Impacts of Internet Technology and Electronic Commerce: Its Contribution to Information Systems Development

Define electronic commerce (EC) and describe its various categories
Describe and discuss the content and framework of EC
Describe the major types of EC transactions
Describe some EC business models
Discuss the benefits of EC to organizations, consumers, and society

Describe the limitations of EC
Describe the role of the digital revolution in EC and the economic impact of EC
Discuss the contribution of EC in helping organizations respond to environmental pressures
Discuss some major managerial issues regarding EC

E-Commerce: A Revolution in the Way We Do Business

From a business perspective, the Internet means OPPORTUNITY.

provides companies and individuals with avenues to obtain information
can enhance communications among employees, customers and vendors
increase human resource productivity
eliminates the barriers of time and distance
transactions can occur instantaneously and globally

Electronic commerce (e-commerce)
Sometimes called e-business.
Is financial business transaction that occurs over an electronic network.

Two popular types of e-commerce:
shopping
trading stocks

At first, e-commerce transactions were conducted primarily through desktop computers.
Today many handheld computers and devices can access the Web wirelessly.

m-commerce (mobile commerce)
e-commerce that takes place using mobile devices.

E-COMMERCE BUSINESS MODELS

Business-to-Consumer (B2C)
Consumer-to-Consumer (C2C)
Business-to-Business (B2B)
Business-to-Employee (B2E)

1. Business-to-Consumer (B2C)

Consists of the sale of products or services from a business to the general public or end-user.
Seller : business
Buyer : consumer (public)

Products for sale can be physical objects or intangible items.

… by eliminating the middleman.

Disintermediation - businesses sell products directly to consumer without using traditional retail channels.

This enables some B2C companies to sell products at a lower cost and with faster service.

Consumers also derive benefits from the B2C business model

They have access to a variety of products and services without the constraints of time and distance.
Consumers easily can compare shops to find the best buy.
B2C web sites provide consumer services such as access to product reviews, chat rooms, and other product-related information.
B2C business target advertisements, determine needs and personalize offerings to a customer’s profile.

2. Consumer-to-Consumer (C2C)

Consists of individuals using the Internet to sell products and services directly to other individuals.

Online auction
the most popular vehicle for C2C e-commerce.
one consumer auctions goods to other consumers. If interested, you bid on an item. The highest bidder at the end of the bidding period purchases the item.

3. Business-to-Business (B2B)

Consists of the sale and exchange of products and service between businesses.

4 basic types of B2B
Vendor
Service
Broker
Infomediary

4 basic types of B2B


Vendor B2B site (e-procurement site)
Is a product supplier that allows purchasing agents to use a network to shop, submit request for quotes (RFQs), and purchase items.
Service B2B site
Uses a network to provide one or more services to business such as financing, warehousing, or shipping.
Brokering B2B site
Acts as a middleman by negotiating the contract of a purchase and a sale.
Info-mediary B2B site (short for information intermediary)
Provides specialized information about suppliers and other businesses.