Introduction to E-commerce (1) PDF

Chapter 1 Introduction to Electronic- Commerce Grade Distribution 7th Week Assessment (30%): case study (10% at the test) + Exam (20%) NO MAKEUP 12th Week Assessment (20%): Project (20%) Term Work (10%) Attendance & Participation...

Chapter 1 Introduction to Electronic- Commerce Grade Distribution 7th Week Assessment (30%): case study (10% at the test) + Exam (20%) NO MAKEUP 12th Week Assessment (20%): Project (20%) Term Work (10%) Attendance & Participation (10%) coming late means absent + mobile off Final Exam (40%)  Introduction to Electronic- Commerce In this course, we will explore the exciting world of e-commerce and the technologies that power online businesses. You’ll learn about the tools, platforms, and systems used to create and manage successful e-commerce websites, as well as the strategies that help businesses grow in the digital marketplace. Course Syllabus Overview: 1.Introduction to E-Commerce: Understanding the fundamentals and current trends. 2.E-Commerce Platforms: Exploring various platforms and their functionalities. 3.Payment Systems: An overview of digital payment methods and security. 4.Website Development: Basics of creating user-friendly e-commerce websites. 5.Digital Marketing: Strategies for promoting e-commerce businesses. 6.Data Analytics: Using data to drive business decisions. 7.Future Trends: Emerging technologies in e-commerce. 1 Lecture Topics What is E-business? What is an organization ? What is E-commerce ? E-Commerce Business models  Introduction to Electronic- Commerce What is Business? Businesses are all around us. We use businesses in commercial, industrial, financial, and everyday situations. Everyone currently works or has worked for a business and mostly everyone uses a product or service provided by business. Business also known as an enterprise or firm, is an organization involved in the trade of goods, services or both to customers. Most businesses are driven by profit. Therefore they require a sufficient amount of customers to who its output of goods/services can be sold to on a sustainable basis to make and maintain revenue and profit.  Introduction to Electronic- What is Business? Commerce Businesses can be for-profit entities or non-profit organizations fulfilling a charitable mission or furthering a social cause. Businesses range in scale and scope from sole proprietorships to large, international corporations.  Introduction to Electronic- Types of Businesses Commerce Business Sizes There are many types of businesses which range from a small business being owned and run by an individual who is self employed and then we go to the other end of the scale to a large company which employes thousands of staff across the world. Small Businesses Small owner-operated companies are called small businesses. Commonly managed by one person or a small group of people with less than 100 employees, these companies include family restaurants, home-based companies, clothing, books, and publishing companies, and small manufacturers. Mid-Sized Enterprises A medium-sized company is defined as one with 100 to 249 employees or $10 million to less than $1 billion in annual gross sales. Large Businesses Large businesses commonly have 250 or more employees and garner more than $1 billion in gross receipts  Introduction to Electronic- What is Organization? Commerce The concept of an organization refers to a structured and coordinated group of individuals or entities working together to achieve common goals or objectives. It involves the division of labor, delegation of responsibilities, and establishment of hierarchies to ensure effective functioning and efficient use of resources. Organizations can be for-profit businesses, non-profit entities, government agencies, or any group formed with a specific purpose in mind. They are characterized by their defined roles, rules, and shared values, which help facilitate collaboration, decision-making, and progress towards their intended aims. Decision-Making: Organizations engage in decision-making processes to address challenges, make strategic choices, and seize opportunities. Effective decision-making involves analysis, evaluation, and selection of the best course of action.  Introduction to Electronic- What is Organization? Commerce Grouping of activities: Activities of similar nature are grouped under departments, sections or divisions. These may be grouped on the basis of use, coordination, policy, and control. There may be different departments in an enterprise like personnel, finance, purchase, production, sales, etc. At the core, every business is fundamentally a collection of five Interdependent processes: Human Resources Effective businesses manage their human resources efficiently. This includes hiring the right workers, expanding the workforce as needed and providing pay and benefits that find a balance between adequate compensation and reasonable cost to the business.  Introduction to Electronic- Commerce Customer Relations Customer relations refer to the interactions between a company's representatives and its customers, as well as the views customers hold toward the business. An effective business must devote resources to customer relations and develop a policy for handling complaints, soliciting customer feedback and addressing public-relations issues. Larger businesses use customer-service departments to process merchandise returns, log complaints and administer surveys. Effective Marketing Businesses of all sizes employ marketing techniques to make customers aware of their goods and services. Marketing plays a role in customer relations, since it is one way in which businesses interact with their customers. Goals and Objectives: Organizations set goals and objectives aligned with their mission. These goals serve as focal points, measuring the organization’s success and progress  Introduction to Electronic- Commerce Enterprise Resource Planning (ERP) ERPs are often called “back‐office” systems. ERP systems are management information systems that integrate and automate many of the business practices associated with operations or production aspects of a company. ERP software can aid in control of many business activities such as sales, delivery, production, billing, production, inventory, shipping, invoicing and accounting.  Introduction to Electronic- Commerce The concept of E-business A business is defined as an organization or enterprising entity engaged in commercial, industrial, or professional activities.... The term "business" also refers to the organized efforts and activities of individuals to produce and sell goods and services for profit. Electronic Business (E-Business) is the administration of conducting any business using internet, extranet, web and intranet. This means, it can be defined as the applications of information and communication technologies (ICT) in support of all the activities of business.  Introduction to Electronic- Commerce The term e-business is defined here as the use of electronic means to conduct business internally and/or externally.1 Internal e-business activities may include production, development, maintenance of IT infrastructure, and product management. For example, it may include the linking of an organization’s employees with each other through an intranet to improve information sharing, facilitate knowledge dissemination, and support management reporting. e-Business activities also include supporting after-sales service activities and collaborating with business partners. A more comprehensive definition of e‐business is: “The transformation of an organization’s processes to deliver additional customer value through the applications of technologies, philosophies and computing paradigm of the new economy.”  Introduction to Electronic- Commerce Electronic Commerce: e-commerce, or e-commerce, is more specific than e-business and can be thought of as a subset of the latter. It deals with the facilitation of transactions and selling of products and services online, for example, via the Internet or any other telecommunications network. It involves the electronic trading of physical and digital goods, quite often encompassing all the trading processes such as online marketing, online ordering (e-procurement), e-payment, and, for digital goods, online distribution and after-sales support activities. e-Commerce applications with external orientation are buy- side (e-commerce activities with suppliers) and sell-side (activities with customers).  Introduction to Electronic- Commerce E-commerce, or electronic commerce, refers to transactions conducted via the digital network(ex. internet). Every time individuals and companies are buying or selling products and services online they’re engaging in ecommerce. Definition: - Use of Internet and Web to transact business. - Ecommerce is trading in products or services using computer networks, such as the Internet.  Introduction to Electronic- Commerce Definition:- Electronic commerce or E-commerce is the buying/selling of goods and services, or the transmitting of funds or data, over an electronic network, primarily the internet. Every time individuals and companies are buying or selling products/services online they’re engaging in e-commerce.  Introduction to Electronic- Commerce Examples of e-Commerce: You order books on the internet A manager reserves a flight and hotel over the internet An individual with draws money out of an ATM (automated teller Machine).  Introduction to Electronic- Commerce Traditional Commerce: A part of business, that focuses on the exchange of products and services, and includes all those activities which encourage exchange, in some way or the other. E-commerce: means carrying out commercial transactions or exchange of information, electronically on the internet. Part of business, focuses on the exchange of p/s. - Transaction Processing - Exchange of g/s - Interaction - Scope of business (Area) - Payment - Delivery time  Introduction to Electronic- Commerce E-commerce In traditional commerce -Information sharing is made easy via -Heavy dependency on information electronic communication channels making exchange from person to person. Heavy little dependency on person to person dependency on information exchange from information exchange. person to person. - There is automatic processing of -The transactions are processed manually. transactions. - the exchange of goods and services, -the exchange of goods and services, for for money can take place, only during money can occur anytime. working hours. - the interaction between buyers and sellers - the interaction between buyers and is indirect customer interaction, in the case sellers is direct, i.e. face to face. of e-commerce, because it may be possible that the customer is miles away from where -The scope of business in traditional they place an order for the purchase of commerce is limited to a particular area, i.e. goods. the reach of business is limited to the nearby places where it operates. -The scope of business worldwide reach in case of e-commerce, due to its ease of  Introduction to Electronic- Commerce In traditional commerce E-commerce - Payment for transactions - Payment for transactions in e- can be done by paying cash, commerce transactions can be done or via credit or debit card. through online payment modes like credit card, fund transfer, -The delivery of goods is immediate in traditional -The delivery of goods/services e- commerce. commerce, the goods are delivered at the customer’s place, after some time, usually within hours, couple of days or a week.  Introduction to Electronic- Commerce Since the technology to purchase goods over the internet was first introduced, there has been a divide between the real world and the digital world. Electronic Commerce Physical Commerce Models Models  brick-and-mortar Pure v Partial ecommerce depends upon the degree of digitization organizations of the : Old-economy - product (service) sold; - process; and for organizations - - delivery agent (corporations) that perform most of their Virtual organizations conduct their business activities solely online business off-line, selling physical Click-and-mortar organizations products by means of conduct some ecommerce activities, but do their primary business in the physical agents physical world