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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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Communications andComputing Milestones - 2
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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Communications andComputing Milestones - 3
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
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
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
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