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Evolution of e-commerce

1950s companies began to usecomputers

1960s exchanging transaction

information on punched cards1968 Transportation DataCoordinating Committee(TDCC) was

formed to reduce the paper workburden for shippers and carriers

1979 ANSI chartered a newcommittee to develop uniform EDIstandards

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Evolution of e-commerce

Accredited standards committee X12(ASC X12)

1987 United Nations published first standardsEDI For Administration, Commerce, andTransport (EDIFACT)

1989 National Science Foundation (NSF)permitted two e-mail services MCI Mail andCompuServe

1991 WAIS

1994 Netscape communications corporationformed and conference on World Wide Web

1995 Netscape Navigator

1995 -1500 known public web servers

2003-802.2 million users and 233 million hosts

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Attributes

Exchange of digital information betweentwo parties

Technology enabled

Technology mediated

Includes intra and interorganizationalactivities

Provides an approach to strategic thinkingthat was intuitive, actionable and easy toimplement

Companies focus on listening in a newmanner to reduce the high levels of

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Categories

Business-to-Business(B2B)

Business-to-Consumer(B2C)

Consumer-to-Business(C2B)Consumer-to-Consumer(C2C)

Business-to-Employee(B2E)

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Business-to-Business

Can occur between two organizations

Activities include:

Purchasing and procurement

Supplier managementInventory management

Channel management

Sales ActivitiesPayment management

Service and support

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Business-to-Consumer

Exchanges between businesses andconsumers

Offers consumers the capability tobrowse, select and buy merchandiseonline, from a wider variety of sellersand at better prices

Ex. Books,music,videos and softwarepackages

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Consumer-to Business

Transaction originated by the consumerhas a set of requirement specificationsand specific price for a commodity

Enables the consumer to determine theprice of a product and/or service offeredby a company

It reduces the bargaining time, increasesthe flexibility and creates ease at point ofsale for both the merchant and theconsumer

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Business-to-Employee(B2E)

Services

Offers employees a self-service capabilityin many human resource functions

Ex. Wipro Technologies B2E application

Channel (W)-the employee self-service,collaboration and community frameworkto improve the services to employees andmanagers

It offers employees the ability to accesshuman resources(HR) and corporateinformation from desktop/mobile stations

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ApplicationsElectronic Auctions(www.Auction India. Com)Electronic Banking(ICICI Bank)Electronic Searching(Google.Com)Education and Learning (e-learning)

Marketing(Web pages and Internet advertising)Supply Chain Management(Outsourcing, Virtualcorporation)Electronic Trading(www .etrade .com)Quick Response Retailing (Wal-Mart)JIT Manufacturing (I-Way)Real estateEntertainment

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Advantages24 x 7 OperationGlobal ReachLow cost of acquiring, serving and retainingcustomers

An extended enterprise is easy to buildDisintermediationImproved customer servicePower to provide best of both worldsA technology based customer interfaceThe customer controls the interactionKnowledge of customer behaviorNetwork economicsNo-entry barriers

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Disadvantages

Some business processes may notlend themselves to e-commerce(perishable foods and high

cost items)

Costs and benefits are hard toquantify

Cultural and legal barriers

Low implementation levels indeveloping countries

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Opportunities for industries

Financial services

Stock trading

BankingLegal and professional services

Tour and travel

Health care