Electronic business

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Electronic business, commonly referred to as "eBusiness" or "e-business", may be defined as the application of information and communication technologies (ICT) in support of all the activities of business. Commerce constitutes the exchange of products and services between businesses, groups and individuals and can be seen as one of the essential activities of any business.

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References

  1. ^ Sectoral e-Business Watch project homepage
  2. ^ European Commission, Directorate General Enterprise and Industry, Policy Area ICT for Competitiveness & Innovation
  3. ^ The European e-Business Report 2006/07 edition
  4. ^ Nepelski, Daniel und Sushmita Swaminathan (2007): OSS Adaption: Who is Leading and Why? in: DIW Weekly Report, No. 1/2007, Volume 3, pp 2-3 (Scientific article about open source software adoption based on data from the e-Business Watch survey 2006.)
  5. ^ The European e-Business Report 2005 edition, p 21
  6. ^ The European e-Business Report 2008 edition
  7. ^ The European e-Business Report 2008 edition
  8. ^ The European e-Business Report 2008 edition
  9. ^ The European e-Business Report 2005 edition, p 13
  10. ^ The European e-Business Report 2008 edition, p 9
  11. ^ The European e-Business Report 2008 edition, p 9
  12. ^ The Sectoral e-Business Watch ICT and e-Business Impact Studies – 2009

Very Large Business Applications

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A Very Large Business Application (VLBA) is a Business Application, which can be implemented through different types of Business Application Systems as well as through System Landscapes. They support one or more processes of business application fields like accounting, human resources, logistic, distribution or marketing, in which at least one of those processes is a business process. According to that, a VLBA is directly successfully effective and has a strategic relevance through the support of possibly inter-company business processes.

An organization might not be able to fulfill its core businesses efficiently without the help of a VLBA. It is a strategic dependency of the constituted organization, which is given by an application of a VLBA. That is because changing or turning the system away is associated with big financial, organizational and personnel-related costs. Furthermore, VLBAs do not have any spatial, organizational, cultural or technical limits.

VLBAs are similar to a Business Information System in the manner that they can support several Business Application Fields and in this case, they are based on several types of Business Application Systems.

VLBAs are found in different fields within the different organizations regardless of their size. Systems of Enterprise-Resource-Planning (ERP), Supply-Chain-Management (SCM) and Customer-Relationship-Management (CRM) are examples of a VLBA. Within a Supply-Chain, small and middle organizations can participate in a VLBA.

Furthermore, VLBA indicates a field of research. The present-day heterogeneous and grown System Landscapes - like those usually discovered in business practice - suffer from the symptom of Spaghetti-Integration. Therefore, it seems to be practical to raise principles of the Software-Engineering to the level of the System Landscapes and to establish such a Design Theory in the sense of a System-Landscape-Engineering. However, some problems emerge through operating such landscapes, which are to be repaired through research and development. Those arise for example from the necessity of the automation, missing of a theoretical consolidation and from strategic decisions, which break off the technical limits of a VLBA so that they make the execution ability under constant requirements impossible. Target-Models originate from the solution of consisting problems. Equally, the technological limit takes on a wider meaning in a way that the following generations of the VLBAs move over into the focus. The dynamic character of the development of VLBAs is to be identified therein.

References

  • Grabski, B.; Guenther, S.; Herden, S.; Krueger, L.; Rautenstrauch, C. and Zwanziger, A.: "Very Large Business Applications". In: Informatik Spektrum. volume 30, issue 4, August 2007, pp. 259-263.
  • Grabski, B. & Krueger, L.: "System Landscape Methodology: Forschungsbedarf fuer VLBAs". In: Bichler, M.; Hess, T.; Krcmar, H.; Lechner, U.; Matthes, F.; Picot, A.; Speitkamp, B.; Wolf, P. (Eds.): Multikonferenz Wirtschaftsinformatik 2008. GITO, Berlin, ISBN 978-3-940019-34-9, pp. 1877-1888.
  • Herden, S. and Zwanziger, A. (2008): "Assessment of VLBA Architectures: System Landscape Engineering in Practice: A case study to rollout a global e-recruiting platform with SAP and OpenCms at the Bayer AG". In: Proceedings of 3rd International Conference on Information and Communication Technologies (ICTTA Conference 2008) IEEE, Damascus, Syria, ISBN 978-1-4244-1752-0.

Electronic commerce

Electronic commerce, commonly known as e-commerce or eCommerce, or e-business consists of the buying and selling of products or services over electronic systems such as the Internet and other computer networks. The amount of trade conducted electronically has grown extraordinarily with widespread Internet usage. The use of commerce is conducted in this way, spurring and drawing on innovations in electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange (EDI), inventory management systems, and automated data collection systems. Modern electronic commerce typically uses the World Wide Web at least at some point in the transaction's lifecycle, although it can encompass a wider range of technologies such as e-mail as well.

A large percentage of electronic commerce is conducted entirely electronically for virtual items such as access to premium content on a website, but most electronic commerce involves the transportation of physical items in some way. Online retailers are sometimes known as e-tailers and online retail is sometimes known as e-tail. Almost all big retailers have electronic commerce presence on the World Wide Web.

Electronic commerce that is conducted between businesses is referred to as business-to-business or B2B. B2B can be open to all interested parties (e.g. commodity exchange) or limited to specific, pre-qualified participants (private electronic market). Electronic commerce that is conducted between businesses and consumers, on the other hand, is referred to as business-to-consumer or B2C. This is the type of electronic commerce conducted by companies such as Amazon.com. Online shopping is a form of electronic commerce where the buyer is directly online to the seller's computer usually via the internet. There is no intermediary service. The sale and purchase transaction is completed electronically and interactively in real-time such as Amazon.com for new books. If an intermediary is present, then the sale and purchase transaction is called electronic commerce such as eBay.com.

Electronic commerce is generally considered to be the sales aspect of e-business. It also consists of the exchange of data to facilitate the financing and payment aspects of the business transactions.

History

Early development

The meaning of electronic commerce has changed over the last 30 years. Originally, electronic commerce meant the facilitation of commercial transactions electronically, using technology such as Electronic Data Interchange (EDI) and Electronic Funds Transfer (EFT). These were both introduced in the late 1970s, allowing businesses to send commercial documents like purchase orders or invoices electronically. The growth and acceptance of credit cards, automated teller machines (ATM) and telephone banking in the 1980s were also forms of electronic commerce. Another form of e-commerce was the airline reservation system typified by Sabre in the USA and Travicom in the UK.

From the 1990s onwards, electronic commerce would additionally include enterprise resource planning systems (ERP), data mining and data warehousing.

An early example of many-to-many electronic commerce in physical goods was the Boston Computer Exchange, a marketplace for used computers launched in 1982. An early online information marketplace, including online consulting, was the American Information Exchange, another pre Internet[clarification needed] online system introduced in 1991.

In 1990, Tim Berners-Lee invented the WorldWideWeb web browser and transformed an academic telecommunication network into a worldwide everyman everyday communication system called internet/www. Commercial enterprise on the Internet was strictly prohibited until 1991.[1] Although the Internet became popular worldwide around 1994 when the first internet online shopping started, it took about five years to introduce security protocols and DSL allowing continual connection to the Internet. By the end of 2000, many European and American business companies offered their services through the World Wide Web. Since then people began to associate a word "ecommerce" with the ability of purchasing various goods through the Internet using secure protocols and electronic payment services.

Timeline

  • 1979: Michael Aldrich invented online shopping
  • 1981: Thomson Holidays, UK is first B2B online shopping
  • 1982: Minitel was introduced nationwide in France by France Telecom and used for online ordering.
  • 1984: Gateshead SIS/Tesco is first B2C online shopping and Mrs Snowball, 72, is the first online home shopper
  • 1985: Nissan UK sells cars and finance with credit checking to customers online from dealers' lots.
  • 1987: Swreg begins to provide software and shareware authors means to sell their products online through an electronic Merchant account.
  • 1990: Tim Berners-Lee writes the first web browser, WorldWideWeb, using a NeXT computer.
  • 1992: J.H. Snider and Terra Ziporyn publish Future Shop: How New Technologies Will Change the Way We Shop and What We Buy. St. Martin's Press. ISBN 0-312-06359-8.
  • 1994: Netscape releases the Navigator browser in October under the code name Mozilla. Pizza Hut offers online ordering on its Web page. The first online bank opens. Attempts to offer flower delivery and magazine subscriptions online. Adult materials also become commercially available, as do cars and bikes. Netscape 1.0 is introduced in late 1994 SSL encryption that made transactions secure.
  • 1995: Jeff Bezos launches Amazon.com and the first commercial-free 24 hour, internet-only radio stations, Radio HK and NetRadio start broadcasting. Dell and Cisco begin to aggressively use Internet for commercial transactions. eBay is founded by computer programmer Pierre Omidyar as AuctionWeb.
  • 1998: Electronic postal stamps can be purchased and downloaded for printing from the Web.
  • 1999: Business.com sold for US $7.5 million to eCompanies, which was purchased in 1997 for US $149,000. The peer-to-peer filesharing software Napster launches. ATG Stores launches to sell decorative items for the home online.
  • 2000: The dot-com bust.
  • 2002: eBay acquires PayPal for $1.5 billion.[2] Niche retail companies CSN Stores and NetShops are founded with the concept of selling products through several targeted domains, rather than a central portal.
  • 2003: Amazon.com posts first yearly profit.
  • 2007: Business.com acquired by R.H. Donnelley for $345 million.[3]
  • 2009: Zappos.com acquired by Amazon.com for $928 million.[4] Retail Convergence, operator of private sale website RueLaLa.com, acquired by GSI Commerce for $180 million, plus up to $170 million in earn-out payments based on performance through 2012.[5]
  • 2010: US eCommerce and Online Retail sales projected to reach $173 billion, an increase of 7 percent over 2009.[6]

Business applications

Some common applications related to electronic commerce are the following:

  • Email
  • Enterprise content management
  • Instant messaging
  • Newsgroups
  • Online shopping and order tracking
  • Online banking
  • Online office suites
  • Domestic and international payment systems
  • Shopping cart software
  • Teleconferencing
  • Electronic tickets

Government regulations

In the United States, some electronic commerce activities are regulated by the Federal Trade Commission (FTC). These activities include the use of commercial e-mails, online advertising and consumer privacy. The CAN-SPAM Act of 2003 establishes national standards for direct marketing over e-mail. The Federal Trade Commission Act regulates all forms of advertising, including online advertising, and states that advertising must be truthful and non-deceptive.[7] Using its authority under Section 5 of the FTC Act, which prohibits unfair or deceptive practices, the FTC has brought a number of cases to enforce the promises in corporate privacy statements, including promises about the security of consumers’ personal information.[8] As result, any corporate privacy policy related to e-commerce activity may be subject to enforcement by the FTC.

The Ryan Haight Online Pharmacy Consumer Protection Act of 2008, which came into law in 2008, amends the Controlled Substances Act to address online pharmacies.[9]

Forms

Contemporary electronic commerce involves everything from ordering "digital" content for immediate online consumption, to ordering conventional goods and services, to "meta" services to facilitate other types of electronic commerce.

On the consumer level, electronic commerce is mostly conducted on the World Wide Web. An individual can go online to purchase anything from books or groceries, to expensive items like real estate. Another example would be online banking, i.e. online bill payments, buying stocks, transferring funds from one account to another, and initiating wire payment to another country. All of these activities can be done with a few strokes of the keyboard.

On the institutional level, big corporations and financial institutions use the internet to exchange financial data to facilitate domestic and international business. Data integrity and security are very hot and pressing issues for electronic commerce today.

Impact on markets and retailers

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