abugattas e-commerce presentation

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  • 8/6/2019 Abugattas E-Commerce Presentation

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    EE--commerce: Definitioncommerce: Definition

    NoNo widelywidely acceptedaccepted definitiondefinition.. InIn looseloosesensesense itit meansmeans doingdoing businessbusiness overover thetheinternet,internet, sellingselling productsproducts [goods[goods andandservices]services] whichwhich areare delivereddelivered offlineoffline asaswellwell asas productsproducts whichwhich cancan bebe digitalizeddigitalizedandand delivereddelivered onon lineline..ee--commerce is the online transaction ofcommerce is the online transaction ofbusiness, featuring linked computer systemsbusiness, featuring linked computer systemsof the vendor, host and buyer. Electronicof the vendor, host and buyer. Electronictransactions involve the transfer oftransactions involve the transfer ofownership or rights to use a good orownership or rights to use a good orservice [US Department of Commerceservice [US Department of Commerce]]

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    EE--commerce: Scopecommerce: Scope

    EE--commerce is a subcommerce is a sub--set ofset ofee--businessbusiness

    EE--businessbusiness:: applicationapplication ofof ICTICT toto allall aspectsaspects ofofcompaniescompanies operationsoperations:: ii..ee.. customercustomer relationsrelations managementmanagement

    (CRM)(CRM);; enterpriseenterprise resourceresource planningplanning (ERP)(ERP);; salessales forceforcemanagementmanagement (SFM)(SFM);; electronicelectronic procurementprocurement (EP)(EP)

    EE--commercecommerce:: FunctionsFunctions CommunicationCommunication [on[on--lineline catalogue]catalogue]

    TransactionTransaction [shopping[shopping cartscarts:: browsebrowse andand selectselectitemsitems andand makemake buyingbuying decision]decision]

    PaymentPayment[electronic[electronic paymentpayment methods]methods]

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    EE--commerce Characteristicscommerce Characteristics

    OperatesOperates onon aa bonafidebonafide basisbasis [no[no priorpriorarrangementarrangement betweenbetween customercustomer andand seller]seller]

    OperatesOperates overover thethe InternetInternet;; usingusing allall oror anyanycombinationcombination ofof technologiestechnologies designeddesigned totoexchangeexchange datadata [email,[email, mobilemobile phone,phone, EDI]EDI];; totoaccessaccess datadata [share[share databasesdatabases oror electronicelectronicbulletingbulleting boards]boards];; andand toto capturecapture datadata [bar[barcodingcoding andand magneticmagnetic oror opticaloptical charactercharacter readersreaders

    RequiresRequires buyerbuyer adheringadhering toto aa contractcontract [I[IAGREE,AGREE, II DONTDONT AGREE,AGREE, latterlatter terminateterminatenegotiations]negotiations].. JurisdictionJurisdiction imposedimposed byby thethe sellersellerandand aa mandatorymandatory alternativealternative disputedispute resolutionresolutionmechanismmechanism..

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    EE--commerce Market Structurecommerce Market Structure

    PortalPortal ( POR)(POR):: EngagesEngages inin buildingbuilding aacommunitycommunity ofof consumersconsumers ofof informationinformation aboutaboutproductsproducts.. FocalFocal pointspoints forfor influencinginfluencing thethe channelchanneltraffictraffic intointo webweb sitessites managedmanaged byby providersproviders..

    MarketMarketMakerMaker (MMK)(MMK):: FFacilitatesacilitates businessbusinesstransactionstransactions thatthat taketake placeplace betweenbetween suppliersupplier andandbuyer,buyer, andand providesprovides valuevalue throughthrough aa systemsystem ofofimplicitimplicit oror explicitexplicit guaranteeguarantee ofof securitysecurity andandtrusttrust..

    Product/serviceProduct/service ProviderProvider ( PSP)(PSP)::ConductConduct directlydirectly businessbusiness overover thethe internet,internet,customizedcustomized informationinformation systemssystems andand businessbusinessprocessesprocesses..

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    G2GG2Ge.g.e.g.

    coordinationcoordination

    G2BG2Be.g. informatione.g. information

    G2CG2Ce.g. informatione.g. information

    B2GB2Ge.g.e.g.

    procurementprocurement

    B2BB2Be.g. ee.g. e--

    commercecommerce

    B2CB2Ce.g. ee.g. e--

    commercecommerce

    C2GC2Ge.g. taxese.g. taxes

    C2BC2Be.g. pricee.g. price

    comparisonscomparisons

    C2CC2Ce.g. actione.g. actionmarketsmarkets

    Government

    Business

    Consumer

    Government Business Consumer

    E-commerce and Broader Internet Applications

    Source OECD (2000)

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    EE--commerce Market Segmentscommerce Market Segments

    BB22BB:: TransactionsTransactions betweenbetween companiescompanies.. TheThe biggestbiggest andandmoremore successfulsuccessful [[7070--7575%% ofof totaltotal ee--commercecommerce sales]sales]LinkedLinked withwith supplysupply chainchain management,management, goinggoing beyondbeyondsimplesimple buyingbuying andand sellingselling transactionstransactions increasinglyincreasinglyinvolvinginvolving supplysupply chainchain technologiestechnologies..

    BB22CC:: BusinessBusiness sellingselling toto householdshouseholds.. GrowingGrowing segmentsegment ofofthethe marketmarket.. MoreMore complexcomplex duedue toto informationinformation gapsgaps;; hashas notnotdonedone asas goodgood asas BB22BB..

    CC22CC:: FacilitatesFacilitates transactionstransactions betweenbetween twotwo individualsindividuals..RequiresRequires aa platformplatform (MMK)(MMK).. EE--BayBay

    BB22GG:: GovernmentGovernment procurementprocurement throughthrough internetinternet.. SeeksSeeks

    moremore transparencytransparency andand greatergreater competitioncompetition CC22BB:: ReverseReverse auctionauction [new[new trend]trend]

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    EE--Commerce: TrendsCommerce: Trends

    BB22CC:: MoreMore successfulsuccessful opportunitiesopportunities[apparel,[apparel, books,books, computercomputer hardwarehardware;;softwaresoftware andand accessoriesaccessories;; electronicselectronics;;

    entertainment,entertainment, financialfinancial servicesservices;; flowersflowers..giftsgifts;; informationinformation;; musicmusic;; traveltravel servicesservices;;and,and, toys]toys]

    BB22BB:: AllAll sectorssectors onon--lineline salessales 1515..99%%;; onon--

    lineline purchasespurchases 4646..11%% [number[number ofofcompanies,companies, EE--WatchWatch 20032003]] SalesSales andandpurchasespurchases linkedlinked withwith companycompany sizesizeLargerLarger ++ onon--lineline transactionstransactions..