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E-Commerce Concepts

E-Commerce Concepts. Lesson 1. Traditional Commerce/Trade. Commerce is the activities and procedures involved in buying and selling goods , services or information. Question. Which one of the following situations describes a traditional commerce?

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E-Commerce Concepts

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  1. E-Commerce Concepts Lesson 1 ITBS2203 E-Commerce for IT

  2. Traditional Commerce/Trade ITBS2203 E-Commerce for IT Commerce is the activities and procedures involved in buying and selling goods, services or information

  3. ITBS2203 E-Commerce for IT

  4. Question ITBS2203 E-Commerce for IT • Which one of the following situations describes a traditional commerce? • www.urshop.com allows Omanis to buy and sell dry goods online. Credit card payment method is used. Dry goods will be delivered to homes. • www.choco.com orders chocolates from a European company online. • Al-MajanConstruction LLC located in Muscat orders materials from a Japanese firm located in the capital Tokyo. • All of the above.

  5. Question ITBS2203 E-Commerce for IT • Which one of the following situations describes a traditional commerce? • www.urshop.com allows Omanis to buy and sell dry goods online. Credit card payment method is used. Dry goods will be delivered to homes. • www.choco.com orders chocolates from a European company online. • Al-MajanConstruction LLC located in Muscat orders materials from a Japanese firm located in the capital Tokyo. • All of the above.

  6. What is E-Commerce? ITBS2203 E-Commerce for IT Electronic Commerce (EC) is the process of buying, selling, transferring, or exchanging products, services, and/or information via computer networks, mostly the Internet and intranets.

  7. What is E-Commerce? ITBS2203 E-Commerce for IT The first E-Commerce applications were started 40 years ago, in the early of 1970, via EDI (Electronic Data Interchange) and through VAN (Value-Added Networks).

  8. What is E-Commerce? ITBS2203 E-Commerce for IT E-Commerce is not just on the web.

  9. Question ITBS2203 E-Commerce for IT Which of the following can be done in E-Commerce? • Booking a hotel, Renting a car, Sending a cargo, Paying bills • Selling cars, Paying bills, Booking a room, Searching a house • Buying a house, Buying a car, Sending money/remittance, Paying tuition • All of the above

  10. Question ITBS2203 E-Commerce for IT Which of the following can be done in E-Commerce? • Booking a hotel, Renting a car, Sending a cargo, Paying bills • Selling cars, Paying bills, Booking a room, Searching a house • Buying a house, Buying a car, Sending money/remittance, Paying tuition • All of the above

  11. What is E-Business? ITBS2203 E-Commerce for IT It is conducting business on the Internet, in addition to (1) the E-Commerce transactions of buying and selling of goods and services, E-Business includes (2) servicing customers, (3) collaborating with business partners, (4) conducting e-learning/training for employees and (5) conducting electronic transaction within an organization.

  12. Question ITBS2203 E-Commerce for IT Using credit card payment method, Mohammad was able to reserve an air ticket online from Gulf Air and thereafter, printed the e-ticket. The transaction is described as ____________: • Pure EC • Partial EC

  13. Question ITBS2203 E-Commerce for IT Using credit card payment method, Mohammad was able to reserve an air ticket online from Gulf Air and thereafter, printed the e-ticket. The transaction is described as ____________: • Pure EC • Partial EC

  14. What is Electronic Marketplace? ITBS2203 E-Commerce for IT An online marketplace where buyers and sellers meet to exchange goods, services, money, or information.

  15. Methods of Categorizing E-Commerce Applications ITBS2203 E-Commerce for IT Participants Task Technology

  16. 1. EC According to Participants ITBS2203 E-Commerce for IT • Business-to-Business (B2B) • Inter-organizational information systems and electronic transactions between organization • Business-to-Consumer(B2C) • Mostly retailing transaction with individuals to costumers • Consumer-to-Business(C2B) • Individuals who seek seller with whom they may interact with or do business • Consumer-to-Consumer(C2C) • Selling directly to other consumers

  17. Business-to-Business (B2B) ITBS2203 E-Commerce for IT • Business-to-business (B2B) describes commerce transactions between businesses, • Example • between a manufacturer and a wholesaler, or between a wholesaler and a retailer.  • Manufacture and suppliers

  18. Business-to-Consumer(B2C) ITBS2203 E-Commerce for IT • B2C -Atransaction conducted over the Internet between business and a consumer.  • Example,  • Online shopping websites

  19. Consumer-to-business(C2B) ITBS2203 E-Commerce for IT • Consumer-to-business (C2B) is a business model in which consumers (individuals) create value and businesses consume that value. • Examples • when a consumer writes reviews or when a consumer gives a useful idea for new product development then that consumer is creating value for the business if the business adopts the input. • buyers name or demand their own price, which is often binding, for a specific good or service.

  20. Consumer-to-Consumer(C2C) ITBS2203 E-Commerce for IT • Electronically facilitated transactions between consumers through some third party. • Example • theonline auction, in which a consumer posts an item for sale and other consumers bid to purchase it; the third party generally charges a flat fee or commission.  • Example is eBay.com

  21. Additional Type of EC ITBS2203 E-Commerce for IT People-to-people (P2P) Non-Business EC Intra-Business (Organizational) EC Business-to-Employees(B2E) Government-to-Employees(G2C) Mobile Commerce(M-Commerce)

  22. Methods of Categorizing E-Commerce Applications ITBS2203 E-Commerce for IT • Participants • B2B, B2C, C2B, C2C • Task • Technology

  23. 2. EC According to Task ITBS2203 E-Commerce for IT • E-Shopping • Stage 1: Look-see-and decide phase(LSD) • Stage 2:Checkout phase • E-Banking • E-Investment

  24. Stage 1: Look-see-and decide phase(LSD) ITBS2203 E-Commerce for IT look at available products, compare them and then make a decision about whether to purchase products. may be done once or more, often until the consumers have found products that satisfy their needs. user-driven, because the user is looking at and assimilating information continuously. substages, which can be traversed iteratively and in varying sequences: welcome, search, browse and choose.

  25. Stage 2:Checkout phase ITBS2203 E-Commerce for IT After customers have made their choice of offered products and have decided to make a purchase. Provide certain details, such as their address and credit card details. This stage is system-driven Feedback is of critical importance—users who feel that they have lost control can simply leave the site without any embarrassment This stage is typically composed of at least the following steps, which should be navigated in a serial fashion: identifying the user, where the delivery should take place, how it should take place, payment, confirmation of order and completion (closure). Here are samples of payment methods:

  26. 3. EC According to Technology ITBS2203 E-Commerce for IT IP-based networks Software applications Human capital that makes the networks and applications work together for online business Agents (corporations and individuals) who are involved in buying and selling products and services in direct and indirect ways.

  27. EC Business Model ITBS2203 E-Commerce for IT E-Commerce is a type of business model, or part of a larger business model, that enables a firm or individual to conduct business over an electronic network, typically the internet. One of the major characteristics of EC is that it enables the creation of new business models. A Business Model is a method of doing business by which a company can generate revenue to sustain itself.

  28. Class Activity ITBS2203 E-Commerce for IT Go to internet and search for the figure or illustration of the E-Commerce Consumer Behavior Model.

  29. Online Consumer Behavior ITBS2203 E-Commerce for IT

  30. Class Activity ITBS2203 E-Commerce for IT • Answer page 23, number 11 – 25. • Quiz 1 • Theory Exam • October 8, 2014 • 5 marks • Chapter 1 and 2

  31. EC Security ITBS2203 E-Commerce for IT • Authentication • Process by which one entity verifies that another entity is who he/she or claims to be. • Authorization • Ensures that a person or program has the right to access certain resources. • Auditing • Process of collecting information about accessing particular resources • Confidentiality • Information that is private should not be disclosed to unauthorized individuals.

  32. EC Security ITBS2203 E-Commerce for IT • Integrity • Abilities to protect data from being altered or destroyed in an unauthorized or accident manner. • Availability • Able to gain access to the pages, data or services by the website when they are needed. • Nonrepudiation • The ability to refuting that a legitimate transaction took place.

  33. Building a Website ITBS2203 E-Commerce for IT Select a web host Register a domain name Create and manage content Design the website Construct the website and test Market and promote the website

  34. Website Hosting ITBS2203 E-Commerce for IT Storebuilder Service ISP Hosting A Pure Hosting Service Self Hosting

  35. Backup Slide ITBS2203 E-Commerce for IT

  36. Question ITBS2203 E-Commerce for IT • Scenario: Zahman Real Estate Company has a website that helps clients in searching house and lot. The website is managed by one agent. Which one of the task categories below the company use? • E-Shopping • E-Procurement • E-Support • E-Training

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