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In the Beginning Chapter 1 OBJECTIVES What we need to do business online? What is E-Commerce? Advantages and Limitations of E-Commerce Strategy in E-Commerce Value Chains in E-Commerce E-Commerce Integration Introduction

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objectives
OBJECTIVES
  • What we need to do business online?
  • What is E-Commerce?
  • Advantages and Limitations of E-Commerce
  • Strategy in E-Commerce
  • Value Chains in E-Commerce
  • E-Commerce Integration
introduction
Introduction
  • If you have PC and connect to the Internet with a browser you can do business online.
  • The backbone of the electronic commerce is the Internet
  • Changing during past 2 decades are
    • Computer
    • Information Technology
    • Networking ( Internet )
what is e commerce
WHAT IS E-COMMERCE?
  • Electronic Presentation of Goods and Services
  • EC:- the marketing, buying, and selling of products and services on the internet.
  • EC required
    • Automated Customer Account Inquiries
    • Online Order Taking and Payments
    • Online Transaction Handling
    • Automated Supply Chain Management Solutions
ec definition
EC definition
  • Communication: ability to deliver products, services, information via network
  • Interface: involve various information and transaction exchange. (B2B, B2C, C2C, B2G)
  • Business process: activities that directly support commerce electronically by network connection.
ec definition6
EC definition
  • Online: electronic environment that makes it possible to buy and sell (P,S,I) on the internet.
  • Structural: EC involves various media: data. Text, web page, …
e business
E-business
  • E-commerce is not E-business
  • E-business:- connecting critical business systems and constituencies directly via internet, Extranets, and Intranets.
  • Goes behind web site on the internet to affect all aspect of business
e business8
E-business
  • E-business enables organization to accomplish the following goals
    • Reach new markets
    • Create new products or services
    • Build customer loyalty
    • Make the best use of existing technologies
e commerce
E-Commerce
  • Commerce with anyone, anywhere, anytime

with more effective transaction

  • Transaction: a block of information exchange between the merchant and its customer via website.
  • Reasons why it is difficult to understand EC is the speed with which is growing
ec breaking rules of commerce
EC breaking rules of commerce
  • Companies do not share information with competitors
  • Supplier do not share information with buyers especially price
  • No financial transaction occurs without involvement of a bank
why e commerce
WHY E-COMMERCE?
  • Digital Convergence
  • Anytime, Anywhere, Anyone
  • Changes in Organization’s Make-up
  • Widespread Access to IT
  • Increasing Pressure on Operating Costs and Profit Margins
  • Demand for Customized Products and Services
  • Speed or Time Reduction
e commerce myths
E-COMMERCE MYTHS
  • Setting up a Web site is easy
  • E-commerce is cheap when compared to purchasing a mainframe
  • E-commerce means end of mass marketing
  • Everyone is doing it
  • E-commerce is lucrative
  • E-commerce is revolutionary
e commerce myths cont d
E-COMMERCE MYTHS (Cont’d)
  • Online retailing is always the low-cost channel
  • All products can be sold online using identical business models
  • Customers can be bought
  • Online firms face less pressure to grow and achieve economies of scale
  • Size is not important for online firms
  • The middleman is out
advantages of e commerce
ADVANTAGES OF E-COMMERCE
  • Lower Cost
  • Economical
  • Higher Margins
  • Better and Quicker Customer Service
  • Comparison Shopping
  • Productivity Gains
advantages of e commerce cont d
ADVANTAGES OF E-COMMERCE (Cont’d)
  • Helps People Work Together
  • Creates Knowledge Markets
  • Promotes Information Sharing, Convenience and New Customer Control
  • Swapping Goods and Services
  • Allows High Product Customization
limitations of e commerce
LIMITATIONS OF E-COMMERCE
  • Security
  • System and Data Integrity
  • System Scalability
  • Not Free-for-All
  • Consumer Search
limitations of e commerce cont d
LIMITATIONS OF E-COMMERCE (Cont’d)
  • Fulfillment
  • Customer Relations
  • Types of Products
  • Corporate Vulnerability
  • Blueprint Development
  • Risk
primary activities
PRIMARY ACTIVITIES
  • Inbound Logistics
    • Supply line of business
    • The business must be capable of exchanging data with suppliers quickly regardless of the electronic format
  • Operations
    • Conversion of raw materials into finished products
    • Center of value chain where value-added occurs
  • Outbound Logistics
    • Storing, distributing and shipping of final product
primary activities cont d
PRIMARY ACTIVITIES (Cont’d)
  • Marketing and Sales
    • Deals with ultimate customer
  • Service
    • After-sale service to customer
support activities
SUPPORT ACTIVITIES
  • Corporate Infrastructure
    • Backbone of business unit
  • Human Resources
    • Matching the right people to the right job
  • Technology Development
    • Product and business processes improvement
  • Procurement
    • Prerequisite for production
supply chain management
SUPPLY CHAIN MANAGEMENT
  • Reduces Cycle Times
  • Raise Order Fulfillment
  • Minimize Excess Inventory
  • Improve Customer Service
intranet
INTRANET
  • Low Development and Maintenance Costs
  • Friendly Environment
  • High Information Availability and Shareability
  • Timely Information
  • Easy Dissemination of Information
in the beginning25

In the Beginning

Chapter 1

WWW