UNIT 6: SUMMARY OF DISCUSSION & E-BOOK

E-BUSINESS STRUCTURE ● Now, the competition is also heightened

1. Internet with CRM (Customer Relationship
○ Internet or (International network) is Management).
a large network used by business ○ In companies, feedback controls and
organizations to establish mechanisms are very important to
e-business and ecommerce used them. Some companies have an
websites incentive to the customer when they
2. Business give feedback for their
○ E-business transforms our daily product/service
lives on how we interact with the TECHNOLOGY
customer and also people who ELECTRONIC BUSINESS
involve in supply chain Refers to the conduct of business
management: suppliers, distributors, operations and activities using electronic means
retailers, manufacturers, and logistic (i.e., a network)
partners ● Exchange of products or services
○ E-business provides a new avenue ● Online marketing
for businesses to create and do ● Electronic transactions
basically their day-to-day operations ● Business strategy
○ E-business purpose of this, by TRANSFORMATION OF ELECTRONIC
trying to assess and check for BUSINESS
operation efficiency. Some 1. Online presence
businesses thrive because they are ○ Electronic business allows the
able to streamline (cut the organizations to establish a “global
unnecessary step on their workflow) presence”, or the global reach, and
their business process the expansion in the market or niche
○ Digital Age has been much alive natutulungan ng electric business
nowadays and evident because of ■ It eliminates any limitations
the online business produced by physical
3. World Wide Web location
○ Provides unrestricted access to and ■ Online presence you can see
publishing of information over the the product through the use
Internet using web browsers of websites, online
BUSINESS marketplaces, social media
● Business transaction does not end with the platforms– example of
“purchase” or “you render the service of the avenues where business can
customer”. produce or showcase their
 products/services to reach a customer and better collaboration
larger audience and 24/7 across supply chain management
available if using the online 6. Customer relationship management
presence ○ Used the customer data basis and
2. Electronic Commerce automated communication also
○ In general, online businesses are contact management tools
called electronic businesses. ○ You have a system in place to
○ Part of Electronic Business enable the business to have a better
■ Part of Electronic Commerce interaction with customers
■ Mobile Commerce ○ Some businesses invest after the
3. Digital marketing sales service (e.g., warranty repair)
○ Enhance the brand visibility ■ Customer retention – effect
○ Business can utilize SEO of CRM also to enhance
alternatively, social media marketing customer satisfaction and
○ (Search Engine Optimization), support long term client
ranking when searching. It is the relationship
ability of your website to be ahead of 7. Data analytics
your competitors ○ Use the data analytic tools and
4. Electronic payment techniques to help you as a
○ GCash, PayMaya, or online banking business owner to understand
to transact with other companies customer behavior, and check of
○ Online payments gateways it is risky trends also patterns (e.g., market
5. Supply chain management trends or financial patterns) also
○ Impact of electronic business in check the outliers, lastly– make
supply chain management like the informed decisions for customers
automation of inventory like purchases (operations
management and online efficiency) it enhances your overall
procurement as a business performance
enterprise and the use of Electronic 8. Security and privacy
Data Interchange (EDI) – enable ○ It is an important factor to be
better coordination among your considered when doing online
transacting practice such as the transactions it should have a control
suppliers, manufacturer, distributors, measure in place (implemented
and retailers contingency plan and safety
○ In effect/ impact it has good mechanism)
inventory control, if you have a
system in place it can reduce cost
for faster order fulfillment for the
NETWORK USED FOR E-BUSINESS ■ Academic Business entities
1. Intranet are linked by various
○ Internal network of a business technologies ranging from
○ Meaning only authorized users can electronic and wireless to
access the network through the fiber optic.
Internet. It uses web browsers and ○ This connection is offered and
file transfer applications, which are managed by service providers.
under the supervision and control of E-BUSINESS OPPORTUNITIES
the business organization 1. Reach
■ If you want to access a ○ It refers to the potential number of
particular system of a local and international customers of
company (can access using a business organization that can
the LAN of the business) interact with each other through the
2. Extranet use of the Internet.
○ Internal network of a business with a ○ Reach can also be defined as the
limited external access number of categories and products
○ For example, a business that can be covered in a consumer
organization may build an extranet interface. This includes catalogues,
by letting its customers gain access websites and so on
to a portion of their intranet ○ Businesses actually do– to tap the
■ There are restrictions and new markets and target new
limitations when sharing audiences and also expand their
access to the people/guest customer base without actually
speaker who are outside the needing to create/build physica
organization storel in improving their distribution
3. Internet physical channel
○ Global network of interconnected 2. Richness
devices and computer networks ○ It refers to the information that
○ Available for all users and it is public business organizations can share to
that facilitates worldwide their consumers.
communication and information ○ This may include detailed
exchange information about a certain product/
○ It is the largest network consisting of service which includes the:
interconnected: ■ Product name
■ Government ■ Description
■ Private ■ Price
■ Public ■ Availability.
 ○ Business organizations should 3. Technical downtime
maintain the accuracy, reliability, and ○ From a customer perspective, they
security of the information wanted a smooth sailing and
transmitted through communication efficient transaction
channels to prevent issues in the ○ Technical downtime such as
future glitches, system error, technical
3. Affiliation failure– it has a great impact on
○ It to the effectiveness of the linkages customer experience also with your
between business organizations it business
may be financial enterprises or 4. Legal and regulatory compliance
non-financial enterprises– you are ○ It depends on the geographic
building affiliations/connections and location of your business (since
collaborations between businesses iba-iba yung ways on doing a online
(to build stronger and closer business) you comply with the dos
relationships with the existing clients related to data protection, consumer
online to achieve a customer right, data privacy, intellectual
retention) property, laws that govern peace
○ In terms of online partnerships, the transactions (in IT like patents,
business organizations with more copyright, and trademarks present
linkages to other organizations are online)
able to gain more influence and 5. Online reputation management
reach. ○ Customers can give
○ For example, Google, Yahoo!, and positive/negative feedback to the
eBay have tremendously and product/services of a business
successfully formed partnerships online easily. Also it easy to viral on
that provide them diverse social media if you create something
information, thus making them the good or bad by reacting to a certain
leading online businesses today. post– it can affect the brand
RISK ASSOCIATED WITH ELECTRONIC reputation
BUSINESS ○ Social media backlash is very
1. Security and privacy prominent nowadays, it is risky on
○ Data breaches and hacking the part of the online seller – who
incidents and other cybersecurity are using electronic businesses like
threats online such as scams the viral incidence that is very
2. Increased presence of fraud harmful to the online activity
○ Risky in terms of using a credit card business– may impact sa customer
on online transactions rather than ■ Hindi lahat may ability to
using it in a physical store rebut on a certain issue on
 social media such as viral
video, comment, or post
■ Online business has low,
minimal or no cost at all
“switching cost” – it means
mabilis lumipat ang customer
6. Intense competition
○ Nowadays, it is easier to build a
business online
○ Entry barrier is lowered, any time
mayroon competitors na papasok
(such as using lazada or shopee to
sell online) it increase competition
either domestic or international
7. Technical obsolescence
○ Technology is fast moving,
advancements, changes, and
opportunities can change in
instant
○ For example, if updated ngayon but
the next day hindi na, it has a rapid
advancement – it should always be
up-to-date with your technical
infrastructure
8. Third-party dependence
○ You are try to rely or most of the time
on the third-party providers (if you
want to have CRM) instead building
on your own system that is costly,
just go to outsources like third-party
service provider for that matter
○ Once you highly dependent, it may
cause service interruption/s also
data security issues and other
contractual operations
ELECTRONIC COMMERCE
Refers to commercial transactions executed
online and involves the electronic exchange of
goods, services, and payments between
businesses, consumers, and other entities
● Sharing of business information
● Supporting business relationships
● Managing business transactions
● Monitoring feedback from consumers
ADVANTAGES OF ELECTRONIC COMMERCE
1. Efficiency
○ The operation efficiency
2. Timeliness
○ How quick and fast you deliver to
consumer
3. Convenience
○ Both consumer and the businesses
a 4. Cost Effectiveness
○ You can use e-commerce to create
cost saving that could be a good
marketing strategy
○ Example, like CIMB bank, maya, C
bank, tonik bank
○ The cost saving of the business in
terms of general admin expense
such as rent, salary, and wages also
depreciation
■ If they have a physical bank
pwede nila i-convert into a
savings na pwede nila i-offer
in result, nakaka-ooffer sila
ng higher interest rates –
downside of the digital bank,
you need fund transfer (may
charge or service charge)
 ■ Digital banking regulated by
BSP and insured/member of
the PDIC (Philippine Deposit
Insurance Corporation)
5. Accessibility
FEATURES OF ELECTRONIC COMMERCE
1. Ubiquity and Richness
Ubiquity this means that the marketable
transaction or activity is accessible at any time,
anywhere in the world
Richness this refers to the volume of the
content of the website and the way it is used by
consumers
Richness ensuring a 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
2. Global Reach and Security
E-commerce allows a company to get
customers anywhere in the world
Global reach, also known as worldwide
access, is the maximum number of possible
consumers a business can reach
Security is essential when working globally;
therefore, customer information and privacy must
be protected and ensured when using
e-commerce platform
3. Universal Standards
This refers to a website that can be
operated on a standard platform which follows
identified methods and systems
This employs an easy-to-use e-commerce
website with a simple design and content
4. Interactivity
This feature refers to the relationship
between a consumer and an e-commerce website
It provides face-to-face customer meetings
when conducting business transactions (also you
can conduct through online) – transform from
traditional meeting to online
Increased interactivity allows for the
establishment of an emotional connection between
consumers and the business, thus helping build
brand trust and loyalty
5. Information Density
This refers to the amount of products that
can fit on a computer screen. There is no given
standard for an e-commerce website's information
density
How you will maximize your website. You
could actually provide/display multiple products on
your website
DIFFERENT BUSINESS MODELS OF
E-COMMERCE
BUSINESS TO BUSINESS (B2B)
Involves the online exchange of products,
services, or information between businesses
Streamline the purchasing process of one
business or along the way (possibly can cut a cost)
also improve and develop good working
relationship with your transacting parties such as
supplier, manufacturer, retailer, and distributor
an among others
● Procurement and supply chain management
● Electronic data interchange
● Online marketplace
BUSINESS TO CONSUMER (B2C)
Refers to the online exchange of goods,
services, or information between a business and an
individual consumer
● Website
● Online marketplace
● Retail, travel, and entertainment
 B2C is the type of commercial transaction in B2G model provides a means for
which businesses sell products or services directly businesses to bid on government projects and
to consumers products that are needed for their organization such
B2C is considered the most popular form of as LTO license cards and plate numbers.
e-commerce. It is the second largest e-commerce. COMELEC with their PCOS machines used during
Originated in e-retail wherein a customer visits a the elections. Also example of PSA such as
website and purchases products national ID
CONSUMER TO CONSUMER (C2C) GOVERNMENT TO BUSINESS (G2B)
Enables individuals to engage in online Involves government agencies and
transactions with other individuals instrumentalities providing products, services, or
C2C sells products and services directly to information to businesses organization
other consumers through online platforms or ● Government portals
marketplaces ● Regulatory compliance
● Online classifieds ● Tax filing
● Auction websites B2G model website is used by the
● Peer to peer sharing platforms government to approach and communicate with the
C2C is used similarly as the classified business organizations. Example would be
advertising section of a local newspaper or an websites are those that support auctions, as well as
auction page. C2C is a convenient way for bender and application submissions or police/nbi
consumers to buy and sell goods without physically clearance
going to a store GOVERNMENT TO CONSUMER (G2C)
CONSUMER TO BUSINESS (C2B) Involves government agencies and
Involves consumers selling their skills, instrumentalities providing products, services, or
expertise, or creative services to businesses information directly to the citizens through online
● Freelance platforms platforms
● User-generated content platforms Specific to individual such as professional
● Referral programs who renders a service or voluntary filing of the tax
Google Adsense and Shutterstock example return
of C2B platforms ● Government portals
BUSINESS TO GOVERNMENT (B2G) ● Regulatory compliance
Involves businesses providing products, ● Tax filing
services, or information to government agencies or The type of website this model implements
entities provides services such as birth registration, the
● Government procurement acquisition of marriage and death certificates from
● Licensing and permits the PSA, car registration from LTO
● Vote counting machines The main purpose of this is to reduce the
average time needed for fulfilling citizens’ request
for various government services
ELECTRONIC COMMERCE SECURITY ○ It should attest if the information
SYSTEMS provided are true and correct
1. Auditability ○ It is to certify that a person involved
○ Data should be documented in such in the contract or in communication
a way that it can be audited for the cannot refute the authenticity of their
real requirements signature on a document
2. Authenticity 8. Stability
○ There should be procedures to ○ To ensure that the long term viability
authenticate a user before giving of e-commerce platforms will be
him/her access to the required observe
information
3. Availability
○ It is a requirement that information
must be available (readily available)
anytime and anywhere, and it must
be time bound by a time limit
4. Confidentiality
○ Information should be kept and not
be accessible by an unauthorized
MOBILE COMMERCE
user
Refers to e-commerce transactions (online)
○ It should not be interrupted.during
conducted by using wireless devices such as
the transmission
smartphones and tablets
5. Encryption
Using website, E-commerce & Using mobile
○ Information must be secured through
application, M-commerce
the encryption and decryption of an
● Leverages mobile applications and
authorized user
payments systems
○ Make sure you have a proper
● Optimizes websites
encryption policy present
● Uses location-based services
6. Integrity
● Provides convenient and personal shopping
○ Information must not be modified
experience
during its transmission over a
M-commerce transactions conquer online
network.
business transactions, which include the
○ Honesty and strong moral principles
purchasing and selling of a wide range of products
must be applied.
and services, online banking, bills payment, and
7. Non-reputation
information delivery
○ There should be assurance that
someone cannot rebuff on
something
EXAMPLE OF M-COMMERCE ● Logistics and Business Restrictions
● Mobile vouchers Logistics Restrictions shipping companies
● eToro mobile app have different restrictions on products or
○ Used to invest in stocks or trading goods/services if imported. (Check also if it is
GUIDELINES AND LAWS GOVERNING governed by the custom modernization and tariff
ELECTRONIC COMMERCE act)
● Taxes Doing research will help identify which
○ Every state and/or country has shipping companies could best serve a business.
different rules and laws regarding The following are products typically restricted for
taxes. Therefore, conducting shipping:
research and understanding your ● Air bags
target market are necessary to avoid ● Animals
problems about taxation ● Perishable materials, such as fresh fruits
○ Recently, the house of and vegetables and alcohol
representatives have already passed ● Hazardous materials, such as aerosols,
on the third and final reading of the ammunition, cigarettes, dry ice, explosives,
proposal “house bill imposing digital nail polish, perfumes, and poisons
tax on online subscription” Some companies allow the shipment of the
■ Government also have a aforementioned items but require additional fees
proposal to impose 12% VAT and documents
on online subscriptions Business Restrictions different types of
● Intangible Assets insurance exist for small businesses such as
○ Trademarks it is a distinguishing general, product, professional, and commercial
word, phrase, symbol, and/or design liability insurances, and home-based insurance.
that identifies the uniqueness of a The insurance depends on the location and nature
product or service of one party from of a business
the others For example, product liability insurance is
○ Patents it is a property right granted meant for companies that are liable for the safety of
by the US Patent and Trademark the products they manufacture, wholesale,
Office to an invention for its public distribute, and retail
disclosure for a limited period of time ● Inventory
○ Copyrights it protects works of ○ There are certain rules and
authorship, such as writings, music, prohibitions that align with lease,
and works of art, that have been deed, or zoning codes when it
tangibly expressed. comes to stock inventory for
businesses
 ● Licenses and Permits The law involves the following three (3) main
○ A license is needed to sell products individuals:
or services. a. Data Subject. This refers to an individual
○ Licenses are dependent on the whose personal information is being
location of a business and are processed.
distributed by a local licensing b. Personal Information Controller. This
department such as mayor’s permit refers to an individual, person, or business
organization that controls, holds, and
OTHER INFORMATION FROM E-BOOK processes personal information and
● Payment Card Industry (PCI) Compliance instructs another individual, person, or
○ Serve as protection for online business organization to control, hold, and
business, especially process the personal information on his/her
software-as-a-service (SaaS) behalf
e-commerce platforms, from c. Personal Information Processor. This
problems such as data theft refers to a juridical person qualified to take
○ Being PCI compliant also means action under the act
having to avoid the storage of oral ● R.A No. 7394 (Consumer Act of the
and written information regarding Philippines)
purchases ● R.A No. 10175 (Cybercrime Prevention
■ For example, keeping the Act of 2012)
calling card number of a ● IRR (Implementing Rules and
customer recorded on a Regulations)
phone call is prohibited ○ Of the laws mentioned above are
For E-Commerce focus on the first and second being drafted and provided
bullet: ■ BIR, DTI, and NPC
● R.A No. 8792 (Electronic Commerce Act Regulations
of 2000)
○ This covers the mandates of the
Philippine government in terms of
executing online transactions locally
or internationally
● R.A No. 10173 (Data Privacy Act of 2012)
○ This prohibits the communication
and sharing of written, electronic,
and recorded information by an
individual to another
○ Information can be from documents,
e-books, electronic data, and so on
ADDITIONAL INFORMATION:
COMPUTER NETWORKS
Refers to the connection between
computers to share information and resources
TYPES OF COMPUTER NETWORKS
1. Personal Area Network (PAN)
○ Allows communication between
devices close to each other such as
printers and scanners (20 to 30 feet
or nine meters away from each
other)
2. Local Area Network (LAN)
○ Most commonly used computer
networks that cover a small area
3. Campus Area Network (CAN)
○ Used for academic institutions where
LANs are interconnected in a limited
geographical area
4. Metropolitan Area Network (MAN)
○ Within the area of a town or city
where it connects two or more LANs
or CANs
5. Wide Area Network (WAN)
○ Computer network is used within
regional or national areas
6. International Network (Internet)
○ Considered as the largest computer
network that allows users to access
without restrictions
BUY-SIDE
● Focuses on suppliers
SELL-SIDE
● Focuses on the consumers or customers
● Types of online presence:
○ Transactions, E-commerce websites,
○ Portal or media websites, Brand
building websites
○ Service oriented websites
BENEFITS OF MOBILE TECHNOLOGIES
1. Ubiquity – access anywhere
2. Reachability – easy to reach
3. Convenience – no need for fixed line
connections
4. Security – free from risk of loss or theft
through authentication
5. Privacy – degree of privacy is higher
compared to a desktop PC
6. Availability - can freely access at any time
of the day
M-COMMERCE FORCES
1. Fourth and Third Generation
Technologies
○ 4th: 2012-2015
■ Max data transfer: 24MBit/s
○ 3rd: 2004
■ Max data transfer: 14.4MBit/s
■ Adopt rate: 28% both Europe
and US
2. Wireless Application Protocol (WAP)
○ Transfer of information to specific
wireless devices
3. iMode Access Platforms
○ (Japanese introduced this)ringtones,
music, and dating services
4. Personalized Services
○ Can gain access to wireless services
whenever there is an available
network