Overview of Electronic Commerce

Abstract

Starbucks is the world’s largest coffee house chain, with about 20,800 stores in 63 countries (see Loeb 2013). Many people view Starbucks as a traditional store where customers drop in, enter an order, pay cash or by credit card for coffee or other products, consume their choices in the store, and go on about their business. The last thing many people think about is the utilization of computers in this business. The opposite is actually true. Starbucks is turning itself into a digital and social company (Van Grove 2012).

Glossary

Brick-and-mortar (old economy) organizations 

Purely physical organizations (corporations) doing business offline.

Business model

 The manner in which business is done to generate revenue and create value.

Business-to-business (B2B) 

All transactions take place between and among organizations.

Business-to-consumer (B2C) 

Retail transactions of products or services from businesses to individual shoppers.

E-tailing

 Online retailing, usually B2C.

Business-to-business-to-consumer (B2B2C) 

A business (B1) sells a product to another business (B2). B2 then sells or gives away the product to individuals who may be B2’s own customers or employees.

Business-to-employees (B2E) 

The delivery of services, information, or products from organizations to their employees.

Click-and-mortar (click-and-brick) organizations 

Organizations that conduct some e-commerce activities, usually as an additional marketing channel.

Collaborative commerce (c-commerce) 

Refers to online activities and communications done by parties working to attain the same goal.

Consumer-to-business (C2B) 

People use the Internet to sell products or services to individuals and organizations. Alternatively, individuals use C2B to bid on products or services.

Consumer-to-consumer (C2C) 

E-commerce category in which individual consumers sell to or buy from other consumers.

Corporate portal 

A gateway for customers, employees, and partners to reach corporate information and to communicate with the company.

Digital economy 

An economy that is based on online transactions, mostly e-commerce. Also called the Internet economy.

Digital enterprise 

A new business model that uses IT to gain competitive advantage by increasing employee productivity, by improving efficiency and effectiveness of business processes and by better interactivity between vendors and customers.

E-business 

A broader definition of EC, not just the buying and selling of goods and services, but conducting all kinds of business online such as servicing customers, collaborating with business partners, delivering e-learning, and conducting electronic transactions within an organization.

E-government 

A government agency buys or provides goods, services, or information from or to businesses (G2B) or from or to individual citizens (G2C). Governments can deal also with other governments (G2G).

Electronic commerce (EC) 

Using the Internet and intranets to purchase, sell, transport, or trade data, goods, or services.

Electronic market (e-marketplace) 

An online location where buyers and sellers conduct commercial transactions such as selling goods, services, or information.

Ethics

 Standards of right and wrong.

Extranet 

A network that uses Internet technology to link intranets of several organizations in a secure manner.

F-commerce 

Rapidly increasing commercial activities conducted on or facilitated by Facebook.

Intrabusiness EC 

E-commerce category that refers to EC transactions among various organizational departments and individuals.

Intranet 

An internal corporate or government network that uses Internet tools, such as Web browsers, and Internet protocols.

Sharing economy 

An economic system constructed around the concept of sharing goods and services among the participating people.

Social business 

“An organization that has put in place the strategies, technologies and processes to systematically engage all the individuals of its ecosystem (employees, customers, partners, suppliers) to maximize the co-created value.” (Social Business Forum 2012)

Social commerce 

The e-commerce activities conducted in social networks by using social software.

Social computing 

Computing systems that involve social interactions and behavior.

Social (digital) customers 

Members of social networks who share opinions about products, services, and vendors, do online social shopping, and understand their rights and how to use the wisdom and power of social communities to their benefit.

Social enterprise 

These organizations embrace the main goal of focusing on social issues. The enterprises generate revenue. The profits do not go to owners and shareholders, but are put back into the company and used toward building positive social change.

Social media 

Involves user generated online text, image, audio, and video content that are delivered via Web 2.0 platforms and tools. The media is used primarily for social interactions and conversations such as to share opinions, experiences, insights, and perceptions and to collaborate, all online.

Social networking 

The execution of any Web 2.0 activity, such as blogging or having a presence in a social network. It also includes all activities conducted in social networks.

Social network 

A social entity composed of nodes (which are generally individuals, groups, or organizations) that are connected by links such as hobbies, friendship or profession. The structures are often very complex.

Social networking service (SNS) 

A service that builds online communities by providing an online space for people to build free homepages and that provides basic communication and support tools for conducting different activities in the social network.

Tendering (bidding) system 

System through which large organizational buyers make large-volume or large-value purchases (also known as a reverse auction).

Value proposition 

Refers to the benefits, including the intangible ones that a company hopes to derive from using its business model.

Virtual (pure-play) organizations 

Organizations that conduct their business activities solely online.

Virtual world 

A 3-D computer-based simulated environment built and owned by its residents. In addition to creating buildings, people can create and share cars, clothes, and many other items. Community members inhabit virtual spaces and interact and socialize via avatars.

Web 2.0 

The second generation of Internet-based tools and services that enables users to easily generate content, share media, and communicate and collaborate, in innovative ways.