CHAPTER 8: ELECTRONIC & MOBILE COMMERCE
.Electronic commerce and mobile commerce are evolving, providing new ways of
conducting business that present both opportunities for improvement and potential
problems.
E-commerce is the conducting of business activities electronically over networks. Business-to-
business (B2B) e-commerce allows manufacturers to buy at a low cost worldwide, and it offers
enterprises the chance to sell to a global market. B2B e-commerce is currently the largest type of
e-commerce. Business-to-consumer (B2C) e-commerce enables organizations to sell directly to
consumers, eliminating intermediaries. In many cases, this squeezes costs and inefficiencies out of
the supply chain and can lead to higher profits and lower prices for consumers.
Consumerto-consumer (C2C) e-commerce involves consumers selling directly to other
consumers. Online auctions are the chief method by which C2C e-commerce is currently
conducted. e-Government involves the use of information and communications technology to
simplify the sharing of information, speed formerly paper-based processes, and improve the
relationship between citizens and government.
A successful e-commerce system must address the many stages consumers experience in the sales
life cycle. At the heart of any e-commerce system is the ability of the user to search for and
identify items for sale; select those items; negotiate prices, terms of payment, and delivery date;
send an order to the vendor to purchase the items; pay for the product or service; obtain product
delivery; and receive aftersales support. Looking at things from the perspective of the provider of
goods and/or services, an effective e-commerce system must be able to support the activities
associated with supply chain management and customer relationship management.
A firm must overcome three key challenges to convert its business processes from the traditional
form to e-commerce processes: 1) it must define an effective e-commerce model and strategy, 2) it
must deal effectively with consumer privacy concerns, and 3) it must successfully overcome
consumers’ lack of trust. Mobile commerce is the use of wireless devices such as PDAs, cell
phones, and smartphones to facilitate the sale of goods or services—anytime, anywhere. The
market for m-commerce in North America is expected to mature much later than in Western
Europe and Japan. Numerous retailers have established special Web sites for users of mobile
devices.
