EC Mechanisms &

Emerging Platforms

Slide created by:

Dr. Panca Hadi Putra
Ika Chandra Hapsari, M.Kom
Yekti Wirani, ST., M.T.I.
Learning Objectives
• Describe the major EC activities and processes and
the mechanisms that support them
• Define e-marketplaces and list their components
• List the major types of e-marketplaces and describe
their features
• Describe e-catalogs, search engines, and shopping
carts
• Describe the major types of auctions
• Describe virtual communities
• Describe social networks as EC mechanisms
• Describe the emerging technologies of augmented
reality and crowdsourcing
 The EC Activities-Mechanisms Connection

Source: Turban et al. (2016)

 ?

In your opinion, what is an

electronic marketplace?
 Electronic marketplaces (EM)

Also called e-marketplace, e-market, virtual market,

marketspace.

An electronic space where sellers and buyers meet and

conduct different types of transactions.

Markets facilitate exchange of Information, Goods,

Services, Payments.

Markets create economic value for buyers, sellers, Market

intermediaries, Society at large.
Functions of a market
Components of and the Participants in E-
marketplaces
• Customers: social vs. regular customer
• Sellers: companies, government agencies, individuals
• Products and services: digital products
• Infrastructure: networks, databases, hardware,
software, etc
• Front end: seller’s portal, e-catalog, shopping cart,
search engine, auction engine, payment gateway, and
other activities related to placing orders
• Back end: order aggregation and fulfillment, inventory
management, purchasing from suppliers, accounting and
finance, insurance, payment processing, packaging, and
delivery
• Intermediaries: a third party that operates between
sellers and buyers
 Type of E-Marketplace

Private e-marketplaces
Online markets owned and operated by a single
company:
• Sell-side (one-to-many): a company sells either
standard or customized products to individuals (B2C)
or business (B2B)
• Buy-side marketplaces (many-to-one) : a company
purchases from many potential suppliers

Public e-marketplaces
Owned by a third party (not a seller or a buyer) and they
serve many sellers and many buyers (e.g. stock
exchange)
 Marketplace as an intermediary gives
service:
1. Provide relevant information about demand: supply, prices, and
trading requirements.

2. Help match sellers and buyers.

3. Offer value-added services such as transfer of products, escrow,

payment arrangements, consulting, or assistance in finding a business
partner.
Back in 1990’s…
Back in 1990’s…
Disintermediation vs. Reintermediation

Disintermediation
• Elimination of intermediaries between sellers and
buyers.
• Intermediaries that provide only (or mainly) the
first two types of services may be eliminated.

Reintermediation
• Establishment of new intermediary roles for
traditional intermediaries that were
disintermediated.
Types of E-Marketplaces
• Private e-marketplaces
– Online markets owned and operated by a single company:
• Sell-side (one-to-many): a company sells either standard or
customized products to individuals (B2C) or business (B2B)
• Buy-side marketplaces (many-to-one) : a company purchases from
many potential suppliers
• Public e-marketplaces
– B2B markets, often owned by a third party (not a seller or a buyer)
or by a group of buying or selling companies (referred to as a
consortium ), and they serve many sellers and many buyers
(exchanges, e.g. stock exchange)
 ?

EC Mechanism
Other Mechanisms (see Textbook for detail)

• Storefronts, Malls, Portals

• E-catalogs, Search Engine, Shopping Carts,
Directories, E-Maps
• E-Auctions
• Web 2.0 Tools, Social Network Services
• Virtual Worlds
• Payment, Order Processing, Security, Support
 Storefronts
• a single company’s (or
individual seller’s) website
where products and services
are sold
• May target an industry, a
location, or a niche market
• Manufacturer: Dell.com
• Retailer: Amazon.com
Electronic Malls
• an online shopping location
where many stores present their
catalogs (ebay.com)
• This kind of mall does not
provide any shared services; it is
merely a directory
• When a consumer indicates the
category he or she is interested
in, the consumer is transferred
to the appropriate independent
webstore
 Web Portals

• A portal: an information gateway that is used in e-marketplaces,

webstores, and other types of EC (e.g., in e-collaboration,
intrabusiness, and e-learning)
• A Web (information) portal: a personalized, single point of
access, through a Web browser, to critical business information
located inside and outside of organizations
• Commercial (public) portals: kompas.com, detik.com
• Corporate (private) or enterprise or enterprise information
portals: https://apps.bni-life.co.id/CustomerPortal/
• Patient Portals: https://www.nextmd.com/ud2/login/login.aspx
• Publishing portals: techweb.com, zdnet.com
• Mobile portals, voice portals, Knowledge portals, Communities’
portals
 Electronic Catalogs

• Electronic catalogs
– Consist of a product database, directory, and a presentation
function
– the backbone of most e-selling sites
• Evolution of electronic catalogs
– Merchants—advertise and promote
– Customers—source of information and price comparisons
– Replication of text that appears in paper catalogs
– More dynamic, customized, and integrated

18
 Search Engines

• A search engine is a computer program that

can access databases of Internet or intranet
resources, search for specific information or
keywords, and report the results
• Voice-powered search
• Video and Mobile Search
• Visual Shopping Search Engine
• Social Network Search Engines

19
 Shopping Carts / Bags / Basket

• software that allows customers to accumulate

items they wish to buy before they arrange
payment and check out, much like a shopping
cart in a supermarket

20
 Online Auctions
• an electronic space where
sellers and buyers meet and
conduct different types of
transactions
• This market mechanism uses a
competitive process where a
seller solicits consecutive bids
from buyers (forward e-
auctions) or a buyer solicits
bids from sellers (reverse e-
auctions)
• Prices are determined
dynamically by the bids
Limitations
• Minimal security
– done in an unencrypted
(or poorly protected)
environment
• Possibility of fraud
– defective goods or
receive goods/services
without paying
• Limited participation
– invitation only or Open to
dealers only
21
 Virtual Communities

• A community is a group of people with common

interests who interact with one another.
• A virtual community:
– is one where the interaction takes place over a
computer network, mainly the Internet.
– offer several ways for members to interact,
collaborate, and trade

22
 Classifications of Virtual
Communities

• Public communities
– membership is open to anyone
– The owner of the community may be a privately held
corporation (e.g., Twitter, Instagram), public for profit,
or non-profit organizations
• Private communities
– belong to a company, an association, or a group of
companies and their membership is limited to people
who meet certain requirements (e.g., work for a
particular employer or work in a particular profession)
– may be internal (e.g., only employees can be
members), or external (for customers)
23
 Virtual Worlds as an EC Platform

• A virtual world/digital worlds/Metaverse is a site for

online communities in a computer-generated setting,
where users socialize and work with one another through
the use of avatars
– Avatars are interactive, animated, computerized “characters” that
are graphical images designed to look like humans and are
programmed to exhibit people’s behavior.
• usually structured as interactive 3-D virtual
environments, are created for users to inhabit and
interact in
• In a virtual world, you can be anyone you want
• E.g. Second Life

24
 Major Features of Virtual Worlds

• The worlds can be used by many users who access

them via online interface
• The interface is mostly 3D, which is more engaging
than 2D.
• All interactions are in real time from anywhere
• Most of the content is user-generated. It is facilitated
by tools provided on the sites.
• The virtual world is always in motion, regardless of
the presence of its residents.
• Socialization is encouraged. Tools are provided for
engagement and for creating groups and socially-
oriented activities.

25
 ?

In your opinion, what is the

definition of a platform?
Emerging Platforms

Crowdsourcing

Augmented Reality
 Emerging EC Platforms: Crowdsourcing

• The term crowd refers to any group of people

such as a group of consumers, employees of a
corporation, or members of a social network who
offer expertise.
• A crowd is frequently referred to a large group.
• Crowdsourcing
– Utilizes crowds to collectively execute tasks such as
solving problems, innovating, or getting large projects
completed by dividing the work among many people
The Elements of Crowdsourcing
Crowdsourcing Process
 Benefits of Crowdsourcing
• Problems can be analyzed or solved at
comparative little cost.
• Solutions can be reached quickly.
• The contributing crowd may reside within the
organization; therefore, talents may be
discovered.
• By listening to the crowd, organizations gain first
hand insight into the desires of their customers
(or employees).
• Tap into the global world of ideas.
• Customers tend to be more loyal if they
participate in a company’s problem solving
project.
 Emerging EC Platforms: Augmented Reality

• Augmented reality is “a live or indirect view of a

physical, real-world environment whose elements are
augmented (or supplemented) by computer-
generated sensory input such as sound, video,
graphics or GPS data
• Helps people enhance the sensory perception of
reality
• The major applications in EC are in the areas of
advertising and marketing.
https://www.youtube.com/watch?v=nyqN3yGFBVM&feature=emb_title
 ?

Any questions?