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Electronic Business

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Electronic Business Course: Information Technology Applications in Business, Grade 11, Open (BTA3O) Unit: Electronic Business Topic: The Concept and Operations of ... – PowerPoint PPT presentation

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Title: Electronic Business


1
Electronic Business
  • Course Information Technology Applications in
    Business, Grade 11, Open (BTA3O)
  • Unit Electronic Business
  • Topic The Concept and Operations of
    Electronic Business
  •  

2
Agenda
  • Defining e-business 10 min
  • e-business networks 5 min
  • Functions of e-business 5 min
  • Security and Regulations 5 min
  • e-business tips 10 min
  • Statistics 5 min
  • Present State of e-business 5 min
  • Future of e-business 5 min
  • In-class activity - shopping online 25 min

3
What is e-business?
  • Technically
  • e-business is commercial activity conducted
    over networks linking electronic devices.
  • Basically
  • e-business is a cheap way of connecting
    computers in order to accomplish business
    tasks.

4
Examples of e-business
  • Purchasing a book on the Internet.
  • Purchasing an airline ticket on the Internet.
  • Calling a toll free number to order a video using
    the sellers interactive telephone computer
    system.
  • Faxing an advertisement for solicitation.
  • Withdrawing funds from a linked bank machine.
  • Purchasing an item through a computer enabled
    kiosk.
  • Paying for gas with a credit card at the pump.

5
What kind of networks are used for e-business?
  • Technically
  • e-business first emerged in the 1960s on closed
    networks as large organizations developed
    electronic data interchange and banks implemented
    electronic fund transfers.
  • The internet itself was first a closed network
    established by the U.S. military for security
    communications.
  • Today it has evolved into an open network
    accessed cheaply by people around the world.

6
What kind of networks are used for e-business?
  • Basically
  • Small businesses can now climb on board the
    Internet, which amounts to a free electronic
    highway.
  • Once connected, you can buy, sell, and connect to
    people who matter to you quickly and cheaply.

7
Functions of e-business
  • 1. Communicate - e-mail
  • 2. Promote
  • 3. Buy and Sell
  • 4. Economy reduce cost of paper and postage
  • 5. Research product and company information
  • 6. Effectiveness fast and cheap
  • 7. Mobility work out of office and compete
    globally

8
Is e-business secure?
  • Encryption software can scramble personal
    information.
  • Most credit card fraud occurs in traditional
    environments where receipts are stolen.
  • Bill C-6 will guarantee privacy by establishing
    principles governing the collection, use and
    disclosure of personal information.
  • However, no business transaction is perfectly
    secure from potential fraud.

9
What regulations apply to e-business?
  • All existing laws that apply to traditional
    commerce apply equally in an electronic
    environment.
  • -business incorporation
  • -business name registration
  • -taxation
  • -consumer protection
  • -deceptive advertising
  • -product safety
  • -product standards

10
How to shop on the Net
  • Know the merchant youre dealing with.
  • Look for detailed product/service information.
  • Read contract terms and conditions - print them.
  • Ensure the merchant has a secure transaction
    system.
  • Check for quality assurances and guarantees.
  • Check for refund and complaint policies.
  • Be cautious against mass market e-mail.

11
Avoid !
  • Any offer that sounds to good to be true.
  • Any site that asks for personal information prior
    to disclosing the offer.
  • Promises a valuable prize in return for a cheap
    purchase.
  • Any offers that pressure you to send money to
    take advantage of a special deal.
  • Any loan offer that requires you to send money to
    secure the loan.
  • Investment schemes.

12
The Forgotten Costs
  • Shipping costs
  • U.S. exchange rate
  • Duty
  • Provincial Taxes
  • Federal Taxes
  • Usually higher prices

13
e-business Global Sales
  • 1999 195B Cdn

2004 3.9T Cdn
14
Statistics
  • Canadians accessing the Internet
  • 2003 64 2002 62 2001 60
  • 1999 49
  • 1998 37
  • 1997 31 1996 23

15
More Statistics
  • Canadian households making a purchase via the
    Internet
  • 1999 5.5
  • 2000 9.6
  • 2001 12.7
  • 2002 15.7
  • 2003 18.6

16
Even More Statistics
  • Canadian Internet Sales by Industry
  • Manufacturing 900m
  • Retail 610m
  • Information/Cultural 553m
  • Accommodation/Food 430m
  • Scientific/Technical 406m
  • Finance/Insurance 320m
  • Transport Warehousing 164m
  • Wholesale 156m
  • Real Estate 115m
  • Utilities 16m
  • Mining/Oil/Gas 15m
  • Health Care 10m

17
Retailers who have a web site with
  • A product or service catalogue 61
  • A customer on-line ordering system 32
  • A credit-card payment system 27
  • Personalization / Membership 22

18
What are consumers buying?
  • Books 70
  • Videos and CDs 63
  • Toys 48
  • Software 31
  • Entertainment 29
  • Apparel 27
  • Gift Certificates 21

19
The e-tailing Retreat
  • Gone! holtrenfrew.com, lasenza.com, birks.com,
    suzyshier.com, pets.com, toysmart.com, garden.com
    and babygear.com
  • Stand Alone Pure Plays e-tailers facing
    difficulty.
  • Goal for stand alones? Survive, or look
    attractive to partners or acquirers in brick and
    mortar businesses.

20
Problems facing e-tailers
  • Technical glitches
  • Initial euphoria over
  • Prices tend to be more expensive
  • Shipping costs
  • Shipping delays
  • Too expensive to maintain site
  • Some products dont fit well

21
Future of e-business
  • Strong for products and services that can be
    purchased over the Net.
  • eg. software, banking, airline tickets
  • Strong for catalogue retailers.
  • For most retailers, the Internet is a information
    and marketing tool.
  • People will always want to touch things before
    they buy.

22
Thats all folks!
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