Republic of the Philippines

University of Cabuyao
(Pamantasan ng Cabuyao)
College of Education
Katapatan Mutual Homes, Brgy. Banay-banay, City of Cabuyao, Laguna, Phillippines 4025

Course Code: ITE101

Course Title: Living in the IT Era
Learning Material for Week 15

Course Intended Learning Outcomes:

1. Define the different pros and cons in living in IT Era.
2. Familiarize the new trends and upcoming technologies.
3. Construct the possible future of information technology.

Learning Objectives:
1. To demonstrate an understanding of the foundations and importance of E-commerce.
2. To analyze the impact of E-commerce on business models and strategy.
3. To describe Internet trading relationships including Business to Consumer, Business-to-Business etc.
4. To identify the major categories and trends of e-commerce applications.
5. To identify the essential processes of an e-commerce system; and
6. To recognize and discuss global E-commerce issues.

E-Commerce Trends and Issues

Electronic commerce (EC) is a new trend in modern selling and merchandising technologies that
allows customers to engage in all stages of a purchase decision while completing those steps
electronically rather than over the phone with a printed catalog or in a physical shop. A client may view
product information, choose products to buy, make safe purchases, and have the transaction handled
financially through electronic commerce.

Kalakota and Whinston (1997) define EC from these perspectives:

• From the standpoint of communications, EC refers to the transmission of data, goods or services, or
financial transactions over telephone lines, computer networks, or other electronic channels.
• From a business standpoint, EC is the use of technology to automate workflow and commercial
transactions.
• From the standpoint of services, EC is a tool that responds to the demand of businesses, customers,
and management to reduce service costs while enhancing the quality of goods and speeding up
service delivery.
• From an online standpoint, EC offers the possibility to purchase and sell goods and data through the
Internet as well as other online services.

Electronic commerce applications started in the early 1970’s, with such innovation as
electronic fund transfers (EFT). However, only significant firms, financial institutions, and a few brave
 Republic of the Philippines
University of Cabuyao
(Pamantasan ng Cabuyao)
College of Education
Katapatan Mutual Homes, Brgy. Banay-banay, City of Cabuyao, Laguna, Phillippines 4025

small businesses were included in the applications. Then came EDI, which broadened the scope of
transaction processing from financial to other types and increased the number of participating
businesses from financial institutions to manufacturers, merchants, and services, among others. Then
came a ton of more uses, like stock trading and reservation systems for vacation. The phrase
"electronic commerce" was established with the early 1990s commercialization of the Internet and its
quick expansion to millions of prospective consumers. C applications also grew quickly at this time. The
creation of networks, protocols, software, and standards was one factor in the technology's quick
development. The rise in competition and other commercial pressures is the additional factor.

 Ubiquity - Internet/Web technology is accessible anywhere, anytime, via mobile devices, including
at work, at home, and elsewhere. The boundaries of the market are no longer applicable, and it is
no longer restricted by time or place. There is now a "marketspace" where people may shop. Both
customer convenience and shopping prices are improved.
 Global Reach - The technology is applicable everywhere on Earth, spanning national borders. Cross-
cultural and cross-national commerce is possible without hindrance or change. Potentially billions
of clients and millions of companies are included in the term "marketspace" globally
 Universal Standards – There is just one set of technological norms, and those are the Internet
norms. Around the world, there is just one set of technical media standards.
 Richness – It is possible to send text, audio, and video communications. Each of them is
incorporated into a single marketing message and consumer experience.
 Interactivity – Through user contact, the technology functions. Customers participate in a
conversation that dynamically adapts the experience to each person and involves them in the
process of getting products to market.
 Information Density - The technology improves information quality while lowering information
expenses. Costs associated with information processing, storage, and communication significantly
decrease, but the currency, accuracy, and timeliness significantly increase. Information becomes
accessible, affordable, and reliable.
 Personalization/customization - The technology enables the delivery of tailored communications to
both groups and individuals. Based on individual traits, products and services are customized and
marketing messages are personalized.

The benefits of ecommerce to merchants or organizations are as follows:

• National and international marketplaces are added to the marketplace via electronic commerce. A
firm may simply and rapidly find the greatest suppliers, the most suited business partners
internationally, and more clients with little investment in money.
• Paper-based information creation, processing, distribution, and retrieval costs are reduced by e-
commerce. Companies can reduce the administrative expenses associated with purchasing, for
 Republic of the Philippines
University of Cabuyao
(Pamantasan ng Cabuyao)
College of Education
Katapatan Mutual Homes, Brgy. Banay-banay, City of Cabuyao, Laguna, Phillippines 4025

instance, by using an electronic procurement system.

• The period between capital expenditure and the receiving of goods and services is shortened by e-
commerce.
• Additional advantages include a better image, better customer service, streamlined procedures,
enhanced output, and increased flexibility.

The benefits of ecommerce to consumers are as follows:

• Customers may conduct business through e-commerce from virtually anywhere, 24 hours a day,
365 days a year.
• Customers have more options thanks to e-commerce since they may choose from a wide variety of
sellers and items.
• Why Customers commonly find cheaper goods and services through e-commerce because it
enables them to search around and make rapid comparisons.
• Rather than waiting days or weeks for information, customers may now get it right away.

The disadvantages of ecommerce are as follows:

• Cost and justification - Building EC in-house may be quite expensive, and any errors brought on by
inexperience could cause delays. Although there are numerous prospects for outsourcing, it can be
difficult to know where and how to start.
• Security and privacy - These concerns are particularly significant in the business-to-consumer
sector, particularly security concerns that, when suitable encryption is employed, are believed to be
less serious than they actually are. Privacy protections are continually being enhanced. The EC
sector has a very lengthy and tough problem convincing clients that online transactions and privacy
are actually highly safe. However, the customers viewed these concerns to be very vital.
• Lack of trust and user resistance - Customers are reluctant to utilize electronic money, paperless
transactions, or unidentified, faceless sellers. So it could be challenging to convert from physical to
internet retailers.
• Other limiting factors – Online experiences are not tactile. Some buyers want to touch products,
such as clothing, in order to fully understand what they are purchasing.

Major types of ECommerce

Business-to-Consumers (B2C) is a kind of online trade that caters to direct customers.
Purchasing is the key activity here. There are retail sales to certain customers. For instance, a consumer
or customer is the type of shopper that often uses Amazon.com.

Benefits of B2C to Business

 Lower distribution costs
 Republic of the Philippines
University of Cabuyao
(Pamantasan ng Cabuyao)
College of Education
Katapatan Mutual Homes, Brgy. Banay-banay, City of Cabuyao, Laguna, Phillippines 4025

 New business opportunities

 More accurate and up-to-date consumer data (potentially anyway)
 Opportunity for added value services
 Better customer support
 Lower operating costs

Benefits of B2C to Consumers

 Convenience
 Information
 Ability to compare and choose among many offers
 Lower prices, at times but not always
 Personal Service

Business-to-Business (B2B) is a kind of e-commerce that benefits companies. Purchases are a

crucial B2B activity. Purchasing differs from purchasing in that departments rather than lone people are
engaged, official procedures are followed, significant sums of money may be exchanged, and intricate
discussions and contracts may be involved.

Advantages of B2B:
 Lower:
o purchasing costs
o sales costs
o marketing costs
 Reduced inventory
 Efficient logistics
 Lower cycle time
 Better customer support

B2B Electronic Commerce: Areas of Growth

 Goods
o computing and electronics

o motor vehicles

o petrochemicals

o utilities

 Services
o financial

o professional
 Republic of the Philippines
University of Cabuyao
(Pamantasan ng Cabuyao)
College of Education
Katapatan Mutual Homes, Brgy. Banay-banay, City of Cabuyao, Laguna, Phillippines 4025

o administration

o travel

o telecom

Consumer-to-Consumer (C2C) is a sort of e-commerce where users sell to other customers directly.
Examples include people advertising in classified advertisements on websites like
www.buyandsell.com.ph and selling homes, vehicles, cell phones, and other items. Another example of
C2C is selling knowledge and skills and marketing personal services online. To promote goods for sale
or services, some auction sites operate intranets and other corporate internal networks.

Benefits of C2C:
 increased liquidity (products, services, advice)
 reduced search costs

Peer-to-Peer (P2P) is a kind of online commerce that connects people and enables them to share data
and resources without the usage of a central server. The difficulty with P2P companies is creating
workable, ethical business structures. P2P networks like Kazaa and Groove are examples.

Mobile Commerce is a subset of e-commerce that utilizes mobile phones and Palm devices for
transactions. This has mostly gained popularity in Japan and Europe, where it uses new wireless
technology to supplement established online business models. Phone-based 3G, Wi-Fi, and Bluetooth
are the main technologies utilized in mobile commerce. Even if this technology is a letdown in the US, it
is always improving.

Sources:

Reynold, G. Ethics in Information Technology. Thompson Learning.

COVID-19 and E-Commerce | A Global Review

https://www.youtube.com/watch?v=yLH4rD9Zum4

E-commerce Boom during the Covid-19 Pandemic

https://www.youtube.com/watch?v=xKZ3vrAoXbU

E-commerce seen driving PH internet economy to $28 billion by 2025: Google | ANC

https://www.youtube.com/watch?v=k1eiyh8WB_c
 Republic of the Philippines
University of Cabuyao
(Pamantasan ng Cabuyao)
College of Education
Katapatan Mutual Homes, Brgy. Banay-banay, City of Cabuyao, Laguna, Phillippines 4025