1 ECommerce

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E-Commerce


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Electronic Commerce:Definitions and Concepts

electronic commerce (EC)

The process of buying, selling, or exchangingproducts, services, or information viacomputer networksTechnology-mediated exchanges betweenparties as well as electronically-based intra- orinter-organizational activities that facilitatesuch exchanges


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E-commerce definition

Scope of e-commerce:1. Exchange of digitized information

2. Technology-enabled transactions3. Technology-mediated relationships4. Intra- & inter-organizational activities


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E-commerce definition1995-2000Innovation

2001-2006 Consolidation 2006-future Reinvention

Technology-driven Business-driven Audience, customer,community-driven

Revenue growth focus Earnings & profits focus Audience & social networkgrowth focus

Venture capital financing Traditional financing Merger & acquisition

Entrepreneurial Traditional/old economy Large pure Web-basedfirms

Disintermediation Strengtheningintermediaries

Proliferation of smallonline intermediaries

Perfect markets Imperfect markets, brands,network effects

Online marketimperfections

Pure-play Bricks & clicks New market (pure play);Retail (bricks & clicks)

First-mover advantages Strategic follower New market (1 st mover)


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e-business

A broader definition of EC that includes not just the buying and selling of goods andservices, but also servicing customers,collaborating with business partners, andconducting electronic transactions within anorganization


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Pure versus Partial EC EC can take several forms depending on the

degree of digitization1. the product (service) sold2. the process (e.g., ordering, payment, fulfillment)

3. the delivery method


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click-and-mortar (click-and-brick)organizations

Organizations that conduct some e-commerceactivities, usually as an additional marketingchannel


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Internet versus Non-Internet EC Most EC is done over the Internet, but EC also can

be conducted on private networks, such as value-added networks, local area networks, or on asingle computerized machine

Non-Internet EC includes the use of mobile

handwriting-recognition computers used by fieldreps to write their notes in the field


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electronic market (e-marketplace)

An online marketplace where buyers andsellers meet to exchange goods, services,money, or information


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interorganizational information systems (IOSs)

Communications systems that allow routinetransaction processing and information flow

between two or more organizations intraorganizational information systems

Communication systems that enable e-commerce

activities to go on within individual organizations


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The EC Framework, Classification, andContent


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EC applications are supported byinfrastructure and by these five support areas:

People Public policy Marketing and advertisement Support services Business partnerships


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Classification of EC by the Nature of theTransactions or Interactions

business-to-business (B2B)

E-commerce model in which all of the participantsare businesses or other organizations


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business-to-consumer (B2C)E-commerce model in which businesses sell toindividual shoppers

e-tailingOnline retailing, usually B2C

business-to-business-to-consumer (B2B2C)E-commerce model in which a business providessome product or service to a client business thatmaintains its own customers


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Four Categories of e-CommerceBusiness originating from

Business Consumers

A n d S e

l l i n g t o

C o n s u m e r s

B u s i n e s s

B2B

B2C P2P

C2B


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consumer-to-business (C2B)E-commerce model in which individuals usethe Internet to sell products or services to

organizations or individuals who seek sellersto bid on products or services they need

mobile commerce (m-commerce)

E-commerce transactions and activitiesconducted in a wireless environment


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location-based commerce (l-commerce)

M-commerce transactions targeted to individuals inspecific locations, at specific times

intrabusiness ECE-commerce category that includes all internalorganizational activities that involve the exchange of

goods, services, or information among various unitsand individuals in an organization


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business-to-employees (B2E)E-commerce model in which an organization deliversservices, information, or products to its individualemployees

collaborative commerce (c-commerce)E-commerce model in which individuals or groupscommunicate or collaborate online

consumer-to-consumer (C2C)E-commerce model in which consumers sell directlyto other consumers


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peer-to-peer (P2P)Technology that enables networked peer computers to sharedata and processing with each other directly; can be used inC2C, B2B, and B2C e-commerce

e-learningThe online delivery of information for purposes of training oreducation

e-government

E-commerce model in which a government entity buys orprovides goods, services, or information from or to businessesor individual citizens


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exchange A public electronic market with many buyersand sellers

exchange-to-exchange (E2E)

E-commerce model in which electronicexchanges formally connect to one anotherfor the purpose of exchanging information

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