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    E-commerce and e-business have emerged as new ways for companies to conduct business transactions using computers, networks and online platforms. While e-commerce involves business-to-consumer and business-to-business online transactions, e-business uses information and communication technologies to enhance business processes. Some key developments in the history of e-commerce include the rise of electronic funds transfer in the 1970s, electronic data interchange in the 1980s, and the widespread use of the internet and World Wide Web for publishing and disseminating information in the 1990s. E-commerce can be categorized based on the types of entities participating in online transactions such as business-to-consumer, business-to-business, consumer-to-consumer

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    6. E-Commerce and E-Business

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    E-commerce and e-business have emerged as new ways for companies to conduct business transactions using computers, networks and online platforms. While e-commerce involves business-to-consumer and business-to-business online transactions, e-business uses information and communication technologies to enhance business processes. Some key developments in the history of e-commerce include the rise of electronic funds transfer in the 1970s, electronic data interchange in the 1980s, and the widespread use of the internet and World Wide Web for publishing and disseminating information in the 1990s. E-commerce can be categorized based on the types of entities participating in online transactions such as business-to-consumer, business-to-business, consumer-to-consumer

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    2 views14 pages

    E-Commerce and E-Business

    Uploaded by

    craftjoseph6
    E-commerce and e-business have emerged as new ways for companies to conduct business transactions using computers, networks and online platforms. While e-commerce involves business-to-consumer and business-to-business online transactions, e-business uses information and communication technologies to enhance business processes. Some key developments in the history of e-commerce include the rise of electronic funds transfer in the 1970s, electronic data interchange in the 1980s, and the widespread use of the internet and World Wide Web for publishing and disseminating information in the 1990s. E-commerce can be categorized based on the types of entities participating in online transactions such as business-to-consumer, business-to-business, consumer-to-consumer

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    of 14

    Tanzania Institute of Accountancy

    (TIA)

    GST05212 Computer Applications

    E-Commerce and E-Business


    Introduction

    Friday, May 13, 2022 2


    Introduction
    • Until 1990s, e-commerce still emerged as a new way to do
    business
    • Some companies had established solid footholds online
    - Amazon, e-bay, Yahoo
    • Provides services as: booksellers, auctions, and search engines

    Friday, May 13, 2022 3


    Electronic Commerce
    • Commerce refers to all the activities of purchase and sales of
    goods or services
    - Marketing, sales, payment, fulfillment, customer service

    • Electronic commerce is doing commerce with the use of


    computers, networks and commerce-enabled software (more
    than just online shopping)

    Friday, May 13, 2022 4


    Brief History
    • 1970s: Electronic Funds Transfer (EFT)
    - used by the banking industry to exchange account information over secured networks
    • Late 1970s and early 1980s: Electronic Data Interchange (EDI) for e-
    commerce within companies
    - used by businesses to transmit data from one business to another
    • 1990s: the World Wide Web on the Internet provides easy-to-use
    technology for information publishing and dissemination
    - Cheaper to do business (economies of scale)
    - Enable diverse business activities (economies of scope)

    Friday, May 13, 2022 5


    Electronic Business
    • E-business: the business which is done with the help of Internet
    or electronic data interchange
    • Two types of e-business:
    1. Pure-Play: the business which is having electronic existence
    (online) only
    2. Brick and Click: the business model which is having both
    online(electronic) and offline(physical mode)

    Friday, May 13, 2022 6


    Electronic Commerce and Electronic Business
    • In e-commerce: ICT is used in inter-business or inter-
    organizational transactions and in business-to-consumer
    transactions
    • In e-business: ICT is used to enhance one’s business
    - includes any process that a business organization (either a for-profit,
    governmental or non-profit entity) conducts over a computer-mediated
    network.

    Friday, May 13, 2022 7


    Categories of e-commerce
    • E-commerce is categorized by the types of entities participating
    in the transactions or business processes
    I. Business-to-consumer (B2C)
    II. Business-to-business (B2B)
    III. Consumer-to-consumer (C2C)
    IV. Business-to-government (B2G)

    Friday, May 13, 2022 8


    Electronic Payment Systems
    • Electronic payment paperless transactions
    - reducing paperwork, transaction cost, and labor
    • Internet banking – doesn’t use cards
    • Credit card, Debit card and smart cards
    • PayPal – allows electronic fund transfer between individuals
    and businesses
    • Mobile money wallets – M-Pesa, AirtelMoney, Tigo Pesa etc

    Friday, May 13, 2022 9


    Advantages of e-commerce
    For consumers:
    i. Helps to lower product prices
    ii. More convenient and safe
    iii. Provides a wider range of choices
    iv. It saves time, especially for digital products
    v. Assists to make more informed decision

    Friday, May 13, 2022 10


    Advantages of e-commerce
    For businesses:
    i. Reduces operational cost example advertisement, rent
    ii. Provides wider customer base
    iii. Easy access of customer data
    iv. 24/7 availability
    v. Can scale the business quickly and easily

    Friday, May 13, 2022 11


    Disadvantages of e-commerce
    i. Product inspection is not possible
    ii. Large initial costs
    iii. User resistance
    iv. Security and Privacy
    v. Delay of goods due to shipping time
    vi. Reliability of online businesses
    vii. E-commerce is highly competitive

    Friday, May 13, 2022 12


    Exercise
    • Discuss the differences between e-commerce and e-business
    • Discuss various challenges of e-commerce in developing
    countries like Tanzania
    • Discuss uses of e-commerce from a business perspective

    Friday, May 13, 2022 13


    Thank You
    Friday, May 13, 2022 14

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