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E-Commerce
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Electronic Commerce:Definitions and Concepts
electronic commerce (EC)
The process of buying, selling, or exchangingproducts, services, or information viacomputer networksTechnology-mediated exchanges betweenparties as well as electronically-based intra- orinter-organizational activities that facilitatesuch exchanges
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E-commerce definition
Scope of e-commerce:1. Exchange of digitized information
2. Technology-enabled transactions3. Technology-mediated relationships4. Intra- & inter-organizational activities
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E-commerce definition1995-2000Innovation
2001-2006 Consolidation 2006-future Reinvention
Technology-driven Business-driven Audience, customer,community-driven
Revenue growth focus Earnings & profits focus Audience & social networkgrowth focus
Venture capital financing Traditional financing Merger & acquisition
Entrepreneurial Traditional/old economy Large pure Web-basedfirms
Disintermediation Strengtheningintermediaries
Proliferation of smallonline intermediaries
Perfect markets Imperfect markets, brands,network effects
Online marketimperfections
Pure-play Bricks & clicks New market (pure play);Retail (bricks & clicks)
First-mover advantages Strategic follower New market (1 st mover)
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Electronic Commerce:Definitions and Concepts
e-business
A broader definition of EC that includes not just the buying and selling of goods andservices, but also servicing customers,collaborating with business partners, andconducting electronic transactions within anorganization
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Electronic Commerce:Definitions and Concepts
Pure versus Partial EC EC can take several forms depending on the
degree of digitization1. the product (service) sold2. the process (e.g., ordering, payment, fulfillment)
3. the delivery method
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Electronic Commerce:Definitions and Concepts
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Electronic Commerce:Definitions and Concepts
click-and-mortar (click-and-brick)organizations
Organizations that conduct some e-commerceactivities, usually as an additional marketingchannel
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Electronic Commerce:Definitions and Concepts
Internet versus Non-Internet EC Most EC is done over the Internet, but EC also can
be conducted on private networks, such as value-added networks, local area networks, or on asingle computerized machine
Non-Internet EC includes the use of mobile
handwriting-recognition computers used by fieldreps to write their notes in the field
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Electronic Commerce:Definitions and Concepts
electronic market (e-marketplace)
An online marketplace where buyers andsellers meet to exchange goods, services,money, or information
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Electronic Commerce:Definitions and Concepts
interorganizational information systems (IOSs)
Communications systems that allow routinetransaction processing and information flow
between two or more organizations intraorganizational information systems
Communication systems that enable e-commerce
activities to go on within individual organizations
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The EC Framework, Classification, andContent
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The EC Framework, Classification, andContent
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The EC Framework, Classification, andContent
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The EC Framework, Classification, andContent
EC applications are supported byinfrastructure and by these five support areas:
People Public policy Marketing and advertisement Support services Business partnerships
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The EC Framework, Classification, andContent
Classification of EC by the Nature of theTransactions or Interactions
business-to-business (B2B)
E-commerce model in which all of the participantsare businesses or other organizations
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The EC Framework, Classification, andContent
business-to-consumer (B2C)E-commerce model in which businesses sell toindividual shoppers
e-tailingOnline retailing, usually B2C
business-to-business-to-consumer (B2B2C)E-commerce model in which a business providessome product or service to a client business thatmaintains its own customers
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Four Categories of e-CommerceBusiness originating from
Business Consumers
A n d S e
l l i n g t o
C o n s u m e r s
B u s i n e s s
B2B
B2C P2P
C2B
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The EC Framework, Classification, andContent
consumer-to-business (C2B)E-commerce model in which individuals usethe Internet to sell products or services to
organizations or individuals who seek sellersto bid on products or services they need
mobile commerce (m-commerce)
E-commerce transactions and activitiesconducted in a wireless environment
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The EC Framework, Classification, andContent
location-based commerce (l-commerce)
M-commerce transactions targeted to individuals inspecific locations, at specific times
intrabusiness ECE-commerce category that includes all internalorganizational activities that involve the exchange of
goods, services, or information among various unitsand individuals in an organization
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The EC Framework, Classification, andContent
business-to-employees (B2E)E-commerce model in which an organization deliversservices, information, or products to its individualemployees
collaborative commerce (c-commerce)E-commerce model in which individuals or groupscommunicate or collaborate online
consumer-to-consumer (C2C)E-commerce model in which consumers sell directlyto other consumers
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The EC Framework, Classification, andContent
peer-to-peer (P2P)Technology that enables networked peer computers to sharedata and processing with each other directly; can be used inC2C, B2B, and B2C e-commerce
e-learningThe online delivery of information for purposes of training oreducation
e-government
E-commerce model in which a government entity buys orprovides goods, services, or information from or to businessesor individual citizens
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The EC Framework, Classification, andContent
exchange A public electronic market with many buyersand sellers
exchange-to-exchange (E2E)
E-commerce model in which electronicexchanges formally connect to one anotherfor the purpose of exchanging information