Introduction to E-commerce

Contents
1.1. Electronic Commerce: Definitions and Concepts

1.2. The EC Framework, Classification and Business Models

1.3. The Changing Business Environment in E-Commerce Era

1.4. Benefits and Limitations of E-Commerce

1.5. Growth and Future of E-Commerce

 Contents
1.1. Electronic Commerce: Definitions and Concepts
1.1.1 Defining Electronic Commerce

1.1.2 Pure Versus Partial EC

1.1.3 Electronic Markets and Networks

1.1.4 Social computing and Commerce

1.1.5 The Digital and Social Worlds: Economy, Enterprises, and Society

1.1.6 E-Commerce: Mechanisms, Infrastructures, and Tools

Defining Electronic Commerce
 Electronic Commerce (E-commerce)
Electronic commerce (EC) refers to using the Internet and
intranets to purchase, sell, transport, or trade data, goods, or
services.
 E-Business
A broader definition of EC, not just the buying and selling of goods
and services, but conducting all kinds of business online such as
servicing customers, collaborating with business partners,
delivering e-learning, and conducting electronic transactions
within an organization.
Pure Versus Partial EC

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Publishing as Prentice Hall
Electronic Markets and Networks
 Electronic Markets
An online location where buyers and sellers conduct commercial
transaction such as selling goods, services, or information. Any
individual can also open a market selling products or services
online.

 Networks
- Internet
- Intranet
- Extranet
Social computing and Commerce
 Social computing
A computing system that involves social interactions and
behaviors. It is performed with a set of tools that includes blogs,
wikis, social network services, and other social software tools, and
social marketplaces.
Social computing and Commerce
 Web 2.0
The second generation of Internet-based tools and services that
enables users to easily generate content, share media, and
communicate and collaborate, in innovative ways.
Social computing and Commerce
 Social Networks
A social network is a social entity composed of nodes (which are
generally individuals, groups, or organizations) that are connected
by links such as hobbies, friendship or profession.
 Social Networking Services
- Facebook.com
- YouTube.com
- Flickr.com
- LinkedIn.com
- Google+
- Pinterest.com
- …
Social computing and Commerce
 Enterprise Social Networks
Private business-oriented social network, owned by corperations
and operated inside them.
- Ex: MyStarbucks Idea

 Social Commerce
E-commerce activities that are conducted in social networks by
using social software (i.e., Web 2.0 tools).

 The Major Tools of Web 2.0

- Wikis
- RSS feeds
- Blogs, microblogs
The Digital and Social Worlds: Economy,
Enterprises, and Society
 The Digital Economy
The digital economy, also known as the Internet economy, is an
economy based on online transactions, mostly e-commerce.
 Sharing Economy
An economic system constructed around the concept of sharing
goods and services among the participating people.
- Ex: Uber, Airbnb…
The Digital and Social Worlds: Economy,
Enterprises, and Society
 The Digital Enterprise
The digital enterprise is a new business model that uses IT to gain
competitive advantage by increasing employee productivity,
improving efficiency and effectiveness of business processes, and
better interactivity between vendors and customers.

 The Social Business (Enterprise)

An organization that has put in place the strategies, technologies
and processes to systematically engage all the individuals of its
ecosystem (employees, customers, partners, suppliers) to
maximize the co-created value
The Digital and Social Worlds: Economy,
Enterprises, and Society
 The Digital Revolution and Society
 Some Impacts of the Digital and Social Worlds
 E-Commerce: Mechanisms,
Infrastructures, and Tools
 EC Activities and Support Mechanisms
 The Online Purchasing Process
 E-Marketplaces
 Customer Shopping Mechanisms
 Webstores, Malls, and Portals
 E-Commerce: Mechanisms,
Infrastructures, and Tools
 Merchant Solutions
 Electronic Catalogs
 Search Engines
 Shopping Carts
 Auctions, Bartering, and Negotiating Online
 Virtual Communities and Social Networks
 Virtual Worlds as an Electronic Commerce Platforms
 The Future: Web 3.0, Web 4.0 and Web 5.0
 E-Commerce: Mechanisms,
Infrastructures, and Tools
 Emerging EC Platforms

Augmented Reality (AR) Crowdsourcing

 Contents
1.2. The EC Framework, Classification and Business Models
1.2.1 An EC Framework

1.2.2 Classification of EC

1.2.3 Electronic Commerce Business Models

An EC Framework
Classification of EC
Electronic Commerce Business Models
 The Major Components of a Business Model
Electronic Commerce Business Models
 Common Revenue Models
Electronic Commerce Business Models
 Typical EC Business Models
- Online direct marketing
- Electronic tendering systems
- Electronic marketplaces and exchanges
- Viral marketing
- Group purchasing
- Name your own price
- Find the best price
- …
 Contents
1.3. The Changing Business Environment in E-Commerce Era
1.3.1 Business Pressures

1.3.2 Organizational Response Strategies and support of E-Commerce

 Business Pressures
 Market and economic pressures
 Societal pressures
 Technological pressures
Organizational Response Strategies and
support of E-Commerce
 Organizational Response Strategies
Organizational Response Strategies and
support of E-Commerce
 Organizational Response Strategies
Organizational Response Strategies and
support of E-Commerce
 The Support of EC
- Provide efficient and effective business transactions
- Provide global reach for selling, buying, or finding business partners
- Conduct business anytime, from anywhere, in a convenient way
- Disseminate information rapidly, frequently in real time
- Enable price comparisons
- Customize products and personalize services
- Use rich media in advertisement, entertainment, and social networking
- Receive expert and other user advice quickly
- Collaborate in different ways, both internally and externally
- Share information and knowledge
- Increase productivity and performance, reduce costs, and compress time
within the supply chain
- Easily and quickly find information about vendors, products, and
competitors
 Contents
1.4. Benefits and Limitations of E-Commerce
1.4.1 The Benefits of E-Commerce

1.4.2 The Limitations and Barriers of EC

The Benefits of E-Commerce
The Benefits of E-Commerce
The Benefits of E-Commerce
The Limitations and Barriers of EC
 The Limitations and Barriers of EC
 Ethical Issues
Implementing EC use may raise ethical issues ranging from
monitoring employee e-mail to invasion of privacy of millions of
customers whose data are stored in private and public databases.
 Contents
1.5. Growth and Future of E-Commerce
1.5.1 A Brief History of EC

1.5.2 The Drivers of E-Commerce

1.5.3 Growth of E-Commerce in Vietnam

1.5.4 The Future of EC

A Brief History of EC
The Drivers of E-Commerce
 Growth of E-Commerce in Vietnam
 Clip: Nhìn lại 20 năm hệ sinh thái bán hàng online tại Việt Nam
http://yt3.piee.pw/LFEVP - Nguồn: Sapo
The Future of EC