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1、Chapter 1 The overview of E-C,Acknowledgement: this part of content is adopted from the Book Electronic Commerce: a managerial perspective by Efrain Turban et al,1.1 Definition of Electronic Commerce,1.3.1 The definition given by scholars and experts 1. The definition given by foreign experts and sc
2、holars Kalakota and Whinston (1997) define EC from these perspectives: From a communications perspective, EC is the delivery of information, products/services, or payments over telephone lines, computer networks, or any other electronic means. From a business process perspective, EC is the applicati
3、on of technology toward the automation of business transactions and work flow. From a service perspective, EC is a tool that addresses the desire of firms, consumers, and management to cut service costs while improving the quality of goods and increasing the speed of service delivery. From an online
4、 perspective, EC provides the capability of buying and selling products and information on the Internet and other online services.,Lou Gerstner, IBMs CEO E-business is all about cycle time, speed, globalization, enhanced productivity, reaching new customers and sharing knowledge across institutions
5、for competitive advantage . Some define E-C as “The use of electronic transmission mediums (telecommunications) to engage in the exchange, including buying and selling, of products and services requiring transportation, either physically or digitally, from location to location. ”,2 . Domestic schola
6、rs definitions Pro. Li qi defines EC from the perspective of productive force. there should be two definitions. The broader definition is that electronic commerce is the use of electronic tools in commercial activities .These electronic tools range from telegram, telephone of early times to NII, GII
7、 and INTERNET of modern times. The commercial activities here refer to all lawful activities of demand and consumption except for typical production process. The narrower definition is that electronic commerce is the whole process in which people ,who master information technology and business regul
8、ations and rules, systematically use electronic tools and efficiently and low-costly engage in all kinds of activities centering on the exchange of commodities and services in a highly technically and economically advanced society. The first definition can be simplified as commercial electronic appl
9、ication, the second can be shortened as electronic commercial system.,3. pure versus partial EC,4. Differences between E-C and E-B The term electronic commerce is restricting and does not fully encompass the true nature of the many types of information exchanges occurring via telecommunication devic
10、es. The term electronic business also includes the exchange of information not directly related lo the actual buying and selling of goods. Thus. The term electronic business is broader and may eventually replace the term electronic commerce.,5. what makes electronic commerce different from the EDI s
11、ystems EDI is a subset of electronic commerce. A primary difference between the two is that electronic commerce encompasses a broader commerce environment than EDI. Traditional EDI systems allow pre-established trading partners to electronically exchange business data. The vast majority of tradition
12、al EDI systems arc centered around the purchasing function. These EDI systems are generally costly to implement. The high entry cost precluded many small and mid-sized businesses from engaging in EDI. Electronic commerce allows a marketplace to exist where buyers and sellers can “meet“ and transact
13、with one another. Chapter four more clearly traces the evolution of traditional EDI to electronic commerce.,1.2 E-C Framework,EC is more than just having a Web site. There are a dozens of applications of EC such as home banking , shopping in online stores and malls , buying stocks , finding a job, c
14、onducting an auction , and collaborating electronically on research and development projects. To execute these application , it is necessary to have supporting information and organization infrastructure and systems. The EC applications are supported by infrastructures, and its implementation is dep
15、endent on four major areas: people , policy, technical standards and protocols, and other organizations.( see figure on the next page),Source : Turban et al.1999.,1.3 CLASSIFICATION OF EC APPLICATIONS,Applications of EC are divided into 3 categories 1. Buying and selling goods & services. These are
16、usually referred to as electronic markets. 2. Facilitating inter and intra-organization flow of information, communication and collaboration. These are sometimes referred to as inter-organizational systems. 3. Providing customer service.,1.4 ELECTRONIC MARKETS,A market is a network of interactions and relationships where information, products, services, and payments are exchanged. When the marketplace is electronic, the business center is not a physical building but rather a network-based
