Introduction to Electronic Commerce2

What is electronic commerce and how do companies use it?

What are the things we buy or sell in electronic commerce?

• Goods (Physical items which can be touch)

• Services (Non-physical components which we can't touch)

• Funds (Money using exchanges)

• Data (Electronic books or any document which are in PDF)

What were the early purposes of EDI in the 1960s?

What are the benefits of e-commerce to organizations?

• International marketplace.

• E-commerce has revolutionized the way consumers buy goods and services.

• Mass customization.

• Operational cost savings.

• Enables reduced inventories and overheads by facilitating chain management.

What are the limitations of e-commerce to organizations?

• Lack of sufficient system security, reliability, standards and communication protocols.

• Rapidly evolving and changing technology.

• Under pressure to innovate and develop business models.

• Facing increased competition from both national and international competitors.

• Problems with compatibility of older and ‘newer’ technology.

What are the benefits of e-commerce to consumers?

• Enables customers to shop or conduct other transactions 24 hours a day.

• More choices.

• Price comparisons.

• Improved delivery processes.

• An environment of competition.

What are the limitations of e-commerce to consumers?

• Lack of security and privacy of personal data.

• Cost of access to the Internet.

• A basic technical knowledge is required.

• Cost of computing equipment.

• Physical contact and relationships are replaced by electronic processes.

What are the benefits of e-commerce to society?

• Enables more flexible working practices.

• Connects people.

• Facilitates delivery of public services.

What are the limitations of e-commerce to society?

• Breakdown in human interaction.

• Social division.

• Reliance on telecommunications infrastructure, power and IT skills.

• Wasted resources.

• Facilitates Just-In-Time manufacturing.

What are the fundamental models of E-commerce?

• Business – to – Business (B2B) model

• Business – to – Consumer (B2C) model

• Consumer – to- Consumer (C2C) model

• Consumer – to – Business (C2B) model