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E-business and E-commerce systems - Coggle Diagram
E-business and E-commerce systems
Organisations will expand the connectivity of their functional and enterprise systems through the use of internet technologies
The internet is an attractive and cost efficient way for many organisations to develop strategic collaboration, operations, marketing and alliances needed to solve and succeed in today's fast changing global markets
The internet and its technologies are being used to build interconnected enterprises and global networks like intranets and extranets that form information super highways to support etnerprise collaboration, electronic commerce and internal business applicaitons
Not only do such technologies enable data and information sharing throughout the supply chain but they also facilitate e-commerce and e-business
Intranet -
A private company wide information network that uses the communications protocols and standards of the internet but is accessible only to people within the company
Extranet -
A controlled private network that allows restricted access to partners, vendors, suppliers or customers to specified information contained in an organisations information system
E-business encompasses all business conducted online where e-commerce is a subset of e-business and is restricted to buying and selling online
E-business
Using internet technologies as the platform for internal business operations, electronic commerce and enterprise collaboration
E-commerce
The use of the internet for commercial transactions
Sell side e-commerce concerns transactions between a supplier organisation and its customers
Buy side e-commerce refers to transactions between a purchasing organisation and its suppliers and partners, that it those invovled with the procurement process
E-commerce involves the electronic integration and management of all procurement activities including purchase request, authorisation, ordering, devilry and payment between a purchaser and a supllier
E-commere reduces transaction costs, improving efficiency, enables direct interaction with customers, reducing the need for intermediaries and speeds the flow of information between organisations and entities within the supply chain making the supply chain more responsive and can reduce costs associated with data entry and product search
Porter (2001) argues that internet technology provides buyers with easier access to information about products and suppliers, strengthening buyer bargaining power
The internet lessens the need for an established sales force or access to existing channels, reducing barriers to entry
Marketplaces automate corporate procurement by linking many buyers and suppliers electronically
The benefits to buyers include low transaction costs, access to wider market, easier to access price and product information
The benefits to suppliers include lower seller costs, lower transaction costs, access to wider markets and the avoidance of powerful channels
By enabling new approaches to meet needs and perform functions, it creates new sustitutes
Because it is an open system, organisations have more difficulty maintaining proprietary offerings, thus intensifying the rivalry among competitors
On the internet, buyers can often switch suppliers with just a few mouse clicks and new web technologies are steadily reducing switching costs even furhter
The use of the internet also expands the geographic market, bringing many more organisations into competition with one another