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..