Q4
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What W at iss Electronic ect o c Commerce? Co e ce? z
z
z
z
Electronic Commerce ((E-commerce)) or Electronic Business (E-business) means shopping on the part of the Internet called the World Wide Web (the Web). For decades, banks have been using Electronic Funds Transfers (EFT, also called Wire Transfer), which are electronic l t i transmissions t i i off accountt exchange h information i f ti over private communications networks. Businesses also have been engaging in a form of electronic commerce, known as Electronic Data Interchange (EDI), for manyy yyears. Electronic commerce is defined as the use of electronic data transmission to implement or enhance anyy business process. ITM Lecture 5 Advanced Diploma (Thames College)
1
Advantages g of Electronic Commerce z z z z z z z z z z z
Access to a gglobal market at 24x7 Instantaneous feedback Paperless p transactions Real time updates to information Removal of the middleman function No geographic boundaries Large g potential p market Fast turnaround time Access to a wide range of suppliers Online customer support Reduced costs of distribution and processing ITM Lecture 5 Advanced Diploma (Thames College)
2
Disadvantages g of Electronic Commerce z z z
z
z z
Stem from the newness and rapidly developing pace of the underlying d l i technologies. t h l i The costs and benefits have been hard to quantify. Had trouble recruiting and retaining employees with the technological, design, and business process skills needed to create an effective electronic commerce presence. Difficulty of integrating existing databases and transactionprocessing software designed for traditional commerce into the software that enables electronic commerce. commerce Face cultural and legal impediments to electronic commerce. The legal environment in which electronic commerce is conducted is full of unclear and conflicting laws. ITM Lecture 5 Advanced Diploma (Thames College)
3
Economic Forces in E-Commerce z
Reduce Transaction Costs z
z
Businesses and individuals can use electronic commerce to reduce transaction costs by improving information flows and increasing coordination of actions to reduce uncertainty. y
Reduce Cost of Searching for Information z
By reducing the cost of searching for information about potential buyers and sellers and increasing the number of potential market participants, participants electronic commerce can change the attractiveness of vertical integration for manyy firms. ITM Lecture 5 Advanced Diploma (Thames College)
4
z
z
z
Electronic Commerce ((E-commerce)) or Electronic Business (E-business) means shopping on the part of the Internet called the World Wide Web (the Web). For decades, banks have been using Electronic Funds Transfers (EFT, also called Wire Transfer), which are electronic l t i transmissions t i i off accountt exchange h information i f ti over private communications networks. Businesses also have been engaging in a form of electronic commerce, known as Electronic Data Interchange (EDI), for manyy yyears. Electronic commerce is defined as the use of electronic data transmission to implement or enhance anyy business process. ITM Lecture 5 Advanced Diploma (Thames College)
1
Advantages g of Electronic Commerce z z z z z z z z z z z
Access to a gglobal market at 24x7 Instantaneous feedback Paperless p transactions Real time updates to information Removal of the middleman function No geographic boundaries Large g potential p market Fast turnaround time Access to a wide range of suppliers Online customer support Reduced costs of distribution and processing ITM Lecture 5 Advanced Diploma (Thames College)
2
Disadvantages g of Electronic Commerce z z z
z
z z
Stem from the newness and rapidly developing pace of the underlying d l i technologies. t h l i The costs and benefits have been hard to quantify. Had trouble recruiting and retaining employees with the technological, design, and business process skills needed to create an effective electronic commerce presence. Difficulty of integrating existing databases and transactionprocessing software designed for traditional commerce into the software that enables electronic commerce. commerce Face cultural and legal impediments to electronic commerce. The legal environment in which electronic commerce is conducted is full of unclear and conflicting laws. ITM Lecture 5 Advanced Diploma (Thames College)
3
Economic Forces in E-Commerce z
Reduce Transaction Costs z
z
Businesses and individuals can use electronic commerce to reduce transaction costs by improving information flows and increasing coordination of actions to reduce uncertainty. y
Reduce Cost of Searching for Information z
By reducing the cost of searching for information about potential buyers and sellers and increasing the number of potential market participants, participants electronic commerce can change the attractiveness of vertical integration for manyy firms. ITM Lecture 5 Advanced Diploma (Thames College)
4
