Unit 4: e-Commerce
Today's businesses must know how to compete online - it is as simple as that. In this unit you will learn what electronic commerce, or e-commerce, is and what steps a business must take in order to implement it. You will also be introduced to the concept of intellectual property and to the Pew Internet Project, both of which are important as part of your overall understanding of online business. Finally, the unit wraps up with topics related to marketing your business using online tools. Understanding this unit will be key to implementing information systems strategically!
Completing this unit should take you approximately 5 hours.
Upon successful completion of this unit, you will be able to:
- explain the concept of e-commerce;
- describe the technologies used in e-commerce, including hardware, software, and database systems; and
- analyze the competitive advantage of the types of hardware, software, and database systems as they relate to e-commerce.
4.1: e-Commerce Overview
4.1.1: Introduction
Read Chapter 1, for an introduction into e-commerce and how businesses can use the Internet. As you read, take notes on the following questions: What is e-commerce? What is the role of the Internet in providing an organization's e-commerce presence? What are some similarities and some differences between e-commerce and brick and mortar commerce?
This short video gives an overview of why business organizations need to consider e-commerce as part of their business strategy. The previous resource discussed some of the business risks that are reduced when implementing an e-commerce strategy. See page 9-11 of Electronic Commerce for a reminder. This video states that without an online presence, "you might as well be selling out of the back of a covered wagon". Do you agree with this statement? Do you think having an online presence reduces business risks? Why or why not?
- What is the difference between e-commerce and e-business? In the e-business model, what should one consider for each element: customers, products and services, business processes, resources, supply chain, finance, and sustainability?
4.1.2: e-Commerce Technologies
Read Chapter 2 on pages 21–38 to learn about the types of technologies that support e-commerce. Keep in mind that this textbook was written in 2008, so as you read, think about changes since then that have made e-commerce faster, less expensive, more reliable, and more secure.
- There are thousands of businesses offering website development, hundreds of website hosting companies, or you can build and maintain your own presence. Should you develop your own site or use a pre-developed package? How do you maintain your site if you do use a package? Read all of the links under the "E-Commerce Software Solutions" section to learn what to consider in making these decisions to develop your strategy!
4.1.3: Intellectual Property
Be sure you are able to identify the three main forms of intellectual property protections by the time you finish this reading. As businesses use the Internet more and more, it becomes extremely important to understand basic intellectual property protections.
4.2: e-Commerce as a Competitive Advantage
This section discusses how business organizations leverage information Technology throughout the value chain. Take some time to think specifically about which elements of the value chain e-commerce affects. A business organization may use e-commerce for marketing and sales, or it may use e-commerce to order raw materials from other businesses or to provide service support to customers. Write down two or three uses for e-commerce for each element of the value chain.
All competitive advantages require revision and refinement as the business grows and markets change. However, a technology-based competitive advantage, such as e-commerce, may require constant adjustments in order to remain an integral part of a business growth strategy. This video discussing specific strategies that Australian companies can adapt to grow their business in China. The strategies suggested include leveraging social media and establishing partnerships with Chinese business. What are some additional strategies suggested in the video? How could each of these strategies provide a competitive advantage?
Unit 4 Assessment
Take this assessment to see how well you understood this unit.
- This assessment does not count towards your grade. It is just for practice!
- You will see the correct answers when you submit your answers. Use this to help you study for the final exam!
- You can take this assessment as many times as you want, whenever you want.