E-Business, E-Commerce, and M-Commerce This unit explains the concepts of e-business, e-commerce, and m-commerce and their relevance to business organizations and consumers. It also includes real-world examples to demonstrate concepts clearly. UNIT OUTLINE 4.1. Introduction to E-Business 4.2. E-Commerce Fundamentals 4.3. Basics of M-Commerce 4.4. Differences between E-Business and E-Commerce 4.5 Differences between E-Commerce and M-Commerce 46 Guidelines and Laws Governing E-Commerce 47. Real-world Examples of E-Commerce and M-Commerce 4.8 Case Study LEARNING OBJECTIVES At the end of this unit, the student should be able to: 1. define e-business and its contributions to business organizations; 2. differentiate e-commerce from m-commerce; 3. understand and apply e-business models in designing e-commerce websites for business organizations; and 4. describe the challenges, barriers, and ethical implications involved in the adoption of e-business in business organizations.ir appcicarion Tools 1M BUSINESS usiness Opportunities {At the prevent, almost everyone uses the Internet, Wii the use of e-business, small and large business organizations are provided with great opportunities to compete in the global market, E-business has the ability to transmit and transform business information and use it to achieve competitive advantage Furthermore, it is designed to meet the needs of a business organization's customers, According to a research study conducted by Evans and Wurster entitled Strategies and the New Economics of Information (1997), there are three basic characteristics of information when combined with internet technologies, namely, reach, richness, and affiliation. 1. Reach. It refers to the potential number of local and international customers of a business organization that can interact with each other through the use of the Internet. Reach can also be defined as the number of categories and products that can be covered ina consumer interface. This includes catalogues, websites, and so on. 2. Richness. It refers to the information that business organizations can share to their consumers. This may include detailed information about a certain product which includes the product name, description, price, and availability. Business organizations should maintain the accuracy, reliability, and security of the information transmitted through communication channels to prevent issues in the future. 3. Affiliation. It refers to the effectiveness of the linkage’ between business organizations. In terms of online Partnerships, the business organizations with more cous linkage influen and ef partner making In addition, t build a strong an¢ online to achieve service, busines: platforms, such a quality services channel to purche Risks and Barri E-business s organizations. He against the risks These risks may | of a strategic ris to invest in o-b: advantage, but o be caused by inay On the othe: with e-business For example, po NO connection, Protection, prob emailsnas e-commerce, refers line using the Internet Electroni h as: n rcial transa xecuted 0! chnologies SUC! « Automated data collection systems Electronic funds transfer Electronic data interchange «Internet marketing Inventory systems Online transaction processing * Mobile commerce Supply chain manag e uses the World Wide Web (WWW) for its sing e-commerce are the sharing ting of business relationships, ess transactions using ement E-commerc transactions. Examples of U of business information, SUPP toring of busin’ and managing and moni telecommunication network computers that are connected to a Fig ie Food delivery service made possible rough online business transaction 14yr apruscaTign 100LS 1 BUSIHES E-BUSINESS, COMMERCE. ano w-ceuueatE threats of E-Commerce ontaning important files and Customer info 2. Global Reach and Security savers cortaning es E-commerce allows @ company to get custome being et oplicating e-commerce SiteS tO steal q anywhere in the world. Global reach, also krown + impostors dup! storey wordide access isthe ett 4 eS consumers a business can umber of possible sempting to steal customer information gy ee ee * een ’ when working globally: therefore, customer information eons and privacy must be protected and ensured when usin + ravoned users with hidden MOtveS atackng econ ose ee p aareter r gndlor selling information to competitors system 3. Universal Standards This refers to a website that can be operated on 2 standard platform which follows identified methods and systems. This employs an easy-to-use e-commerce website with a simple design and content. 4. Richness This refers to the volume of the content of the website and the way its used by consumers. Ensuring 3 site's richness, by providing a combination of messages ‘and means to improve customer experience, is essential for businesses. Videos, pictures, texts, sounds, and links can be used to improve customer experience, 5. Interactivity URE A.2 E-commerce mind map This feature refers to the relationship between a consumer and an e-commerce website. It provides face-to-face customer meetings when conducting Features of E-Commerce business transactions. Increased interactivity allows for the establishment of an emotional connection between consumers and the business, thus helping build brand The following are the features of e-commerce that mustbe checked and considered when managing such type of buses company trust and loyalty 1. Ubiquity 6. Information Density This means that the marketable transaction ® This refers to the amount of products that can fit, activity is accessible at any time, anywhere in the wo on a computer screen. There is no given standard for an e-commerce website's information density 116 wprucrign Toots 13 BUSINESS E-HUSINESS, E-COMMERCE, 440 -couuea ct «Pinoy usta caipwabalte provides a Fvarill & ruipno businesses 2n9!N9 fom matan yd Fipmans to embassies and organanie ring bres ole Pg a uring 2017, Pinoy Listing reached 1.39, ystors and eared 10,660 Views per day, FHGURE 46 Yalwa as an example of a 828 model webate ee also provides a platform for " ratings. These user ratings help future buyers choose wi a "© what products/services YalWa em mena AUREAS, Pinoy Listing as an example of a B28 model webste = Yalwa Founded in 2006, it is a global webste that provides a descriptive directory businesses of varying industries. it canbe accessed using two websites: http://wwr. yalwa.com (for international access) and http://wwwyalwa.ph (for Philippine acces) FIRURE 47 Yalwa Philippines as an example ofa B28 model webste a rapanrycarsan fous 14 UUSUECES CHUSUESS, COMMERCE, AnD acHMMCARE lecions (COMELEC) with their ‘Commission on Elect wae net PCOS The main purpose of the G2C model is to reduce cries sed the average tine needed for fling citizens” requests ae — g=- = -CS-= FIRURE 10-826 business model a Security's a fundamental part of any operation taking place aes a a ee Mer pusiness model elers 10 governmen owanty ts breached. The following are indispensable conditions ane ae services or formaten gy | geste payments and/or sactons ose ron AZO mode wet 1. Auditability ~ data should be documented in such a by the government to approach and Communic way that it can be audited for the real requirements. oy pusiness organizations. Examples of B2G mod Authenticity there should be procedures to panes are those that SUPPOFT AUCTIONS, a wally authenticate a user before giving him/her access to the required information. ‘Availability ~ itis a requirement that information must > woe bbe available anytime and anywhere, and it must be ander and application submissions bound by a time limit. Confidentiality ~ information should be kept and not be accessible by an unauthorized user. It should not be 46. Government-to-Citizen (G2C) interrupted dunng the transmission, Encryption ~ information must be secured through the encryption and decryption of an authorized user. Integrity — information must not be modified during its transmission over a network. Honesty and strong moral Tmamage and death certificates from the Philippine principles rmust be applied. ‘Statistics Authority (PSA), or car registration from the vd Non-reputation ~ there should be assurance that Land Transportation Office (LTO), and others ‘someone cannot rebuff on something. Its to certify that 2 person involved in the contract or in communication Cm 5 Website |= cannot refute the authenticity of their signature on a document. [ABURE 411. 2B business model Tre model is being used bythe goverment vouate wth tiers gal approach nd 22H cout ins model implements pov he Pe lj bin registration, the acquston HIBUREA12 G2C business model aous 1m BUSINESS sce, also known 2& M-Commerce, refe mre! = ve pandheld devices, such 35 mobile phones transactions online. M. fonduet business-related = ee * online business transactions, which ing onsactons © of a wide range of prox whe purchasing and 22d 192 Of Products ang ent, and informa renin banking, bills payment. nc 80 delivery she use of wire ARMNE L13 The evolution of mobile technology demonstrates the evolution of mobile technology, szrtog ut analog telephones to digital smart watches, The capabilities of 2 mobile phone have enormously eh since twas introduced in te 1980s, Data transfer range has ai ‘tom analog cell phones with 1G to the 4G of todays le phones. Many consumers stil use the GSM technology (Prd generator), which does not allow any Internet acta However there are consumers who use the 2.5G web access and 3G oF 4G phones that allow access to even broadband speed lntemet access. In today’s generation, mobile technologies are widely used to access the Internet and do online transactions using mole phones. For several years, mobile phones are designed primal 26 NESS, E-COMMERCE, AnD w-touucate for sending text messages as a means of communication However, through time, many features were added, including eo cals, access to mobile app, and 20 on ‘The following are benefits of mobile technologies: Ubiquity. They allow users access anywhere Reachability. Users are easy to reach, Convenience. There is no need for users to have fixed- line connections. Security. They ensure that user information is free from the risk of loss or theft through authentication. Privacy. The degree of privacy is higher compared to a desktop PC ‘Availability. Users can freely access them at any time of FIGURE 424 The concept of m-commerce shown through a mobile phone Figure 4.14 demonstrates the concept of m-commerce wherein customers can purchase something over the Internet with the use of their mobile phones. Many business organizations nryarewicatio ve conver tir exormerce POT Io meg have conver” cebook (wow facebook Com) can be aq For example. wees because of the Wireless through mobile dev! APPlicatign preroce (WAP? (-Commerce Forces J are the four (4) main forces that suppoq The followin commerce gourth (th) and Third (3rd) Generation Technology Fourth (4th) generation technologies, developeg in 2012-2015, with a maximum data transfer rate 4 wots, adopted m-commerce. However, third Generation technologies were introduced in 2004, wi, sete of 14.4 Mbits of maximum data transfer, and hg fhe adoption rate of 28% in both Europe and thes according to Comscore. Wireless Application Protocol (WAP) This is a technical standard used for the transferof information to specific wireless devices, such as mobile phones. It was introduced in 2000, and it displays formation and content in small screens like that of mobile devices. iMode Access Platforms This is another form of mobile access that was introduced by the Japanese. Its so-called Japanese {Mode standard displays content using HTML The mast popular Mode downloads are ringtones, musi and dating services, Mobile phone urs have inreaed remendou cover the past years. Consumers can ae widen ee ee an avalable Mobile operators are able to detects users spect location and identieaton Prsonalaad recess wet can be used anytime we offered mote ware Top X-Commercce Applications in the Philippines internet economy” among six primary markets in Southeast Asia. aie i oe In May 2019, it 's reported that Shopee and Lazada were the dominating m-commerce applications in the country. The following are the top m-commerce applications in the Philippines: Larada Shopee Zalora ‘Amazon AliExpress. BeautyMni eBay |. Sephora Alibaba Altheac-susincss, E-COMMERCE, 1 ir arpuication routs 1 60 Oumence {LA FFERENCES BETWEEN E-BUSINESS AND E-COMMERCE us nce been baton closes E-commerce and e-business are two evolving methods of | ECom con pssnens hat are gang mmporance with the passagg Todngof tite ee cree, IBM defined e-business as “the transformation of kay rerchandos | hereanea rare processes through the use of internet technologies = mere warty key business processes mvolve marketing, research Jagistes, manufacturing, and suppl chan management. On th - Yes re ao oend, e-commerce is best described as the buying and orling of goods around the web, which is commonly known ag Canara ir wansactions Internet Business wansactions online transactions E-commerce isa subset of e-business because the majonty of Website or | Website, cstomer the wansactions done in e-commerce are also part of e-business, mobile ae eee aoa ordenng, paving, purchasing, and so on. The main renner Stfarences between the two are the end-user and integration planning, supply cain Cihnmess refers to the conduct of business using Internet a technologies. t does not focus on buying and selling alone but ae oe providing services to customers and collaborating effectively Required vternet, intranet, and extranet ith business partners. Table 4.1 shows the comparison between iS 0 ha ee a ‘e-business and e-commerce, Seren Retneved om htps//keyiferencescom/diflerence beween-© Sremerce-and-e business hn! 5 DIFFERENCES BETWEEN E-COMMERCE AND M-COMMERCE Technology has helped make people's lives better. With the use of the Internet, everything is available at one's fingertips. Purchasing products no longer requires physical appearances in stores owing to technologies such as e-commerce and commerce. ‘M-commerce refers to the operation of business transactions through the internet using mobile devices, such as smartphones, FBRE 5 Concept ofcllaboration between vile e-commerce makes use of computer desktops or laptops. between businessmen using Internet technologies,CtES i} sr arpuicarion 10015 1H BUSINESS an individual to another Information can be § ‘ecpooks, electronic data messages.” Ages, a documents: -y iwawes the following three (3) nas so on. The [a individuals pata Subject. This refers to an individual af at who persona information is Being processed ‘9 an individual, person, or bus a : personal information on his/her behalf Personal Information Processor. This rele to 2 juridical person qualified to take acton under the act. Consumer Protection Regulation - Transactions through E-Commerce The Department of Trade and industry (OTH, wh the pamicipation of other government sail wre eu a consumer protection regulation that prove protection to consumers when buying and seg Preduers and services through the use of €-commets nes for E-Commerce Transactions inthe Tax Guidel Philippines On August 5, 2013, the Bure issued Revenue Memorandum ‘au of Internal Revenue Circular No. 55-2013 in Relation to Online Reiterating Taxpayers’ Obligations pose of this cris Business Transactions. The main pur is to remind individuals and business organization. onde sles and taxes properly when conducing ut ‘transactions. Bb _ . : | | sual ano "| -tommerce Websites 1 2 E-BUSINESS, E-COMMERCE, AND m-commen i -WORLD EXAMPLES OF E-COM! COMMERCE ot amazon itis an American e-com merce website that i anopporunity to buy producs online wofdvider > FIGURE 4.16 Amazon website eBay it is an American e-commerce website that provides various services to consumers such as auctions, online payments, and online shopping. 7 FIGURE 437 eBay website 37sp armuscarion 1o0.s 1H BUSINESS 3. Alibabs tis a well-kno the global market o wun Chinese company that is now Picea. pecaiee Po real he FIBURE A1B Alibabs website ‘bxamples of H-commerce 1, Mobile vouchers FIBUBE 419 Purchasirg of a gift voucher using 2 mobile PP BB E-AUSINESS, E-COMMERCE, 450 w-couwtasy obi lepeil toro enobile app. 18 9 platform that can Fein stocks or trading can be used to FIBURE 4.20 Toro mobile app for investment g CASE STUDY Phoebe Cosmetics Company sim ‘The aim of this case study isto allow students to demonstrate their knowledge in e-business management, specifically its core concepts and the techniques, application, and analysis of business srategies Case Scenario Phoebe Cosmetics Company is a newly established fashion and cosmetics business located in the capital city of Manila, This company is considered one of the largest retail cosmetic companies in the Philippines. The company is currently facing Borarruicarioa TOOLS 1H BUSINESS ae rune et has the ability to transform by, Intern a Si enc Filipino retailers and consumers toa fe are monic ways to buy and sell. Due to the advan En { technology and the Internet, JL Retail Store annoy or intention to transform their brick-and-mortar store, This u ‘an online-run business. The retail store owner, Ms_ i enterprise decided to adopt e-business technologies in Order ty organizat' compete in the market. She decided to have the follo, business | changes: manag 1. Transformation from traditional business into | e-business ; UT! 2. Improvement of marketing strategies pt UTE : ; 1 Mani 3. Development of a grocery retailing website | ~ Friars The main purpose of this transformation is to make J | 5.3 Cust Retail Store the largest and most popular grocery Tetaling 5.4 Deci store in the Philippines and in Asia by 2030. 55 Strat j Analyze the aforementioned scenario and prepare 5.6 Vend report that must include the following: 57 Acco . 5.8 Hum Recommendation of i £ of an e-business solution for Jt 59 Ente Retail Store that would help its transformation 2. Possible challenges and issues that JL Retail Stor LEARNING might face during the transformation At th 3. Suggested e-commerce business model/s tobe ‘ applied to the situation of JL Retail Store ie a