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Click to edit Master title style,Click to edit Master text styles,Second level,Third level,Fourth level,Fifth level,*, Prentice Hall 2004,*,*,Click to edit Master title style,Click to edit Master text styles,Second level,Third level,Fourth level,Fifth level,*,*,*,Introduction to Electronic Business,School of International Economy and Trade,Electronic Business Department,Maoyanni,13813966398,毛彦妮,1,Interdisciplinary Nature of EC,Marketing,Computer science,Consumer behavior and psychology,Finance,Economics,Management information system,Accounting and auditing,Management,Business law and Ethnic,Others,About E-Commerce Course,2,Foundation of EC,Network Economy,Infrastructure for EC,E-markets,Electronic Payment systems,Logistics and Supply chain Management,Information Management,The Framework of the course,电子商务四要素：商流、资金流、物流、信息流,3,The methods of study,Finishing your work with Internet,Good reading habit,Final Score,Check on attendance 10%,Experiment 10%,Home work 10%,Final test 70%,4,CHAPTER1 Foundations of Electronic Commerce,1.1,Definitions and Content of EC,1.2,Classification of EC,1.3 Benefits and Limitations,14 The Driving forces of E-commerce,1.5 The development of EC in China,5,The case of marks &,spencer,Why E-Commerce(The problem)?,Competition was intense,Profit margin was dropping down,Customer service and supply chain activities was inefficient,6,7,The solution,Taking EC as “A new way of doing business”.,Selling product on the Website,at a lower price than physical store.,Tracking transaction data in real time for security,Based on warehouse management system for inventory replenishment decision making,Running the warehouse operation and deliveries from third-party logistics service providers,Connecting supply chain partners(including customer) through EDI networks and integrating EDI with Back Office system.,8,The case of M&S (The Result),Saved a lot of money with help of new information dissemination method.,Built a stronger relationship with their business partners.,Increase customers service and open up markets to more customers.,Kept the leading position in the retailing market,.,9,1.,1,Definitions and Content of EC,1.1.1 A Brief History of EC,（,1,）,EFT,（,Electronic Funds Transportation,）,（,2,）,EDI,（,Electronic Data Interchange,）,（,3,）,EC (Electronic Commerce),（,4,）,EB,（,Electronic Business,）,10,（,1,）,EFT(Electronic Funds,Transfer),It started in early 1970s, funds routed electronically from one organization to another ,limited to large corporations, financial institutions, and few daring small businesses.,11,（,2,）,EDI,（,Electronic Data Interchange,）,EDI is a system that standardizes the process of trading and tracking routine business documents,such as purchase orders,invoices, payments, shipping manifests, and delivery schedules.EDI enlarged the participating companies from financial institutions to manufacturers, retailers, services, and so on.,12,（,3,）,EC(Electronic Commerce),With the commercialization of the Internet in the early 1990s and its rapid growth to millions of potential customers,the term electronic commerce was coined.,Electronic Commerce,is an emerging concept that describes the process of buying and selling or exchanging of products, services, and information via computer networks including the Internet.,13,E-business :,A broader definition of EC, which includes not just the buying and selling of goods and services, but also servicing customers, collaborating with business partners and conducting electronic transactions within an organization.,In this book we use the broadest meaning of EC, which is basically equivalent to EB.,（,4,）,EB,（,Electronic Business,）,Today the term EC seems to be fairly narrow to some people. Thus, many use the term E-business.,14,1.1.2Definitions of EC.,It can be define form these perspectives,Learning,an enabler of online training and education in schools, universities, and other organizations, including businesses,Collaborative,the framework for inter- and,intraorganizational,collaboration,Community,provides a gathering place for community members to learn, transact, and collaborate,15,Perspec-tives,Definition,Commun-ications,Delivery of information, products/services, or payment over telephone lines, computer networks, or any other electronic means.,Business Process,The application of technology toward the automation of business transactions and workflow.,Service,A tool that addresses the desire of firms, consumers, and management to cut service costs while improving the quality of goods and increasing the speed of service delivery.,Commercial,Providing the capability of buying and selling products and information on the Internet and other online services,.,16,1.1.3Characteristic of EC,The global nature of the tech.(,技术的全球性,) Potential to reach billions of people,No time and place limitation.,Low cost.,Interactive nature.,（互动性）,Variety of possibility.,（应用的多样性）,Resourcefulness and rapid growth of its supporting infrastructures,17,1.1.4The Dimensions of Electronic Commerce,Pure versus partial EC( figure1.1),Physical agent,Digital agent,Digital Product,Physical Product,Physical process,Digital process,Virtual process,Virtual delivery agent,Virtual product,Partial,Electronic commerce areas,The pure of,electronic commerce,Traditional commerce,18,Brick-and-Mortar organizations,：,old-economy organizations that perform most of their business off-line, selling physical products by means of physical agents.,Virtual organizations: organization that conduct their business activities solely online.,Click-and-mortar organization: that conduct some e-commerce activities, but do their primary business in the physical world.,19,1.1.5The Framework of EC (the contents of EC ),exhibit 1.2 shows that the,EC applications,are supported by infrastructures, and their implementation is dependent on five major areas (shown as supporting pillars) people, public policy,marketing and advertising,Support services and business partnerships.,The EC management coordinates the applications, infrastructures, and pillars.,20,A Framework for Electronic Commerce,Electronic Commerce Applications, Stocks Jobs On-line banking, Procurement and purchasing Malls On-line marketing and advertising, Home shopping Auctions Travel On-line publishing,People:,Buyers, sellers,intermediaries,services, IS people,and management,Public,policy,legal, and,privacy,Issues,Support services,Logistics,Payments,content,Security system,Development,Business,Partnership: affiliate,Programs, joint,ventures,exchanges,E-marketplace,Support services,(1),Common business,services infrastructure,(security smart,cards/authentication,electronic payment,directories/catalogs),(2),Messaging and,information distribution,infrastructure,(EDI, e-mail, Hyper Text,Transfer Protocol),(3),Multimedia content,and network,publishing infrastructure,(HTML, JAVA, World,Wide Web, VRML),(4),Network infrastructure,(Telecom, cable TV,wireless, Internet),(VAN, WAN, LAN,Intranet, Extranet),(5),Interfacing,infrastructure,(The databases,customers, and,applications),Management,Marketing and advertisement: market research, promotions, and web content,21,1.2Classification of EC,Business-to-business(B2B):,businesses make online transactions with other businesses.,Business-to-Consumer (B2C) : online transactions are made between businesses and individual consumers.,Consumer-to-Consumer(C2C): online transactions are made between individual consumers .,22,Consumer-to-Business (C2B):,e-commerce model in which individuals use the Internet to sell products or services to organizations or individuals seek sellers to bid on products or services they need.,Business-to-Business-to-Consumer (B2B2C):,e-commerce model in which a business provides some product or service to a client business that maintains its own customers.,peer-to-peer (P2P):,technology that enables networked peer computers to share data and processing with each other directly; can be used in C2C, B2B, and B2C e-commerce.,23,mobile commerce (m-commerce):,e-commerce transactions and activities conducted in a wireless environment.,location-based commerce (l-commerce):,m-commerce transactions targeted to individuals in specific locations, at specific times,24,Intra-business EC:,e-commerce category that includes all internal organizational activities that involve the exchange of goods, services, or information among various units and individuals in an organization,business-to-employees (B2E):,e-commerce model in which an organization delivers services, information, or products to its individual employees,25,collaborative commerce (c-commerce):,e-commerce model in which individuals or groups communicate or collaborate online,e-learning:,the online delivery of information for purposes of training or education,26,exchange-to-exchange (E2E):,e-commerce model in which electronic exchanges formally connect to one another the purpose of exchanging information,e-government:,e-commerce model in which a government entity buys or provides goods, services, or information to businesses or individual citizens,27,1. 3 Benefits and Limitations,1.3.1Benefits,Benefits to organizations,Global reach,Cost reduction,Supply chain improvements,Extended hours,Customization,New business models,28,Vendors specialization,Rapid time-to-market,Lower communication costs,Efficient procurement,Improved customer relations,Up-to-date company material,No city business permits and fees,Other benefits,29,2.Benefits to consumers,Ubiquity,More products and services,Cheaper products and services,Instant delivery,Information availability,Participation in auctions,Electronic communities,Get it your way,No sales tax,30,3. Benefits to society,Telecommuting,Higher standard of living,Hope for the poor,Availability of public services,31,1.3.2Limitations,Technical limitations of EC,Lack of standards for quality, security,and reliability.,Insufficient telecommunications bandwidth.,Software development tools are still evolving.,It is difficult to integrate the Internet and EC software with some existing applications and databases.,Special web servers are needed in addition to the network servers.,Internet accessibility is still expensive and inconvenient,Order fulfillment of large-scale B2C requires special automated warehouses,32,2. Nontechnical Limitations,Security and privacy concerns deter customers from buying .,Lack of trust in EC and in unknown sellers hinders buying,Many legal and public policy issues, including taxation, are as yet unresolved,National and international government regulations sometimes get in the way,It is difficult to measure some benefits of EC.,Customers are resistant to the change from a real to a virtual store.,33,People do not yet sufficient trust paperless, faceless transactions,Insufficient number of sellers and buyers for critical mass,An increasing amount of fraud on the Internet,It is difficult to obtain venture capital due to the dot-com disaster,34,Strong competition(how to reduce the transaction cost),Global economy,Frequent and significant changes in markets,Increased power of consumers,1.Economy and Business Pressures,1.4The Driving forces of E-commerce,35,2.Technological Pressures,Increasing innovations and new technologies,Rapid technological obsolescence,Information overload,Rapid decline in technology cost vs. performance ratio,36,3,、,Organization responses,Strategic systems,（,EC-supported strategic systems,）,Continuous improvement efforts and business process reengineering,Customer relationship management,Business alliances:virtual corporation,Electronic markets,37,Reductions in cycle time and time-to-market,Cycle time: the time it takes for a business to complete a productive activity from its beginning to end.,Time-to-market: the time from the inception of an idea to its implementation,Empowerment of employees,Supply chain improvements,38,Mass customization: make-to-order in large quantities in an efficient manner,Intrabusiness,:from sales force automation to inventory control,Knowledge management,KM: the process of creating or capturing knowledge, storing and protecting it , updating and maintaining it, and using it.,39,1.5The development of EC in China,What are the status of Chinese EC?,2.What are the main issues of the Chinese,EC development?,40,
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