Realizing Maximum Benefits from Software Technology
E-COMMERCE AND E-BUSINESS:
E- commerce is using the
Internet as the primary medium for the sale and purchase of goods and
services, while E-business is using the Internet as the primary medium to
ECOMMERCE MARKET SPACES:
Where one business
enterprise sells to another, this is called Business to Business also known
Sale by a business
enterprise to a person or consumer, this is known as Business to Customer
Business to Employee known
as B2E, involves sale by business enterprise to an employee.
B2G/G2B i.e. Business to
Government/ Government to Business involves sale by business enterprise to
government. This specialized form of B2B e.g. formality in RFT/RFP/RFQ
processes; government includes supra-national (EU, OECD) as well as national
or regional governments.
Consumer to consumer i.e.
C2C, this involves sales between individuals, this can also be said to be a
specialized form of B2C (classified advertisements auctions, e.g. eBay
What are the E-commerce processes?
There is the search, where
one surf for goods and services, prices, availability, t&c. The
ordering i.e. online ordering, purchase orders, the payment, which is the
invoicing and payment authorisation and finally the fulfillment, this
is the delivery of goods or execution of service.
E-commerce Drivers, what are they?
The advent of “New Economy” i.e. free and pervasive
flow of information, rapid pace of change, increase in business complexity
and thresholds of uncertainty is a notable e commerce driver.
There also is this trend towards a knowledge – based
service economy, blurring market segment and industry boundaries, reduction
of the space/space continuum.
The cannibalization of
products services and channels, reduction in transaction costs (elimination
of the middle man), which are increasingly one – to one based.
New electronic channels such
as internets/intranets/extranets giving rise to new electronic value chains.
E-commerce also brought about the innovation in software technology and
technology standardization (Web services, XML, SOAP, NET, J2EE), as well as
the trend in globalisation has created a global market place.
Some of the notable key trends taken from
The worldwide e-commerce
spending grew up to73% between 2000 and 2001, $615billion in 2001 and the
forecast to pass the $1 trillion mark in 2002;this spending is expected to
stay strong, with a compound annual growth rate (CAGR) of 67% from 2000 to
It is noted that this growth
will come from both the B2C (business to consumer) and B2B (business to
business) markets and by the end of the year, 10% of the world’s population
will access the internet at least once per month and by 2006 more than 1
billion people will use the internet at least once per month and e-commerce
spending will pass $6 trillion.
Business to Business (B2B)
will continue to account for the largest share of ecommerce spending,
accounting for 83% today and growing to 88% by the end of 2006,Business to
Consumer (B2C) will continue to increase at a healthy 48% compound annual
growth rate (CAGR), just not quite as fast as B2B.
THE SELL- SIDE PLATFORM DIAGRAM
THE ISSUES CONTENDING
There is no secure
management of multiple catalogs and price lists for both business and
individual customer, the requirements for one- one marketing
(personalization) cannot be met.
There is faster time to
market but shorter product cycles with changing consumer
demand, and there is the
issue of building brand awareness.
There is also the issue of
security, reliabity i.e. the continuous service ability as well as
flexibility to grow to meet user demand and business complexity, i.e.
There is no easy maintenance
and management of technology i.e. the issue of content maintenance by
Software technology- value proposition
The enhanced merchandising power involves content
personalization, which consists of the profiling of content based on
individual preferences, tailored to suit individual requirements.
The improvement of security; this has to do with
authentication, encryption, confidentiality and non-repudiation; Technical
definition for non repudiation is “an authentication that with high
assurance can be asserted to be genuine, and that cannot subsequently be
The reduction in transaction costs is the integrating
front end ordering systems and back end fulfillment systems, reduced labour
costs, re-keying, human errors, etc.
The ability to scale and grow with the business,
increasing orders and customer satisfaction, which result from, increased
reliabity, availability and security.
Enhanced business analytics, i.e. usage analysis,
management information, customer segmentation, corporate strategic branding,
retail space and ebusiness infrastructure
The Microsoft Solution for Internet Business (MSI)
Microsoft content management server: this serves
up pages based on profile, manage the distribution of content to several web
farms simultaneously, ensuring that content is accurate and up to date. Also
enables business user to create, manage, and publish their own content
directly on the web site by using a browser-based interface.
Microsoft commerce server: this provides user
personalization and stores user profiles, catalogs services and reporting,
as well as customer segmentation, target cross-selling and up selling.
Microsoft SQL server enterprise edition and Microsoft window 2000
advanced server: this is for load balancing
and clustering support in window 2000 advanced server and SQL server 2000
enterprise edition, increase fault tolerance, providing the reliability to
maximize uptime and the scalability to ensure maximum site throughput.