c1 introduction of ec

Chapter 1:

Introduction of E-commerce

8/2013 Pham Thi Chau Quyen 1

Chapter 1: Introduction to E-commerce (EC)

1

2

3

Definitions of E-commerce

History of E-commerce

4 The overview of Vietnam E-commerce

Benefits and limitations of E-commerce


1. Definitions of E-commerce

The narrow sense and the broad sense

Business’s view and State’s view (UNCTAD)


1.1. Definition of EC in narrow sense

E-commerce is the buying or selling goods and

services through computer and internet.


1.2. Definition of EC in broad sense

E-commerce is the conduct of commercial

activities through electronic means and

telecommunication networks.


(i) COMMERCIAL ACTIVITIES

Commercial activities mean activities for the

purpose of generating profits, including:

sale and purchase of goods, provision of services,

investment, commercial promotion and other activities

for the profit purpose.

Source: Clause 1, Article 3, Commercial law,

No. 36/2005/QH118/2013 Pham Thi Chau Quyen 6

(ii) ELECTRONIC MEANS

An electronic means is a means that

operates based on electric, electronic,

digital, magnetic, wireless, optical,

electro-magnetic technologies or similar

technologies.Source: Clause 10, Article 4, Law on e-transactions,


Telephone networks;

Television networks;

Intranet;

Extranet;

Internet;

3G networks;

4G networks;

….

(iii) TELECOMUNICATION NETWORKS


1.3. Definitions of EC from UNCTAD

From the point of business person (horizontally): MSDP

From the point of State (vertically): IMBSA

Soure: UNCTAD (United Nations Conference on Trade and Development )8/2013 Pham Thi Chau Quyen 9

(i) MSDP

Marketing Sales Distribution Payment


E-Marketing

E-marketing activities

• Market research• Website marketing• Banner Ads• E-mail marketing• Search engine marketing• Mobile marketing• Social networks• …


E-sales

+ E-catalogue

+ Shopping cart

+ Customer database

+ Traffic management

+ Automated sales process


E-distribution

+ Downloads (digital goods)

+ Effective improvement of distribution system (traditional goods)• e-logistics• e-customs• e-C/O• e-warehouse• inventory management• e-supply chain management• e-delivery management8/2013 Pham Thi Chau Quyen 13

E-payment

Many methods of e-payment

• Convenience• Safety


(ii) IMBSA

Infrastructure

Message

Basic rules

Specific rules

Application8/2013 Pham Thi Chau Quyen 15

Infrastructure

Electronic means (computer, laptop, mobile…)

Telecommunication networks (Internet)

Human resource


Message

A data message means information

created, transmitted, received and

stored by electronic means.Source: Clause 12, Article 4, Law on e-transactions,

No. 51/2005/QH11


Message

Legal validity of data message

Information in data messages cannot have its

legal validity disclaimed for the sole reason

that it is expressed in the form of data

messages.Source: Article 11, Law on e-transactions,


Basic & Specific Rules

Source: Vietnam E-commerce Report 2011 8/2013 Pham Thi Chau Quyen 21

Prevention of spam

1. When sending information in the network environment,organizations and individuals may not hide their names orimpersonate other organizations or individuals.2. Organizations and individuals that send advertisementinformation in the network environment shall assureconsumers' ability to reject the advertisementinformation.3. Organizations and individuals may not continue sendingadvertisement information in the network environment toconsumers if the latter notify their refusal to receive theadvertisement information. Source: Article 70, Law on IT,

No. 67/2006/QH11


Application

Source: Vietnam E-commerce Report 2011 8/2013 Pham Thi Chau Quyen 23

E-COMMERCE ORGANIZATIONS

1. Brick and mortar organizations: …………………..

2. Virtual (pure-play) organizations: ………………….

3. Click and mortar (click and brick) organizations: ……………………………………………………………


2. History of E-commerce

The birth of EC

The EC development levels in a company


2.1. The birth of EC


2.2. The EC development levels in a company

I-COMMERCE

T-COMMERCE

C-BUSINESS


(i) I-COMMERCE

1• Buying

computers, installing internet

• Using email to communicate

2• Building a

website to introduce products

3• Registering on

the portals• alibaba.com• ecvn.com


(ii) T-COMMERCE

T-COMMERCE

E-contract

Intranet

E-payment


Definition of e-contract

“A civil contract is an agreement

between the parties to establish, change

or terminate civil rights and/or

obligations”

( Article 388; Section 7; Chapter XVII –

The Civil Code 2005)8/2013 Pham Thi Chau Quyen 30


“E-contracts mean contracts

established in the form of data

messages provided for in this Law”

(Article 33 – Law on E-transactions)



“The legal validity of an e-contract

cannot be disclaimed for the sole

reason that it is expressed as a data

message”.

(Article 11 – Law on E-transactions)


E-contract classification

- Traditional contracts: are posted on the

website

- Automated e-contract: are formed

through automatic transactions (through

manipulation of click, type and browse)

- Email contracts

- E-contracts use digital signature8/2013 Pham Thi Chau Quyen 33

E-PAYMENT

Payment cards

Internet Banking

E-wallets

E-payment gates


(iii) C-BUSINESS

CUSTOMERS

SUPPLIERS

STATE AGENCIESBANKS BUSINESS


EDI

Electronic data interchange (EDI)means the transfer of information from one

computer to another by electronic means in

accordance with an agreed standard on

information structure.Source: Clause 15, Article 4, Law on e-transactions


First step

Web presence


Second step

Intranet


Third step

ExtranetCRM, SCM,ERP

EDI


3. THE BENEFITS & LIMITATIONS OF EC

BENEFITS

LIMITATIONS


3.1. BENEFITS

To the organization

………………………………………………………………

……………………

……………………

………………………………………………………………………………………………


3.1. BENEFITS

To the customer

………………..

………………………………..


3.1. BENEFITS

To the society

………………………

………………………

………………………

………………………

………………………

………………………8/2013 Pham Thi Chau Quyen 43

3.1. BENEFITS

- More information- Good price- More choices- Order and make payment easily- Door to door delivery- ..........................

- Do market research, find out more customer- Get feedback from customer- Reduce cost- ..........................


3.2. LIMITATIONS

TECHNICAL LIMITATIONS

COMMERCIAL LIMITATIONS

LIMITATIONS


(i) TECHNICAL LIMITATIONS

• costs of a technological solution• some protocols are not standardized around

the world• reliability for certain processes• insufficient telecommunications bandwidth• software tools are not fixed but constantly

evolving• integrating digital and non-digital sales and

production information8/2013 Pham Thi Chau Quyen 46

(i) TECHNICAL LIMITATIONS

• access limitations of dial-up, cable, ISDN,wireless

• some vendors require certain software to showfeatures on their pages, which is not commonin the standard browser used by the majority

• difficulty in integrating e-commerceinfrastructure with current organizationalIT systems


(ii) NON-TECHNICAL LIMITATIONS

privacy issues customer fear of personal information being

used wrongly

customer expectations unmet rules and regulations security and privacy vulnerability to fraud and other crimes



lack of trust and user resistance fear of payment information being

unsecure tactile limitations legal issues outstanding such as

jurisdiction legal environment has many new and

conflicting laws cultural obstacles linguistic challenges8/2013 Pham Thi Chau Quyen 49


limitations of support services financial cost sourcing tech support in foreign languages

lack of critical mass in certain market areasfor sellers and buyers accessibility outside of urban/suburban and

areas effects universality higher employee training required to be

click and mortar people's resistance to change people not used to faceless / paperless / non-

physical transactions8/2013 Pham Thi Chau Quyen 50

4. THE OVERVIEW OF VIETNAM EC

4.1

4.2

Legal environment

The e-commerce application atVietnamese enterprises

4.3 E – payment


4.1. Legal environment

The basic legal framework for e-transactions in

Vietnam

3 Laws

9 Decrees on guiding a number of provisions of 3

laws

9 Decrees on handling violations

19 Circulars


(Vietnam E-commerce Report 2011)8/2013 Pham Thi Chau Quyen 53

4.2. The EC application of Vietnam

E-commerce application readiness

Computersusage

Connect to the

internet

Email usage

Information Security and data privacy

E-commerce specialized

staffs


(Vietnam E-commerce Report 2011)

Firewall Software Hardware Digital signature


The e-commerce application status


The efficiency of e-commerce applications


4.3. E-payment


c1 introduction of ec

Economy & Finance