Topic 1

Summary

1. Definition of EC and description of its various categories. EC involves conducting transactions electronically. Its major categories are pure versus partial EC, Internet versus non-Internet, and electronic markets versus company-based systems.
2. The content and framework of EC. The applications of EC, and there are many, are based on infrastructures and are supported by people; public policy and technical standards; marketing and advertising; support services, such as logis- tics, security, and payment services; and business partners—all tied together by management.
3. The major types of EC transactions. The major types of EC transactions are B2B, B2C, C2C, m-commerce, intrabusi- ness commerce, B2E, c-commerce, e-government, social commerce, and e-learning.
4. The drivers of EC. EC is a major product of the digital and technological revolutions, which enables companies to simultaneously increase both growth and profits. These revolutions enable digitization of products, services, and infor- mation. A major driver of EC is the changing business environment. The rapid change is due to technological break- throughs, globalization, societal changes, deregulation, and more. The changing business environment forces organizations to respond. Many traditional responses may not be sufficient because of the magnitude of the pressures and the pace of the changes involved. Therefore, organizations must frequently innovate and reengineer their operations. EC, due to its characteristics, is a necessary partner for this process. Finally, EC is driven due to its ability to provide a much needed strategic advantage so organizations can compete better.
5. Benefits of EC to organizations, consumers, and society. EC offers numerous benefits to all participants. Because these benefits are substantial, it looks as though EC is here to stay and cannot be ignored. In addition, organizations can go into remote and global markets for both selling and buying at better prices. Organizations can speed time to market to gain a competitive advantage. They can improve the internal and external supply chain as well as increase collabora- tion. Finally, they can better comply with government regulations.
6. e-Commerce 2.0 and social media. This refers to the use of social computing in business, often using Web 2.0 tools (such as blogs, wikis) with its social media framework, as well as the emergence of enterprise social networking and commercial activities in virtual worlds. Social and business networks attract huge numbers of visitors.
7. Describe social commerce and social software. Companies are beginning to exploit the opportunity of conducting business transactions in social networks and by using social software such as blogs. Major areas are advertising, shop- ping, customer service, recruiting, and collaboration.
8. The elements of the digital world. The major elements of the digital world are the digital economy, digital enterprises, and digital society. They are diversified and expanding rapidly. The digital world is accompanied by social businesses and social customers.
9. The major EC business models. The major EC business models include online direct marketing, electronic tendering systems, name-your-own-price, affiliate marketing, viral marketing, group purchasing, online auctions, mass customiza- tion (make-to-order), electronic exchanges, supply chain improvers, finding the best price, value-chain integration, value-chain providers, information brokers, bartering, deep discounting, and membership.
10. Limitations of e-commerce. The major limitations of EC are the resistance to new technology, fear of fraud, integration with other IT systems may be difficult, costly order fulfillment, privacy issues, unclear regulatory issues, lack of trust in computers and unknown business partners, difficulties to justify EC initiatives, and lack of employees who are skilled in EC.