Electronic Commerce

CHAPTER 1: OVERVIEW OF
ELECTRONIC COMMERCE
 Contents

• 1.1. Electronic commerce: definitions and

concepts
• 1.2. The electronic commerce field: growth,
content, classification, and a brief history
• 1.3. Drivers and Benefits of E-Commerce
• 1.4. E-Commerce 2.0: From Social
Commerce to Virtual Worlds

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 Contents

• 1.5. The Digital and Social Worlds:

Economy, Enterprises, and Society
• 1.6. The Changing Business Environment,
Organizational Responses, and EC and IT
Support
• 1.7. The Limitations, Impacts, and the
Future of E-Commerce

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 Learning Objectives

1. Define electronic commerce (EC) and

describe its various categories.
2. Describe and discuss the content and
framework of EC.
3. Describe the major types of EC
transactions.
4. Discuss e-commerce 2.0.
5. Describe social commerce and social
software.
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 Learning Objectives

1. Define electronic commerce (EC) and

describe its various categories.
2. Describe and discuss the content and
framework of EC.
3. Describe the major types of EC
transactions.
4. Discuss e-commerce 2.0.
5. Describe social commerce and social
software.
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 1.1. Electronic Commerce:
Definitions and Concepts

• electronic commerce (EC)

• The process of buying, selling, or exchanging
products, services, or information via computer
• e-business
• A broader definition of EC that includes not just the
buying and selling of goods and services;
• but also servicing customers, collaborating with
business partners, and conducting electronic
transactions within an organization

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 1.1. Electronic Commerce:
Definitions and Concepts

• Major EC concepts
– Pure Versus Partial EC
– EC Organizations
• brick-and-mortar (old economy) organizations
• virtual (pure-play) organizations
• click-and-mortar (click-and-brick) organizations

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 1.1. Electronic Commerce:
Definitions and Concepts

• Electronic Markets and Networks

– electronic market (e-marketplace)
• An online marketplace where buyers and sellers
meet to exchange goods, services, money, or
information
– intranet
– extranet

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 1.2. The Electronic Commerce Field:
Classification, Content, a Brief History

• An EC Framework
– EC applications are supported by
infrastructure and by the following five support
areas:
• People
• Public policy
• Marketing and advertising
• Support services
• Business partnerships

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Source: Efraim Turban, David King, Jae Kyu Lee, Ting-Peng Liang, Deborrah C Turban, [2015], Electronic
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Commerce: A Managerial and Social Networks Perspective 8 edition, Springer, Switzerland, Page 10
th
 1.2. The Electronic Commerce Field:
Classification, Content, a Brief History

• Classification of EC by the nature of the

transactions and the relationships among
participants
– business-to-business (B2B)
– business-to-consumer (B2C)
– e-tailing
• Online retailing, usually B2C

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 1.2. The Electronic Commerce Field:
Classification, Content, a Brief History

• Business-to-business-to-consumer
(B2B2C)
• Consumer-to-business (C2B)
• Intrabusiness EC
• Business-to-Employees (B2E)
• Consumer-to-Consumer (C2C)
• Collaborative Commerce / E-Government

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Source: Efraim Turban, David King, Jae Kyu Lee, Ting-Peng Liang, Deborrah C Turban, [2015], Electronic
13
Commerce: A Managerial and Social Networks Perspective 8 edition, Springer, Switzerland, Page 12
th
 1.2. The Electronic Commerce Field:
Classification, Content, a Brief History

• A brief history of EC
– The Interdisciplinary Nature of EC
– The Google Revolution
– F-commerce
– EC Failures/ EC Successes
• The future of EC

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 1.3. Drivers and Benefits of E-
Commerce

• The Drivers of E-Commerce

– The Major Drivers of EC
– The Benefits of E-Commerce
– Opportunities for Entrepreneurs
• EC as a Provider of Efficiency,
Effectiveness, and of Competitive
Advantage

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 1.4. E-Commerce 2.0: From Social
Commerce to Virtual Worlds

• social computing
– An approach aimed at making the human–
computer interface more natural
• Web 2.0
– The second generation of Internet-based
services that lets people collaborate and share
information online in new ways

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 1.4. E-Commerce 2.0: From Social
Commerce to Virtual Worlds

• social network
– A category of Internet applications that help
connect friends, business partners, or
individuals with specific interests
– by providing free services such as photo
presentation, e-mail, blogging, and so on
using a variety of tools

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 1.4. E-Commerce 2.0: From Social
Commerce to Virtual Worlds

– social networking service (SNS)

• A service that builds online communities by
providing an online space for people
• to build free homepages and that provides basic
communication and support tools for conducting
different activities in the social network
– social networking
• The creation or sponsoring of a social network
service and any activity, such as blogging, done in
a social network (external or internal)

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 1.4. E-Commerce 2.0: From Social
Commerce to Virtual Worlds

• Enterprise Social Networks

• social commerce
– The e-commerce activities conducted in social
networks and/or by using social software (i.e.,
Web 2.0 tools)

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 1.4. E-Commerce 2.0: From Social
Commerce to Virtual Worlds

• Virtual Worlds and Second Life

• virtual world
– A user-defined world in which people can
interact, play, and do business; the most
publicized virtual world is Second Life
– How Students Make Money in a Virtual World

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 1.4. E-Commerce 2.0: From Social
Commerce to Virtual Worlds

• The Major Tools of Web 2.0

– Wikis
– RSS feeds
– Blogs
– Microblogs (e.g.,Twitter)

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 1.5. The Digital and Social Worlds:
Economy, Enterprises, and Society

• digital economy
– An economy that is based on digital
technologies, including digital communication
networks, computers, software,
– and other related information technologies;
also called the Internet economy, the new
economy, or the Web economy

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 1.5. The Digital and Social Worlds:
Economy, Enterprises, and Society

• Digital enterprise
– corporate portal
• A major gateway through which employees,
business partners, and the public can enter a
corporate website.

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 1.5. The Digital and Social Worlds:
Economy, Enterprises, and Society

• The Social Business (Enterprise)

– The Social Business Forum
– The Social Enterprise
• The Digital Revolution and Society
– Disruptive Impacts
– The Social Customer

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The social customer (Source: Courtesy of F. Cipriani (2008), “Social CRM: Concept, Benefits, and Approach to
Adopt,” November 2008. slideshare.net/fhcipriani/social-crm-presentation-761225 (Accessed June 2014).

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 1.6. The Changing Business
Environment, Organizational

• The changing business environment

• Performance, business pressures, and
organizational responses and EC support
– The Business Environment and Performance
Impact Model
– Business Pressures
– Organizational Response Strategies: The
support of EC
– The Major Capabilities of E-Commerce

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Source: Efraim Turban, David King, Jae Kyu Lee, Ting-Peng Liang, Deborrah C Turban, [2015],
Electronic Commerce: A Managerial and Social Networks Perspective 8 th edition, Springer,
Switzerland, Page 28 27
 1.7. The Limitations, Impacts, and
the Future of E-Commerce

• The benefits and impacts of EC

– EC as a Provider of Competitive Advantage
• The limitations and barriers of EC
– ethics
• The branch of philosophy that deals with what is
considered to be right and wrong
• Why study E-commerce?

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 Managerial Issues

• Is EC real?
• Why is B2B e-commerce so essential and
successful?
• Which EC business model should I
choose?
• How can we exploit social commerce?
• What are the top challenges of EC today?

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 Summary

• Definition of EC and description of its

various categories
• The content and framework of EC
• The major types of EC transactions
• E-commerce 2.0
• Description of social commerce and social
software

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 Summary

• The elements of the digital world

• The drivers of EC
• The major EC business models
• Benefits of EC to organizations,
consumers, and society
• Limitations of e-commerce

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