Chapter 2 Learning Objectives

1. Describe the major electronic commerce (EC)

activities and processes and the mechanisms that
support them.
2. Define e-marketplaces and list their components.
E‐COMMERCE: MECHANISMS, 3. List the major types of e-marketplaces and describe
their features.
INFRASTURURES, AND TOOLS 4. Describe electronic catalogs, search engines, and
shopping carts.
5. Describe the major types of auctions, bartering and
negotiating online.
6. Describe impacts on EC on business processes and
organizations
7. Describe Web 3.0 and define Web 4.0.
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 Activities and Mechanisms in E-business 2.1 Electronic Commerce Mechanisms: An Overview

 Define e-marketplace and major types of
e-marketplaces  EC activities and support mechanisms cơ chế hỗ trợ
 Front end and Back end of e-  Sellers, buyers, and transactions
marketplaces
• The Purchasing Process
 Intermediaries in e-marketplace
THẢO LUẬN  Forward auctions and backward
auctions
 Reverse auction and name-your-own-
price model
 Double auction and penny auction
 Negotiation
 Online bartering

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2.1 Electronic Commerce Mechanisms: An Overview
The EC activities-Mechanism Connection
hoạt động
EC Activities
Presence and Discovery. Find
information, compare, Analyze
hiện diện trên mtruong mạng
Trading, Buy, Sell, Exchange
Improve Performance
Other Activities: Customer
service,…
Discussion: Predicting Partners’ Behaviors in
Negotiation by Using Regression Analysis
Prediction partners’ behaviors in negotiation has been an active research
cơ chế direction in recent years. By employing the estimation results, agents (tác tử)
EC Mechanism
can modify their own ways in order to achieve an agreement much quicker
Electronic Markets or to look after much higher benefits for themselves. Some of estimation
strategies have been proposed by researchers to predict agents’ behaviors,
Storefronts, Malls, Portals and most of them are based on machine learning mechanisms. However,
when the application domains become open and dynamic, and agent
relationships are complicated, it is difficult to train data which can be used to
E-catalogs, search engines,
shopping carts predict all potential behaviors of all agents in a multi-agent system.
Furthermore because the estimation results may have errors, a single result
maybe not accurate and practical enough in most situations. In order to
E-auctions/Negotiation address these issues mentioned above, we propose a power regression
analysis mechanism to predict partners’ behaviors in this paper. The
Payment, order processing, proposed approach is based only on the history of the offers during the
security, support current negotiation and does not require any training process in advance

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2.1 Electronic Commerce Mechanisms: An Overview 2.2 E-Marketplaces

 E-marketplace
An online market, usually B2B, in which buyers and
sellers exchange goods or services; the three types of e-
marketplaces are private, public, and consortia
 Components and the participants in E-marketplaces
• Marketspace
A marketplace in which sellers and buyers exchange
goods and services for money (or for other goods and
services), but do so electronically

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2.2 E-Marketplaces 2.2 E-Marketplaces
 The major components and players in a marketspace  Front end
are: Customers interact with a marketspace via a front
 Customers end. The major components of the front end can
 Sellers include the seller’s portal, electronic catalogs, a
 Products and services shopping cart, a search engine, and a payment
gateway
• digital products
 Back end
Goods that can be transformed to digital format
and delivered over the Internet The activities that support online order fulfillment,
inventory management, purchasing from
 Infrastructure. The marketspace infrastructure
suppliers, payment processing, packaging, and
includes electronic networks, hardware, software, and
delivery
more.
 Intermediary
A third party that operates between sellers and buyers
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2.2 E-Marketplaces 2.2 E-Marketplaces

 Disintermediation and reintermediation

• disintermediation
Elimination of intermediaries between sellers
and buyers
• reintermediation
The process whereby intermediaries (either new
ones or those that had been disintermediated)
take on new intermediary roles

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2.2 E-Marketplaces 2.2 E-Marketplaces
Types of e-marketplaces
 Private e-marketplaces: they are owned and operated by
a single company.
• sell-side e-marketplace
A private e-marketplace in which one company sells either
standard and/or customized products to individuals (B2C) or
to businesses (B2B).
• buy-side e-marketplace
A private e-marketplace in which one company makes
purchases from potential suppliers
 Public e-marketplaces: they often are owned by a third
party (not a seller or a buyer).

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2.3 Customer Shopping Mechanisms: Storefronts, Malls, 2.3 Customer Shopping Mechanisms: Storefronts, Malls,
and Portals and Portals
 Webstore (storefront)  e-mall (online mall)
A single company’s website where products or services An online shopping center where many online stores
are sold; usually has an online shopping cart associated are located
with it  Types of stores and malls
Many Webstores target a specific industry and find their • General stores/malls
own unique corner of the market. • Specialized stores/malls
 Several mechanisms of a webstore => Project • Regional versus global stores
 An electronic catalog • Pure-play versus click-and-mortar stores
 A search engine
 An electronic cart
 A payment gateway
 E-auction
 A shipment court and customer services
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2.3 Customer Shopping Mechanisms: Storefronts, Malls, 2.3 Customer Shopping Mechanisms: Storefronts, Malls,
and Portals and Portals
thông tin rộng hơn cổng thông tin chuyên sâu
 Web (information) portals: single point of access,  The roles and values of intermediaries in e-marketplaces
through a Web browser, to critical business information  A broker in EC is a person or a company that facilitates
located inside and outside (via Internet) an organization transactions between buyers and sellers
 Types of portals  Infomediaries trrung gian điện tử: kết nối thông qua hệ thống
• Commercial portals Electronic intermediaries that provide and/or control
• Mobile portals information flow in cyberspace, often aggregating
• Knowledge portals information and selling it to others
 E-distributortrung gian dưới nhà phân phối, kí cho được các nhà phân phối về
•… web: information
portal: knowledge An e-commerce intermediary that connects
manufacturers with business buyers (customers) by
aggregating the catalogs of many manufacturers in one
place—the intermediary’s website
vai trò, giá trị của trung gian trong thị trường điện tử

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2.4 Merchant Solutions: Electronic Catalogs, Search Engines, 2.4 Merchant Solutions: Electronic Catalogs, Search Engines,
and Shopping Carts and Shopping Carts

 Electronic catalogs (e-catalogs) danh mục điện tử  EC search activities, types, and engines
The presentation of product information in an  Types of EC Searches
electronic form; the backbone of most e-selling sites
• Online Catalogs Versus Paper Catalogs  Internet/Web Search
 Enterprise search tìm kiếm trong doanh nghiệp
 Desktop search tìm kiếm trên từng máy tính cá nhân

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2.4 Merchant Solutions: Electronic Catalogs, Search Engines, 2.4 Merchant Solutions: Electronic Catalogs, Search Engines,
and Shopping Carts and Shopping Carts
 Search engine
 Electronic shopping cart
A computer program that can access databases of
Internet resources, search for specific information or An order-processing technology that allows customers
key words, and report the results to accumulate items they wish to buy while they
continue to shop.
 Software (Intelligent) Agents (tác tử) tự động hóa cao, đặc biệt là AI
 Questions and Answers Online
 Voice-Powered Search
…

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2.5 Auctions, bartering, and negotiating online 2.5 Auctions, bartering, and negotiating online

 Auction đấu giá  Traditional auctions versus e-auctions

A competitive process in which a seller solicits • Limitations of Traditional Offline Auctions
thuần
consecutive bids from buyers (forward auctions) or a • Electronic auctions (e-auctions)
nghịch
buyer solicits bids from sellers (backward auctions); Auctions conducted online
prices are determined dynamically by the bids
forward: bid từ người mua, người nào trả giá cao nhất là thắng  Types of auctions
 Dynamic pricing backward: bid từ người bán, người trả giá thấp nhất là thắng
bài toán động ví dụ như thầu xây dựng  One buyer, one seller
Prices that change based on supply and demand  One seller, many potential buyers
relationships at any given time
 Many sellers, many buyers

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2.5 Auctions, bartering, and negotiating online 2.5 Auctions, bartering, and negotiating online

 One Buyer, Many Potential Sellers

 reverse auction (bidding or tendering system)
Auction in which the buyer places an item for bid
(tender) on a request for quote (RFQ) system,
potential suppliers bid on the job, with the price
reducing sequentially, and the lowest bid wins;
primarily a B2B or G2B mechanism
 name-your-own-price model (Khách hàng tự
đưa ra một mức giá mong muốn)
Auction model in which a would-be buyer
specifies the price (and other terms) he or she is
willing to pay to any willing and able seller

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2.5 Auctions, bartering, and negotiating online 2.5 Auctions, bartering, and negotiating online

 Many Sellers, Many Buyers Benefits of E-Auctions

 double auction Benefits to Sellers Benefits to Buyers Benefits to E-Auctioneers
An auction in which multiple buyers and their  Increased revenues (many
bidders, shortening cycle
 Opportunities to find unique
items and collectibles.
 Higher repeat purchases.
(ebay)
bidding prices are matched with multiple sellers time, sell anywhere globally.  Entertainment.  Auction sites are frequently
and their asking prices, considering the quantities  Opportunity to bargain
instead of selling at a fixed
 Convenience.
 Anonymity.
"stickier" than fixed-priced
sites.
on both sides price.  Possibility of finding  Easy expansion of the auction
 Optimal price setting bargains. business.
 penny auction determined by the market.
 Sellers can sell items to
A formal auction in which participants pay a customers directly so Sellers
nonrefundable small fee for each bid; bid level save the transaction cost.
 Can sell (liquidate) large
changes by small increments quantities quickly.
 Improved customer
relationship and loyalty.

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2.5 Auctions, bartering, and negotiating online 2.5 Auctions, bartering, and negotiating online

 Limitations of E-Auctions  Impacts of auctions

• Minimal Security: Some of the C2C auctions conducted on the
Internet are not secure because they are done in an • Auctions as a Social Mechanism to Determine a Price
unencrypted environment. This means that credit card
numbers could ben stolen during the payment process. • Auctions as a Highly Visible Distribution Mechanism
Payment methods such as PayPal can be used to solve the
problem. • Auctions as an EC Component in a Business Model
• Possibility of Fraud • Auctions for Profit for Individuals
• Limited Participation

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2.5 Auctions, bartering, and negotiating online 2.5 Auctions, bartering, and negotiating online

 Online bartering  Online negotiating

• Bartering  Negotiated pricing is commonly used for expensive or
The exchange of goods and services specialized products
• e-bartering (electronic bartering)  Negotiated prices are also popular when large
Bartering conducted online, usually in a bartering quantities are purchased
exchange
 Much like auctions, negotiated prices result from
• bartering exchange
interactions and bargaining among sellers and buyers
A marketplace in which an intermediary arranges barter
transactions (can be agent assisted)
http://www.u-exchange.com/

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2.6 Impacts of EC on business processes and organizations
 Transforming organizations
 Technology and organizational learning
 The changing nature of work
 Redefining organizations
 New and improved product capabilities
 New industry order and business models
 Improving the supply chain
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2.7 The Future: Web 3.0 and Web 4.0
 Web 3.0
A term used to describe the future of the World Wide
Web; it consists of the creation of high-quality content
and services produced by gifted individuals using Web
2.0 technology as an enabling platform.
 Semantic Web
An evolving extension of the Web in which Web content
can be expressed not only in natural language, but also
in a form that can be understood, interpreted, and used
by intelligent computer software agents, permitting them
to find, share, and integrate information more easily
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2.6 Impacts of EC on business processes and organizations
 Impacts on manufacturing
 Building-to-order manufacturing
 Real-time demand-driven manufacturing
 Assembly line
…
 Impacts on finance and accounting
 Impacts on human resources management and training
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2.7 The Future: Web 3.0 and Web 4.0
 Web 4.0
The Web generation after Web 3.0 that is still an
unknown entity; however, it is envisioned as being based
on islands of intelligence and as being ubiquitous
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2.7 The Future: Web 3.0 and Web 4.0 Summary

1. Activities and mechanisms

2. E-marketplaces and their components
3. The major types of e-marketplaces
4. Electronic catalogs, search engines, and shopping
carts
5. Types of auctions and their characteristics
6. The benefits and limitations of auctions

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Summary

7. Bartering and negotiating

8. Impacts on EC on business processes and
organizations
9. Web 3.0 and Web 4.0

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