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MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE
Definitions eBusiness
The use of computer based information systems for the management and coordination of business processes.
eCommerce
eCommerce is the process of buying and selling goods and services electronically using computer based information systems and networks.
MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE
The Role & Development of EC
MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE
The Role & Development of ECHistory 1970's EFT EDI Dial up access 1990's - www Growth of networking
MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE
Virtual Process
Virtual Player
Virtual Product
Pure EC
Traditional Commerce
Physical Agent
Digital Agent
Digital Product
Physical Product Physical Process
Digital Process
Electronic Commerce Areas
Pure versus partial EC
MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE
Perspectives communications business process service online
MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE
Dimensions
Technology People
Task
Structure
MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE
Classification by Transaction B2B B2C C2C C2B Nonbusiness EC Intrabusiness EC
MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE
Classification by process electronic markets interorganisational systems customer service
MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE
Interorganisational systems Includes customers and\or suppliers Moving from proprietary communications links to
the Internet Types
EDI Extranets Electronics Funds Transfer Electronic forms Integrated messaging shared databases supply chain management
MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE
Interdisciplinary Nature Marketing Computer Science Consumer behaviour and psychology Finance Economics Management Information Systems Accounting and Auditing Management Business law and ethics Other
MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE
Home User Logs
On
Home Page
Catalogue Purchase Order &
Transaction Processing
Order Information
Legacy Systems
Payment Options
User Profile
Legacy Integration Bank
MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE
Future of EC eCommerce revenues in the Asian‑Pacific
region will rise from US$76.8 billion at year‑end 2001 to an exponential $338.5 billion by the end of 2004 (eMarketer)
Over $40 billion per annum in USA in 2002 - 28% growth per annum (US Govt)
MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE
Growth in US eCommerce
MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE
Benefits & Limitations
MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE
Benefits to Organisations Expands marketplace Decreases cost of handling paper Create specialised businesses (niche markets) reduced inventories through “pull” supply chain
management competitive advantage through new systems reduces time between outlay of capital and receipt of
product (reduced cycle time) lowers telecommunications costs improved customer service research
MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE
Benefits to Consumers 24/7 shopping more choices conduct quick comparisons quick delivery (especially digital products) detailed information virtual auctions increases competition (global market) interaction with other customers
MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE
Benefits to society work at home lower prices makes services and goods available to people
in remote areas delivery of public services
MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE
Limitations of EC security authentication lack of trust & user resistance privacy integration with existing applications and
systems incompatible software\hardware (lack of
standards) bandwidth
MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE
Limitations of EC (Cont.) high development costs and low ROI (what is
the value of intangibles) legal issues support services (especially transport) lack of critical mass of buyers & sellers breakdown of human relationships
MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE
Organisation
Technology
Market Society
Information Technology
MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE
Driving forces for ECA New world Order of Business? Highly competitive environment consumers are the focus Business environment can change quickly Business environment can change unpredictably
MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE
Driving forces for EC (Cont.)Market & Economic pressures strong competition global economy regional trade agreements low labour costs in third world countries frequent & significant changes in markets increased power of consumers
MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE
Driving forces for EC (Cont.)Societal & Environmental pressures changing nature of the workforce government deregulation shrinking government subsidies increased importance of ethical and legal
issues increased social responsibility of organisations rapid political changes
MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE
Driving forces for EC (Cont.)Technological pressures Increased innovation information overload rapid decline in technology costs vs
performance ratio
MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE
Economic and Global Issues in EC
MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE
The Marketspace Match Buyers and Sellers
Determination of Product Offerings Search of Buyers for Sellers and Vice a Versa Price Discovery Intermediaries
MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE
The Marketspace (Cont.) Facilitate Transactions
Logistics Settlement Trust
Provide Institutional Infrastructure Legal Regulatory
MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE
IT Increases Market Efficiencies by Expediting Or Improving Market Functions Lowering Buyers’ Search Cost Enabling Speedy Comparisons Lowering Prices Reducing geographical constraints Lowering barriers to entry (especially small
firms) Increasing information to parties Allowing greater product differentiation
MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE
Firm Size (Employees)
Tra
nsa
ctio
n C
ost
Reducing transactions costs
MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE
Firm Size (Employees)
Ag
ency
Co
sts
Reducing Agency Costs