Chapter 1_E-Commerce

8/8/2019 Chapter 1_E-Commerce

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What is Electronic Commerce?

A Brief History of ElectronicCommerce

Overview of Electronic CommerceComponents

Business-to-Business ElectronicCommerce

Supply Chain Electronic Commerce Business-to-Consumer Electronic

Commerce

The Impact of ElectronicCommerce on the Business

Contents


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What is ElectronicCommerce?

Electronic Commerce comprises a hostof techniques designed to makebusinesses more efficient, competitive

and even collaborative. It shouldenable companies to:

Improve the way in which they runtheir business

Improve relationships with tradingpartners To expand their business, either

globally or into new markets


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Definition 1Electronic Commerce covers any form

of business or administrative transaction

or information exchange executed using

any information and communications

technology (ICT).

E-Centre


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Definition 2

The application of advancedinformation technology toincrease the effectiveness of thebusiness relationships between

Trading Partners.

Automotive Industry Action

Group in North America


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Definition 3

the enablement of a business vision

supported by advanced information

technology to improve efficiency and

effectiveness within the trading process.

eCommerce Innovation Centre


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Definition 4

Electronic Commerce should fulfil the followingcriteria:

It involves the transmission of data between computerapplications viaanyelectronic media

Data is transmitted in an agreed standard format The data is used to enable a business process or

processes between trading partners and/or the consumer


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Communications andComputing Milestones - 1

1842 Samuel Morse patents the telegraph1876 Bell patents the telephone; first telephone message

1895 Guglielmo Marconi sends first radio-telegraph message

1926 Baird demonstrates television

1935 First teleph

one ca

lla

round th

e world; IBM introduces IBM 601,a punch card machine withan arithmetic unit based on relays andof doing a multiplication in 1 second

1943 Colossus the earliest programmable electronic computer1946 ENIAC - weighed 30 tonnes and contained 18,000 electronic

valves, consuming around 25kW of electrical power - 100,000calculations a second

1947 The transistor is invented

1951 UNIVAC-1. The first commercially available electroniccomputer

1957 The Russians launched the first satellite, Sputnik1958 First integrated circuit

1963 First Minicomputer built by Digital Equipment


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1964 IBM releases its famous Model 360 computer thateventually led to $100 billion in sales over its life cycle

1969 ARPAnet (Advanced Research Projects Agency) begins;later becomes the basis of the Internet

1973 The File Transfer Protocol (FTP) is introduced making iteasier to transfer data information

1975 Ethernet specifications announced; 5.25-inch floppydisk introduced

1976 X.25 standard for packet switched networks published1977 Apple II computer introduced

1979 Arcade Video g

ame Sp

ace Inv

aders rele

ased1981 IBM introduces its PC

1982 First cellular telephone system; The TCP/IP Protocolestablished,and the Internet is formed as a connectedset of networks using TCP/IP


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1985 Microsoft Windows Launched; CD-ROM invented

1987 SONY introduces the 3.5-inch floppy disk

1980s Local Area Networks (LANs) emerge as an effective

way to transfer data between a group of local

computers1991 Rules for ISDN decided

1992 The World Wide Web is born

1993 The Internet browser MOSAIC is introduced; Intel

launch Pentium processor

1994 The Netscape Internet browser is introduced

1995 Windows '95

1996 56K modems introduced

1997 Digital Television; IBM's Deep Blue, the first computer

to beat a reigning World Chess Champion, GaryKasparov, in a full chess match

1998 Microsoft released Windows 98


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Simpler Trade Procedures

The Single Administrative Document is developed to reducethe amount of forms needed in shipping


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Business Applications

FTP

Email

VoiceMail

Conference

Bulletin Boards

Marketing

Advertising

Credit Card

transfer

EDI

On-line

Catalogues Stockbroking

Many, manymore


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Components ofElectronicCommerce

Communications Standards

Software


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Communications Options

Telephone

- Dial-up Connection

- Leased Line

ISDN- Basic Rate

- Primary Rate

Value Added Networks(VANs)

X.400an International

Standards Organisation

(ISO) standard for secure

messaging

Networks

-- Local Area Networks

-- Wide Area Networks

-- Intranets

-- Extranets

Satellite

The Internet

- Messaging

- File Transfer

- Telnet- WWW

- XML


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Standardisation

The adoption of any standard way of

formatting data adopted by a community

of users


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Trading Using ProprietaryStandards

Each companyneeds three

different standardsin order to do

business with itstrading partners


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Trading Using a SingleAgreed Standard

Each companyrequires only ONEstandard in order

to do business withits trading partners


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Electronic CommerceSoftware Functions

Data extraction from relevant application(s),

or data entry Data encoding to agreed standard format

Data transmission to recipient(s)

Data receipt by recipient(s)

Data decoding for internal applications

Data insertion into relevant application(s)


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Business-to-BusinessElectronic Commerce

Electronic Data Interchange (EDI)

Enhanced Messaging

Email

Voice Mail

Fax

Teleconferencing

Integrated Systems Intranets

Database Publishing

Knowledge Management


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Aim ofEDI

To transfer data application toapplication, regardless of platform or

operating system, without human

intervention


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Teleconferencing

Teleconferencingenables people

anywhere in the worldto hold face-to-face

meetings


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Integrated Systems

Intranets Database Publishing Knowledge Management


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Supply Chain ElectronicCommerce

Stock Control

Just-In-Time Deliver

Transportation

Warehouse Management


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StockControl

Can of beans swiped Stock system updated Beans re-ordered

electronically


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A Use of EDI in Shipping

Ships can forwardinformation about

their cargo to enablestacking plans forcontainers to be

calculated


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Barcodes

In addition to helpingretailers, barcodes onpackaging and pallets

can help managersoptimise the

warehousing availability


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Business-to-ConsumerElectronic Commerce

Database Applications

Kiosks

Internet Store Fronts

Downloadable Software and SoftwareSupport

Internet Auctions

Advertising on the Internet

Interactive TV


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Database Applications

Holidaybookings at atravel agent

rely onElectronic

Commerce


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Internet Store Fronts

Amazon is one ofthe best knownInternet store

fronts, selling notonly books, but

music, videos, toys

and eCards.


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The Impact ofElectronicCommerce on the Business

Electronic Commerce drivers include:

The falling prices and increased power ofcomputing

Developments in computing and networking The development of common standards for the

exchange of data


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The Phases ofElectronicCommerce Implementation

Replacing the manual paper-basedoperations with electronic alternatives

Rethinking and simplifying the informationflows

Using the information flows in new anddynamic ways


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Teleworking

Teleworking means that individualscan choose to work from anywhere inthe world

It gives companies the option to limitthe amount of office space they use


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Summary

This session has covered:

Definitions of Electronic Commerce A Brief History of Electronic Commerce The Components of Electronic Commerce Business-to-Business Electronic Commerce Supply Chain Electronic Commerce Business-to-Consumer Electronic Commerce The Impact of Electronic Commerce on theBusiness

Chapter 1_E-Commerce

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