• Greater choice (greater product depth and global reach) • Faster fulfilling cycle time (ordering, shipping, billing) • Greater ability to supply information (inventory, order. status, [r]
Trang 1Electronic Commerce Transactions
Week 11
Trang 3What is e-commerce
• The sharing of business information, maintaining business relationships, and conducting business transactions by means of telecommunication
• E-business denotes a broad holistic concept encompassing internet related technologies on business functions, from human resource
management to marketing to corporate strategy
Trang 4Aspects of Traditional & Electronic Commerce
Fulfillment Cycle step
(business-to-business) Conventional Shopping Traditional mail order (multiple single-medium channel)
Electronic commerce (single multimedia channel)
Evaluate suppliers and
product options Shops, showrooms Magazines, flyers Portals, intermediaries, online cataloguesSelect & specify productPick off shelf,
take to counter Order form, letter Online form, e-mailSend order to supplier-Fax, mail, telephoneE-mail, EDI
Supplier checks inventory-Printer formOnline database
Generate invoice-Printed formEDI or via credit cardShip product- ShipperShipper or online
distributionConfirm receiptPrinted formPrinted formE-mail
Schedule paymentPrinted formPrinted formEDI, online database
Trang 5Relative Significance of
E-commerce in Different Countries
SuperpowerUnited States
ContenderGermany, United Kingdom, Japan, CanadaGatewaySingapore, Benelux, Hong Kong
SprinterScandinavia/Nordic countries
StragglerFrance, Australia, Italy, South Korea, Spain
Trang 7Level of E-commerce Sophistications
PrimitiveStatic web pages or ‘brochurweare’
Searchable site with dynamic pages such as online catalogueIntegration with operational databases, e.g inventory searching, package tracking, job posting
Customer transaction through the Internet, e.g selling products and services, buying and selling shares, applying for loans
AdvancedFull electronic commerce (i.e integrated fulfillment cycle of ordering, shipping, billing)
Trang 8Reasons for the Growth in commerce
E-• Increase in demand for choice (product depth, global reach, price choices)
• Demand for information (detailed product
information, inventory, inventory, order status)• Demand for interactive, online support
• Avoidance of travel and parking difficulties for consumer e-commerce
• Elimination of time constraints (that is, opening hours or delays between placing an order and delivery)
Trang 9status, etc.)
• Lower cost than EDI
• Ease of swapping between suppliers greater than with EDI
Trang 10Benefits for suppliers
• A global reach, leading to more orders
• Reduced administration overhead (paperwork automation leading to a lower cost for each order made)
• Reduced asset requirement (physical properties for companies with a retail network)
• Integration between back office and online ‘shopping’ activities
• Integration of online ‘shopping’ activities with database marketing
• Less need for distribution via channel (disinter mediation)• Reduced working capital (inventory)
Trang 11E-commerce Enablers
• Internet standards
• Bandwidth development• World Wide Web
• Diversification and proliferation of internet access
• Development of ‘off the shelf’ e-commerce products
Trang 12Inhibitors to E-commerce
• Technophobia• Security fears
• Technology not user friendly
• Poor performance leading to slow download• Inertia of habitual conventional shopping and
• Internet access still limited
• Entrenched interests (for example, distributors who may be bypassed)
Trang 13Payment system requirements
Trang 14Consumer Payment Systems
• Purchasers• Merchants
• Certified Authority (CA)- body that issues digital certificates that confirm the identity of purchasers and merchants
• Banks
• Electronic token issuer – dependent on digital certificates for security
Trang 15Non-credit of Pre-paid Systems
• Digital, virtual or electronic cash
• Microtransactions or micropayments such as Millicent
• Debit cards• Smartcards
Trang 16Post-paid or Credit-based Systems
• Digital/electronic cheques
• Credit cards such as Visa or MasterCard
Trang 17Requirements for Security Systems
• Authentication
• Privacy and confidentiality• Integrity
• Non-repudiability• Availability
Trang 18Methods of Increasing Security
Trang 19Constraints on Selecting an commerce Solution
E-• Cost
• Quality of service
– Performance of service– Downtime
Trang 20Constraints on Selecting an commerce Solution
E-• Transaction method
– Traditional (phone/fax/mail)– E-mail
Trang 21Constraints on Selecting an commerce Solution
E-• Cost of product• Configurability
• Personalization facilities
• Integration with back-end systems
– Integration with stock control system to determine availability is vital
– Integration with stock control system will allow price and product information changes to be updated rapidly– Integration with adequate fulfillment services
Trang 22Consumer & Business Markets for E-commerce
• Business-to-business
– Familiarity with the technology– Account selling
• Consumer markets
– Acceptable Internet access mechanisms
– Payment mechanisms perceived as convenient and secure
– An attractive and usable media interface
Trang 23The Commercial Environment for E-commerce
• Legal status of banks
– Non banks are subject to less scrutiny and regulation
– Non-banks are at a competitive advantage as they do not carry the costs of the high level of registration
– Non-banks do not report to central bank which leads to uncertainty and instability in the money supply
• Tariffs and taxation
– Value added Tax charged depending on location of supplier and consumer
– Export and import tax implications
– Services attract VAT according to where the supplier is located
Trang 24Contracts – consumer protection
• Location and identity of supplier and in case of contracts requiring payment in advance his address
• The main characteristics of the goods or services• The price of goods or services
• The period for which the offer or price remains valid
• The minimum duration of the contract and whether the contracts for the supply of goods are to be permanent or recurrent