Unit 4: Internet, E-Commerce and E-Business

Unit 4: Internet, E-Commerce and E-Business

• This unit explores the Internet, emphasizing its role in business transactions (e-commerce)
• The Internet has become a crucial tool for businesses for performing transactions and trading
• E-commerce provides businesses with innovative ways of trading and better customer service
• Some privacy and security issues associated with online transactions are also discussed

4.1 Learning Outcomes

• Students should be able to clearly explain the benefits of the Internet.
• Students should be able to distinguish between E-Commerce and E-business.
• Students should be able to explain the different types of e-commerce.
• Students should be able to determine how e-commerce improves customer service.
• Students should be able to identify different e-business/e-commerce tools.
• Students should be able to explain what a virtual company is.
• Students should be able to discuss the advantages and disadvantages of a virtual organization.
• Students should be able to discuss privacy and security issues in internet transactions.

4.2 Introduction

• The Internet is a crucial part of modern life, linking numerous interconnected computers worldwide
• Computers and devices connect to the Internet through wired or wireless networks.
• Providers such as Telecom Plus, DCL, or Network Plus in Mauritius offer internet access
• Businesses now heavily utilize digital connectivity for various transactions

4.3 The Internet

• Initially, the Internet was primarily an information source; now it's a crucial platform for global business transactions
• Numerous online activities like banking, purchasing goods, and payments are now commonplace because of the Internet
• The Internet allows businesses global connectivity, lower communication costs, and removing intermediaries

4.3.1 Internet as a Tool for Trade

• Businesses utilize the Internet for advertising, connecting stakeholders, building intranets/extranets.
• Internet facilitates global reach, enabling 24/7 operations and access to wider customer bases.
• Time-zone differences are no barrier for international trade through the internet

4.3.2 Benefits of the Internet

• Global Connectivity: Connecting businesses irrespective of location
• Lower Communication Costs: Rapid and economical digital communication
• Reduced Agency Costs: Eliminating intermediaries in transactions
• Flexibility: Allowing transactions from different locations and times.
• Accelerated Knowledge: Quick access to large volumes of information
• Personalized Service: Tailoring products and services to individual customer needs

4.4 Electronic Business and Electronic Commerce

• E-business encompasses a company’s digital connections and processes emphasizing supporting business functions
• E-business can leverage the Internet, intranet, extranet, or a combination
• Intranets link company departments/branches for internal business transactions, group collaboration, etc
• Extranets link businesses with suppliers/customers/partners
• E-commerce is a subset of e-business focusing on online buying/selling

4.4.1 Types of Tools used for E-Commerce and E-Business

• Tools enable seamless communication, idea sharing , meetings, and transactions across locations (email, groupware, voice, mail, teleconferencing, videoconferencing, electronic conferences, EDI, EFT, group calendars)

4.4.2 Types of E-commerce

• Business-to-Business (B2B): Businesses trading with other businesses (e.g., selling equipment)
• Business-to-Consumer (B2C): Businesses selling directly to individual customers (e.g., Amazon)
• Consumer-to-Consumer (C2C): Individuals selling to other individuals (e.g., eBay)

4.5 Improved Customer Service Through E-Commerce

• Direct Sales: Businesses directly sell products to customers, reducing intermediaries.
• Customer Self-Service: Customers can access product details and information without needing assistance.
• Online Helpdesks: Companies offer support services for customers 24/7

4.6 The Virtual Work Environment

• Businesses and employees can operate from anywhere at any time
• Telecommuting advantages include reduced costs, flexibility, time saving.
• Potential drawbacks include reduced social interaction and monitoring difficulties

4.6.1 Advantages & Challenges of Virtual Work Environments (Company & Employee perspectives)

• Company Advantages: Reduced costs (rent, travel), increased employee productivity, global reach.
• Company Disadvantages: Monitoring employees, meeting organization, limited face-to-face interaction.
• Employee Advantages: Flexibility in work location and time, reduced travel time, potential for improved work-life balance.
• Employee Disadvantages: Isolation from colleagues, difficulty in establishing work relationships, reduced sense of belonging

4.7 Privacy and Security Issues over the Internet

• Online transactions present concerns about the misuse of personal data.
• Credit card fraud is a concern for online payments.
• Security measures are needed to protect sensitive customer data during online transactions.

4.8 Activities

• True/False Questions and Sample Test/Exam Questions, to help students assess their understanding

4.9 Discussion Questions

• Different types of e-commerce companies in Mauritius.
• Security issues and risks for customers/business in a given example of a Mauritian e-commerce company.
• Investigating the presence of virtual businesses in Mauritius

4.10 Summary

• This unit explored the benefits of the Internet, e-commerce, e-business, virtual work environments, and privacy concerns.