Concepts in eCommerce_1

Concepts in eCommerce_1

1. Ecommerce

   • USES
     • electronic communications and digital information processing technology in business transactions to create, transform, and redefine relationships for value creation between or among organizations, and between organizations and individuals.
   • GROWTH
     • Economic
       • cost of communication, cheaper & faster infrastructure, pervasive electronic transactions, customer service models.
     • Marketing & Customer interaction
       • global reach, more informed customer service models
     • Technology
       • compressions, open system technologies & standards, convergence

2. EBusiness

   • Definition
     • The transformation of an organization’s processes to deliver additional customer value through the application of technologies, philosophies and computing paradigm of the new economy.
   • Primary Processes
     • Production Processes
       • which include procurement, ordering, and replenishment of stocks; processing of payments; electronic links with suppliers; and production control processes, among others;
     • Customer-focused processes
       • promotional and marketing efforts, selling over the Internet, processing of customers’ purchase orders and payments, and customer support, among others
     • Internal management processes
       • employee services, training, internal information-sharing, video-conferencing, and recruiting. Electronic applications enhance information flow between production and sales forces to improve sales force productivity.

3. Internet Economy

   • pertains to all economic activities using electronic networks as a medium for commerce or those activities involved in both building the networks linked to the Internet and the purchase of application services such as the provision of enabling hardware and software and network equipment for web-based/online retail and shopping malls (or ‘‘e-malls’’)

4. Mass Customisation

   • allow customers to choose and order products according to their personal and unique specifications

5. Network Production

   • the parceling out of the production process to contractors who are geographically dispersed but who are connected to each other via computer networks