E-commerce

• As early as 2002, the management guru Peter Drucker (2002) forecasted that e-commerce (EC) would significantly impact the way that business is done
• World Wide Web (WWW)


  An information space where documents and other web resources are identified and interlinked by URL's and hypertext and accessed via the Internet
• Electronic Commerce (EC)


  Refers to using the Internet and other networks (e.g., intranets) to purchase, sell, transport, or trade data, goods, or services
• 1. E-Business

  Refers to a broader definition of EC, not just the buying and selling of goods and services, but conducting all kinds of business online such as servicing customers, collaborating with business partners, delivering elearning, and conducting electronic transactions within organizations
• Pure vs. Partial EC

  Pure EC if all activities (ordering, fulfillment, delivery) are digital

  Partial EC if a combination of digital and non-digital activities

  No EC (traditional commerce) if none of the activities are digital
• Classification of EC based on Activities


  • Ordering and Payment
  • Order Fulfillment
  • Delivery (shipment)
• EC Organizations


  • Brick-and-mortar (old economy) organizations

  Virtual (pure-play) organizations

  Click-and-mortar (click-and-brick) organizations
• Electronic Markets and Networks

  Electronic market (e-marketplace): Online location where buyers and sellers conduct commercial transactions

  Intranet: Corporate or government internal network that uses Internet tools

  Extranet: Network that uses Internet technology to link intranets of several organizations in a secure manner
• 1. Commerce Framework


  The underlying architecture needed to develop and maintain system for selling products online, including digital storefront, product information manager (PIM), order management system, shopping cart, and payment processing

  
• The Content and Framework of E-Commerce

  • Business-to-consumer (B2C)

  Business-to-business (B2B)

  
• EC Framework Support Areas (Pillars)


  • People

  Public policy

  Marketing and advertising

  Support services

  Business partnerships
• The Internet refers to the physical network that links computers across the globe
• World Wide Web (WWW)


  The most common technique for publishing information on the Internet, an information space where documents and other web resources are identified and interlinked by URL's and hypertext and accessed via the Internet
• Wireless Communications


  Electronic transactions and communications conducted using mobile devices such as laptops and mobile phones (and fixed access platforms) with different forms of wireless connection
• Disruptive Digital Technologies


  Also known as disruptive technologies, offer opportunities for business for new products and services for customers and can transform internal business processes
• Electronic Commerce (E-commerce)


  Refers to using the Internet and other networks (e.g., intranets) to purchase, sell, transport, or trade data, goods, or services, requires the use of only a website, covers outward/external business process
• Examples of E-commerce


  • Online retailers like Amazon, Flipkart, Myntra, Paytm Mall, sellers of digital goods like e-books, online services, etc.

  Lazada and Shopee in the Philippines
• Activities of E-commerce


  • Buying and selling products online

  Online ticketing

  Paying taxes online

  Online accounting software

  Online customer support
• Electronic Business (E-business)


  Refers to a broader definition of EC, not just the buying and selling of goods and services, but conducting all kinds of business online such as servicing customers, collaborating with business partners, delivering e-learning, and conducting electronic transactions with organizations, requires the use of multiple websites, customer relationship management (CRM) system, and enterprise resource planning (ERP) that connect different business processes, covers internal as well as external business process/activity
• Examples of E-business


  • Schindler Group, a multinational elevator and escalator company that incorporated e-business by using loT and other technologies to its product offerings

  Travel sites like Expedia, Travelocity and TripAdvisor

  Ride-hailing apps such as Uber and Lyft
• Activities of E-business


  • Customer service

  Digital marketing

  Electronic procurement

  Electronic billing

  Electronic payments
• The E-commerce Experience


  Customers rely more on e-commerce and the convenience it presents: shopping from home with just a few simple taps on one's device. Its influence includes shaping a "buy-now" mindset and increased expectations of a clutter-free shopping experience.
• Classification of E-commerce Models

  • Business-to-Business (B2B)

  Business-to-Consumer (B2C)

  Consumer-to-Business (C2B)

  Intra Business E-commerce

  Business-to-Employees (B2E)

  Consumer-to-Consumer (C2C)

  Collaborative Commerce

  1. Government E-commerce

  
• Business-to-Business E-commerce


  Refers to transactions between and among organizations, involves transactions from business to business such as wholesaler and retailer, can include e-transactions, e-procurement, supply chain management, and negotiation of purchases
• Business-to-Consumer E-commerce


  Also called as e-tailing, includes retail transactions of products or services from businesses to individual shoppers, the most widespread in e-commerce, thus the market in each product line is really competitive
• Consumer-to-Business E-commerce


  People use the Internet to sell products or services to individuals and organizations, individuals use C2B to bid on products or services, or offer goods and services to companies
• Other Examples of C2B E-Commerce

  • A food blogger who shares an affiliate link to a kitchen company's cooking products on their blog

  A tech blogger who displays a company's service ads to their audience in exchange for a cut of the ad revenue

  Social media users who fill out surveys on Survey Junkie or promote products and services

  Large e-commerce websites or sellers who pay or otherwise reward consumers for reviewing their products or when they share a review on their personal social media
• Intra Business E-commerce


  Refers to e-commerce transactions among various organizational departments and individuals in one company, a developing field that encourages data gathering and exchange within an organization for a quick review of complaints of common people

  
• Intra Business E-commerce Transactions

  • Interaction between any two departments of one firm

  Placing orders and giving instructions to suppliers

  Communication of important information in the whole organization

  Recruitment, selection and training of employees

  Reporting by employees to their managers, etc.

  
• Business-to-Employees E-commerce


  Refers to the delivery of services, information, or products from organizations to their employees, mobile employees is a group of people that isn't bound by a central physical location which are connected by various types of mobile technology: computers, smartphones and other mobile devices
• Examples of Business-to-Employees EC


  • Online insurance company management

  Corporate announcements

  Online supply requests

  Employee benefits
• Brands that invested in B2E portal

  • Southwest Airlines, citing the employee experience as the reason: "The real secret to Southwest's success is having one of the most highly motivated and productive workforces in the world."

  Sephora supplies its employees with the most up-to-date, customizable technology they can.
• Consumer-to-Consumer E-commerce


  Individual consumers sell or buy from other consumers, a consumer, not a business, sells goods or services to another consumer, individuals use a third-party business (an e-commerce website or an online marketplace)
• Example of Consumer-to-Consumer E-commerce


  • Individuals selling computers, musical instruments, or personal services online
• Collaborative Commerce


  Describes electronically enabled business interactions among an enterprise's internal personnel, business partners and customers throughout a trading community, refers to online activities and communications done by parties working to attain the same goal
• Examples of Collaborative Commerce

  • Peer to peer commerce: Some companies enable consumers to rent office space from each other
• Sephora supplies its employees with the most up-to-date, customizable technology they can.
• Consumer-to-Consumer E-commerce

  • individuals selling computers, musical instruments, or personal services online
• Collaborative Commerce

  Electronically enabled business interactions among an enterprise's internal personnel, business partners and customers throughout a trading community, refers to online activities and communications done by parties working to attain the same goal
• Collaborative Commerce


  • Peer to peer commerce: Some companies enable consumers to rent office space from each other, while others, like Facebook Marketplace, allow members to sell used items or exchange free goods, Fast food companies can pair up with food delivery services, Integrations: Uber and Spotify now collaborate, so that Uber customers can connect their Spotify to their driver's radio and choose which music to listen.