AND E COMMERCE

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AND E COMMERCE
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(ELECTRONIC) E- COMMERCE THE USE OF COMPUTER
NETWORKS, PRIMARILY THE INTERNET, TO BUY AND
SELL PRODUCTS, SERVICES, AND INFORMATION
E Commerce isnt a stand alone application,
separate and distinct from other business
processes, it a whole new way of doing business
Information week
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(ELECTRONIC) E- COMMERCE
Definitions B2B Business to Business
(Businesses, non profit Org, Governments) B2C
Business to Consumer (Buyers are individual
consumers) C2C Consumer to Consumer
(Classified Ads, Auction sites) C2B Consumer
to Business (Individuals sell goods or services
to businesses)
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(ELECTRONIC) E- COMMERCE

• B2B 1.3 Trillion by 2003/80 of e-commerce
  Market
• Types of E Commerce information
• Product Drawings/Specifications, prices
• Production capacities, product plans
• Transportation leadtimes, costs, carriers
• Inventory tracking, levels, costs, locations
• Suppliers catalogues, quality history,
  leadtimes, terms and conditions
• Supply Chain Alliances,key contacts, partners,
  role and responsibilities, schedules
• Supply chain processes and performance, process
  descriptions, quality, cost and delivery metrics
• Competitor, benchmarking, market share
• Sales and Marketing, Point of Sale (POS), data
  entry, promotions, pricing, discounts
• Customer, Sales History and forecast

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(ELECTRONIC) E- COMMERCE
Security Of 1600 IT professionals from over 50
countries, over 73 reported some breach to
Corporate security In the past 12
months Information week
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(ELECTRONIC) E- COMMERCE

• Advantages of E Commerce
• Improved, lower cost information
• Lower entry costs
• Increased information sharing
• Available 24 hours a day all around the world
• Increase market potential
• Decreased needs to depend on paper transactions,
  storing, filing
• Reduces the costs of Communication
• Richer communication capability due to
  videoclips, voice
• Fast delivery of Digitised product such as
  drawings, documents
• Increased flexibility (Home working, Shopping)
• PRODUCT DESIGN- TIME TO MARKET

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(ELECTRONIC) E- COMMERCE

• Limitations of E Commerce
• Lack of system security, reliability and
  standards
• Lack of privacy (Big brother)
• Insufficient bandwidth (Slow transactions)
• Integrating E Commerce software with current
  software is difficult
• Lack of trust Unknowns, integrity, electronic
  money

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(ELECTRONIC) E- COMMERCE

• E-Procurement
• Purchases and Order releases communicated over
  the internet or to approved
• On line vendor catalogues
• On line catalogues
• Provided by vendors
• Developed by buyers GM - 87BN per year/30k
  suppliers. Buys 5mn tons of
• Steel per year and sells extras on website
• Provided by intermediaries
• www.Buyandsell.net
• www.amazon.com
• www.procurenet.com (30 seller sites and 100,000
  electronic parts)

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(ELECTRONIC) E- COMMERCE
RFQs and bid packaging GE has reduced its
process by 3 weeks by using E-technology On
line Auctions www.ebay.com www.freemarkets.com
On average 16 can be saved by using auction
sites Meakem
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(ELECTRONIC) E- COMMERCE

• Inventory Tracking
• Fedex
• Ford hires UPS to track vehicles as they move
  from Factories to dealers
• up to 4mn cars per year mass customisation
• Inventory reduction
• Warehousing Pass through facility
• JIT

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(ELECTRONIC) E- COMMERCE

• Scheduling and Logistics improvements
• Coordinated Pick up and Delivery E2E view
  Fedex/Cisco alliance
• Logistics Cost reduction Motor carrier industry
  capacity 50
• Costs taxpayer 31bn per year.
• Websites available for load sharing and balancing
• E-COMMERCE Decision making,
  communication, information
• 
  Costs

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(ELECTRONIC) E- COMMERCE
Intranet Internet EDI ASN Cisco saved
125mn by using web to communicate with
customers 85mn by
distributing software on the web
50mn by having documentation on line
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