Electronic%20Commerce

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Electronic Commerce

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Agenda

• What is Electronic commerce ?
• Who involve in Electronic commerce ?
• Potential processes on Electronic commerce
• Paper discussion

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What is Electronic commerce ?

• All aspects of business and market processes that
  can be done through communications network
• Currently, the main infrastructure of electronic
  commerce is INTERNET esp. World Wide Web
  technology

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Who involves in electronic commerce ?
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Business and Customer

• Provide company, product and service information
• Provide on-line sales/reservation
• Distribute products
• Provide after-sales service
• Conduct market research
• Test new products

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Business and Financial institution

• Verify and authorize customer payment
• Transfer money between businesss accounts and
  others e.g. customers, suppliers, infrastructure
  providers

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Business and Government

• Authenticate customer records
• File taxes
• View monthly bill on electricity, water, phone,
  etc.
• Update company information at government agencies
  e.g. ministry of commerce
• Collect economic, social and political news and
  statistics

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Business and Business partner

• Conduct on-line transactions
• Negotiate on business transactions
• Allow business partners e.g. supply chain to view
  company private information
• Create on-line affiliate network

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E-COMM a mainstream marketplace in the future ?

• Number of Internet users as of Aug. 1998 World
  total 147 million
• Africa 800,000
• Asia Pacific 22 million
• Thailand (Jan98) 131,000 (0.2)
• Europe 33.25 million
• Middle East 0.75 million
• Canada USA 87 million
• South America 4.5 million
• Source NUA Internet surveys

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Estimated sales generated by WWW 1993-1998
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E-Commerce on WEB

• Market value
• 1996 2.6 billion
• 2002 220 billion
• Percentage of US companies engaged in E-Commerce
• 1997 40
• 1998 63

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10 Predictions for 1998

• 1) Information overload will become a central
  issue for the Internet in 1998, as basic search
  engines begin to lose their value.
• 2) E-commerce will flourish in America and will
  show strong growth in Europe, with
  business-to-business transactions leading the
  way.
• 3) The Web will stay simple in 1998 lots of
  content, driven by databases, with small
  graphics, no gee whiz, and thus fast downloads.

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10 Predictions for 1998 (Cont.)

• 4) By the end of 1998, the PC will have well and
  truly become a mass market product, with quality
  PCs selling for well under USD1,000.
• 5) Microsoft will find that there are limits to
  how large and powerful it is allowed to get
• 6) There will be at least 150 million Internet
  users worldwide by the end of 1998.
• 7) The Internet will force many
  middlemen/distributors to transform their
  business models or face decline/liquidation.

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10 Predictions for 1998 (Cont.)

• 8) Small pockets of high-bandwidth will exist but
  for the average consumer bandwidth will remain
  scarce.
• 9) Driven by child abuse, hate abuse, spam abuse
  and taxation issues, Governments will pay a lot
  more attention to the Internet in 1998, and a
  wide range of legislation will either be prepared
  or enacted.
• 10) 1999 will be the year when the Internet
  becomes truly mass market.

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Paper Discussion

• Yannis, Bakos, The Emerging Role of Electronic
  Marketplaces on the Internet, Communications of
  the ACM, August 1998, p. 35- 42
• Frederick J. Riggins, A Framework for identifying
  web-based electronic commerce opportunities
• Albert A. Angehrn, Jens F. Meyers, Developing
  Mature Internet Strategies Insights from the
  Banking Sector, Information Systems Management,
  Summer 1997, p. 37-43

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The Emerging role of electronic marketplaces on
the Internet

• In short, what is the focus of this paper?
• Functions of a market
• Matching buyers and sellers
• Determination of product offerings
• Search
• Price discovery
• Facilitation of transactions
• Institutional infrastructure

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How the Internet affects markets

• Product Offerings
• Increased Personalization/Customization
• Customer tracking technology
• Information-rich products
• Aggregation of product components
• The Case of Information Goods
• Search Lower buyers search cost
• Price discovery New types of price discovery

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How the Internet affects markets (Cont.)

• Facilitation
• Logistics
• Physical --gt Digital distribution
• Expert delivery providers
• Payment
• Lower transaction cost
• Certificate authorities

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Internet marketplace and Competition

• Impact of Lower Search Cost
• Promote price competition
• Increasing differentiation and Lowering cost of
  product information

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A Framework for Identifying Web-Based Electronic
Commerce Opportunities

• In short, what is the focus of this paper?
• What is EC Value Grid?
• EC Value Grid can be used to
• Identify EC Opportunity
• Measure the impact of Web-based applications
• Determine factors that lead to success/failure
• Analyze web strategic sophistication of company
  web site

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Five Dimensions of Commerce

• Time
• Distance
• Relationships
• Interaction
• Products/Services

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Electronic Commerce Value Grid
Efficiency
Effectiveness
Strategic
Time
Distance
Relationships
Interaction
Product
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Framework to classify Internet strategies

• ICDT model
• Virtual Information Space (VIS)
• Virtual Communication Space (VCS)
• Virtual Distribution Space (VDS)
• Virtual Transaction Space (VTS)

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Framework to classify Internet strategies

• Level of Sophistication Multimedia-rich,
  Interactive, Freedom to browse
• Level of Customization Personalized,
  Individualized Product/Service

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Commercial banks listed in SET

• Bank of Ayudhaya (BAY) www.bay.co.th
• Bangkok Bank (BBL) www.bbl.co.th
• Bangkok Metro. Bank (BMB) www.bmb.co.th
• Bank of Asia www.boa.co.th
• First Bangkok City Bank (FBCB) www.fbcb.co.th
• IFCT -
• Krung Thai Bank (KTB) www.ktb.co.th
• Laem Thong Bank (LTB) www.laemthong-bank.co.th
• Nakornthon Bank (NTB) www.ntb.co.th

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Commercial banks listed in SET (Cont.)

• Siam Commercial Bank (SCB) www.scb.co.th
• Siam City Bank (SCIB) www.scib.co.th
• Thai Danu Bank (TDB) www.tdbmc.loxinfo.co.th
• Thai Farmers Bank (TFB) www.tfb.co.th
• Thai Military Bank (TMB) -
• Union Bank of Bangkok (UB) -
• 11 out of 15 banks (73) have web sites
• exclude Bank of Asia

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VIS strategies
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VIS strategies Local commercial banks
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VCS strategies
Credit Lyonnais
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VCS strategies Local commercial banks
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VDS strategies
PointCast
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Deutsche Bank Bank of America
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VDS strategies Local commercial banks
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VTS strategies
High
IBM
SFNB
Sophistication
CDnow
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ABN Amro Bank
Low
Low
High
Customization
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VTS strategies Local commercial banks