Introduction 2

e-BUSINeSSeric L. Pascua

Lecturer

Introduction to e-business

• Basic Concepts of e-business• Understanding B2C e-Commerce

Basic Concepts in

e-Business

What is e-commerce?

• Electronic-Commerce• Buying, exchanging and selling goods, services & information via electronic media such as Internet, EDI, ATM’s, e-mail

What is Internet?• International Network• Worldwide interconnection of computers

What is Internet?

•Enables users to access and exchange information in different formats

What is e-Tailing?

•From “Retailing”•The process of developing and managing online storefronts

What is e-Tailing?

• Individual consumers can shop for goods and services online

What is e-Tailing?

What is e-BUSINESS?• “Electronic Business”•Refers to integrating business processes onto and around the Internet

What is e-BUSINESS?• The use of electronic platforms – intranets, extranets, and the internet – to conduct a company’s business

What is e-BUSINESS?• e-business = e-commerce +

customer relationship management

supply chain managementmanufacturing and inventory control

support services

Types ofe-commerce

b2C b2B

c2C b2A

Types of e-commerce:

B2C business to consumers (selling to end-users)

Types of e-commerce:

B2B business to business (selling

to other businesses)

Types of e-commerce:

C2C consumer to consumer

(online exchanges of goods & information bet. final consumers)

Types of e-commerce:

C2BConsumers to Business

(online exchanges in which consumers search out sellers, learn about their offers, and

initiate purchases, sometimes even driving transaction terms)

Example of e-commerce firms:

•www.bizrate.com •www.amazon.com •www.e-toys.com •www.ebay.com

• www.ebuyphils.com - home, fashion & beauty, electronic, sports and

leisure, transport products• www.divisoria.com - movies, lechon,

books, souvenirs, cakes, magazines

• www.filgifts.com - toys, perfumes, phones

• www.padalako.com - flowers, balloon, lechon, etc

• www.bangus-online.com

Example of e-commerce firms:

Is e-Commerce a fad?

•E-commerce is the wave of the future for small business

• (Intl’ Data Corporation)

Is e-Commerce a fad?

•E-commerce will be here to stay for a very, very, very long time

What is the e-commerce opportunity?

e-commerce opportunity

• It is a business opportunity open to anyone

• It is the ideal opportunity for SME’s to compete nationally and internationally

e-commerce opportunity

•Level playing field •Anyone can compete on the net•Everyone is welcome on the net

e-commerce opportunity

•No one has a size advantage on the net•Someone always makes it on the net

e-commerce & Internet Business Statistics

¨ The number of active internet users in the Asia-Pacific Region will account for more than 27 percent of the world's total online population by 2004.

Acc. to eMarketer’s Asia Report (2/26/01)

¨ Asia will lead the world with 66% of all global revenues from wireless ads, m-commerce and wireless content subscription services by 2003

¨ Asia's $5 billion take will top Western Europe ($1.7 billion) and North America ($0.7 billion).

Acc. to Jupiter Media Matrix, 04/10/2001

US Online Retail Revenue Projection

47.863.9

82.9104.4

130.3

2001 2002 2003 2004 2005

Year

$ in

Bill

ions

Source: Jupiter Media Matrix

$130B US online retail revenue by 2005

2004 e-Commerce revenue to rise by 7 times the revenue of 2000

30% of all SME’s in US have their own Web sites

Strong e-commerce trend of US SME’s

What do all these data tell us?

• More Asians are embracing the Internet

• Asia is a lucrative market• More people shop online• E-commerce is growing at a very fast rate

What do all these data tell us?

• E-commerce is the trend of the future

• E-commerce is the way of business for SME’s in the near future

HOW DOES E-COMMERCE WORK?

1 – Buyer logs on the

marketplace

2 – Buyer searches for the product

How does an electronic market work?

3 – Buyer selects product

4 – Buyer orders product

How does an electronic market work?

5 – Purchase order sent

6 – Seller confirms order

How does an electronic market work?

7 – Buyer pays for product

8 – Payment info sent to

bank

How does an electronic market work?

9 – Credit checked

10 – Credit approved

How does an electronic market work?

11 – Product shipped

12 – Product received

How does an electronic market work?

How does an electronic market work?

1. Buyer logs on to the

marketplace

2. Buyer searches for the product

3. Buyer selects product

4. Buyer orders product

5. Purchase order sent to

seller

6. Seller confirms order

7. Buyer pays for the product

8. Payment information sent to bank

9. Credit checked

10. Credit approved

11. Product shipped

12. Product received

Source: Modified, Turban (2000) p.12

MAJOR ACTIVITIES OF E-COMMERCE

Main Activities of B2C e-Commerce:

• PROMOTION–Web promotion includes banners, buttons, pop-up ads, rich-media banners

¨ ORDERING - Placing orders to

the company

Main Activities of B2C e-Commerce:

¨ PRODUCT DELIVERY- Delivery thru Internet or physical delivery

Main Activities of B2C e-Commerce:

¨ AFTER SALES SUPPORT- After sales service

thru e-mails or bulletin boards

Main Activities of B2C e-Commerce:

Thank you very much!

>>Dareto go eC!