MIT Nguyễn Hữu PhátKent International College

80 hours

ADP1 - Advanced Diploma of Information Technology

In this chapter, you will learn about:

What electronic commerce is and how it is poised for a second wave of growth and profitability

Why business models have given way to revenue models and the analysis of business processes as key elements of electronic commerce initiatives

How economic forces have created a business environment that is fostering a rebirth of electronic commerce How businesses use value chains to identify electronic commerce opportunities

How businesses use SWOT analysis to analyze and evaluate business opportunities

Why electronic commerce is international by its very nature and what challenges arise in doing global electronic commerce

Electronic commerce (e-commerce)

› Businesses trading with other businesses and internal processes

Electronic business (e-business)

› Term used interchangeably with e-commerce

› The transformation of key business processes through the use of Internet technologies

Five general e-commerce categories› Business-to-Consumer (B2C)› Business-to-Business (B2B)› Consumer-to-Consumer (C2C)› Business-to-Government (B2G)› Consumer-to-Government (C2G)

Supply management or procurement› Departments devoted to negotiating purchase

transactions with suppliers

E-Commerce: The Second Wave, Fifth Annual Edition 8

Model B2B estore : Alibaba/ www.golmart.vn Model B2B Sàn giao dịch : Vinametal.com Model B2B đấu giá: chodientu.vn Model B2B Sale : saleoff.com.vn Model B2C & C2C auction : Ebay/ Chodientu Model so sánh giá : Aha.vn, Vatgia.com Model b2C & C2C estore : Vatgia.com Model C2C rao vặt : 5giay/ Rong bay/ Muare/

Enbac, muabannhadat.com Model B2C sale ; Amazon, Ban , 25h.vn,

Megabuy.vn, Thegioididong.vn

Transaction › An exchange of value

Business processes› The group of logical, related, and sequential

activities and transactions in which businesses engage

Telecommuting or telework› Employee logs in to company computer through

Internet instead of traveling to office

M-Commerce vs E-Commerce

“Any time, any where” vs “All time”Mobile Commerce, also known as M-Commerce or mCommerce, is the ability to conduct commerce using a mobile device, such as a mobile phone, a Personal digital assistantPDA, a smartphone, or other emerging mobile equipment such as dashtop mobile devices

E-Commerce: The Second Wave, Fifth Annual Edition 13

E-Commerce: The Second Wave, Fifth Annual Edition 14

Electronic funds (money) transfers (EFTs)› Also called wire transfers› Electronic transmissions of

account exchange information over private communications networks

Electronic data interchange (EDI) › Transmitting computer-

readable data in a standard format to another business

Trading partners

› Businesses that engage in EDI with each other

Value-added network (VAN)

› Independent firm

› Offers connection and transaction-forwarding services to buyers and sellers engaged in EDI

1970s Electronic Funds Transfer (EFT)

Tiền được gửi đi theo 1 lộ trình điện tử từcông ty này sang công ty khác.

Kỹ thuật dùng để chuyển các loại tài liệuđiện tử theo 1 lộ trình nhất định. Sau nàydùng để chuyển các giao dịch tài chính vàcác loại giao dịch khác.

Hệ thống đặt chỗ (du lịch)

Hệ thống mua bán

chứng khoánInternet

Electronic Commerce (EC)

1990s

B2C

B2B

B2E c-commerce e-government

e-learningm-mobile

1995

1999

2001

Electronic Data Interchange (EDI)

Defining characteristics of first wave

› Dominant influence of U.S. businesses

› Extensive use of the English language

› Low bandwidth data transmission technologies

› Unstructured use of e-mail

› Overreliance on advertising as a revenue source

E-Commerce: The Second Wave, Fifth Annual Edition 19

As second wave begins

› Future of electronic commerce will be international in scope

› Language translation and handling currency conversion problem will need to be solved

› E-mail will be used as an integral part of marketing and customer contact strategies

Business model› A set of processes that

combine to yield a profit

Revenue model› Used to Identify customers Market to those customers Generate sales to those

customers

Merchandising› Combination of store design, layout, and product display

knowledge Commodity item

› Hard to distinguish from the same products or services provided by other sellers

› Features have become standardized and well known

Shipping profile

› Collection of attributes that affect how easily a product can be packaged and delivered

High value-to-weight ratio

› Can make overall shipping cost a small fraction of the selling price

E-Commerce: The Second Wave, Fifth Annual Edition 23

Can increase sales and decrease costs

If advertising done well on the Web› Can get a firm’s promotional

message out to potential customers in every country

Using e-commerce sales support and order-taking processes, a business can› Reduce costs of handling

sales inquiries› Provide price quotes

Increases purchasing opportunities for buyer

Negotiating price and delivery terms is easier

The following cost less to issue and arrive securely and quickly› Electronic payments of tax

refunds

› Public retirement

› Welfare support

Perishable grocery products are much harder to sell online

Difficult to› Calculate return-on-

investment

› Integrate existing databases and transaction-processing software into software that enables e-commerce

Cultural and legal obstacles also exist

E-Commerce: The Second Wave, Fifth Annual Edition 26

E-Commerce: The Second Wave, Fifth Annual Edition 27

Các ứng dụng kinh doanh trên Internet được chia là 4 mức độkhác nhau:› Brochureware: Quảng cáo trên

Internet. Đưa thông tin lên mạng dưới một website giới thiệu công ty, sản phẩm... Hầu hết các ứng dụng trên Internet ở Việt Nam đều ở dạng này.

› eCommerce: Thương mại điện tử. Là các ứng dụng cho phép trao đổi giữa người mua và người bán, hỗ trợ khách hàng và quản lý cơ sở dữ liệu khách hàng hoàn toàn trên mạng. Đây là hình thức giao dịch giữa người bán và người mua (Business To Customer hay viết tắt là B2C).

• eBusiness: Kinh doanh điện tử. Là ứng dụng cho phép thực hiện giao dịch giữa doanh nghiệp này với doanh nghiệp khác và khách hàng của doanh nghiệp đó (Business To Business hay viết tắt là B2B). B2B bao gồm các ứng dụng như thị trường ảo, quản lý quan hệ khách hàng...

• eEnterprise: Doanh nghiệp điện tử. Một số doanh nghiệp ứng dụng cả B2C và B2B. Các doanh nghiệp nay được gọi là eEnterprise.

Economics

› Study of how people allocate scarce resources

Two conditions of a market

› Potential sellers of a good come into contact with potential buyers

› A medium of exchange is available

Total costs that a buyer and seller incur

Significant components of transaction costs

› Cost of information search and acquisition

› Investment of seller in equipment or in the hiring of skilled employees to supply product or service to buyer

Businesses and individuals

› Can use electronic commerce to reduce transaction costs by

Improving flow of information

Increasing coordination of actions

Network economic structure

› Companies coordinate their strategies, resources, and skill sets

Strategic alliances (strategic partnerships)

› Relationships created within the network economic structure

E-Commerce: The Second Wave, Fifth Annual Edition 37

Virtual companies

› Strategic alliances that occur between or among companies operating on the Internet

Strategic partners

› Come together as a team for a specific project or activity

Law of diminishing returns

› Most activities yield less value as the amount of consumption increases

Network effect

› As more people or organizations participate in a network

Value of network to each participant increases

Strategic business unit› One particular combination of

product, distribution channel, and customer type

Firm› Multiple business units owned

by a common set of shareholders

Industry› Multiple firms that sell similar

products to similar customers

E-Commerce: The Second Wave, Fifth Annual Edition 40

Value chain› A way of organizing the

activities that each strategic business unit undertakes

Primary activities› Design, produce, promote,

market, deliver, and support the products or services it sells

Supporting activities› Human resource

management and purchasing

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E-Commerce: The Second Wave, Fifth Annual Edition 42

Value system

› Larger stream of activities into which a particular business unit’s value chain is embedded

› Also referred to as industry value chain

E-Commerce: The Second Wave, Fifth Annual Edition 43

E-Commerce: The Second Wave, Fifth Annual Edition 44

SWOT analysis

› Analyst first looks into the business unit to identify its strengths and weaknesses

› Analyst then reviews operating environment and identifies opportunities and threats

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E-Commerce: The Second Wave, Fifth Annual Edition 46

E-Commerce: The Second Wave, Fifth Annual Edition 47

Companies with established reputations › Often create trust by ensuring that customers

know who they are› Can rely on their established brand names to

create trust on the Web

Customers’ inherent lack of trust in “strangers” on the Web› Logical and to be expected

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E-Commerce: The Second Wave, Fifth Annual Edition 49

To do business effectively in other cultures› Must adapt to culture

Researchers have found that › Customers are more likely to buy products and

services from Web sites in their own language

Localization› Translation that considers multiple elements of local

environment

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E-Commerce: The Second Wave, Fifth Annual Edition 51

Important element of business trust

› Anticipate how the other party to a transaction will act in specific circumstances

Culture

› Combination of language and customs

› Varies across national boundaries

› Varies across regions within nations

Internet infrastructure includes › Computers and software

connected to Internet › Communications networks over

which message packets travel Organization for Economic

Cooperation and Development’s (OECD)› Statements on Information and

Communications Policy Deal with telecommunications

infrastructure development issues

Flat-rate access system

› Consumer or business pays one monthly fee for unlimited telephone line usage

› Contributed to rapid rise of U.S. electronic commerce

Targets for technological solutions

› Paperwork and processes that accompany international transactions

E-Commerce: The Second Wave, Fifth Annual Edition 54

› Năm 2007: Tổng doanh thu: Gần 15 tỷ USD Lợi nhuận trước thuế: 476 triệu USD

› Năm 2008: Tổng doanh thu: Hơn 19 tỷ USD Lợi nhuận trước thuế: 645 triệu USD

› Năm 2007: Tổng doanh thu: Khoảng 7,6 tỷ USD Lợi nhuận trước thuế: 384 triệu USD

› Năm 2008: Tổng doanh thu: Hơn 8,54 tỷ USD Lợi nhuận trước thuế: Gần 1,78 tỷ USD

› Năm 2007: Tổng doanh thu: Gần 2,2 tỷ Nhân dân tệ Lợi nhuận trước thuế: 1,15 tỷ Nhân dân tệ

› Năm 2008: Tổng doanh thu: Hơn 3 tỷ Nhân dân tệ Lợi nhuận trước thuế: 1,4 tỷ Nhân dân tệ

› Năm 2007 : Giao dịch cả thị trường : 12.5 triệu USD (~200 tỷ VND) › Năm 2008 : Giao dịch cả thị trường : 37.5 triệu USD (~600 tỷ VND)

123mua.com.vn : 9.3 triệu USD (~150 tỷ VND) chodientu.com.vn : 9.3 triệu USD (~150 tỷ VND)

› 25% dân số truy cập Internet › Thị trường bán lẻ 65% tìm thông tin trước khi mua sắm 27% mua sắm có ảnh hưởng của Internet

› Báo cáo TMĐT Việt Nam 2008 (Bộ Công Thương) 88% DN cho phép nhận đơn hàng bằng phương tiện

điện tử 45% DN có website 35% DN có doanh thu trên 15% nhờ TMĐT

Commerce› Negotiated exchange of goods or services

Electronic commerce› Application of new technologies to conduct

business more effectively First wave of electronic commerce

› Ended in 2000 Second wave of electronic commerce

› New approaches to integrating Internet technologies into business processes

E-Commerce: The Second Wave, Fifth Annual Edition 62

Using electronic commerce, businesses have› Created new products and services› Improved promotion, marketing, and delivery of

existing offerings Global nature of electronic commerce

› Leads to many opportunities and few challenges To conduct electronic commerce across

international borders› You must understand the trust, cultural, and

language legal issues

E-Commerce: The Second Wave, Fifth Annual Edition 63