1. INTRODUCTION TO E-BUSINESS & E-COMMERCE
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E-business and e-commerce is an exciting are to be involved with since many
new opportunities and challenges arise yearly, monthly and even daily.
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Innovation is a given with the continues introduction of new technologies,
new business model and new communication approaches.
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The example is: Google.
1.2 E-commerce Fundamentals
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Also called Electronic Commerce
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E-Commerce is all electronically mediated transaction between organization
and any third party it deals with(external stakeholders).
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E-commerce involves much more than electronically mediated financial
transactions between organizations and customers.
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Non financial transactions customer requests for further information would
also considered to be part of e-commerce
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E-commerce is not only limited to online sales(buying and selling), but
also covers(pre-sale abd post-sale activities across the supply chain).
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Buy-side-e-commerce refers to transactions
to procure resources needed by an organization from it suppliers.
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Sell-side e-commerce refers to transactions
involved with selling products to an organization's customers.
E-commerce: Online Stores
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Most electronic commerce sites are online stores which have at least the
following elements at the front-level-office level:
1. An online electronic
catalog listing all products for sale, their price and sometimes their
availability.
2. A search engine which
makes it possible to easily locate a product via search criteria.
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Virtual Caddy System: This is the heart of
the e-commerce system. The virtual Caddy makes it possible to trace the
purchase of the client along the way and modify the quantities for each
reference;
1. Secure online payment(accounting) is often
ensured by a trusted third party(a bank) via a secure transactions.
2. Order tracking
system: allows tracking of order processing and sometimes provides information on
pickup of the package by the shipper.
Relationship between e-business and e-commerce
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E-commerce does not related to many of the transactions within a business,
such as processing a purchasing order, that are part of e-business.
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E-commerce can be conceived of as a subset of e-business
Type of commercial relationships
1. B2B: Business to Business
2. B2C: Business to customers
3. B2A: Business to
administration
4. B2E: Business to employee
1.3 E-business Infrastructures
E-business Definition: refers as all electronically mediated
information exchanges, both within an organization and with external
stakeholders supporting the range of business processes.
E-business terms:As a concept which can be applied to strategy and operations(1), as an
adjective to describe businesses that mainly operate online. It is a
'pureplays' in the dot com era nowadays.
The Goal of E-business:
a. To create value:
1. As a result of an
increase in margins
2. As a result of
customer satisfaction
3. As a result to
increase staff motivation
4. As a result of
privileged relationships with the partners.
b. Time to market
1. Is the time that is
necessary to bring a product on a market from a time an idea was put forward.
2. More critical because
of the rapid flow of information & speedy competition.
c. Reduction of costs & ROI
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Make it possible to reduce the cost.
Front/Back Office
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Describe the parts of the company that are:
1. Dedicated
2. Respectively
3. To the direct
relationship with the client and proper management of the company
Front Office
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Refers to the front part of the enterpriser that is visible to the clients.
