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E-commerce

            
            
             In this course, we use the term e-commerce in its broadest sense, i. anything using computers and the Internet to conduct their activities. .
             It's more than the WWW.
             Banks use Electronic Funds Transfer (EFT); known as Bank Automatic Clearing System (BACS) in the UK .
             Businesses use Electronic Data Interchange (EDI) .
             Secure, but expensive, private Value Added Networks (VANs) connecting Trading Partners (TPs) as illustrated in Figure 1. .
             .
             Figure 1 : Value Added Network .
             Monthly rental plus per-transaction charge. .
             Moving onto the Internet/WWW changes the business model => Intranets => Extranets => Virtual Private Networks (VPNs). .
             Traditional Commerce.
             According to Schneider & Perry [Schneider 2000], this started in pre-history when our ancestors decided to specialise their everyday activities and so Self-sufficiency => Bartering => Currency => Commerce. Figure 2 considers a commercial transaction from two points of view. .
             Buyer's Standpoint Seller's Standpoint .
             Needs XXX .
             Search for suitable products .
             Choose vendor .
             Negotiate purchase (complex) .
             Arrange for delivery .
             Make payment .
             After-sales requirements .
             Identify markets .
             Create products .
             Advertise products .
             Negotiate purchase (complex) .
             Ship goods and invoice customer .
             Receive payment .
             After-sales support .
             .
             Figure 2 : Commercial Transaction .
             Business Processes.
             Each of these elements outlined above can include a number of distinct activities. These activities are referred to as business processes. Figure 3 lists some examples of business processes ranging from those best suited to traditional commerce to those best suited to electronic commerce. .
             Traditional commerce Combination Electronic commerce .
             Small-denomination transactions On-line banking Software .
             Perishable food products Investment and insurance Hardware .
             Fashion clothing Cars Travel services .
             Expensive jewelry Legal services Books and CDs .
             Figure 3 : Business Processes .
             From this table, it is obvious that the items most suited to e-commerce are branded items or products, i.


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