E-Commerce Fundamentals and Applications Chapter 1 Introduction

E-Commerce: Fundamentals and Applications Chapter 1 : Introduction

Outline n n n n n Electronic commerce and physical commerce The DIGITAL phenomenon Looking at e-commerce from different perspectives Different types of e-commerce Examples of the types of e-commerce Some e-commerce scenarios Effect of e-commerce Advantages of e-commerce Myths about e-commerce development and implementation System model of this book

Types of Commerce Electronic Commerce Internet Commerce Business focused e-commerce Physical or Traditional Commerce Consumer focused e-commerce

Digital Phenomenon n n What do you think? What are the drivers of e-commerce? Data networks Intense competition Globalization Information age Technologies Automation Low cost high quality products/services DIGITAL

E-commerce from different perspectives n n Three layer models for e-commerce (e. g. Zwass’s model). E-business: a wider perspective than e-commerce. E-commerce improves the value chain. E-commerce provides an effective tool for building, managing and enhancing these relationships.

Different types of E-Commerce Business (organization) Customer (individual) Business (organization) B 2 B (e. g TPN) B 2 C (e. g Amazon) Customer (individual) C 2 B (e. g Priceline) C 2 C (e. g e. Bay)

Examples n n B 2 C: www. amazon. com C 2 C: www. e. Bay. com B 2 B: www. tpn. com C 2 B: www. priceline. com Let’s visit these web sites in turn and discuss its features.

E-commerce scenarios n n Retailing Servicing Publishing Supply chain management

What are the advantages of e-commerce? n n To consumers (think about the consumer buying process: search, evaluate and execute): To businesses (think about the common objective of every business):

Discussion n How should different departments participate in an ecommerce project? Ø Ø Ø Management Marketing Production Finance Procurement Customer support

Transformation of a Compartmentalized Organization into Integrated Organization Production Management Marketing Management Production Department Marketing Department Finance Department Personnel Department Finance Personnel

Three-tier Technical Model Server side Client side Service system Backend system

Architecture of Web-based ECommerce System Service system Web Server Application Server Interne Database t Firewall Client side Backend system Intranet (Secure) Server side