E-Commerce Technology

[Link] El maghraby
 Chapter one
Introduction to
Electronic-Commerce
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 Web.
5. Understanding the elements of the digital world

©2022 Arab Academy For Science, Tech. &

9 9
 [Link] the drivers of EC that related to business pressures
& organizational responses.

[Link] some EC business models. [Link] the

benefits and limitations of EC to:
• Organizations,
• Consumers, and
• Society.

©2022 Arab Academy For Science, Tech. &

10
1.1 Electronic Commerce: Definitions and Concepts

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1
 1.1 Electronic Commerce: Definitions and Concepts
 E-Business & E-commerce
 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. is a business space including digital activities within an organization.
 E-commerce is a Subset of e-business … It is the process of buying, selling, and exchanging products/services/
information over the Internet

E-Business =
buying & selling goods,
servicing customers,
collaborating with business
partners, conducting
electronic transactions

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 Term Definition Examples
E-business Overall business activities conducted Internal communication, collaboration,
online customer support

E-commerce Buying and selling online Online retailers

E-marketing Marketing through digital channels SEO, PPC, email marketing

Promotion Activities to increase awareness or sales Sales promotions, public relations

Advertising Paid placement of messages Print ads, TV commercials, online ads

Social Media Marketing through social media platforms Content creation on platforms like Facebook,
Marketing Twitter

E-business encompasses a wide range of online activities

E-commerce focuses specifically on buying and selling.
E-marketing is a subset of e-business that involves promoting products or services online.
Promotion is a broader term that includes advertising, but advertising is a specific paid form of promotion.
Social media marketing is a specialized form of e-marketing that utilizes social media platforms.
Definitions and Concepts

E-business: Encompasses a broader range of business activities

conducted online, including sales, marketing, customer service,
supply chain management, and more. It's about leveraging digital
technology to improve overall business operations.
E-commerce: Primarily focuses on the online buying and selling of
goods and services. Think of online stores like Amazon or eBay.

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 1.1 Electronic Commerce: Definitions and Concepts
 Cont. to E-Business & E-commerce
E-Business E-Commerce
Running Business using internet Trading of merchandise over internet

The broader concept and is the Is the part of E-Business or is the

superset of E-Commerce subset of E-Business
Business transaction are carried out Commercial transactions are carried
in it out in it
Transaction are not limited in it Transactions are limited in it
Intranet, internet and extranet are Internet is used
used
Requires website, ERP, CRM, Apps, Requires website and Apps
etc.
Is not limited to monetary Is limited to monetary transactions
transactions but also to marketing, only
operations, SCM etc. ©2022 Arab Academy For Science, Tech. &
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 Electronic Commerce: Definitions and Concepts

• Pure Versus Partial EC

• EC takes several forms depending on the degree of digitization (the
transformation from physical to digital)
(1) the product (service) sold (ordering system eg. Order,payment)
(2) the process (eg. Fullfillment) Fulfillment is a crucial step in the e-commerce process,
involving the picking, packing, and shipping of products to customers.
(3) Shipment method (the delivery agent (or intermediary))

Pure EC: When all three factors (product, process, and delivery agent) are digital.
Partial EC: When at least one of the factors is not fully digital.
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 Electronic Commerce: Definitions and Concepts

• Pure Versus Partial EC

(1) the product (service) sold can be digital or physical,
(2) the process can be digital or physical,
(3) the delivery agent can be digital or physical,

These alternatives create eight cubes, each of which has three

dimensions.
In traditional commerce all three dimensions are physical while in
pure EC all dimensions are digital.
All other alternatives include a mix of digital and physical
dimensions.

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Electronic Commerce:
Definitions and Concepts
• Pure Versus Partial EC
If there is at least one digital dimension, we consider the situation
EC,
But
Partial EC,
for example electronically buying a book from Amazon or a shirt
from C&A.
This is a partial EC because the goods are physically delivered.

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Electronic Commerce: Definitions and Concepts
• Pure Versus Partial EC
Pure EC,
for example electronically buying an e-book from [Link] or electronically
buying software from [Link]
This is a pure EC because the product, its delivery, payment, and transfer agent are
all digital.
PayPal is A payment gateway is a service that authorizes credit card payments. It acts as an
intermediary between the merchant's website and the payment processor, ensuring that
the transaction is secure and authorized.
Fawry, Aman,Bee are popular payment gateway in Egypt. It's a leading online and offline
payment solution provider that offers a wide range of services
Visa, Mastercard, and American Express are credit card networks, not payment gateways.
They provide the infrastructure for processing credit card transactions, but they don't
directly authorize individual payments.
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[Link]
1.1 Electronic Commerce: Definitions and Concepts

 Mix of
digital & physical
dimensions 3-dimensions are digital
 at least one axis is digital

3-dimensions of the
cube are physical
©2022 Arab Academy For Science, Tech. &
Maritime Transport (AA Somaie)
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 1.1 Electronic Commerce: Definitions and Concepts

• These levels
x: delivery method,y: product, z: process may be physical or
digital.
• Digitization means: transforming business from physical to digital
format
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 1.1 Electronic Commerce: Definitions and Concepts

• Forms/Levels of EC… EC can take several forms or levels depending

on digitization:

• Y axis represents product/service sold... to be digital product or physical

product
• X axis represents delivery method… to be physical delivery method or
digital delivery method
• Z axis represents process… to be digital process or analog process; e.g.,
ordering, payment
• E Commerce has 3 dimensional space, i.e., it is a cube.

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 Electronic Commerce:
Definitions and Concepts
• EC organizations
• brick-and-mortar organizations
Old-economy organizations (corporations) that perform most of their
business off-line, selling physical products by means of physical agents

• click-and-mortar (click-and-brick) organizations

Organizations that conduct some e-commerce activities, but do their primary
business in the physical world.

• virtual (pure-play) organizations

Organizations that conduct their business activities online. (even no
physical stores such as [Link])

Gradually, many brick-and-mortar companies are changing to click-and-

mortar ones such as C&A.

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 Brick-and-Mortar Examples
• Walmart: A classic example of a brick-and-mortar
retailer with physical stores in numerous locations.
• Target: Another well-known chain with physical
stores across the United States.
• Grocery stores: Local grocery stores and
supermarkets are typically brick-and-mortar
businesses.
• Restaurants: Most restaurants have physical
locations where customers can dine in.
• Department stores: Macy's and Nordstrom are
examples of department stores with physical
locations.
 Brick-and-Click Examples
• Best Buy: While they have physical stores, Best
Buy also operates an online store, allowing
customers to purchase products online and pick
them up in-store or have them shipped.
• Home Depot: Similar to Best Buy, Home Depot has
both physical stores and an online platform for
shopping.
• Barnes & Noble: This bookstore chain has a
combination of physical stores and an online store
for selling books, eBooks, and other merchandise.
• Toys "R" Us: While it has closed many physical
stores, Toys "R" Us continues to operate online,
selling toys and other products.
 Online Examples
• Amazon: The world's largest online retailer,
selling a wide variety of products.
• eBay: An online auction and marketplace
platform.
• Etsy: An online marketplace for handmade and
vintage items.
• Shopify: A platform that allows businesses to
create their own online stores.
• Netflix: A streaming service that delivers
movies and TV shows online.
 Types of EC Organizations:

Brick-and-Mortar Organizations
(Old Economy Organizations)

Organizations belong to
traditional Commerce:

• i.e., all dimensions are physical

• It means:
• selling physical products by means of physical agents
• They perform their primary business off-line

Pure Traditional
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 Types of EC Organizations:

Click-and-Mortar Organizations
(Click-and-Brick Organizations)

Organizations belong to Partial E

Commerce:

• Their dimensions are mix between physical & digital

• Organizations that conduct some e-commerce activities in addition
to its main traditional commerce
• In short: in these organizations, EC is not as main market channel

Partial Digital… Partial E Commerce

©2022 Arab Academy For Science, Tech. &
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 Types of EC Organizations:
Virtual organizations
(pure-play organizations)
Organizations belong to
pure E Commerce:

• all dimensions are digital

• Organizations that conduct their business activities only online
• It means: organizations conduct business in digital
• Example: Electronic Stores

Pure Digital… Pure E Commerce

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 Types of EC Organizations:
Types of EC Organizations Description
- Organizations belong to traditional Commerce:
Brick-and-Mortar Organizations • i.e., all dimensions are physical  Pure Traditional
(Old Economy Organizations) • It means:
selling physical products by means of physical agents
- They perform their primary business off-line
- Organizations belong to Partial E Commerce:
• Their dimensions are mix between physical & digital
Click-and-Mortar Organizations • Organizations that conduct some e-commerce activities
(Click-and-Brick Organizations) in addition to its main traditional commerce
• In short:  Partial Digital… Partial E Commerce
in these organizations, EC is not as main market channel
- Organizations belong to pure E Commerce:
• all dimensions are digital
Virtual organizations • Organizations that conduct their business activities only
(pure-play organizations) online  Pure Digital… Pure E Commerce
- It means: organizations conduct business in digital
- Example: Electronic Stores
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 The Networked Computing

– Networked computing connects multiple computers

and other electronic devices located in several
different locations by telecommunications networks,
including wireless ones
– Allows users to access information stored in several
different physical locations and to communicate and
collaborate with people separated by great
geographic distances.

Networked computing is the basic infrastructure for EC

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 ELECTRONIC MARKETS AND NETWORKS

• Internet
The internet is a global network of interconnected computers that
communicate with each other using a common set of protocols (rules). It
provides access to a vast amount of information, resources, and services,
including websites, email, social media, and online shopping.
• Intranet
An intranet is a private computer network within an organization, such as a
company or government agency. It uses internet technologies, like web
browsers and internet protocols, to share information and resources among
employees. Intranets are typically accessible only to authorized users within
the organization.
• Extranet
An extranet is a private computer network that extends the reach of an
intranet to external users, such as business partners, suppliers, or customers.
It allows authorized external users to access specific resources or
information within the organization's network. Extranets often use internet
technologies and security measures to ensure controlled access.
• In summary:
• Internet: A global public network
• Intranet: A private network within an organization
• Extranet: A private network that extends an intranet to external users
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ELECTRONIC MARKETS AND NETWORKS

–electronic market (e-marketplace)

• An online marketplace is an online platform that where buyers and sellers meet to exchange goods,
services, money, or information. It acts as a virtual marketplace where individuals or businesses can
interact and conduct transactions. E-com can be conducted in an electronic market
Key characteristics of e-marketplaces:
• Online platform: They operate entirely online, using the internet as a medium for interaction.
• Buyers and sellers: They connect a wide range of buyers and sellers, from individual consumers to
large corporations.
• Product or service exchange: They enable the exchange of various products or services, ranging from
physical goods to digital content.
• Transaction facilitation: They provide tools and services to support transactions, such as payment
processing, shipping, and dispute resolution.
Examples of e-marketplaces:
• General marketplaces: Amazon, eBay, AliExpress
• Specialized marketplaces: Etsy (handmade goods), Alibaba (B2B), Upwork (freelance services)
• Industry-specific marketplaces: Travelocity (travel), Zillow (real estate)
• E-marketplaces have revolutionized the way businesses and consumers interact, offering
convenience, efficiency, and a vast selection of products and services.

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• corporate portal
A corporate portal is a centralized online platform that serves as a main entry point for employees,
business partners, and the public to access a company's website and its various resources. It acts as a
gateway, providing a unified interface and navigation for accessing different parts of the corporate network. A
major gateway through which employees, business partners, and the public can enter a corporate Web site

Key functions of a corporate portal:

• Single sign-on: Allows users to log in once and access multiple applications or systems within the
corporate network.
• Personalized content: Tailors information and content based on the user's role, preferences, and
permissions.
• Integration of applications: Combines various applications and systems into a cohesive interface,
improving efficiency and reducing complexity.
• Collaboration tools: Provides tools for communication, collaboration, and knowledge sharing
among employees and partners.
• Company information: Offers access to company news, policies, procedures, and other relevant
information.

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The EC Framework,
Classification, and Content
• EC field is a diversified one, involving many activities, people,
business units, technologies, etc.

• An EC Framework is supported by five support areas

• People
• Public policy
• Marketing and advertisement
• Support services
• Business partnerships

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The EC Framework,
Classification, and Content
People
Sellers, buyers, intermediaries, information systems specialists,
other employees, and management.
Public policy
Legal and other policy and regulation issues, such as protection
and taxation, which are determined by governments.
Marketing and advertisement
Like any other business, EC usually requires the support of
marketing and advertising. Where the buyers and sellers usually
not know each other.

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The EC Framework,
Classification, and Content
Support services
Many services are needed to support EC.
These range from payments methods to order delivery.
Business partnerships
Joint ventures, business partners of various sorts are common in EC.

EC occurs frequently in the Supply Chain environment.

Supply chain management (SCM), is the interactions between a company

and its suppliers and other partners.

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The EC Framework,
Classification, and Content
AT the bottom line is the infrastructure for EC.
• The infrastructure describes the hardware, software, multimedia
and networks used in EC.
• All of these infrastructure components require good management
practices.
- This means that companies need to plan, organize, motivate, devise
strategy and reengineer business processes as needed to optimize
their business using EC tools and strategies.

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Exhibit A Framework for : Electronic Commerce

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 EC Classification or Relationships
• Classification by nature of the transactions or interactions
business-to-business (B2B)
E-commerce model in which all of the participants are businesses or other
organizations,
For example “any organization with its suppliers”.

business-to-consumer (B2C)
E-commerce model in which businesses sell to individual shoppers,
For example “C&A to you”.
This type is also called e-tailing.

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EC Classification
Business-to-Business-to-Consumer (B2B2C)
E-commerce model in which a business provides some product
or service to a client business that maintains its own customers,
which can be its own employees, to whom the product or
service is provided without adding any value to it.
For example,
Travel agent to any organization to its employees.

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EC Classification
Consumer-to-Business (C2B)
E-commerce model in which individuals use the Internet to sell products or
services to organizations or individuals seek sellers to bid on products or
services they need.
Consumer-to-Consumer (C2C)
E-commerce model in which consumers sell directly to other consumers,
For example, individuals selling residential property, cars, and so on, in online
classified ads.
As well as selling of knowledge and expertise online.

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EC Classification
Mobile commerce (m-commerce)
E-commerce transactions and activities conducted in a wireless
environment.
Location-based commerce
(L-commerce)
M-commerce transactions targeted to individuals in specific locations
(stadium), at specific times (Ramadan event)
Business-to-employees (B2E)
E-commerce model in which an organization delivers services, information,
or products to its individual employees. (Company Training).

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EC Classification
Intra-Business EC
E-commerce category that includes all internal organizational activities that
involve the exchange of goods, services, or information among various units
and individuals within an organization.
Intra-business is usually performed on intranets or corporate portals.
For example, activities can range from online training to selling corporate
products to their employees.

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EC Classification
Collaborative Commerce (c-commerce)
E-commerce model in which individuals or groups communicate or
collaborate online.
For example, business partners in different locations may design a product
together, using screen sharing.
Peer-to-Peer applications
Technology that enables networked peer computers to share data and
processing with each other directly; can be used in C2C, B2B, and B2C e-
commerce.
For example, people can exchange music, videos, software, etc electronically.

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EC Classification
e-government
E-commerce model in which a government entity buys or provides goods,
services, or information to businesses (G2B) or individual citizens (G2C)
e-learning
The online delivery of information for purposes of training or education.
Drop-shipping
In this model, a seller advertises and sells a product to a buyer and collects the
payment. Then, the seller transfers the orders to a supplier and pays the
wholesale price. The supplier packs and delivers the product to the buyer.

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The Electronic Commerce Field:
Classification, Content, and History

Example:
Dell sells its products to
companies

©2022 Arab Academy For Science, Tech. &

The Electronic Commerce Field:
Classification, Content, and History

Example:
Shoppers; Wall-Mart
online or [Link]

©2022 Arab Academy For Science, Tech. &

The Electronic Commerce Field:
Classification, Content, and History
Example:
Individuals selling cars in
online classified ads

The C2C Model involves

transaction between
consumers. Here, a
consumer sells directly to
another consumer,

©2022 Arab Academy For Science, Tech. &

The Electronic Commerce Field:
Classification, Content, and History
Example:
Individuals who use the internet
to sell products (services) to
organizations
[Link] is an organizer of C2B transactions

©2022 Arab Academy For Science, Tech. &

The Electronic Commerce Field:
Classification, Content, and History

Example:
The Beijing Olympics used
Employees wireless devices to maintain
contact with employees

©2022 Arab Academy For Science, Tech. &

 E-Commerce 2.0:
From Web to Enterprise Social Networking and Virtual Worlds

• Social Computing … Social Media or Network:

• An approach for making the Human-Computer Interface more
Natural
• Social Network:
• It is a category of Internet applications that help you connect
friends, business partners, or individuals by providing free
services

• Examples of free services

• such as photo presentations, e-mail, blogs, Wikis, etc.

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 E-Commerce 2.0:
From Web to Enterprise Social Networking and Virtual Worlds

• Virtual world
• The most publicized virtual world is the virtual
firm over the Internet
• creating a virtual company over the Internet

©2022 Arab Academy For Science, Tech. &

Maritime Transport (AA Somaie)
Digital Revolution Drives EC
• 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.
In the other words: Digital economy is also called
• the Internet economy,
• the new economy,
• the Web economy or www economy
Digital Enterprise: It is a new business model that uses
communication & computing technology to improve business processes

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E-Commerce 2.0:
From Web to Enterprise Social Networking and Virtual Worlds

o Examples of blogging:
o [Link]: facilitates socialization for all
people in all ages
o [Link]: users can upload and view
video clips
o [Link]: users share and comment on
photos
o [Link]: provide a platform to find
friends and make associates/contacts
o [Link]: a popular global social network

©2022 Arab Academy For Science, Tech. &

Maritime Transport (AA Somaie)
 EC Business Models
• One of the major characteristics of EC is that
it enables the creation of new business models.
Business model
• A method of doing business processes (how to carry out a task) i.e.
Fulfilling a customer order cycle.
• A description of the business process required to make and deliver
the products and services and to complete the business transactions
• Business plan is a written document that identifies the business goals
and outlines the plan of how to achieve them.
Business plan includes a value proposition which is
The benefits a company can derive from using EC.
A subset of a business plan is a Business model.

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EC Business Models
• The Structure of Business Models
• A list of the resources required and the identification of which
ones are available, which will be developed in-house, and which
will need to be acquired
• A description of the business process required to make and
deliver the products and services and to complete the business
transactions
• A description of the organization supply chain, including
suppliers and other business partners
• A description of the revenues expected (revenue model), and
estimated profitability.

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EC Business Models
• Revenue Models • Major revenue models
• Sales
revenue model • Transaction fees
Description of how the • Subscription fees
company or an EC project will • Advertising fees
earn revenue. • Affiliate fees
• Other revenue sources

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 EC Business Models
• Major revenue models
• Sales; Companies generate revenues from selling goods or providing
services on their Web sites.
• Transaction fees; A company receives a commission based on the
volume of transactions made.
• Subscription fees; Customers pay a fixed amount periodically to get
some type of service (yahoo subscription for black berry services).
• Advertising fees; Companies charge others for allowing them to place
a banner on their sites.
• Affiliate fees; Companies receive commissions for referring customers
to other Web sites.
• Other revenue sources; Some companies allow you to play a game or
to watch a sports competition in real time for a fee.

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 Electronic Commerce Business Models
Examples of Revenue business models:

 Revenue Business Model 1:

Commission paid on a group of transactions
 e.g., E- Retailers
 Ex. mediators or brokers

©2022 Arab Academy For Science, Tech. &

 Electronic Commerce Business Models
Examples of Revenue business models:

 Revenue Business Model 2:

Payment from advertisers
 Ex. You have a website and you get payments
from advertisers as a result of displaying their
advertisements

©2022 Arab Academy For Science, Tech. &

 Electronic Commerce Business Models
Examples of Revenue business models:

 Revenue Business Model 3:

Subscription Model:
Fixed charge per month

©2022 Arab Academy For Science, Tech. &

 Electronic Commerce Business Models
Examples of Revenue business models:

 Revenue Business Model 4:

Associate/Affiliate Model:
Commissions for referring
customers via Websites

©2022 Arab Academy For Science, Tech. &

 Electronic Commerce Business Models
Examples of Revenue business models:

 Revenue Business Model 5:

Revenue from sales of goods or services

©2022 Arab Academy For Science, Tech. &

Common Revenue Models

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 EC Business Models
• Typical EC Business Models
• Online direct marketing
Selling on line from a manufacturer to a customer
-eliminating intermediaries- this model is very suitable for
products or services that can be delivered electronically.
• Electronic tendering systems
tendering (reverse auction)
Model in which a buyer requests would-be sellers to submit
bids; the lowest bidder wins.
• Name-your-own-price model (demand collection model)
Model in which a buyer sets the price he or she is willing to
pay and invites sellers to supply the good or service at that
price

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EC Business Models
• Typical EC Business Models
- Find the best price “Search engine Model”
A customer specifies his need and an intermediate company
matches that need against database, locate the lowest price
and submit it to the customer.
The potential buyer then has to accept or reject the offer.
• Affiliate marketing
An arrangement whereby a marketing partner (a business, an
organization, or even an individual) refers consumers to the
selling company’s Web site.
Whenever a customer that was referred to selling company’s
Web site makes a purchase there, the affiliated partner receives
a commission. In other words a selling company creates a
virtual commissioned sales force

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EC Business Models
• Typical EC Business Models
• Viral marketing
An organization can increase brand awareness or even generate
sales by including people to send messages to other people or
to recruit friends to join certain programs.
It is basically a Web-based Word-of-mouth marketing in which
customers promote a product or service to friends or other
people.

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EC Business Models
• Typical EC Business Models
• Online auctions
On line shoppers make consecutive bids for various goods and
services, and the highest bidders get the items auctioned.

• Product and service customization

customization of product or service means
Creation of a product or service according to the buyer’s
specifications.
For example Dell computers with their customers or Travco
package for tourists.

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EC Business Models
• Typical EC Business Models
group purchasing
Quantity purchasing that enables groups of purchasers or SMEs
“Small-to-medium enterprises”
to obtain a discount price on the products purchased.

e-co-ops
Another name for online group purchasing organizations

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Benefits of EC
Benefits to Organizations
• Global Reach • Lower Communication
Costs
• Cost Reduction
• Efficient Procurement
• Supply Chain Improvements
• Improved Customer
• Extended Hours Relations
• Customization • Up-to-Date Company
• New Business Models Material
• Rapid Time-to-Market

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Benefits of EC
Benefits to Consumers
• Ubiquity • Instant Delivery
• More Products and Services • Information Availability
• Customized Products and • Participation in Auctions
Services • Electronic Communities
• Cheaper Products and
Services

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Benefits of EC
• Benefits to Society
• Telecommuting
• Higher Standard of Living
• Hope for the Poor
• Availability of Public Services

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Limitations of EC

75
Q1: What is the difference between e-business & e-commerce?

E-commerce and e-business are often used interchangeably, but they have distinct meanings.

E-business is a broader term that encompasses all business activities conducted online. It includes not only e-
commerce but also other aspects of running a business using digital technology, such as marketing, customer
service, supply chain management, and internal operations. (Think: A company using social media for
marketing and online customer support)

E-commerce specifically refers to the online buying and selling of goods and services. It involves transactions that
occur over the internet, such as purchasing products from an online store or selling items on a marketplace. .
(Think: Amazon, eBay)

In essence, e-commerce is a subset of e-business. While e-commerce focuses on the transactional aspect of online
business, e-business encompasses the entire range of digital activities involved in running a company
Q2: Could you please distinguish between pure & partial e-commerce?

Pure e-commerce refers to transactions that occur entirely online, from start to finish. This means that all
aspects of the transaction, including product selection, payment, and delivery, are conducted digitally.
Examples of pure e-commerce:
• Purchasing digital products like e-books, music, or software downloads.
• Ordering products online and having them delivered directly to your doorstep.
• Making online payments using digital wallets or credit cards.
Partial e-commerce involves a combination of online and offline activities. This means that at least one part of
the transaction, such as product selection or delivery, takes place offline.
Examples of partial e-commerce:
• Browsing products in a physical store and then purchasing them online.
• Ordering products online and picking them up at a physical store for in-store pickup.
• Purchasing a product online and having it delivered to a physical location for pickup or return.

In summary, pure e-commerce is fully digital, while partial e-commerce involves a mix of online and offline
activities.
Q3: What are the major components of the EC framework?

The major components of the EC framework are:

•Technology: This includes the hardware, software, and networks that enable online
transactions. It encompasses everything from servers and databases to payment gateways
and e-commerce platforms.
•People: This refers to the individuals involved in e-commerce activities, including website
developers, online marketers, customer service representatives, and IT professionals.
•Business Processes: These are the procedures and workflows that support e-commerce
transactions, such as order processing, inventory management, and customer relationship
management.
•Legal and Regulatory Framework: This includes the laws and regulations that govern e-
commerce, such as data privacy laws, consumer protection regulations, and intellectual
property laws.
•Support Services: These are the services that support e-commerce activities, such as
payment processing, shipping and logistics, and customer support.

These components work together to create a functioning e-commerce system.

Q4: What are the major transactional types of EC?

•Business-to-Consumer (B2C): Businesses selling directly to individual consumers. This is

the most common type of e-commerce, exemplified by online retailers like Amazon, eBay,
and Walmart.
•Business-to-Business (B2B): Businesses selling to other businesses. This often involves
transactions for raw materials, components, or services. Examples include platforms like
Alibaba and Global Sources.
•Consumer-to-Consumer (C2C): Individuals selling directly to other individuals. Online
marketplaces like eBay and Etsy facilitate C2C transactions.
•Consumer-to-Business (C2B): Individuals selling products or services to businesses.
Freelancers offering their services on platforms like Upwork or Fiverr are examples of C2B
transactions.
•Business-to-Business-to-Consumer (B2B2C): A business selling to another business,
which then sells to consumers. This model is common in supply chain relationships.
These are the primary transactional types of EC, each with its own unique characteristics
and dynamics.
Q5: Would you please define Social Network Service (SNS) and give examples for the social
networks?

• Social Network Service (SNS): An SNS is an online platform that allows users to connect with friends,
family, and others who share similar interests. It provides a space for people to build relationships,
communicate, share content, and participate in online communities.
• Examples of social networks:
•Facebook: One of the largest social networks, offering a wide range of features including news feed,
messaging, groups, and events.
•Instagram: A photo and video sharing platform popular for its visual content and user-generated
trends.
•Twitter: A microblogging platform where users can share short messages (tweets) and follow other
users.
•LinkedIn: A professional networking platform primarily used for career development and business
connections.
•TikTok: A short-form video sharing platform known for its viral trends and user-generated content.

These are just a few examples of social networks. There are many others available, each with its own
unique features and focus.
 Q6: Would you please describe MySpace
• MySpace was a popular social networking website that was founded in 2003 and gained significant
traction in the mid-2000s. It was one of the earliest social media platforms and was known for its
customizable profiles, music features, and ability to connect with friends and communities.
• Key features of MySpace:
• Profiles: Users could create highly customizable profiles with backgrounds, music, and other
personal information.
• Friends and connections: Users could connect with friends, family, and other people who shared
similar interests.
• Messaging: MySpace offered various messaging features, including instant messaging and group
chats.
• Music: Music was a central aspect of MySpace, allowing users to share their favorite songs, create
playlists, and discover new music.
• Blogs and forums: Users could create blogs and participate in forums to discuss various topics.
• While MySpace was once a dominant social media platform, its popularity declined in the late
2000s as other platforms like Facebook gained momentum. However, MySpace still has a
dedicated user base and remains active today, though its prominence has significantly diminished
compared to its peak years.
 Q7: What is an enterprise social network?
An enterprise social network (ESN) is a type of social networking platform specifically designed for use within
organizations. Unlike general-purpose social networks like Facebook or Twitter, ESNs are tailored to facilitate
communication, collaboration, and knowledge sharing among employees and teams within a company.
Key features of enterprise social networks:
• Private and secure: ESNs are typically private networks accessible only to authorized employees within the organization,
ensuring data security and confidentiality.
• Integration with existing systems: ESNs can integrate with other enterprise applications like email, calendars, and
document management systems, providing a centralized hub for communication and collaboration.
• Customizable features: Organizations can customize ESNs to fit their specific needs and workflows, including adding
features like project management tools, document sharing, and analytics.
• Focus on business goals: ESNs are designed to support business objectives by improving employee engagement,
fostering teamwork, and streamlining processes.
Examples of enterprise social networks:
• Slack: A popular platform for team communication and collaboration, offering features like channels, direct messaging,
and file sharing.
• Yammer: A Microsoft-owned platform that integrates with other Microsoft products and services, making it a good
choice for organizations using Microsoft's Office 365 suite.
• Workplace by Facebook: A Facebook-based platform designed for businesses, offering similar features to the consumer
version but with added security and privacy controls.
 Q8: Would you please define a digital enterprise DE?
• A digital enterprise (DE) is a business that leverages digital technologies to fundamentally transform its operations and achieve
competitive advantage. It goes beyond simply using digital tools and embraces a digital-first mindset across all aspects of the business.
• Key characteristics of a digital enterprise:
• Data-driven: Digital enterprises rely heavily on data to make informed decisions and drive innovation.
• Customer-centric: They prioritize understanding and meeting the needs of their customers through digital channels.
• Agile and adaptable: Digital enterprises are able to quickly adapt to changing market conditions and emerging technologies.
• Integrated technology: They seamlessly integrate various digital tools and systems to create a cohesive digital ecosystem.
• Employee-focused: Digital enterprises invest in their employees' digital skills and empower them to innovate and contribute to the
business.
• Examples of digital enterprises:
• Netflix: A streaming service that has revolutionized the entertainment industry through its use of data analytics and personalized
recommendations.
• Amazon: A global e-commerce giant that has successfully integrated digital technologies into its supply chain, logistics, and customer
experience.
• Tesla: An electric vehicle manufacturer known for its innovative use of technology, including self-driving capabilities and over-the-air
software updates.
• Digital enterprises are characterized by their ability to harness the power of digital technologies to create new business models, improve
efficiency, and deliver exceptional customer experiences.
 Q9: would you please compare between traditional and digital enterprise?

Traditional Enterprises
• Operations: Primarily reliant on physical processes, manual labor, and paper-
based systems. Traditional
• Customer Interaction: Limited to physical locations, often relying on face-to-face Feature Enterprise Digital Enterprise
interactions. Manual,
• Data Management: Manual data collection and storage, with limited analytics
capabilities. Operations paper-based Automated, digital
• Decision Making: Based on intuition and experience, with slower decision- Customer Online, digital
making processes.
Interaction Face-to-face channels
• Market Reach: Primarily limited to local or regional markets.
Digital Enterprises Data Manual, Data-driven,
• Operations: Heavily reliant on digital technologies, automation, and data-driven Management limited advanced analytics
processes.
• Customer Interaction: Utilizes digital channels like websites, mobile apps, and Decision Intuition-
social media for customer engagement. Making based, slow Data-driven, fast
• Data Management: Employs advanced data analytics and artificial intelligence Market Reach Local/regional Global
to gain insights and make data-driven decisions.
• Decision Making: Faster and more informed decision-making based on real-time
data and analytics.
• Market Reach: Can easily expand to global markets through online platforms.
 Q10: Would you please find out the major drivers of EC?
The growth of e-commerce is driven by several key factors :
• Technological Advancements
• Faster Internet Speeds: Increased internet connectivity and bandwidth have made online shopping and transactions more seamless and efficient.
• Mobile Devices: The proliferation of smartphones and tablets has enabled convenient online shopping on the go.
• Payment Systems: Secure and reliable payment gateways and digital wallets have simplified the payment process.
• E-commerce Platforms: User-friendly platforms have made it easier for businesses to set up and manage online stores.
• Consumer Preferences
• Convenience: Online shopping offers the convenience of 24/7 access and the ability to compare products from multiple sellers.
• Product Variety: E-commerce platforms provide access to a wider range of products than traditional brick-and-mortar stores.
• Price Comparison: Consumers can easily compare prices from different sellers and find the best deals.
• Personalized Experiences: E-commerce platforms can offer personalized recommendations and experiences based on customer preferences.
• Global Reach
• International Markets: E-commerce allows businesses to reach customers in new markets and expand their customer base.
• Reduced Trade Barriers: Online platforms can help overcome geographical barriers and facilitate international trade.
• Economic Factors
• Rising Disposable Income: As incomes rise, more people have the purchasing power to buy goods and services online.
• Economic Uncertainty: In times of economic uncertainty, online shopping can offer a convenient and safe way to make purchases.
• Business Benefits
• Cost Reduction: E-commerce can help businesses reduce costs associated with physical stores and inventory management.
• Increased Efficiency: Automation and digital tools can streamline business processes and improve efficiency.
• Data-Driven Insights: E-commerce platforms provide valuable data that can be used to make informed business decisions.
• These factors have collectively contributed to the rapid growth and success of e-commerce in recent years.
 Q11: What is the business model? what are the major revenue models? And give examples
for the business models?
Business Model
A business model is a company's plan for generating revenue and achieving its objectives. It outlines how a company creates value for
customers, delivers products or services, and generates profit.
Major Revenue Models
Several revenue models are commonly used in e-commerce:
[Link]: Generating revenue by selling products or services directly to customers. Examples: Amazon, eBay, Walmart
[Link] Fees: Charging a fee for each transaction that occurs on the platform. Examples: PayPal, Stripe, Etsy
[Link] Fees: Charging a recurring fee for access to products or services. Examples: Netflix, Spotify, Adobe Creative Cloud
[Link] Fees: Generating revenue by selling advertising space on the platform. Examples: Google Ads, Facebook Ads, YouTube Ads
[Link] Fees: Earning a commission for referring customers to other businesses. Examples: Amazon Associates, eBay Partner Network
[Link] Model: Offering a basic product or service for free and charging for premium features or additional services. Examples:
Dropbox, Spotify (free tier with limitations)
Examples of Business Models
•Online Retailer: Sells products directly to customers (e.g., Amazon, eBay)
•Marketplace: Connects buyers and sellers and charges a transaction fee (e.g., eBay, Etsy)
•Subscription Service: Provides access to products or services for a recurring fee (e.g., Netflix, Spotify)
•Advertising Platform: Generates revenue by selling advertising space (e.g., Google Ads, Facebook Ads)
•Affiliate Marketing: Earns commission by referring customers to other businesses (e.g., Amazon Associates)
•Freemium Model: Offers a basic version for free and charges for premium features (e.g., Dropbox)
Choosing the right business model for an e-commerce venture depends on factors like the product or service, target market, and
competitive landscape.
 Q12 What are the effect of changing business environments on the EC?

The changing business environment has a significant impact on e-commerce. Here are some of the key effects:
Technological Advancements
•Increased competition: New technologies can disrupt established markets, leading to increased competition and the need for constant
innovation.
•Emerging trends: E-commerce businesses must adapt to new trends like mobile commerce, voice search, and augmented reality.
Economic Factors
•Economic fluctuations: Economic downturns can affect consumer spending and impact e-commerce sales.
•Global trade: Changes in trade policies and tariffs can affect the cost and availability of products for online retailers.
Consumer Behavior
•Evolving expectations: Consumer expectations are constantly evolving, with a growing demand for personalized experiences, faster
delivery, and seamless omnichannel shopping.
•Data privacy concerns: Increasing concerns about data privacy and security can influence consumer behavior and impact trust in
online businesses.
Regulatory Changes
•New regulations: Governments may introduce new regulations that affect e-commerce, such as data protection laws or online
taxation.
•Compliance challenges: E-commerce businesses must comply with a complex and evolving regulatory landscape.
Competitive Landscape
•Increased competition: The e-commerce market is highly competitive, with new players and disruptive technologies emerging
constantly.
•Market consolidation: Some e-commerce giants may acquire smaller businesses, leading to market consolidation and reduced
competition.
To thrive in a changing business environment, e-commerce businesses must be adaptable, innovative, and focused on delivering value
to their customers. They should continuously monitor market trends, invest in technology, and prioritize customer satisfaction.
Q13: Would you please describe some EC benefits to organizations, individuals, and
society? (Go to text book, and see Exhibit 1.15)
Benefits to Organizations
• Increased Efficiency: E-commerce can streamline business processes, reduce costs, and improve operational efficiency.
• Expanded Market Reach: Online platforms allow businesses to reach a wider customer base, both domestically and internationally.
• Improved Customer Service: E-commerce can enable businesses to provide better customer service through features like online
chat, self-service portals, and personalized recommendations.
• Data-Driven Insights: E-commerce generates valuable data that can be used to make informed business decisions and improve
marketing strategies.
• Reduced Overhead Costs: E-commerce can help businesses reduce the costs associated with physical stores, inventory
management, and distribution.
Benefits to Individuals
• Convenience: Online shopping offers the convenience of 24/7 access and the ability to compare products from multiple sellers.
• Product Variety: E-commerce platforms provide access to a wider range of products than traditional brick-and-mortar stores.
• Price Comparison: Consumers can easily compare prices from different sellers and find the best deals.
• Personalized Experiences: E-commerce platforms can offer personalized recommendations and experiences based on customer
preferences.
• Time Savings: Online shopping can save consumers time by eliminating the need to travel to physical stores.
Benefits to Society
• Economic Growth: E-commerce can contribute to economic growth by creating jobs and stimulating innovation.
• Increased Competition: E-commerce can increase competition, leading to lower prices and better quality products.
• Improved Access: E-commerce can provide access to goods and services for people in remote areas or with disabilities.
• Reduced Environmental Impact: Online shopping can reduce the need for physical stores and transportation, leading to a smaller
carbon footprint.
Overall, e-commerce has had a significant positive impact on organizations, individuals, and society. It has transformed the way we
shop, conduct business, and interact with each other.
 Q14: Would you please explain why you study E-Commerce?
Understanding the Digital Landscape
•Technological Advancements: E-commerce is constantly evolving with new technologies. Understanding these advancements
helps you stay informed and adapt to the changing landscape.
•Business Opportunities: E-commerce presents numerous business opportunities, from starting your own online store to
working in digital marketing or e-commerce development.
Acquiring Essential Skills
•Digital Marketing: E-commerce requires effective digital marketing strategies to attract and engage customers.
•Web Development: Understanding web development can help you create and manage online stores or e-commerce platforms.
•Data Analytics: Analyzing e-commerce data is crucial for making informed business decisions.
•Supply Chain Management: Efficiently managing the supply chain is essential for successful e-commerce operations.
Career Opportunities
•E-commerce Specialist: Many businesses are seeking professionals with expertise in e-commerce to manage their online
operations.
•Digital Marketing: E-commerce has created a high demand for digital marketing professionals.
•Web Development: Web developers play a crucial role in building and maintaining e-commerce websites.
•Data Analyst: E-commerce generates vast amounts of data that needs to be analyzed to make informed decisions.
Personal Growth
•Entrepreneurship: Studying e-commerce can inspire you to start your own online business.
•Skill Development: You can acquire valuable skills that are transferable to various industries.
•Global Perspective: E-commerce operates on a global scale, providing opportunities to learn about different cultures and
markets.
By studying e-commerce, you can gain the knowledge and skills needed to succeed in the digital age and contribute to the
growth of the online economy.
 Q15: Would you please explain Limitations of EC?

Electronic commerce (EC) has transformed the way we shop, conduct

business, and interact with each other. It offers numerous benefits to
organizations, individuals, and society. However, it also faces several
limitations, including technological challenges, trust and security
concerns, product limitations, social and cultural factors, and regulatory
challenges.
To overcome these limitations, e-commerce businesses must invest in
technology, prioritize security, build trust with customers, and stay
informed about regulatory changes. By doing so, they can continue to
contribute to the growth and success of e-commerce.
Omnichannel and DTC
Omnichannel
• Definition: An omnichannel approach involves providing a seamless customer experience across
multiple channels, such as online, in-store, and mobile. It ensures that customers can interact with a
brand in any way they choose and have their experience consistent across all channels.
• Examples of omnichannel strategies:
• A customer orders a product online and chooses to pick it up in-store for free.
• A customer returns a product purchased online at a physical store.
• A customer uses a mobile app to check product availability in-store.
DTC (Direct-to-Consumer)
• Definition: A DTC business model involves selling products directly to consumers without
intermediaries like retailers. This allows brands to have more control over the customer experience
and pricing.
• Examples of DTC brands:
• Warby Parker (eyewear)
• Casper (mattresses)
• Dollar Shave Club (shaving products)
While omnichannel and DTC can be used together, they are not mutually exclusive. A DTC brand can also
implement an omnichannel strategy to provide a seamless customer experience across multiple
channels.
Question A B C D Answer

1. E-commerce is a subset of: E-business E-marketing Social media Digital marketing A

2. The primary transactional type in e- B2B B2C C2C All of the above B
commerce is:
3. Which of the following is not a Technology People Business processes Marketing D
component of the EC framework?
4. An example of a social network Facebook Google Amazon Microsoft A
service (SNS) is:
5. The term "flip learning" refers to: A traditional teaching A flipped classroom Online learning A blended learning model B
method approach

6. Which of the following is not a Cybersecurity threats Lack of trust Physical product Increased efficiency C
limitation of e-commerce? examination
7. The "digital divide" refers to: The gap between rich The gap between The gap between The gap between men C
and poor developed and those with and and women
developing without internet
countries access
8. A business model outlines: How a company How a company How a company How a company develops A
generates revenue manages its hires employees products
finances
9. Which of the following is not a Transaction fees Subscription fees Advertising fees Product manufacturing D
revenue model for e-commerce?
10. E-marketing involves: Using digital channels to Selling products Managing supply Analyzing customer data A
promote products online chains