E-Commerce (Winter 2011) Basics



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E-Commerce (Winter 2011) Basics Marek Maurizio Docente a Contratto Assegnista di Ricerca Università Ca Foscari, Venezia

Concetti Base Definizione: Il commercio elettronico è il processo di acquistare, vendere, trasferire o scambiare prodotti, servizi e informazioni attraverso reti di computer, Internet inclusa. La definizione non è universale, diversi punti di vista possono portare a diverse definizioni, tutte sensate.

Definizioni Comunicazione: consegna di beni, servizi, informazioni o pagamenti su reti di computer o tramite altri mezzi elettronici Commerciale: capacità di vendere o acquistare prodotti, servizi o informazioni tramite internet o altri servizi online Processi di Business: capacità di completare processi di business su reti di computer, sostituendosi a processi fisici Servizi: strumento per tagliare i costi di governi, enti, marche, consumatori e allo stesso tempo per migliorare la qualità di servizio e i tempi di consegna

Definizioni - II Learning: fornire conoscenza online, corsi di training, corsi professionali, lezioni universitarie, seminari Collaborazione: un framework per collaborazione interorganizzazione e intraorganizzazione Comunità: un luogo di incontro per i membri di una o più comunità che possono imparare, collaborare, eseguire transazioni, condividere contenuti e idee

E-Commerce vs E-Business Often the terms are used indistinctly E-business include servicing customers collaborating with business partners buying and selling good and services conducting electronic transactions within an organization

E-Commerce vs E-Business E-commerce relates to buying and selling ebay, amazon, etc. E-business E- commerce

Networks When we speak of network we often think of the Internet Internet is the most common network used in B2C Other forms of e-commerce use other networks Also, B2C can occur on different networks Bulletin boards, private networks (banks, amazon kindle?)

What is e-business that is not also e-commerce??

E-Commerce is new E-commerce is still a new field of study Not even 20 years, still a lot space for innovation New technologies drives the change smartphones, gps devices For some things, we still don t have the technology Still a lot of opportunities for someone with new ideas

Classification of EC A way to classify e-commerce is by using the nature of the transactions and the relationship among participants: business-to-business (B2B): businesses make online transactions with other businesses business-to-consumer (B2C): online transactions are made between businesses and individual consumers. also called e-tailing: online retailing business-to-business-to-consumer (B2B2C): e-commerce model in which a business provides some product or service to a client business that maintains its own customers

Classification of EC - II consumer-to-business (C2B): e-commerce model in which individuals use the Internet to sell products or services to organizations(betterworldbooks.com) consumer-to-consumer (C2C): e-commerce model in which consumers sell directly to other consumers (ebay) peer-to-peer (P2P): technology that enables networked peer computers to share data and processing with each other directly; can be used in C2C, B2B, and B2C e-commerce mobile commerce (m-commerce): e-commerce transactions and activities conducted in a wireless environment

Classification of EC - III location-based commerce (l- commerce): m-commerce transactions targeted to individuals in specific locations, at specific times business-to-employees (B2E): e-commerce model in which an organization delivers services, information, or products to its individual employees, B2ME is mobile (techs recieving information dynamically on their palm or smartphone)

Classification of EC - IV collaborative commerce (c-commerce): e-commerce model in which individuals or groups communicate or collaborate online e-learning: the online delivery of information for purposes of training or education e-government: a government entity provides goods and services to business or individuals

What does e-commerce sell Not everything is suitable to be sold online Some products are perfect, for others something must be revised, others are impossible Amazon Groceries Pets.com Other companies had no clue of how to make money Google.com http://www.youtube.com/watch?v=wqpawsbbayc http://www.amazon.co.uk/coffee-snacks-international- Speciality-Food/b/ref=sa_menu_gs9? ie=utf8&node=340834031

Pure and Partial EC We can look at this in three different dimensions: the product the process (by which we recive orders and fullfill orders) the delivery (how the customer gain access to the product) Pure e-commerce is perfection selling a digital product, using a digital process, using digital delivery the more you move toward e-commerce, the better (more money, less work)

Examples of pure e-commerce??

Pure e-commerce Often in e-commerce the question is: how can we move toward pure e- commerce? Example: ebooks. But still someone prefer to buy paper books. It s not always possible to reach pure e-commerce Example: digital videogames distribution (steam vs gamestop) Sometimes, technical problems (blueray)

Pure e-commerce Blockbuster vs Netflix

In 10 years, will we use a dvd??

product 3 8 process 6 2 1 delivery Dimensions of EC Exhibit 1.1

Dimensions of EC Some are easy to understand in and to find examples, others are less immediate, easy to understand in theory, but hard to come up with an example

Dimensions of EC Some are easy to understand in and to find examples, others are less immediate, easy to understand in theory, but hard to come up with an example 1: traditional commerce

Dimensions of EC Some are easy to understand in and to find examples, others are less immediate, easy to understand in theory, but hard to come up with an example 1: traditional commerce 3:

Dimensions of EC Some are easy to understand in and to find examples, others are less immediate, easy to understand in theory, but hard to come up with an example 1: traditional commerce 3: 8: itunes

Dimensions of EC Some are easy to understand in and to find examples, others are less immediate, easy to understand in theory, but hard to come up with an example 1: traditional commerce 3: 8: itunes 6:

Dimensions of EC Some are easy to understand in and to find examples, others are less immediate, easy to understand in theory, but hard to come up with an example 1: traditional commerce 3: 8: itunes 6: 2:

Crude and Natural E-commerce E-commerce can be: crude: needs complicate actions to perform a transaction examples: natural: effortless, no special or complicated actions are required, promote emotional buy examples: freemium model, in-app purchases on itunes, Amazon Kindle ebooks in 3g network

Pure and Partial EC Brick-and-mortar organizations are old-economy organizations (corporations) that perform most of their business offline, selling physical products by the means of physical agents Virtual organizations conduct their business activities solely online (all three dimensions are digital) Click-and-mortar organizations conduct some EC activities, but also has business on the physical world Gradually many brick-and-mortar organizations are migrating to click-andmortar

Benefits of EC Global reach for organizations Cost reduction Supply chain improvements Extended hours: 24/7/365 Customization New business models Vendors specialization Rapid time-to-market Efficient procurement Improved customer relations

Benefits of EC Ubiquity for consumers More products and services Cheaper products and services Instant delivery Information availability

Benefits of EC Telecommuting for the society Higher standard of living Availability of public services

Limitations of EC

Summary Definition of EC and description of various categories The content and framework of EC The major types of EC and business models Case of studies Overview of benefits and limitations