CS155b: E-Commerce Lecture 9: Feb. 11, 2003 Introduction to B2B Commerce; Covisint and VeriSign.
E Commerce 2003
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Transcript of E Commerce 2003
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E-CommercePresentation By
Rajesh, Sandip & Sameer
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Definition :
Electronic commerce, commonly known as
e-commerce or eCommerce, or e-business
consists of the buying and selling of
products or services over electronic
systems such as the Internet and other
computer networks.
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Objectives After completing this lesson,
you will able to:
Understand the basis of classification of
e-commerce.Differentiate the types of e-commerce.
List websites of the different e-
commerce types.
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Introduction
E-commerce is more than just buying and sellingproducts online.
Instead, it encompasses the entire online processes of
developing, marketing, selling, delivering, and paying forproducts and services purchased by internet worked,
global market places of customers, with support of
worldwide network of business partners.
In using the web as links between the buyers and
sellers, they can use internet, extranet and intranets.
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Classification of e-commerce
The classification of ecommerce is
based:
who orders, the goods and services
to be sold,
who sold those goods and services
and the nature of transactions.
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Classification of e-commerce (cont)
Based on the above criteria, e-commerce
are classified as;
I. Business-to-Business (B2B) e commerce
II. Business-to-Consumer (B2C) e commerce
III. Consumer-to-Business (C2B) e commerce
IV. Consumer-to-Consumer (C2C) eV. commerce Peer-to-Peer (P2P)e
commerce
VI. M-commerce
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Classification of e-commerce
(cont)
VII. Businessto-Employee
VIII. E-GovernmentIX. E-Learning
X. None-Business e-commerce
XI. Business-to-Business-to-CustomerXII. Intra-business e commerce
XIII. Exchange-to-Exchange
XIV. Collaborative commerce
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Business-to-Business (B2B) e-commerce
It is the largest form of ecommerce
In this form the buyers and sellers are both business
entities and do not involve and individual consumer.
It is commonly known as EDI (Electronic Data
Interchange).
According to the European model EDI Agreement
Article 2.1, EDI is the electronic transfer from computer
to computer, of commercial and administrative data
using an agreed standard to structure an EDI message.
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1.Business-to-Business (B2B) e-commerce
(cont)
From the above definition;
the EDI transitions are composed of:
Codes and values (structured data) Standard format and pieces of texts (agreed message
standards)
Message to be sent between two computers (from
computer to computer) by networks (by electronicmeans).
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1.Business-to-Business (B2B) e-commerce
(cont)
The companies include in the B2B ecommerce
are manufacturers, wholesalers rather than
retailers only.
Pricing is based on quantity of orders and is often
negotiable.
This type of ecommerce is privately held, since
only business companies can qualify as potential
buyers.
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Advantages of B2B e-commerce
Some advantages of B2B ecommerce are;
Direct interaction with customers.
Focused on sales promotion.
Building customer loyalty.
Scalability Savings in distribution costs
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Websites that are engaged in B2B
ecommercecommodityindia.com
Indiaconstruction.com
clickforsteel.com
Transora.com
etc.
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2.Business-to-Consumer (B2C)e-commerce
In this e-commerce type, business and consumers areinvolved.
Business sell to the public typically through catalogs
utilizing shopping cart software.
In Business-to Consumer (B2C) e commerce, business
must develop attractive electronic market places to
entice and sell products and services to the consumer.
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Business-to Consumer (B2C) e-commerce
transaction process
Business-to Consumer (B2C) e commercetransaction process includes;
Customer identifies a need.
Searches for the product or services to satisfy the need.
Selects a vendor and negotiates a price.
Receives the product or services (delivery logistics, inspection and acceptance).
Makes payment.
Gets service and warranty claims.
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Websites that are engaged in
(B2C) e-commerceAmazon.com,
llbean.com,
CompUSA.com,Travelocity.doc,
hotels.com,
chow.net,
rediff.com,
jaldi.com,
indiatimes.com,
indiaballs.com,
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3. Consumer-to-Business (C2B) e-commerce
Also called demand collection model.
It enables buyers to name their own price, often
binding, for a specific good or services generating
demand
A consumer posts his project with a set budget online
and within outs; companies review the customers
requirements and bids out the project.
Then the customer will review the bids and selects the
company that will complete the project.
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C2B e-commerce (cont)
Generally, in the C2B ecommerce, the customer requests
a specific service from the business.
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EXAMPLE:
Mr. Leta, an Ethiopian, needs to travel Indiafor his personal case. He requires a flight
on the first day of January and he is willing
to pay Br 500 only. Here this requisitionwill display in C2B webs. In addition, the
Ethiopian Air Lines can be interested to
take him to New Delhi, even the normaltrip costs more than Br 500 rather than of
flying with empty seats.
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Websites engaged in C2B e-
commercerazerfinish.com,
ReverseAuction.com,
priceline.com,
etc.
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4. Consumer-to-Consumer (C2C) e-
commerce
It facilitates the online transaction of goods or services between
two peoples.
However, there is not visible intermediary involved, but the parties
cannot carry out the transactions without the platform, which is
provided by the online market such as eBay.
Examples:
Advertisement of personal services over the internet.
Selling of knowledge and experts online.
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C2C e-commerce (cont)
In the C2C e-commerce, the consumer lists items for sale with
commercial auction site.
The participants in C2C ecommerce are unknown, not trusted
parties to sell goods and services to another one.
Example of C2C ecommerce web is eBay, where consumers sell
their goods and services to other consumers;
And PayPal (instead of purchasing goods and services directly from
the unknown, entrusted seller, the buyer can send money to thePayPal.
Then the PayPal notifies the seller that they will hold the money for
them until the goods have been shipped and accepted by the
buyer).
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Websites engaged in C2C
baazee.com I
CQ.com
MSN.com
ek.com.au
careeron.com.au
bidorbuy.com
etc.
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5. Peer-to-Peer (P2P) e-commerce
It is a technology in itself that helps people to directly
share computer files and computer resources without
having a central web server.
To use this, both the peers should have to install thesoftware so that they can communicate on the common
platform.
Examples:Sharing of musics, videos, and other digital files
electronically
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6. M-commerce
It refers to the use of mobiles devices for conducting the
transactions.
The mobile device holder can connect each other and can
conduct the business. This is not really a type of e commerce
but a mechanism in transaction.
Many M-Commerce applications involve internet enabled
mobile devices.
If such transactions are targeted to individual, to specific
location, at specific times, they are referred as location base
ecommerce (L- Ecommerce).
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7. Businessto-Employee
This is the subset of the inter-business category in which
the business organization delivers goods, services,
information to individual employees.
Examples:
Mobile employee in field representatives (B2ME).
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8. E-Government
In E-Government a government departments buys or
sells goods, services or information to business (G2B) or
to the individual citizens (G2C) or to other government
entity (G2G).
In E-Government; intranets, extranets and the internet
all are applied.
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9. E-Learning
When educations, training or examination are provided
online, it is called E-Learning.
It is practiced in Universities and organizations,
government departments.When organizations give training to their employees, it is
called E-Learning.
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10. None-Business e-commerce
The users of this e-commerce are academic institutions,
religious institutions, social organizations, government
agencies and non-for profit organizations.
Those none-business organizations use e-commerce to
reduce their expenses, to improve their general operation
and customer services.
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11. Business-to-Business-to-Customer
In this a business provides some product or service to aclient business.
The client by maintaining its own customers, which can
be own employees, to whom the product or service isprovided with out adding any value to it.
Here the client customer acts as intermediate.
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12. Intra-business e-commerce
Includes all internal organizational activities that involvethe exchange of goods, services or information among
various units and individual in that organization.
It is usually performed using intranets with in the
organization (business).
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13.Exchange-to-Exchange
It describes a public electronic market with many buyersand sellers.
Also, it is a formal system that connects exchanges to
one another.
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14. Collaborative commerce:
This is the process of communicating online
between individuals or groups.
Examples:designing a product together using screen
sharing, forecasting demand of products.
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Limitations of e-Commerce
Technical Limitations
Non-Technical Limitations
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Non-Technical Limitationscustomer fear of personal information being used wrongly
privacy issuescustomer expectations unmet
rules and regulations (ie. Jan 2004 Bill C6 - new privacy law)
security and privacy
vulnerability to fraud and other crimes
lack of trust and user resistance
fear of payment information being unsecure
tactile limitations
Schnieder, 3rd ed. added "many businesses face cultural and legal
obstacles"
legal issues outstanding such as jurisdiction
legal environment has many new and conflicting lawscultural obstacles
linguistic challenges
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Technical Limitations
costs of a technological solutionsome protocols are not standardized around the world
reliability for certain processes
insufficient telecommunications bandwidth
software tools are not fixed but constantly evolving (ie.
Netscape 3,4,4.7,4.75 etc.)
integrating digital and non-digital sales and production
information
access limitations of dial-up, cable, ISDN, wireless
some vendors require certain software to show featureson their pages, which is not common in the standard
browser used by the majority
Difficulty in integrating e-Commerce infrastructure with
current organizational IT systems
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CONCLUSION
The classification is based on orders in the weband the transaction partners. By this, when an
individual orders to sites for selling of certain
goods and services, and one company, by looking
on the web lets to buy those goods and services,
then this can be considered as Consumer-to-
Business (C2B) e commerce. Examples of such
webs are ebay,
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CONCULISION
When educations, training or examination are
provided online, it is called E-Learning. And
Business-to Business (B2B) e commerce is also
called the EDI, which is commonly used andlargest form of e commerce. In this, both the
buyers and sellers are companies such as
manufacturers and wholesalers
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THE END
THANK YOU!!!