ITC2083/ITC2243
E-BUSINESS
Topic 1: Introduction
E-Business (electronic business) is any process
that a business organization conducts over a
computer-mediated network.
- Business organizations include any for-profit,
governmental, or nonprofit entity.
- Internal activities such as product, IT infrastructure &
product management.
- Their processes include production, customer, and internal
or management-focused business processes.
- e.g. Linking of organization employees with each other through an intranet to
improve information sharing, facilitate disseminate of information and knowledge and
to support management reporting.
-e.g. include other activities such as supporting after sale services and collaborating
with business partner.
- virtual teams in two firms from different location collaborate with the use of secure
extranet on research and product development.
- purchasing item or product and services through online application and item or
product delivered at your doorstep.
E-commerce is more specific than e-business which is a subset
of the latter.
- it deals with the facilitation of transaction in selling a product and services
online for example via the internet and other telecommunication network.
- it involves with electronic trading of physical and digital goods
encompassing all the trading processes; online marketing, online ordering
(e-procurement), e-payment for digital goods, online distribution and after
sales support activities.
-external orientation are buy side (e-commerce activities with suppliers) and
sell side (activities with customers).
Mobile E-commerce or m-commerce is a subset of
electronic commerce.
- What is a different between m-commerce and e-
commerce?
Figure 1.1 Types of m-commerce
Social commerce usually refers to the use of web to deliver e-
commerce activities and transactions.
- the socialization of e-commerce can strengthen business relationship
with customers, increase website traffics, identify potential opportunities
and facilitate product and brand development.
-social commerce enable user to interact with others and create value
jointly.
Omni channel e-commerce and u-commerce.
- meeting customer requirement across a range of channel with may entail
physical stores, websites, call center, social media and mobile apps.
- requires companies to conduct synergetic and systematic management of
various channel and touch point.
- Most companies do not rely on one channel for examples website or physical
stores. Rather to maximize profit business consider coordinated performance
of their business across various and all channel.
u-commerce is a ubiquitous commerce.
- refers to wireless, continuous communication and exchange of data and information between and among retailers, customers and
system (applications)regardless of location, devices used or time of day.
The evolution of e-business
- e-business has change dramatically since 1993 evolving through five period which mirror the
evolution of the Nasdaq (National Association of Security Dealers Automated Quotations) in the US.
- Grassroot – before the widespread commercial use of the Internet Nasdaq shows only modest
increases. Between 1983-1993 it doubled from 350 to 700 points. We refer to this period as the
grassroot.
- Rise of the Internet – even though the dotcom boom cannot be determined precisely, we choose
1995 as a year when [Link] was launched.
-Crash – The burble burst in March and April 2000 when the Nasdaq index crashed.
- Synergy – by Winter 2003 there were sign of e-business revival as reflected in the rise of Nasdaq
index during the second half of 2003.
-Maturity – From 2012 we can see the emergence of maturity. Digital tools are more used broadly by
e-business and consumers.
The benefit of e-business adoption
- worldwide connection
- organization communication process
- core business in term of product and service
- environment
- value creation through differentiation or low cost
- availability