E-Commerce Trends and Issues PDF

E-Commerce Trends and Issues LIVING IN THE IT ERA - WEEK 14 Prepared by: Ms. Cristine Joy L. Hacildo Instructor Learning Objectives: 1. To demonstrate an understanding of the foundations and importance of E-commerce; 2. To analyze the impact of E-commerce on business models and strategy; 3. To...

E-Commerce Trends and Issues LIVING IN THE IT ERA - WEEK 14 Prepared by: Ms. Cristine Joy L. Hacildo Instructor Learning Objectives: 1. To demonstrate an understanding of the foundations and importance of E-commerce; 2. To analyze the impact of E-commerce on business models and strategy; 3. To describe Internet trading relationships including Business to Consumer, Business-to_x0002_Business etc.; 4. To identify the major categories and trends of e-commerce applications; 5. To identify the essential processes of an e-commerce system; and 6. To recognize and discuss global E-commerce issues. Electronic commerce (EC) is an emerging model of new selling and merchandising tools in which buyers are able to participate in all phases of a purchase decision, while stepping through those processes electronically rather than in a physical store or by phone (with a physical catalog). The processes in electronic commerce include enabling a customer to access product information, select items to purchase, purchase items securely, and have the purchase settled financially. IT Trends and Issues: E-Commerce Kalakota and Whinston (1997) define EC from these perspectives: From a communications perspective, EC is the delivery of information, products/services or payments over telephone lines, computer networks, or any other electronic means. From a business perspective, EC is the application of technology toward the automation of business transactions and work flow. From the service perspective, EC is a tool that addresses the desire of firms, consumers, and management to cut service costs while improving the quality of goods and increasing the speed of service delivery. From an online perspective, EC provides the capability of buying and selling products and information on the Internet and other online services. Ubiquity – Internet/Web technology is available everywhere: at work, at home, and elsewhere via mobile devices, anytime. The marketplace is extended beyond traditional boundaries and is removed from a temporal and geographic location. “Marketspace” is created; shopping can take place anywhere. Customer convenience is enhanced and shopping costs are reduced. Global Reach – The technology reaches across national boundaries and around the earth. Commerce is enabled across cultural and national boundaries seamlessly and without modification. “Marketspace” includes potentially billions of customers and millions of businesses worldwide. Universal Standards – There is one set of technology standards, namely Internet standards. There is only one set of technical media standards across the globe. Richness – Video, audio, and text messages are possible. These are integrated into single marketing message and consuming experience. Interactivity – The technology works through interaction with the user. Consumers are engaged in a dialog that dynamically adjusts the experience to the individual and makes the consumer a co- participant in the process of delivering goods to the market. Information Density – The technology reduces information costs and raise quality. Information becomes plentiful, cheap, and accurate. The disadvantages of ecommerce are as follows: Cost and justification – The cost of developing EC in- house can be very high and any mistakes due to lack of experience may result in delays. There are many opportunities for outsourcing but where and how to do it is not a simple issue. Security and Privacy – These issues are especially important in the Business-to-consumers area, especially security issues which are perceived to be more serious than they really are when appropriate encryption is used. Privacy measures are constantly improved. Yet, the customers perceived these issues very important and the EC industry has a very long and difficult task of convincing customers that online transactions and privacy, are in fact, very secure. Lack of trust and user resistance – Customers do not trust an unknown faceless seller, paperless transaction, and electronic money. So, switching from physical to virtual stores may be difficult. Major types of ECommerce Business-to-Consumers (B2C) is a type of ecommerce that serves direct consumers. The important activity here is buying. There are retailing transactions with individual shoppers. Benefits of B2C to Business  Lower distribution costs  New business opportunities  More accurate and up-to-date consumer data (potentially anyway)  Opportunity for added value services  Better customer support  Lower operating costs Benefits of B2C to Consumers  Convenience  Information  Ability to compare and choose among many offers  Lower prices, at times but not always  Personal Service For example, the typical shopper at Amazon.com is a consumer orcustomer. 7 Business-to-Business (B2B) is a type of ecommerce that serves businesses. The important activity of B2B is purchasing. Purchasing is different from buying because instead of individuals departments are involved, formal processes are followed, high monetary values may be involved and complex negotiations and contracts may take place. Advantages of B2B: Lower: o purchasing costs o sales costs o marketing costs  Reduced inventory  Efficient logistics  Lower cycle time  Better customer support Consumer-to-Consumer (C2C) is a type of ecommerce that involves consumers selling directly to consumers. Benefits of C2C:  increased liquidity (products, services, advice)  reduced search costs Examples are individuals posting classified ads (e.g.; www.buyandsell.com.ph) and selling residential property, cars, cell phones and so on. Advertising personal services on the Internet and selling knowledge and expertise is another example of C2C. Several auction sites are running intranets and other organizational internal networks to advertise items for sale or services. 9 Mobile Commerce is a type of ecommerce which uses wireless devices or transactions like cell phones. This has been popularized mainly in Japan and Europe wherein it takes traditional ecommerce business models and leverages emerging new wireless technologies. The key technologies used in Mobile commerce are telephone based 3G, Wi-Fi, and Bluetooth. Web Technology The Internet is intended to carry computer data, like telephone network which is intended to carry conversations. The Internet carries various data including email, videoconferences, and instant messages. web browser is an application software allowing users to access and view web pages. Every Web page is based on a document stored in a file identified by a unique address, called a Uniform Resource Locator (URL) or a web address. Intranet is a private network contained in an enterprise that includes connections through one or more gateway computers to the outside Internet. Its purpose is to share company information and computing resources among employees. It can also facilitate working in groups and teleconferences. On the other hand, extranet is a private network that uses the Internet technology and the public telecommunication system to securely share a part of a business's information or operations with suppliers, vendors, partners, customers, or other businesses. An extranet can be viewed as part of a company's intranet that is extended to users outside the company. It has also been described as a "state of mind" in which the Internet is perceived to do business with other companies as well as to sell products to customers. The most popular web browsers nowadays are Microsoft Internet Explorer and Mozilla Firefox which is downloadable for free. The appearance of a web page or site varies depending on the versions of the web browsers. For higher versions of browsers, the animation and appearance of the page and site are more enhanced because of their added support for animation, virtual reality, and sound files. The following are various types of web sites to choose and search from. Portals are sites that offers you a variety of Internet services such as search engine/or subject directory, news, sports and weather, free web publishing services, reference tools such as yellow pages, stock quotes and maps, shopping malls and auctions, email and other forms of online communication. News web sites provides you newsworthy material including stories and articles relating to current events, life, money, sports, and weather. Most news that is uploaded on the Internet is not included in the print because it is the most updated media. Newspapers, televisions, and radios are the ones that maintain the news web sites. Educational web sites offer you exciting and challenging course in formal and informal teaching and learning. There exist many educational web sites that allow online training for employees and classes for colleges. Most instructors use these types of web sites to enhance classroom teaching by publishing course materials, grades, and other related class information. Entertainment web sites offer users an interactive and engaging environment. Popular entertainment web sites offer music, videos, sports, games, ongoing web episodes, and the likes. Other complicated web sites tie up with other networks to allow users to vote in their polls on television shows. Google is the largest search engine in the web whose purpose is to organize the world’s information and make it universally accessible and useful. Queries received by Google reaches several hundred millions each day through its various services. As of February 2004, Google received 2.5 billion queries. Yahoo! is the first navigational portal to the web created by Jerry Yang and David Filo, both electrical engineering graduates at Stanford University. They built this portal by creating and organizing their own favorite web sites in 1994. The next year, Yang and Filo, together with some fellow students named it Yahoo! and released it to the Internet community. Sources: Reynold, G. Ethics in Information Technology. Thompson Learning. Caoili-Tayuan, Ronina R.; Eleazar, Mia V.;.Living in the Information Technology Era 2019, C & E Publishing Inc. Quezon City Philipppines Vermaat, Misty E.;et.al.; Enhanced Discovering Computers 2017; Cengage Learning Publishing Co Ilchenko, M., Uryvsky, L., & Globa, L. (2023). Progress in advanced information and communication technology and systems: Advanced Approaches to Intelligent Data Processing and smart networking (Vol. 548, Ser. Lecture Notes in Networks and Systems). Springer. Alshurideh, M., Hikmat Al Kurdi, B., Masa’deh, R., Alzoubi, H. M., & Salloum, S. (2023). The effect of information technology on business and Marketing Intelligence Systems (Vol. 1056, Ser. Studies in Computational Intelligence). Springer. Ahmad, M., Uddin, M. S., & Jang, Y. M. (2023). Proceedings of International Conference on Information and Communication Technology for Development: ICICTD 2022 (Ser. Studies in Autonomic, Data-driven and Industrial Computing). Springer. Barroso, J., Henriques, R., Huang, R. Y.-M., Jimoyiannis, A., Martins, P., & Reis, A. (2023). Technology and innovation in learning, teaching and education third international conference, tech-edu 2022, Lisbon, Portugal, August 31-September 2, 2022, revised selected papers (Vol. 1720, Ser. Communications in Computer and Information Science). Springer International Publishing AG. Ziemba, E., Chmielarz, W., & Wątróbski, J. (2023). Information Technology for Management: Approaches to improving business and Society: AIST 2022 Track and 17th conference, ISM 2022, held as part of fedcsis 2022, Sofia, Bulgaria, September 4-7, 2022, extended and revised selected papers (Vol. 471, Ser. Lecture Notes in Business Information Processing). Springer. Shen, Y., Yin, X., Jiang, Y., Kong, L., Li, S., & Zeng, H. (2023). Case studies of information technology application in education: Utilising the internet, Big Data, artificial intelligence, and cloud in challenging times (Ser. Lecture Notes in Educational Technology). Springer. Noël, F., Nyffenegger, F., Rivest, L., & Bouras, A. (2023). Product Lifecycle Management. PLM in transition times: The place of humans and transformative technologies: 19th IFIP WG 5.1 International Conference, PLM 2022, Grenoble, France, July 10-13, 2022, revised selected papers (Vol. 667, Ser. IFIP Advances in Information and Communication Technology). Springer. Poudel, A. P. (2022). Information and Communication Technology in English language teaching: Some opportunities and challenges. Journal of Comparative & International Higher Education, 14(4), 103–116. https://doi.org/10.32674/jcihe.v14i4.3874 Eremie, I., & Agi, U. K. (2020). Information and Communication Technology (ICT) Utilization and Principal Effective Administration of Secondary Schools, 24(1). https://doi.org/10.2139/ssrn.3962905 Sareen, M. (2020). Computer Ethics and its related issues. International Journal of Creative Research Thoughts (IJCRT), 8(9).