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An introduction to e-Commerce outlining: The three basic e-Commerce technologies The trading exchanges to which they apply
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e c Definition of e-Commerce o Formulating commercial transactions at a site remote from the trading partner and then using electronic m communications to execute that transaction. m The definition includes business to business and e business to consumer transactions. r Further definitions are given in Chapter 1, c Section 1.2. Many definitions are much broader covering, for example, the commercial use of e e-mail.
E-Commerce David Whiteley/McGraw-Hill, 2000
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E-Commerce technologies
Electronic Markets
EDI
Internet Commerce
The three e-Commerce technologies are: Electronic Markets Electronic Data Interchange Internet Commerce
E-Commerce David Whiteley/McGraw-Hill, 2000
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e c Electronic markets o The use of information and communications technology to present a range of offerings available in a market segmentm and hence enable: m e The usual example of an electronic market is an airline r booking system. c There is the potential for new electronic markets to be created using Internet technologies. e
the purchaser to compare the prices (and other attributes); make a purchase decision.
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transactions so that they can be communicated directly from one computer system to another.
EDI removes the need for printed orders and invoices
number of regular transactions. Examples are the large supermarket chains and the vehicle assemblers which use EDI for transactions with their suppliers.
E-Commerce David Whiteley/McGraw-Hill, 2000
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e c Internet commerce o Information and communications technologies can also be used to advertise and make once-off sales of a wide range of m goods and services. m This type of e-Commerce is typified by the commercial use of the Internet. The Internet can, for example, be used for e the purchase of books that are then delivered by post or the booking of tickets that can be picked up by the clients r when they arrive at the event. c It is to be noted that the Internet is not the only technology used for this type of service and this is not the only use of e the Internet in e-Commerce.
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following steps:
Pre-Sale: Search - finding a supplier Negotiate agreeing the terms of trade
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e c Generic trade cycles o The trade cycle varies depending on: m m e Three generic trade cycles can be identified: r Irregular transactions between commercial trading partners c e
The nature of the parties to the transaction The frequency of trade exchanges The nature of the goods or services being exchanged. Regular, repeat transactions between commercial trading
partners (Repeat)
Cash
After Sale
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Electronic markets
Emphasis on the search phase of the trade cycle Typically an inter-organisational credit trade cycle
Search Negotiate Order Deliver Invoice Payment After Sales Settlement After Sale Execution
EM
Pre-Sale
financial sector the operation of the electronic market is not necessarily in the vendors interests. See Chapter 7 for further discussion.
E-Commerce David Whiteley/McGraw-Hill, 2000
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transactions
Search Negotiate Pre-Sale
Order
Deliver Invoice Payment After Sales
EDI
Execution
component suppliers, and supermarkets (and other multiple retailers), ordering the goods to restock their shelves. See Chapters 8 through 11 for further discussion
E-Commerce David Whiteley/McGraw-Hill, 2000
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Internet commerce
Used for once-off transactions consumer or
inter-organisational transactions.
Search Negotiate Order Deliver Invoice Payment After Sales Settlement After Sale Pre-Sale
Internet
Execution
or After Sales. Consumers pay at time of ordering businesses may have credit arrangements with the suppliers.
E-Commerce David Whiteley/McGraw-Hill, 2000
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e-Commerce in perspective
e-Commerce is not appropriate to all business
transactions and, within e-Commerce, there is no one technology that can or should be appropriate to all requirements.
Electronic Markets
EDI
Internet Comerce
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Chapter 1 Exercise 1
Electronic Commerce is a general concept covering any form of business transactions or information exchange executed using information and communication technology, between companies, between companies and their customers, or between companies and public administrations. Electronic Commerce includes electronic trading of goods, services and electronic material.
List technologies and applications that could be
covered by this list and decide, in discussion, if they are usefully/appropriately classified as e-Commerce.
E-Commerce David Whiteley/McGraw-Hill, 2000
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Chapter 1 Exercise 2
Earnest Higginbottom started making Potted Beef in
Heckmondwike in 1876 and the company has been run on traditional lines ever since.
Recently the business has started to change:
Traditional local outlets are being replaced by supermarkets; Native Yorkshire tykes living as far away as Liverpool and Los
Angeles are ringing in to ask how to get hold of a bit of real potted beef. Suppliers, such as the maker of the jars, use computerised ordering systems
Suggest where and in what form Higgies Potted Beef could
implement e-Commerce.
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