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Thuyduong Nguyen
IT 3700-02 Spring 2003
April 28, 2003
Introduction
Traditional vs.
Electronic
Traditional commerce:
Traditional commerce
include: buyers and
sellers using old fashion
method to do business
Electronic Commerce:
Advantages of E-
Commerce
Disad. of Electronic
Commerce:
Benefits of ECommerce
Small and large firms alike have the opportunity to set-up and
conduct business on the internet.
Barriers to ECommerce
1. Access and Connectivity
2. Authentication and Standardization
3. Cyber Laws
4. Technology
2.
The issues turn on the provision of sufficient band width for the
surging use that is also moving to multimedia transmissions, and on
the problems fostered by the decentralized nature of the Internet.
Risks in ECommerce
Business practices
Information protection
Transaction Integrity
Web Trust
TRUSTe
E-commerce
Statistics
Business to Commerce
(B2C) Commerce Statistic
U.S. Business-to-Consumer (B2C) E-Commerce Forecast
(All in USD Millions)
1999
2000
2001
2002
2003
2004
2005
$28,550 $44,120 $61,820 $91,878 $125,265 $168,815 $227,690
Source:GartnerG2 (December 2001)
B2C
B2C Commerce
$28,550
$44,120
$227,690
$61,820
1999
2000
2001
$91,878
2002
2003
2004
2005
$168,815
$125,265
E-commerce
Statistics
Costs of Traditional vs. Online Purchasing Processes-USD
Source: American Express/Ernst & Young, June 2002
Process Step
Traditional Process Purchase Card + eCommerce
Buying
59.00
3.40
Paying
12.00
0.34
Reconciling integration
19.00
0.70
Avg transaction cost
90.00
4.44
90.00
80.00
70.00
60.00
50.00
40.00
30.00
20.00
10.00
0.00
90.00
59.00
19.00
12.00
3.40
Buying
Traditional Process
Purchase Card + eCommerce
0.34
0.70
Reconciling
integration
Process Step
4.44
E-commerce
Statistics
$3.50
$1.60
$1.50
$68.60
$81.80
Norht America
Asia Pacific
Western Europe
Latin America
Rest of World
E-commerce
Statistics
Median
$300
$244
$800
Commerce Enabled
Web Sites
Transaction Size @ Commerce Enabled WebSites
600000%
Percentage
500000%
400000%
300000%
Sample
B2C
200000%
B2B
100000%
0%
$1-50
$101500
$100010,000
Size
Average
Preferences
(http://www.e-