This action might not be possible to undo. Are you sure you want to continue?
Presented by Kerem SARIOGLU
• • • • • • • • • Definition Types of e-Commerce History Electronic Data Interchange (EDI) The choice of the technology: the Internet Challenges & Difficulties e-Commerce strategies The change in business practice Future trends of the e-Commerce
• EC also includes all inter-company and “intra-company functions” (such as marketing. selling.e-Commerce Definition • Conducting of business communication and transactions over networks and through computers. • Electronic commerce is the buying and selling of goods and services. manufacturing. and the transfer of funds. through digital communications. finance. and negotiation) .
e-Commerce Types of e-Commerce • Business to Business Over 30 years • Business to Consumer • Consumer to Consumer .
Internet • Internet Commerce . Interorganizational data exchange. public network infrastructures: Value Added Networks VAN. Electronic Data Interchange EDI Increasing standardization of EDI Electronic Markets (Nasdaq) Public Protocols.e-Commerce History • • • • • • Exchange of data across network.
e-Commerce EDI .Electronic Data Interchange Definition: “A series of standards which provide computer to computer exchange of business documents over interorganizational or intraorganizational networks” • Purchase orders • Shipping documents • Invoices • Invoice payments .
e-Commerce EDI • Motives: – – – – To increase efficiency in order processing To reduce costs (just in time) Greater ability to customize products and services Competitive advantage (In 1980’s) Sabre airline booking system • Early adoptions are very proprietary: – Private Networks are very limited and close systems – Put into place by dominant firms – Only very large firms can afford it. .
e-Commerce EDI Standard Formats • ANSI ASC X12 – American National Standards Committee • Accredited Standards Committee (1979) • UN/EDIFACT – International Standards settings under the United Nations. .
A Sale transaction information is stored into a local store information system 5. sending directly to the store Suppliers Main Office 3.e-Commerce Example of EDI System 2. Main office’ IS finds out the need of inventory of each store 4. Main office IS sends a purchase order to the suppliers’ IS . Suppliers fill the order. The sale info is distributed to the Main Office Local Store 1.
such as legal research or access to a specialised database. .e-Commerce Connection ? • Exchange business documents with one or two trading partners: • To be connected to an electronic market via a VAN Customized Network Solutions Value Added Networks VAN VAN:A privately owned network that provides a specific service. for a fee.
e-Commerce The Choice of Technology: The Internet WHY? Other Choices • VAN’s (IBM Global Network) • Dial Up Connections (Teletel-France) .
e-Commerce The Choice of Technology: Why? The Internet • • • • • Global connectivity at very low cost Reduced transaction costs and delivery time Easy data collection Easy and fast customer support Allow bypassing intermediaries .
e-Commerce Difficulties & Challenges • Management Challenges – Organizational Changes – The applicability of a business model on the Internet for the company – Centralization or Decentralization • Technical Challenges – Security – Speed .
Secure Electronic Transaction PCT .Digital Certificate SET .Secure Socket Layer DC .Virtual Private Internet .e-Commerce Security Solutions – – – – – – – SSL .Private Communication Technology Firewall Digital Signature For B2B e-commerce VPI .
e-Commerce The Needs to Conduct e-Commerce on the Internet • A product to offer • A web site – Professional look – Rich content – Build it – Buy it – Borrow it – Buddy-up (Partner) – User friendly – Speedy download – Integrated with off-line business .
A macro program Graphic Programs & Html editor Shopping cart System & secure purchase with credit card – Search engine submission software – Web position analyzer software .e-Commerce Needs to conduct e-Commerce on the Internet (Cont’d) • • • • An internet service provider (ISP) A Domain name A Web host Web tools – Software – – – – – A professional e-mail program Auto responders A text editor .
e-Commerce Surviving Marketing Strategies in e-Commerce • The Magnet Effect The new way of selling. Build an audience and then look for something to sell. • Spiral Marketing To keep the audience attraction: – Use passive media – Use the Web site – Use e-mail • Domino Effect A way to predict when technology trends will impact your business .
e-Commerce The Future Trends of the e-Commerce • • • • Faster Access High Security More Customization Extranet .
e-Commerce QUESTIONS? .