Electronic Commerce
043002
Chapter 1: An Introduction to Electronic
Commerce
Dr. Mingli Song
Dr. Mingli Song - School of Computer Science, Communication University of China, Beijing; email
[email protected]
About This Course
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Recommended Textbook:
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Reference book:
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Gary P. Schneider.电子商务(英文版 • 第7版)
.北京:机械工业出版社,2012.1
加里 P. 施耐德著;成栋,韩婷婷译.电子商务(
原书 第6版).北京:机械工业出版社,2006.5.
Final score:
20%attendance+20%assignments+60%final
exam
Web site
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http://icourse.cuc.edu.cn/eCommerce/
or
http://icourse.cuc.edu.cn/------点击电子商务
讲课范围:第1、3、4、5、6、11章
Learning Objectives

What electronic commerce is and how it has
evolved into a second wave of growth

Why business models (商业模式) have given way
to revenue models (赢利模式) and the analysis of
business processes (业务流程) as key elements of
electronic commerce initiatives (开始)

How economic forces have created a business
environment that is fostering (养育) a rebirth of
electronic commerce
Learning Objectives Cont’d
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How businesses use value chains (价值链) to
identify electronic commerce opportunities
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How businesses use SWOT analysis to analyze
and evaluate business opportunities
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Why electronic commerce is international by its
very nature and what challenges arise in doing
global electronic commerce
Key Terms
activity
业务活动
business model
商业模式
business process 业务流程
business unit
业务单位
business-to-business (B2B) 企业间
business-to-consumer (B2C)
企业与消费者间
business-to-government (B2G) 企业与政府间
consumer-to-consumer (C2C)
消费者间
commodity item
商品
company
公司
culture
文化
e-procurement
电子采购
Key Terms Cont’d
electronic business 电子商务
electronic data interchange (EDI) 电子数据交换
electronic fund transfer (EFT) 电子资金转帐
firm 企业
flat rate access
固定费率访问
hierarchical business organization
等级制企业组织
industry
行业
industry value chain
行业价值链
law of diminishing return 边际效益递减
localization 本地化
Key Terms Cont’d
machine translation 机器翻译
market
市场
merchandising
零售推销
network economic structure
network effect
网络效应
primary activity
基本活动
procurement
采购
revenue model
盈利模式
shipping profile
运输规格
strategic alliance
战略联盟
网络经济结构
Key Terms Cont’d
strategic business unit
战略业务单位
strategic partner
战略伙伴
strategic partnership
战略伙伴关系
supply management
供应管理
supporting activity
辅助活动
SWOT analysis
SWOT分析
telecommuting
远程办公
telework
远程工作
trading partner
贸易伙伴
transaction 交易
Key Terms Cont’d
transaction cost
交易成本
value-added network
增值网
value chain 价值链
value system
价值系统
vertical integration 垂直一体化
virtual community 虚拟社区
virtual company
虚拟企业
Electronic Commerce: The
Second Wave
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Electronic commerce (e-commerce)
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Shopping on the Web
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Businesses trading with (进行交易) other
businesses and internal processes (内部流程)
Electronic business (e-business)
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Term used interchangeably with e-commerce
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The transformation of key business processes
through the use of Internet technologies (IBM)
Electronic Commerce: The
Second Wave Cont’d
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Definition of e-commerce (used in this course)
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All business activities (商务活动) conducted using
electronic data transmission technologies (电子数据
传输技术)
Categories of Electronic
Commerce
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Five general e-commerce categories
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Business-to-consumer
Business-to-business (e-procurement)
Business processes
Consumer-to-consumer
Business-to-government
Supply management (供应管理) or procurement
(采购)
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Departments devoted to negotiating purchase
transactions with suppliers (供应商)
Categories of Electronic
Commerce Cont’d
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Activity (业务活动)
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Transaction (交易)
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A task performed by a worker in the course of doing
his/her job
An exchange of value, such as a purchase, a sale, or
the conversion of raw materials into a finished product
Business processes (业务流程)
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The group of logical, related, and sequential activities
and transactions in which businesses engage
The Development and Growth
of Electronic Commerce
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Electronic funds transfers (EFTs, 电子资金转帐)
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Used by banking industry for more than 30 yrs
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Also called wire transfers (电汇)
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Electronic transmissions of account exchange information
over private communications networks
Electronic data interchange (EDI, 电子数据交换)
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Businesses have been engaging in EDI for many yrs
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Transmitting computer-readable data in a standard format
to another business
The Development and Growth
of Electronic Commerce Cont’d
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Trading partners (贸易伙伴)
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Businesses that engage in EDI with each other
Value-added network (VAN, 增值网)
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Independent firm
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Offers connection and transaction-forwarding
services to buyers and sellers engaged in EDI
The Second Wave (第二次浪潮) of
Electronic Commerce
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Defining characteristics of first wave
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It was primarily a U.S. phenomenon
Web pages were in English
Internet technologies were slow and inexpensive (e.g.
dial-up lines)
Bar codes (条形码) and scanners (扫描仪) used to
track parts (零部件), assemblies (组装), inventories (库
存), and production (生产状态)
Email, tool for unstructured communication
On-line advertising main revenue source (收入来源)
The Second Wave of
Electronic Commerce Cont’d
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As second wave begins
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International scope where sellers do business in many
countries and languages
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Faster broadband connections (宽带连接) at home (x10
faster, although more expensive)—key element
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Radio frequency ID (无线射频标签) devices and smart cards
(智能卡)
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Fingerprint (指纹) readers and retina (视网膜) scanners
(biometric technologies) used for tracking
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Email, integral part of marketing
Business Models, Revenue
Models, and Business
Processes
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Business model (商业模式)
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A set of processes that combine to yield a
profit
Revenue model (盈利模式)
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Used to
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Identify customers
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Market to those customers
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Generate sales to those customers
Focus on Specific Business
Processes
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In addition to the revenue model, companies think of the
rest of their operations as specific business processes
including
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Purchasing raw materials or goods for resale
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Converting materials and labor into finished goods
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Managing transportation and logistics (物流)
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And many other activities
This course will help you learn how to identify the
specific business processes that firms can
accomplish more effectively by using e-commerce
technologies
Role of Merchandising (零售推销)
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Merchandising
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Combination of store design (店面设计), layout (布
局), and product display (产品陈列) knowledge
Skills of merchandising and personal selling
can be difficult to practice (实行) remotely
Product/Process Suitability to
Electronic Commerce
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Commodity item (商品)
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Hard to distinguish from the same products or
services provided by other sellers
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Features have become standardized and well known
Shipping profile (运输规格)
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Collection of attributes that affect how easily a product
can be packaged (包装) and delivered (交付)
High value-to-weight ratio (价值/重量比)
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Can make overall shipping cost a small fraction (小部
分) of selling price
How about jewelry?
Business Processes Suited to
Certain Type of Commerce
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E-Commerce
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Sale/purchase of books & CDs, travel services,
investments and insurance products
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Online delivery of software
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Online shipment tracking (运货跟踪)
Business Processes Suited to
Certain Type of Commerce Cont’d
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E-Commerce & Traditional
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Sale/purchase of automobiles, residential
real estate (房地产) (e.g. do research online then
buy from a dealer (经销商) or real estate agent),
and high value jewelry and antiques (personal
inspection required; prefer to touch, smell or
examine closely)
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Online banking (在线银行)
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Roommate-matching (室友匹配) service
Business Processes Suited to
Certain Type of Commerce Cont’d
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Traditional
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Sale/purchase of impulse items (一时冲动购买的商品)
for immediate use
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Small denomination (小额货币) purchases and
sales (since there is not yet a standard for
transferring small amounts of money on the Web)
Advantages of Electronic
Commerce
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Increases sales (销售), decreases cost (费用)
 Allows small businesses to have global customer
base (客户群)
 Reduced cost through electronic sales enquires,
price quotes (报价) and order taking (接受订单)
Provides sales opportunities for sellers (businesses
can identify new suppliers and partners) and
purchasing opportunities for buyers
Increases speed and accuracy for exchanged
information, thus reducing cost
Advantages of Electronic
Commerce Cont’d
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Business can be transacted(交易) 24hrs a day
The level of detail of purchase information is
selected by user
Digital products can be delivered instantly
Tax refunds (退税), public retirement (退休金) and
welfare support (社会福利金) costs less when
distributed over the Internet
Allows products and services to be available in
remote areas, e.g. remote learning
Disadvantages of Electronic
Commerce
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Inability to sell some products (e.g. high cost jewelry
and perishable (易腐烂的) foods)
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Many products require a large number of people to
purchase to be viable (可行的)
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High capital investment (资本投资)
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Difficulty in integrating (集成) current databases and
transaction processing systems into e-commerce
solutions
Disadvantages of Electronic
Commerce
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Cultural and legal obstacles (障碍)
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Transmission of credit card details
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Some consumers resistant to change
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Laws are unclear
Shipping profile: Products with a low value-to-weight
ratio that can not be efficiently packed and shipped
are unsuitable (use traditional commerce)
Economic Forces (力量) and
Electronic Commerce
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Economics
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Study of how people allocate scarce (稀少的)
resources
Two conditions of a market
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Potential sellers of a good come into contact with
potential buyers
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A medium of exchange is available
Hierarchical Business
Organizations (Firms)
F irm s p a rtic ip a te in m a rk e ts to p u rc h a s e ra w
m a te ria ls a n d s e ll fin is h p ro d u c ts .
首席运营官
C h ie f O p e ratin g O fficer
E xecu tive1
E xecu tive2
E xecu tive3
主管
M a n ag e rA
M a n ag e rB
M a n ag e rE
M a n ag e rF
M a n ag e rJ
M a n ag e rK
经理
W o rke rA
W o rke rB
W o rke rE
W o rke rF
W o rke rJ
W o rke rK
工人
Transaction Costs (交易成本)
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The total costs that a buyer and seller incur as they
gather information and negotiate a purchase/sale
transaction
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Cost of information search and acquisition
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Investment of seller in equipment or in the hiring of
skilled employees to supply product or service to
buyer
Transaction Costs Example
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Transaction costs incurred by a sweater
dealer when purchasing from independent
sweater knitters (编织工):
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Cost of identifying independent knitters
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Cost of site visit (现场访问) to negotiate purchase
price, arrange delivery and inspection of sweaters
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Costs incurred by knitters:
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Knitting tools and yarn (毛线) purchase
Transaction Costs Example
Cont’d
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When transaction costs were high,
businesspeople would form organizations to
replace market-negotiated transactions.
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Vertical integration (垂直一体化)
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Existing firms replace one or more of its supplier
markets with its own hierarchical structure for
creating the supplied product
The Role of Electronic
Commerce
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Businesses and individuals can use electronic
commerce to reduce transaction costs by
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Improving flow of information (信息流)
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Increasing coordination of actions (行为的协调)
Businesses can use e-commerce to reduce
transaction costs by
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supporting telecommuting (远程工作) rather than
physical commuting (通勤) to allow global
employment opportunities
Network Economic Structures
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Network economic structure (网络经济结构)
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Companies coordinate their strategies (战略),
resources, and skill sets by forming long-term (长
期的), stable (稳定的) relationship based on shared
purposes
Strategic alliances (strategic partnerships 战略
联盟或战略伙伴关系)
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Relationships created within the network
economic structure
Network Economic Structures
Cont’d
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Virtual companies (虚拟企业)
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Strategic partners
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Strategic alliances that occur between or among
companies operating on the Internet
Come together as a team for a specific project or activity
E-commerce can make network organizations
relying extensively on information sharing, much
easier to construct and maintain
Network Effects
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Law of diminishing returns (边际效益递减)
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Most activities yield less value as the amount of
consumption increases
Network effect (网络效应)
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As more people or organizations participate in a
network
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Value of network to each participant increases
Using e-commerce to create network effects
Value Chains (价值链) in
Electronic Commerce
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Strategic business unit (or business unit 战略业
务单位或业务单位)
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Firm (公司)
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One particular combination of product, distribution
channel (分销渠道), and customer type
Multiple business units owned by a common set
of shareholders (股东)
Industry (行业)
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Multiple firms that sell similar products to similar
customers
Strategic Business Unit Value
Chains
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Value chain (价值链) --- by Michael Porter
in1985
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Primary activities (基本活动)
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A way of organizing the activities that each
strategic business unit undertakes
Design, produce, promote, market, deliver, and
support the products or services it sells
Supporting activities (辅助活动)
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Finance and administration, human resource
management, and technology development
Industry Value Chains (行业价值链)
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Value system (价值系统)
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Larger stream of activities (业务活动流) into which a
particular business unit’s value chain is
embedded
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Also referred to as industry value chain
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Managers can identify new opportunities for cost
reduction, product improvement, or channel
reconfiguration (渠道重组) by knowing how other
business units in the industry value chain conduct
activities
SWOT Analysis: Evaluating
Business Unit Opportunities
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SWOT analysis
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Analyst first looks into the business unit to identify
its strengths (优势) and weaknesses (劣势)
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Analyst then reviews operating environment and
identifies opportunities (机遇) and threats (威胁)
International Nature of
Electronic Commerce
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Trust Issues (信任问题)
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Companies with established reputations (知名的公
司)
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Often create trust by ensuring that customers know
who they are
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Can rely on their established brand names to create
trust on the Web
Customers’ inherent lack of trust in “strangers” on
the Web
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Logical and to be expected
Language Issues
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To do business effectively in other cultures
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Researchers have found that
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Must adapt to culture (think globally, act locally)
Customers are more likely to buy products and
services from Web sites in their own language
Localization (本地化)
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Translation that considers multiple elements of
local environment
Culture Issues
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Important element of business trust
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Anticipate how the other party to a transaction will
act in specific circumstances
Culture
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Combination of language (语言) and customs (习惯)
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Varies across national boundaries
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Varies across regions within nations
Infrastructure Issues
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Internet infrastructure includes
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Computers and software connected to Internet
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Communications networks over which
message packets travel
Organization for Economic Cooperation
and Development’s (OECD 经合组织) issued
Statements on Information and
Communications Policy

Deal with telecommunications infrastructure
development issues
Infrastructure Issues Cont’d
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Flat-rate access (固定费率访问) system
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Consumer or business pays one monthly fee for
unlimited telephone line usage

Contributed to rapid rise of U.S. electronic
commerce
Targets for technological solutions
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Paperwork (单证) and often convoluted processes
(流转) that accompany international transactions
Summary
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Commerce
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Electronic commerce
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Application of new technologies to conduct
business more effectively
First wave of electronic commerce
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Negotiated exchange of goods or services
Ended in 2000
Second wave of electronic commerce
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New approaches to integrating Internet
technologies into business processes
Summary
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Using electronic commerce, businesses
have
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Global nature of electronic commerce
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Created new products and services
Improved promotion, marketing, and delivery of
existing offerings
Leads to many opportunities and few
challenges
To conduct electronic commerce across
international borders

You must understand the trust, cultural,
language and legal issues
Definitions
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A commodity item is a product or service that is
hard to distinguish from the same products or
services provided by other sellers (e.g. gasoline,
office suppliers, soap and computers).
A transaction is an exchange of value, such as a
purchase or sale, or the conversion of raw materials
into finished products (a transaction has one or
more associated activity).
A business process is the set of logically related
and sequential activities and transactions in which
businesses engage.
Definitions Cont’d


Merchandising is a combination of store
design, layout and product display knowledge
A shipping profile is the collection of
attributes that affect how easily that product
can be packaged and delivered (e.g. airline
tickets have a high value-to-weight ratio)
Definitions Cont’d

The definition of a market satisfies two
conditions:


Potential seller of a good (product) comes into
contact with buyers
A medium of exchange is available (e.g. currency
or barter (to exchange goods or services directly
without the use of money) 物物交换)
Definitions Cont’d

Transaction costs are the total costs that a
buyer and seller incur as they gather
information and negotiate a purchase/sale
transaction. This includes:



Brokerage fees (回扣) and sales commissions (佣
金)
Cost of information search and acquisition
Seller’s investment in equipment or hiring of
skilled employees
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