3. E-commerce
• Use of Internet and Web to transact business
• More formally:
– Digitally enabled commercial transactions between
and among organizations and individuals
• E-commerce is buying and selling using an
electronic medium.
• It is accepting credit and payments over the
net, doing banking transactions using the
Internet, selling commodities or information
using the World Wide Web and so on.
4. E-business
• Digital enablement of transactions and
processes within a firm, involving information
systems under firm’s control
• Does not include commercial transactions
involving an exchange of value across
organizational boundaries
5. E-business
• E-Business in addition to encompassing E-
commerce includes both front and back-office
applications that form the engine for modern
E-commerce.
• It's about re-defining old business models, with
the aid of technology to maximize customer
value.
6. E-business
• E-business involves not merely setting up the
company website and being able to accept
credit card payments or being able to sell
products or services on time.
• It involves fundamental re-structuring and
streamlining of the business using technology
by implementing enterprise resource planning
(ERP) systems, supply chain management,
customer relationship management, data ware
housing, data mining, etc.
7. E-business
• E-business includes e-commerce but also
covers internal processes such as production,
inventory management, product development,
risk management, finance, knowledge
management and human resources.
• E-business strategy is more complex, more
focused on internal processes, and aimed at
cost savings and improvements in efficiency,
productivity and cost savings.
8. Ecommerce vs E-business
• E-commerce and e-business both address
these processes, as well as a technology
infrastructure of databases, application
servers, security tools, systems management
and legacy systems.
• Both involve the creation of new value chains
between a company and its customers and
suppliers, as well as within the company itself
9. Ecommerce vs E-business
• Consider the case of a company that allows its
customers to
– check the status of their orders online
– allows its employees to check on their vacation
time online.
– It might also allow the suppliers to remotely logon
to its database through the internet and check on
orders and inventory.
• In this case, we can see that such a company is
utilizing the internet for more than just buying
and selling
10. Ecommerce vs E-business
• E-commerce is the online selling component of
a web site. E-business is the integration of a
company's activities including products,
procedures, and services with the Internet.
• You turn your company from a business into
an e-business when you integrate your sales,
marketing, accounting, manufacturing, and
operations with your web site activities.
• An e-business uses the Internet as fully
integrated channel for all business activities.
11. Not yet an e-business
• You visit a retailer's web site and buy a shirt. When
the shirt arrives it is in the wrong size.
• You decide to return the shirt at the store's retail
outlet instead of mailing it back to the vendor.
• However, when you go to the store you are told
that they cannot take returns of products sold
from their web site.
• Since the web site is not integrated with the rest
of their business activities this company is not yet
an e-business.
12. Ecommerce vs E-business
• E-business does not consist of simply creating a
corporate website; rather e-business involves
using the Internet to:
– Attract, retain, and satisfy customers buying your
company's products and services.
• Streamline your supply chain, manufacturing, and
procurement systems to deliver the right products
and services to customers more efficiently.
• Automate your corporate business processes to
reduce cost and improve efficiencies through self-
service.
14. Major Industry trends
• Consumer trends
• Service/process trends
• Organizational trends
• Enterprise technology trends
15. Consumer Trends
• Speed of service
• Self-service
• Integrated solutions, not piecemeal products
16. Service/Process Trends
• Convergence of sales & service: customization
and integration
• Ease of use: make service consistent and
reliable
• Flexible fulfilment and convenient service
delivery: streamline your supply chain
17. Organizational Trends
• Contract manufacturing: becoming brand
intensive, not capital intensive
• Retain the core, outsource the rest: Business
process outsourcing
• Increasing process transparency and visibility
• Continuous innovation and employee retention
18. Enterprise Technology Trends
• Enterprise applications: Connect the
corporation
• Infrastructure convergence: Increasing melding
of voice, data and video
• Multichannel integration: computer telephony
integration and voice recognition
• Wireless applications enter the mainstream
• Leveraging legacy investment: The rise of
middleware for systems integration
19. Business Drivers of the New Economy
• Global financial interdependence
• Deregulation
• Unrestricted capital flows
• Digitization
• Global communication and transportation
• New geopolitical realities
20. Key Business Challenges
• Agility and Speed
• Focus on core competencies and processes
• Customer centrality
• Mass customization
• Flexible IT architecture
• Interoperability of infrastructure and
applications portfolios
21. Trends that will drive e-commerce strategy
• Higher percentage of sales from existing online
shoppers.
• Fourth quarter remains dominant cyber-season
• Flash sales sites like Gift Groupe and Woot
• Online loyalty programs
• The tablet is driving mobile shopping
22. Trends Driving e-Commerce in 2014
• Mobile
• Personalization
• Fewer Options
• Low Latency, High Availability
• Enhancing the Customer Experience
• Cash On Delivery
• Proprietary logistics network
• Social Customer Service
32. EC Framework
• An EC Framework—supports five policymaking
support areas
– People
– Public policy
– Marketing and advertisement
– Support services
– Business partnerships
