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. .
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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.