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ElectronicCommerceNinthEditionChapter1IntroductiontoElectronicCommerceElectronicCommerce,NinthEdition2ElectronicCommerce,NinthEdition2LearningObjectivesInthischapter,youwilllearnabout:•Whatelectroniccommerceisandhowithasevolvedintoasecondwaveofgrowth•Whycompaniesconcentrateonrevenuemodelsandtheanalysisofbusinessprocessesinsteadofbusinessmodelswhentheyundertakeelectroniccommerceinitiatives•HoweconomicforceshavecreatedabusinessenvironmentthatisfosteringthesecondwaveofelectroniccommerceElectronicCommerce,NinthEdition3ElectronicCommerce,NinthEdition3LearningObjectives(cont’d.)•HowbusinessesusevaluechainsandSWOTanalysistoidentifyelectroniccommerceopportunities•TheinternationalnatureofelectroniccommerceandthechallengesthatariseinengaginginelectroniccommerceonaglobalscaleElectronicCommerce,NinthEdition4ElectronicCommerce,NinthEdition4ElectronicCommerce:TheSecondWave•Electroniccommercehistory–Mid-1990sto2000:rapidgrowth–“Dot-comboom”followedby“dot-combust”–2000to2003:overlygloomynewsreports–2003:signsofnewlife•Salesandprofitgrowthreturn•Electroniccommercegrowingatarapidpace•Electroniccommercebecomespartofgeneraleconomy–2008generalrecession•Electroniccommercehurtlessthanmostofeconomy–SecondwaveunderwayElectronicCommerce,NinthEdition5ElectronicCommerce,NinthEdition5ElectronicCommerceandElectronicBusiness•Electroniccommerce–ShoppingontheWeb–Businessestradingwithotherbusinesses–Internalcompanyprocesses–Broaderterm:electronicbusiness(e-business)•Electroniccommerceincludes:–AllbusinessactivitiesusingInternettechnologies•InternetandWorldWideWeb(Web)•Wirelesstransmissionsonmobiletelephonenetworks•Dot-com(puredot-com)–BusinessesoperatingonlyonlineElectronicCommerce,NinthEdition6ElectronicCommerce,NinthEdition6CategoriesofElectronicCommerce•Business-to-consumer(B2C)–ConsumershoppingontheWeb•Business-to-business(B2B):e-procurement电子采购–TransactionsconductedbetweenWebbusinesses–Supplymanagement(procurement)departments•Negotiatepurchasetransactionswithsuppliers•Businessprocesses–UsingInternettechnologiestosupportorganizationsellingandpurchasingactivities•Consumer-to-consumer(C2C)•Business-to-government(B2G)ElectronicCommerce,NinthEdition7FIGURE1-1ElementsofelectroniccommerceElectronicCommerce,NinthEdition8•Elementsofelectroniccommerce–Relativesizesofelements•Roughapproximation–Dollarvolumeandnumberoftransactions•B2BmuchgreaterthanB2C–Numberoftransactions•SupportingbusinessprocessesgreaterthanB2CandB2BcombinedCategoriesofElectronicCommerce(cont’d.)ElectronicCommerce,NinthEdition9ElectronicCommerce,NinthEdition9CategoriesofElectronicCommerce(cont’d.)•Activity–Taskperformedbyaworkerinthecourseofdoinghisorherjob–Mayormaynotberelatedtoatransaction•Transaction:exchangeofvalue–Purchase,sale,orconversionofrawmaterialsintofinishedproduct–Involvesatleastoneactivity•Businessprocesses–Groupoflogical,related,sequentialactivitiesandtransactionsElectronicCommerce,NinthEdition10ElectronicCommerce,NinthEdition10CategoriesofElectronicCommerce(cont’d.)•Webhelpingpeopleworkmoreeffectively–Telecommuting(telework)•Consumer-to-consumer(C2C)–Individualsbuyingandsellingamongthemselves•Webauctionsite–C2CsalesincludedinB2Ccategory•Selleractsasabusiness(fortransactionpurposes)•Business-to-government(B2G)–Businesstransactionswithgovernmentagencies•Payingtaxes,filingrequiredreports–B2GtransactionsincludedinB2BdiscussionsElectronicCommerce,NinthEdition11FIGURE1-2ElectroniccommercecategoriesElectronicCommerce,NinthEdition12ElectronicCommerce,NinthEdition12TheDevelopmentandGrowthofElectronicCommerce•Peopleengagingincommerce:–Adoptavailabletoolsandtechnologies•Internet–Changedwaypeoplebuy,sell,hire,organizebusinessactivities•Morerapidlythananyothertechnology•ElectronicFundsTransfers(EFTs)–Wiretransfers(电子转账)–Electronictransmissionsofaccountexchangeinformation•UsesprivatecommunicationsnetworksElectronicCommerce,NinthEdition13ElectronicCommerce,NinthEdition13TheDevelopmentandGrowthofElectronicCommerce(cont’d.)•ElectronicDataInterchange(EDI)–Business-to-businesstransmission•Computer-readabledatainstandardformat–Standardtransmittingformatsbenefits•Reduceserrors•Avoidsprintingandmailingcosts•Eliminatesneedtoreenterdata•Tradingpartners–BusinessesengaginginEDIwitheachother–EDIpioneers(GeneralElectric,Sears,Wal-Mart)•ImprovedpurchasingprocessesandsupplierrelationshipsElectronicCommerce,NinthEdition14ElectronicCommerce,NinthEdition14TheDevelopmentandGrowthofElectronicCommerce(cont’d.)•EDIpioneersproblem–Highimplementationcost•Expensivecomputerhardwareandsoftware•Establishingdirectnetworkconnectionstotradingpartnersorsubscribingtovalue-addednetwork–Value-addednetwork(VAN)•IndependentfirmofferingEDIconnectionandtransaction-forwardingservices•Ensuretransmitteddatasecurity•Chargefixedmonthlyfeepluspertransactioncharge–GraduallymovedEDItraffictotheInternet•ReducedEDIcostsElectronicCommerce,NinthEdition15ElectronicCommerce,NinthEdition15TheDot-ComBoom,Bust,andRebirth•1997to2000irrationalexuberance(非理性繁荣)–12,000Internet-relatedbusinessesstarted–$100billionofinvestors’money–5,00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