Page 76 - DMGT505_MANAGEMENT_INFORMATION_SYSTEM

Unit 4: Electronic Commerce and the Digital Organization

4.8 Summary Notes

 E-commerce is a general concept covering any form of business transaction or information
exchange executed using information and Ccommunication technologies (ICT’s).

 Electronic Commerce is a term popularized by the advent of commercial services of the
Internet.

 E-commerce is a selling and transfer process requiring several institutes. It is systematic
and organized network for the exchange of goods between produces and consumers.
 Any web site or portal that offers products and/or services for sale is a commercial website.

 E-commerce is highly economical. Doing e-business on the Internet is extremely cost
effective.
 E-commerce emphasizes better and quicker customer service. There are some problems
and drawbacks of e-commerce like security, shortage of e-literate people, data protection
and the integrity of the system, etc.

 E-commerce takes place between companies, between companies and their customers, or
between companies and public administration.
 E-commerce includes electronic trading of both goods and electronic material. Today the
largest electronic commerce is Business-to-Business (B2B). The four types of
e-commerce are: Business to Business (B2B), Business to Consumer (B2C), Consumer to
Consumer (C2C), Consumer to Business (C2B).

4.9 Keywords

Business to Business (B2B): B2B indicates to the full spectrum of e-commerce operation that can
occur between two organisations.
Business to Consumer (B2C): It refers to exchange between business and consumer.
Consumer to Business (C2B): Consumers can band together to form and present themselves as a
buyer group to business in a consumer-to-business (C2B) relationship.
Consumer to Consumer (C2C): It refers to exchanges involving transactions between and among
consumers.

E-commerce: It is a general concept covering any form of business transaction or information
exchange executed using information and communication technologies.
EDI: Electronic Data Interchange: The electronic transmission of source documents between the
computers of different organizations.
Electronic Data Processing (EDP): The use of electronic computers to process data automatically.
Electronic Mail: Sending and receiving text messages between networked PCs over
telecommunications networks. E-mail can also include data files, software, and multimedia
messages and documents as attachments.

4.10 Review Questions

1. What is e-commerce? Give a definition of your own and discuss the history of e-commerce.

2. What are the advantages and limitations of e-commerce? Do you think the advantages
outweigh the limitation?

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