
to
to business ess EC
business
to
consumer

Consumer Collaborati
to ve
Business to consumer commerce
employees

E-learning

BENEFITS

BENEFITS OF
ORGANIZATION LIMITATIONS
TO
CONSUMERS

ORGANIZATION CONSUMER

Global reach ,cost Ubiquity, cheaper product and

SOCIETY services ,instant delivery,
reduction, supply chain
improvements, extended information availability,
hours, customization

Telecommunicating, hope for

the poor, availability for
public service
 ADVANTAGES OF EC

Electronic commerce can increase sales and decrease costs.

If advertising is done well on the web, it can get a firm’s promotional
message out to potential customers in every country
Using e-commerce sales support and order-taking processes, a business
can:
- Reduce costs of handling sales inquiries
- Provide price quotes
It increase purchasing opportunities for buyers
Negotiating price and delivery terms is easier
The following cost less to issue and arrive securely and quickly;
- Electronic payments of tax refunds
- Public retirement
- Welfare support

DISADVANTAGES OF EC

 Perishable grocery products are much harder to sell online.

 It difficult to:
- Calculate return on investments
- Integrate existing database and transaction processing software into
software that enables e-commerce
 Cultural and legal obstacles also exist

LIMITATION

o Lack of universal standard for quality, security and reliability

o The telecommunication bandwidth is insufficient, especially for e-
commerce, video and graphics
o Software development tools are still evolving
o It is difficult to integrate internet and EC software with some existing
o Special web servers are needed in addition to the network servers, which
add to the cost of EC
o Internet accessibility is still expensive and/or inconvenient
 INTRANET
an internal corporate or
government network that uses
internet tools.

THE EC
FRAME
WORK

EXTRANET
a network that uses the internet to
link multiple intranets

Internet & www

- Internet was a communication and research tool used almost

exclusively for academic and military purpose
- World Wide Web (www) is an organization of files designed around a
group of services in internet

INTRANET

APPLICATION
BENEFITS
 HUMAN
*LINKS EMPLOYEES RESOURCES
AND MANAGER  SALES AND
TOGETHER MARKETING
*PREPARES A  ACCOUNTIN
WEALTH OF G AND
INTERNET FINANCE
KNOWLEDGE TO  MANUFACT
EMPLOYEES URING AND
OPERATION