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Chapter 1:
Introduction to Electronic Commerce
Introduction to Electronic Commerce
Electronic Commerce, Seventh Annual Edition
Electronic Commerce, Seventh Annual
Edition
2
•What electronic commerce is and how it is <=
/span>experiencing a second wave of growth with a new focus on profitability
•Why companies now concentrate on revenue models and the analysis of business processes instead of =
business models when they undertake electronic commerce initiatives
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Objectives
•In=
this
chapter, you will learn about:
Electronic Commerce, Seventh Annual
Edition
3
Objectives (continued)
•How econ=
omic
forces have created a business environment that is fosteri=
ng
the second wave of electronic commerce
•How
businesses use value chains and SWOT analysis to identify
electronic commerce opportunities
•The
international nature of electronic commerce and the challenges
that arise in engaging in electronic commerce on a global =
scale
Electronic Commerce, Seventh Annual
Edition
4
Electronic Commerce: The Se=
cond
Wave
•Electron=
ic
commerce (e-commerce)
–Businesses
trading with other businesses and internal processes
<=
/span>
•Electron=
ic
business (e-business)
–Term used
interchangeably with e-commerce
–The
transformation of key business processes through the use of Inter=
net
technologies
Electronic Commerce, Seventh Annual
Edition
5
Categories of Electronic <=
/span>Commerce
•Five gen=
eral
e-commerce categories:
–Business=
-to-consumer
–Business=
-to-business
–Business
processes
–Consumer=
-to-consumer
–Business=
-to-government
•Supply
management or procurement
–Departme=
nts
are devoted to negotiating purchase transactions with supplie=
rs
Electronic Commerce, Seventh Annual
Edition
6
![](3D"slide0036_image002.jpg")
Electronic Commerce, Seventh Annual
Edition
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Categories
of Electronic Commerce (continued)
&#=
8226;Transaction
&=
#8211;An
exchange of value
&#=
8226;Business
processes
–The group of logical, related, and sequential <=
/span>activities
and transactions in which businesses engage
&#=
8226;Telecommuting
or telework
–Employees log in to company computers through <=
/span>the
Internet instead of traveling to the office
Electronic Commerce, Seventh Annual
Edition
8
![](3D"slide0063_image004.jpg")
Electronic Commerce, Seventh Annual
Edition
9
![](3D"slide0105_image006.jpg")
Electronic Commerce, Seventh Annual
Edition
10
The Development and Growth =
of Electronic
Commerce
•Electron=
ic
funds transfers (EFTs)
–Also cal=
led
wire transfers
–Electronic
transmissions of account exchange information over private
communications networks
•Electron=
ic
data interchange (EDI)
–Transmit=
ting
computer-readable data in a standard format to another business=
Electronic Commerce, Seventh Annual
Edition
11
The Development and Growth o=
f =
Electronic
Commerce (continued)
•Trading
partners
–Business=
es
that engage in EDI with each other
•Value-ad=
ded
network (VAN)
–Independ=
ent
firm that offers connection and transaction-forwarding
services to buyers and sellers engaged in EDI
Electronic Commerce, Seventh Annual
Edition
12