E-Business, E-commerce Tim Pengampu KWU FPUB TA. 2019-2020
Why students should study e-commerce and e-business?
Indonesian market has grown 60–70 per cent annually since 2014 and will expand from US$8 billion in 2016 to US$60 billion in 2020. This is expected to generate new opportunities for e-commerce sites and their businesses. (E-commerce in Indonesia: A Guide for Australian Business, 2018)
Despite recording significant year-on-year growth of 60-70 per cent since 2014, the Indonesian e-commerce market is still relatively small (US$8 billion) compared to regional pace-setter, China, with sales of US$692 billion. (E-commerce in Indonesia: A Guide for Australian Business, 2018)
Learning Outcomes Students are able to understand and to distinguished the different between E-Business and E-Commerce, and able to design the concept and application of E-commerce in agricultural sector
Achievement Indicator: After studying this chapter, you will be able to: 1. Understand why it is important to study e-commerce. 2. Define e-commerce, understand how e-commerce differs from e-business, identify the primary technological building blocks underlying e-commerce, and recognize major current themes in e-commerce. 3. Describe the unique feature and the types of e-commerce 4. Understand the evolution of e-commerce from its early years to today.
Why it is important to study e-commerce
Why it is important? Technology continues to evolve at exponential rates. Improvements in information technologies and continuing entrepreneurial innovation. Business fortunes are made -and lost- in periods of extraordinary very fast changees.
It is important to study e-commerce in order to be able to perceive and understand the opportunities and risks that lie ahead.
Introduction to e-commerce
What is e-commerce? e-commerce refers to the use of the Internet, the Web, and mobile apps and browsers running on mobile devices to transact business. More formally, e-commerce digitally enabled commercial transactions between and among organizations and individuals
What is e-Business? e-business refers to the digital enabling of transactions and processes within a firm, involving information systems under the control of the firm
e-commerce vs e-business e-commerce e-commerce encompasses the entire world of electronically based organizational activities that support a firm’s market exchanges—including a firm’s entire information system infrastructure (Rayport and Jaworski, 2003). e-business e-business encompasses the entire world of internal and external electronically based activities, including e-commerce (Kalakota and Robinson, 2003).
Technological Building Blocks Underlying E-commerce: The Internet, Web, & Mobile Platform is a worldwide network of computer networks built on common standards. The Internet is an information system that runs on the Internet infrastructure. The World Wide Web (the Web) provides the ability to access the Internet from a variety of mobile devices such as smartphones, tablets, and other ultra-lightweight laptop computers via wireless networks or cell phone service. The Mobile Platform
Major Trends In E-commerce 2016–2017
Unique Features of E-commerce Technology
OBIQUITY Ubiquity available just about everywhere, at all times
Global Reach Global Reach As a result, the potential market size for e-commerce merchants is roughly equal to the size of the world’s online population
Universal Standards Universal Standards standards that are shared by all nations around the world
Information RICHNESS Information RICHNESS refers to the complexity and content of a message
Interactivity Interactivity Refers to e-commerce enable two-way communication between merchant and consumer and among consumers.
Information D ensity Information D ensity the total amount and quality of information available to all market participants, onsumers and merchants alike
Personalization And Customization Customization changing the delivered product or service based on a user’s preferences or prior behavior Personalization the targeting of marketing messages to specific individuals by adjusting the message to a person’s name, interests, and past purchases
Social Techlology Social Techlology e-commerce technologies have evolved to be much more social by allowing users to create and share content with a worldwide community
BUSINESS SIGNIFICANCE OF THE EIGHT UNIQUE FEATURES OF E-COMMERCE TECHNOLOGY
BUSINESS SIGNIFICANCE OF THE EIGHT UNIQUE FEATURES OF E-COMMERCE TECHNOLOGY
TYPES OF E-COMMERCE
TYPES OF E-COMMERCE e-commerce online businesses selling to individual consumers BUSINESS-TO-CONSUMER (B2C) e-commerce online businesses selling to other businesses BUSINESS-TO-BUSINESS (B2B) e-commerce consumers selling to other consumers CONSUMER-TO-CONSUMER (C2C) m-commerce use of mobile devices to enable online transactions MOBILE E-COMMERCE (M-COMMERCE) e-commerce enabled by social networks and online social relationships SOCIAL E-COMMERCE e-commerce that is focused on engaging the consumer based on his or her current geographic location LOCAL E-COMMERCE
THE RELATIVE SIZE OF DIFFERENT TYPES OF E-COMMERCE
Major Types of E-commerce
E-COMMERCE: A BRIEF HISTORY
ASSESSING E-COMMERCE: SUCCESSES, SURPRISES, AND FAILURES
ASSESSING E-COMMERCE: SUCCESSES, SURPRISES, AND FAILURES
UNDERSTANDING E-COMMERCE: ORGANIZING THEMES To truly understand e-commerce, you will need to be familiar with some key concept in Computer Technology Hardware, software, network, internet, web, programing, coding, data mining, data processing, TECHNOLOGY: INFRASTRUCTURE To truly understand e-commerce, you will need to be familiar with some key business concepts, such as the nature of digital markets, digital goods, business models, firm and industry value chains, value webs, industry structure, digital disruption, and consumer behavior in digital markets, as well as basic concepts of financial analysis. BUSINESS: BASIC CONCEPTS You will need to understand the pressures that global e-commerce places on contemporary society in order to conduct a successful e-commerce business or understand the e-commerce phenomenon. The primary societal issues we discuss in this book are individual privacy, intellectual property, and public welfare policy. SOCIETY: TAMING THE JUGGERNAUT
UNDERSTANDING E-COMMERCE: ORGANIZING THEMES To truly understand e-commerce, you will need to be familiar with some key concept in Computer Technology Hardware, software, network, internet, web, programing, coding, data mining, data processing, TECHNOLOGY: INFRASTRUCTURE To truly understand e-commerce, you will need to be familiar with some key business concepts, such as the nature of digital markets, digital goods, business models, firm and industry value chains, value webs, industry structure, digital disruption, and consumer behavior in digital markets, as well as basic concepts of financial analysis. BUSINESS: BASIC CONCEPTS You will need to understand the pressures that global e-commerce places on contemporary society in order to conduct a successful e-commerce business or understand the e-commerce phenomenon. The primary societal issues we discuss in this book are individual privacy, intellectual property, and public welfare policy. SOCIETY: TAMING THE JUGGERNAUT
UNDERSTANDING E-COMMERCE: ORGANIZING THEMES To truly understand e-commerce, you will need to be familiar with some key concept in Computer Technology Hardware, software, network, internet, web, programing, coding, data mining, data processing, TECHNOLOGY: INFRASTRUCTURE To truly understand e-commerce, you will need to be familiar with some key business concepts, such as the nature of digital markets, digital goods, business models, firm and industry value chains, value webs, industry structure, digital disruption, and consumer behavior in digital markets, as well as basic concepts of financial analysis. BUSINESS: BASIC CONCEPTS Understanding the pressures that global e-commerce places on contemporary society is critical to being successful in the e-commerce marketplace. The primary societal issues are intellectual property, individual privacy, and public policy. SOCIETY: TAMING THE JUGGERNAUT