Chapter 1 - Introduction To E-Commerce (Student)

INTRODUCTION
Subject: INTRODUCTION TO ELECTRONIC COMMERCE

Subject Code: BBS20203
BBS20203: Introduction to E-
Commerce
Lecturer: Miss Khairiyah binti Salleh
Education: MSc. Information Technology (2013)
BSc. (Hons) Business Computing (2009)
Faculty: Faculty of Business Management and Professional
Studies (FBMP), Level 10, Management Tower, MSU.
Office No: 03-5521 (6929)
Course Learning Outcome
At the end of the course, students will be able to:
• Describe verbally and in writing basic concepts, components, strategies

and issues behind the field of e-commerce and e-marketplaces based on
the current practice.
Commerce
• Distinguish at least FIVE (5) types of contemporary e-commerce model.
• Apply applications of e-commerce based on online hands-on experience.
• Discover the Internet and World Wide Web features and other evolving
standards that related to electronic commerce.
• Work effectively in a team through a group project of designing e-
commerce web site.
• Apply professional practice and ethics that covered in e-commerce
environment.
2
ICE BREAKING SESSION
Commerce
References Book
1. Turban, E. & King, D. (2012). E-Commerce 2012;
Managerial ad Social Network Perspectives. 7th
Edition, Pearson Education.
2. Gary P. Schneider (2013) Electronic Commerce. 10th

Edition, Course Technology, Cengage Learning.
Commerce
Assessment Method and Type
Mid
Final
Assignment 1 Assignment 2 Test Semester
Examination
Examination
Commerce
20% 20% 10% 20% 30%
Do and Don’t in Classroom for Students
Do
Don’t
• Be regular in attendance and
• Do not absent yourself from
never be late to class.
class. 75% attendance is the
• Bring the book and/or notes to minimum requirement.
the class. Presence in the class is
Commerce
• Keep your class room clean and mandatory except in cases of
tidy. emergency.
• Be fair and honest at work, • Do not make loud noise in
always be considerate of the the class room.
rights of others.
• Be courteous and respectful to
your friend and lecturer
• Submit assignments and final
project on time.
Chapter 1:
Introduction to e-commerce
Commerce
Learning Objectives
 Define E-Commerce
 Emergence of E-Commerce
 Importance of E-Commerce
 Major Types of E-Commerce
Commerce
 E-Commerce Technology
 The Contribution of E-Commerce to Organizations
 E-Commerce in Small and Medium Size Enterprises
8
E-commerce vs. E-business
E-commerce involves
 Digitally enabled commercial transactions between
organizations and individuals.
 Digitally enabled transactions include all transactions
Commerce
mediated by digital technology.
 Commercial transactions involve the exchange of value
across organizational or individual boundaries in return
for products or services.
9
E-commerce vs. E-business
E-business involves
 Digital enablement of transactions and
processes within a firm, involving
information systems under the control of the
Commerce
firm.
 E-business does not involve commercial
transactions across organizational
boundaries where value is exchanged.
10
Type of Organization
EC
Organizations
Brick and mortar
(old economy organizations)
Commerce
Click and mortar
(click and brick)
Virtual (Pure-play)
organizations
11
The Difference Between E-
commerce and E-Business
Commerce
12
The Dimensions of EC
Commerce
13
Source: Drawn by E. Turban
Age
Forces Shaping the Digital
14
Commerce
Forces Shaping the Digital Age
Digitalization & Internet Explosion

Connectivity  Explosive worldwide
 Intranets : connect growth forms the heart of
Commerce
people within a the New Economy.
company.  Increasing numbers of
 Extranets : connect a users each month.
company with its  Companies must adopt
suppliers, distributors, Internet technology or risk
and outside partners. being left behind.
 Internet : connects users 15
around the world.
• New Types of Intermediaries:
• Direct selling via the Internet bypassed existing intermediaries
(disintermediation).
• “Brick-and-mortar” firms became “click-and-mortar” companies.
• As a result, some “click-only” companies have failed.
Commerce
16
• Customization and Customerization:
• With customization, the company custom designs the market
offering for the customer.
• With customerization, the customer designs the market offering
Commerce
and the company makes it.
17
Seven Unique Features of E-commerce
Technology and Their Business Significance
Commerce
18
Major Types of E-Commerce
19
Major Types of E-Commerce
 Market relationships
 Business-to-Consumers (B2C)
 Business-to-Business (B2B)
Commerce
 Consumer-to-Consumer (C2C)
 Technology-based
 Peer-to-Peer (P2P)
 Mobile Commerce (M-commerce)
20
Business-to-Consumer E-commerce
 Most commonly discussed type
 Online businesses attempt to reach individual consumers
 Portals (Google)
 B2B service providers (Zipcar)
 Market creator (e-bay)
Commerce
21
Business-to-Business E-commerce
 Businesses focus on sell to other businesses
 Largest form of e-commerce
 Primarily involved inter-business exchanges at first
 Other models have developed
 e-distributors (Grainger.com)
Commerce
 Industrial Consortia (GlaxoSmithKline)
22
E-distributors
• Company that supplies products and services directly to
individual businesses.
• Grainger.com
• GE Electric Aircraft Engines (geae.com)
• Owned by one company seeking to serve many customers.
Commerce
• Revenue through sale of goods.
23
Consumer-to-Consumer E-commerce
vide a way for consumers to sell to each other
sumer:
repares the product for market
Commerce
laces the product for auction or sale
elies on market maker to provide catalog, search
ngine, and transaction clearing capabilities
24
Peer-to-Peer E-commerce
 Enables Internet users to share files
and computer resources
 Napster (early example)
Commerce
 Skype (more modern and successful
example)
25
Mobile E-commerce
 Wireless digital devices enable transactions on the Web
 Many companies now offer mobile applications that
customers can download to their phones. The
applications are typically a condensed version of the full
Commerce
version of the site.
 Many retail stores offer mobile software applications to
purchase items and have them shipped.
 Another common mobile commerce transaction is
mobile banking. Consumers can check account balances,
transfer funds and look at bank activity while mobile.
26
The Internet and the Evolution of Corporate Computing
Commerce
29
E-commerce Enablers
30
Commerce
The Contribution of E-Commerce
to Organizations
Commerce
The Business Environment and Performance Impact Model
31
Major Business Pressure
Market and Economic Pressures Societal Pressures Technological Pressures
Strong competition Changing nature of Increasing innovations and new

workforce technologies
Global economy Shrinking government Rapid technological obsolescence
subsidies
Extremely low labor costs in some Increases in information overload
Commerce
countries
Increased power of consumer Rapid decline in technology cost
versus labor cost
Political and government
32
E-Commerce in Small and
Medium Enterprises (SME)
• Exercise 1
• Find any small or SME companies in Malaysia that applied E-
commerce in their organizations.
• List out the name of company, years established and location.
• Identify type of e-commerce for the chosen company.
Commerce
• Describe product/services provided, agents and their organization
process.
35

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INTRODUCTION

Subject: INTRODUCTION TO ELECTRONIC COMMERCE

• Describe verbally and in writing basic concepts, components, strategies

2. Gary P. Schneider (2013) Electronic Commerce. 10th

Digitalization & Internet Explosion

• With customerization, the customer designs the market offering

Strong competition Changing nature of Increasing innovations and new

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