itec5611 electronic commerce system implementation supakorn kungpisdan [email protected]
TRANSCRIPT
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Supakorn Kungpisdan
• Education– PhD (Computer Science and Software Engineering), Monash
University, Australia– M.Eng (Computer Engineering), KMUTT
• Specializations– Information and Network Security, Electronic Commerce, Formal
Methods, Computer Networking
• Experience– External Research Advisor, Network Security Research Group,
Monash University, Australia– Business Development Director, CyberPlanet Interactive
• http://www.mut.ac.th/~supakorn/
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Course Descriptions
• Saturday 3.30PM-6.30PM
• Textbooks– Turban, E.: Electronic Commerce: A Managerial
Perspective 2006, Prentice Hall, ISBN 0-13-197667-2– Bhasker, B.: Electronic Commerce: Framework,
Technologies and Applications, 2nd Edition, Tata McGraw-Hill, ISBN 0-07-060095-3
– Extra Readings• Chapter 18: Building EC Applications• Technical appendices
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Course Outline1. Overview of Electronic Commerce2. E-Marketplace3. Retailing in Electronic Commerce4. Business-to-Business E-Commerce5. E-Supply Chains, Collaborative Commerce, Intrabusiness EC, and
Corporate Portals6. Electronic Data Interchange7. Presentation#18. EC Architectural Framework & EC Security9. Electronic Payment Systems10. Search Engines, Directory Services, and Internet Advertising11. Mobile Commerce and Pervasive Computing12. Building EC Applications and Infrastructure13. Presentation#2
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Evaluation Criteria
• Quizzes: 10%• Project: 30%• Midterm Exam: 20%• Final Exam: 40%
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Term Project (30%)• Work in group of 2 students• Propose an ecommerce system by completing the following requirements:
– Such system can be based on existing applications or a new concept. If brought from existing systems, discuss pros and cons and how improve the system you can propose.
• Develop a business plan of your ecommerce application. Note that you need to focus on how to generate revenue to the system and the financial plan. – Have a presentation before midterm exam
• Develop a framework of your system explaining all necessary features and functions in your system. (necessary system and network infrastructure)
• Explain detailed implementation in both technical and operational aspects • Evaluate the proposed system
– Submit a report containing all the details stated above. • 2 15-min presentations are required
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Roadmap
• Electronic Commerce: Definitions and Concepts• The EC Framework, Classification, and Content• The Business Environment Drives EC• EC Business Models• Benefits and Limitation of EC
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Definitions and Concepts
Electronic Commerce (EC)• The process of buying, selling, or exchanging
products, services, or information via computer networks
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Definitions and Concepts (cont’d)
• EC is defined through these perspectives:– Communications: delivery of goods, services, information over
networks– Commercial (trading): buying and selling products or services– Business process: completing business processes over
electronic networks– Service: improve quality of service and increase speed of
service delivery– Learning– Collaborative: inter- and intra-organization collaborative– Community: provide places for community members
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Definitions and Concepts (cont’d)
e-business• A broader definition of EC that includes not just
the buying and selling of goods and services, but also servicing customers, collaborating with business partners, and conducting electronic transactions within an organization
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Definitions and Concepts (cont’d)
• Pure Versus Partial EC– EC takes several forms depending on the
degree of digitization (the transformation from physical to digital)
(1) the product (or service) sold,
(2) the process,
(3) the delivery agent (or intermediary)
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The Dimensions of Electronic Commerce
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Definitions and Concepts (cont’d)
• EC organizationsbrick-and-mortar organizationsOld-economy organizations (corporations) that perform most of their business off-line, selling physical products by means of physical agents
virtual (pure-play) organizationsOrganizations that conduct their business activities solely online
click-and-mortar (click-and-brick) organizationsOrganizations that conduct some e-commerce activities, but do their primary business in the physical world
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Definitions and Concepts (cont’d)
• Where EC is conductedelectronic market (e-marketplace)An online marketplace where buyers and sellers meet to exchange goods, services, money, or information
inter-organizational information systems (IOSs)Communications system that allows routine transaction processing and information flow between two or more organizations
intra-organizational information systemsCommunication systems that enable e-commerce activities to go on within individual organizations
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Roadmap
• Electronic Commerce: Definitions and Concepts• The EC Framework, Classification, and Content• The Business Environment Drives EC• EC Business Models• Benefits and Limitation of EC• Networks for EC
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A Framework for Electronic Commerce
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EC Classification
• Classification by nature of the transactions or interactions
business-to-business (B2B)
E-commerce model in which all of the participants are businesses or other organizations
business-to-consumer (B2C)
E-commerce model in which businesses sell to individual shoppers
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EC Classification (cont’d)
e-tailingOnline retailing, usually B2C
business-to-business-to-consumer (B2B2C)E-commerce model in which a business provides some product or service to a client business that maintains its own customers
consumer-to-business (C2B)E-commerce model in which individuals use the Internet to sell products or services to organizations or individuals seek sellers to bid on products or services they need
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EC Classification (cont’d)
consumer-to-consumer (C2C)E-commerce model in which consumers sell directly to other consumers
peer-to-peerTechnology that enables networked peer computers to share data and processing with each other directly; can be used in C2C, B2B, and B2C e-commerce
mobile commerce (m-commerce)E-commerce transactions and activities conducted in a wireless environment
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EC Classification (cont’d)
intrabusiness ECE-commerce category that includes all internal organizational activities that involve the exchange of goods, services, or information among various units and individuals in an organization
business-to-employees (B2E)E-commerce model in which an organization delivers services, information, or products to its individual employees
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EC Classification (cont’d)
collaborative commerce (c-commerce)E-commerce model in which individuals or groups communicate or collaborate online
• Business partners in different locations may design a product together using screen sharing, manage online inventory
e-learningThe online delivery of information for purposes of training or education
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EC Classification (cont’d)
exchange (electronic)A public electronic market with many buyers and sellers
exchange-to-exchange (E2E)E-commerce model in which electronic exchanges formally connect to one another for the purpose of exchanging information
e-governmentE-commerce model in which a government entity buys or provides goods, services, or information to businesses or individual citizens
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Roadmap
• Electronic Commerce: Definitions and Concepts• The EC Framework, Classification, and Content• The Business Environment Drives EC• EC Business Models• Benefits and Limitation of EC
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Business Environment Drives EC
• Economic, legal, societal, and technological factors have created a highly competitive business environment in which customers are becoming more powerful
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Business Environment Drives EC (cont’d)
• The environment–response–support model– Resistant to environment pressures– Response fast– Provide supports to customers
Companies must not only take traditional actions such as lowering costs and closing unprofitable facilities, but also introduce innovative actions such as customizing, creating new products, or providing superb customer service
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Major Business Pressures and the Role of EC
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Business Environment Drives EC (cont’d)
• Organizational response strategies– Strategic systems– Agile systems– Continuous improvement efforts and business
process restructuring– Customer relationship management– Business alliances: even with competitors– Electronic markets: private and public markets
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Business Environment Drives EC (cont’d)
– Reductions in Cycle Time and Time-to-Marketcycle time reductionShortening the time it takes for a business to complete a productive activity from its beginning to end
– Empowerment of EmployeesEC allows the decentralization of decision making and authority via empowerment and distributed systems, but simultaneously supports a centralized control
– Supply Chain ImprovementsEC can help reduce supply chain delays, reduce inventories, and eliminate other inefficiencies
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Business Environment Drives EC (cont’d)
• Mass Customization: Make-to-Order in Large Quantities– Mass production VS mass customization
mass customizationProduction of large quantities of customized items
• Intrabusiness: From Sales Force Automation to Inventory Control
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Roadmap
• Electronic Commerce: Definitions and Concepts• The EC Framework, Classification, and Content• The Business Environment Drives EC• EC Business Models• Benefits and Limitation of EC
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EC Business Models
business model• A method of doing business by which a
company can generate revenue to sustain itself
Business models are a subset of a business plan or a business case
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EC Business Models (cont’d)
• The Structure of Business Models– A description of the customers to be served and the
company’s relationships with these customers (customers’ value proposition)
– A description of all products and services the business will offer
– A description of the business process required to make and deliver the products and services
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EC Business Models (cont’d)
• The Structure of Business Models– A list of the resources required and the identification
of which ones are available, which will be developed in-house, and which will need to be acquired
– A description of the organization supply chain, including suppliers and other business partners
– A description of the revenues expected (revenue model), anticipated costs, sources of financing, and estimated profitability (financial viability)
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Common Revenue Models
• Revenue Models
Description of how the company or an EC project will earn revenue
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EC Business Models (cont’d)
• Typical EC Business Models– Online direct marketing– Electronic tendering systems (reverse auction)
Model in which a buyer requests would-be sellers to submit bids; the lowest bidder wins
– name-your-own-price model
Model in which a buyer sets the price he or she is willing to pay and invites sellers to supply the good or service at that price
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EC Business Models (cont’d)
• Typical EC Business Models– Find the best price (aka. search engine model)
• Check the lowest price from DBs of suppliers– affiliate marketing
An arrangement whereby a marketing partner (a business, an organization, or even an individual) refers consumers to the selling company’s Web site (3-15% commission)
– viral marketingWord-of-mouth marketing in which customers promote a product or service to friends or other people
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EC Business Models (cont’d)
• Typical EC Business Models– group purchasing (aka volume-buying model)
Quantity purchasing that enables groups of purchasers to obtain a discount price on the products purchased
SMEs
Small-to-medium enterprises
e-co-ops
Another name for online group purchasing organizations
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EC Business Models (cont’d)
• Typical EC Business Models– Online auctions– Product and service customization
customizationCreation of a product or service according to the buyer’s specifications
• Reduce inventory by producing made-to-order products
– Electronic marketplaces and exchanges– Information brokers
• Provide privacy, trust, matching, search, content, etc.
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EC Business Models (cont’d)
• Typical EC Business Models– Bartering– Deep discounting
• E.g. > 50 % discount
– Membership• offers discount to members
– Value-chain integrators• Provide complete packages to adding value
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EC Business Models (cont’d)
• Typical EC Business Models– Value-chain service providers
• Specialize in a supply chain function, e.g. logistics (UPS.com) or payment (PayPal.com)
– Supply chain improvers
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Roadmap
• Electronic Commerce: Definitions and Concepts• The EC Framework, Classification, and Content• The Business Environment Drives EC• EC Business Models• Benefits and Limitation of EC
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Benefits of EC
• Global Reach• Cost Reduction• Supply Chain
Improvements• Extended Hours• Customization• New Business Models• Vendors’ Specialization• Rapid Time-to-Market
• Lower Communication Costs
• Efficient Procurement• Improved Customer
Relations• Up-to-Date Company
Material• No City Business Permits
and Fees• Other Benefits
Benefits to Organizations
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Benefits of EC (cont’d)
• Ubiquity – anytime, anywhere
• More Products and Services– More choices
• Customized Products and Services
• Cheaper Products and Services
• Instant Delivery– Digitized products
• Information Availability• Participation in Auctions• Electronic Communities• No Sales Tax
– In some countries
Benefits to Consumers
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Benefits of EC (cont’d)
• Benefits to Society– Telecommuting
• Work at home, less travel
– Higher Standard of Living• Products with more affordable prices
– Hope for the Poor– Availability of Public Services
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Limitations of EC
Questions?
Next lecture:E-Marketplace