1

Pertemuan 1 Understanding e-Commerce

and e-Business

Matakuliah : J0324 / Sistem e-Bisnis

Tahun : 2005

Versi : 02/02

2

Learning Outcomes

Pada akhir pertemuan ini, diharapkan mahasiswa

akan mampu :

• menyebutkan fungsi dan perbedaan antara e-Commerce dan e-Business

3

Outline Materi

• Electronic Commerce: Definitions and Concepts

• The EC Framework, Classification and Content

• E-commerce Business Plans, Cases and Models

• Benefits and Limitations of EC

4

Electronic Commerce: Definitions and Concepts

• The Internet has emerged as a major, perhaps eventually the major, worldwide distribution channel for goods, services, managerial and professional jobs

• This is profoundly changing economics, markets and industry structure, products and services and their flow, consumer segmentation, consumer values, consumer behavior, jobs, and labor markets

• The impact may be even greater on societies and politics, and on the way we see the world and ourselves in it

5

Electronic Commerce: Definitions and Concepts (cont.)

• E-commerce defined from the following perspectives:– Communications: delivery of goods, services,

information, or payments over computer networks or any other electronic means

– Commercial (trading): provides capability of buying and selling products, services, and information on the Internet and via other online services

6

Electronic Commerce: Definitions and Concepts (cont.)

• Business process: doing business electronically by completing business processes over electronic networks, thereby substituting information for physical business processes

• Service: a tool that addresses the desire of governments, firms, consumers, and management to cut service costs while improving the quality of customer service and increasing the speed of service delivery

7

Electronic Commerce: Definitions and Concepts (cont.)

• Learning: an enabler of online training and education in schools, universities, and other organizations, including businesses

• Collaborative: the framework for inter- and intraorganizational collaboration

• Community: provides a gathering place for community members to learn, transact, and collaborate

8

Electronic Commerce: Definitions and Concepts (cont.)

• e-business: a broader definition of EC, which includes:– buying and selling of goods and services– servicing customers– collaborating with business partners– conducting electronic transactions within

an organization

9

Electronic Commerce: Definitions and Concepts (cont.)

• Pure vs. Partial EC depends upon the degree of digitization (the transformation from physical to digital) of:

1. the product (service) sold;

2. the process; and for

3. the delivery agent (or digital intermediary)

• Brick-and-Mortar organizations are old-economy organizations (corporations) that perform most of their business off-line, selling physical products by means of physical agents

10

Electronic Commerce: Definitions and Concepts (cont.)

• Virtual (pure-play) organizations conduct their business activities solely online

• Click-and-mortar organizations conduct some EC activities, but do their primary business in the physical world

• Electronic market (e-marketplace) online marketplace where buyers and sellers meet to exchange goods, services, money, or information

11

Electronic Commerce: Definitions and Concepts (cont.)

• Interorganizational information systems (IOSs) allow routine transaction processing and information flow between two or more organizations

• Intraorganizational information systems enable EC activities to go on within individual organizations

12

Exhibit 1.1: The Dimensions of Electronic Commerce

13

The EC Framework, Classification, and Content

• Two major types of e-commerce:– business-to-consumer (B2C) : online

transactions are made between businesses and individual consumers

– business-to-business (B2B): businesses make online transactions with other businesses

intrabusiness EC: EC conducted inside an organization (e.g., business-to-employees B2E)

14

The EC Framework, Classification, and Content (cont.)

• Computer environments– Internet: global networked environment – Intranet: a corporate or government network

that uses Internet tools, such as Web browsers, and Internet protocols

– Extranet: a network that uses the Internet to link multiple intranets

15

EC Framework

• EC applications are supported by infrastructure and by five support areas:– People– Public policy– Marketing and advertising– Support services– Business partnerships

16

Exhibit 1.2: A Framework for Electronic Commerce

17

Classification of EC by Transactions or Interactions

• business-to-consumer (B2C) : online transactions are made between businesses and individual consumers

• business-to-business (B2B): businesses make online transactions with other businesses

• e-tailing: online retailing, usually B2C

18

Classification of EC by Transactions or Interactions (cont.)

• business-to-business-to-consumer (B2B2C): e-commerce model in which a business provides some product or service to a client business that maintains its own customers

• consumer-to-business (C2B):

e-commerce model in which individuals use the Internet to sell products or services to organizations or individuals seek sellers to bid on products or services they need

19

Classification of EC by Transactions or Interactions (cont.)

• consumer-to-consumer (C2C):

e-commerce model in which consumers sell directly to other consumers

• peer-to-peer (P2P): technology that enables networked peer computers to share data and processing with each other directly; can be used in C2C, B2B, and B2C e-commerce

20

Classification of EC by Transactions or Interactions (cont.)

• mobile commerce ((m-commerce):

e-commerce transactions and activities conducted in a wireless environment

• location-based commerce (l-commerce): m-commerce transactions targeted to individuals in specific locations, at specific times

21

Classification of EC by Transactions or Interactions (cont.)

• intrabusiness EC: e-commerce category that includes all internal organizational activities that involve the exchange of goods, services, or information among various units and individuals in an organization

• business-to-employees (B2E): e-commerce model in which an organization delivers services, information, or products to its individual employees

22

Classification of EC by Transactions or Interactions (cont.)

• collaborative commerce (c-commerce):

e-commerce model in which individuals or groups communicate or collaborate online

• e-learning: the online delivery of information for purposes of training or education

• exchange (electronic): a public electronic market with many buyers and sellers

23

Classification of EC by Transactions or Interactions (cont.)

• exchange-to-exchange (E2E): e-commerce model in which electronic exchanges formally connect to one another the purpose of exchanging information

• e-government: e-commerce model in which a government entity buys or provides goods, services, or information to businesses or individual citizens

24

• Source : Turban, Efraim, David King, Jae Lee and Dennis Viehland. Electronic Commerce. A Managerial Perspective (2004). Prentice Hall. PPT for Chapter : 1