IT Application Tools in Business

Module 4: Introduction to E-Business

 Introduction to E-Business

Refers to any online-run business. It also considered

as a technique used by business organization to
improved business strategy and be more productive
and profitable through the use of IT.
 E-commerce Fundamentals

The marketing, selling, and buying of goods and

services online, it also includes the transfer of money
and data to complete the sales. Also known as
electronic commerce or internet commerce.
 Features of E-Commerce
1. Ubiquity
2. Global Reach and Security
3. Universal Standards
4. Richness
5. Interactivity
6. Information Density
 Business Models of E-Commerce:

• Business-to-Business(B2B)
• Business-to-Consumer(B2C)
• Consumer-to-Consumer(C2C)
• Business-to-Government(B2G)
• Government-to-Business(G2B)
• Government-to-Citizen(G2C)
 Business Models of E-Commerce:
Business-to-Business(B2B)
B2B is a marketing type of business wherein
businesses provide products or services to other
businesses for the production of goods, business
operations, or reselling of products.
 Business Models of E-Commerce:
Business-to-Consumer(B2C)
B2C is the type of commercial transaction in which
businesses sell products or services directly to
consumers.
 Business Models of E-Commerce:
Consumer-to-Consumer(C2C)
C2C is used similarly as the classified advertising
section of a local newspaper or an auction page.
 Business Models of E-Commerce:
Business-to-Government(B2G)
B2G is a business model that refers to a business that
sells products, services, or information to governments
and/or government agencies.
 Business Models of E-Commerce:
Government-to-Business(G2B)
This business model refers to government agencies
that provide services or information to a business
organization.
 Business Models of E-Commerce:
Government-to-Citizen(G2C)
This model is being used by the government to
approach and communicate with citizens in general.
 Threats of E-Commerce
• Servers containing important files and customer information
being stolen.
• Impostors duplicating e-commerce sites to steal customers’
money.
• Hackers attempting to steal customer information or mess
up the site.
• Authorized users with hidden motives attacking e-commerce
systems and/or selling information to competitors.
 E-Commerce Security Systems
1. Auditability - data should be documented in such a way that it can be
audited for the real requirements.
2. Authenticity - there should be procedures to authenticate a user before
giving him/her access to the required information.
3. Availability - it is a requirement that information must be available
anytime and anywhere, and it must be bound by a time limit.
4. Confidentiality - information should be kept and not be accessible by an
unauthorized user. It should not be interrupted during the transmission.
 E-Commerce Security Systems
5. Encryption - information must be secured through the encryption and
decryption of an authorized user.
6. Integrity - information must not be modified during its transmission over
a network. Honesty and strong moral principles must be applied.
7. Non-reputation - there should be assurance that someone cannot rebuff
on something. It is to certify that a person involved in the contract or in
communication cannot refute the authenticity of their signature on a
document.
 Basics of M-Commerce

Refers to the purchase of goods and services through

wireless technology, such as cell phones, and handheld
devices.
 E-Business vs E-Commerce
E-commerce is a subset of e-business because the majority of the transactions done in e-commerce
are also part of e-business, such as ordering, paying, purchasing, and so on.

Basis for Comparison E-Commerce E-business

Trading of merchandise over the Running a business using the
Definition
internet internet
Focus on monetary transactions Yes No
Type of transactions carried out Commercial transactions Business transactions
Website or mobile app Website, customer relationship
management, enterprise
Requirements
resource planning, supply chain
management
Required network Internet Internet, intranet, and extranet
 E-Commerce vs M-Commerce

M-commerce refers to the operation of business

transactions through the Internet using mobile devices,
such as smartphones, while e-commerce makes use of
computer desktops or laptops.
 Real-world examples of
E-Commerce and M-Commerce
Web World (E-Commerce) Mobile World (M-Commerce)
Internet access through a laptop or desktop Wireless connectivity using mobile devices
The platform are webstores(mobile versions/web
The platforms used are webstores
app), hybrid app, and native app
Device mobility is limited Offers more mobility and convenience.

Interface is more complicated, and more It promotes easy use because all the functions are
functions are available simplified.

It requires devices such as mobile phones and

It requires devices such as computers and laptops
tablets
Real-world examples
of E-Commerce
 E-Commerce Websites
Amazon is an American tech multinational whose business interests include
e-commerce, cloud computing, digital streaming, and artificial intelligence.
 E-Commerce Websites
eBay is one of the first companies to create and market an Internet Web site to
match buyers and sellers of goods and services.
 E-Commerce Websites
Alibaba is a well-known Chinese company that is now a part of the global market
of ecommerce. It specializes in retail, the internet and technology
Guidelines & Laws Governing E-Commerce
• Taxes
• Trademarks, Patents, and Copyrights
• Shipping Restrictions
• Inventory
• Business Restrictions
• Licenses and Permits
• Payment Card Industry (PCI) Compliance
Guidelines & Laws Governing E-Commerce

1. Republic Act 8792 – Electronic Commerce Act of 2000

2. Republic Act 10173 – Data Privacy Act of 2012
3. Consumer Protection Regulation – Transactions
through E-commerce
4. Tax Guidelines for E-Commerce Transaction in the
Philippines