E-İŞLETME - Deneme Sınavı - 2

In government-to-government, in short, in G2G, governments can communicate nationally or internationally and exchange classified information through dedicated portals. National DNA database could be a typical example of G2G business model (Anumba and Ruikar, 2008).

One of the key characteristics of e-commerce is the ease of entry for firms. The cost of entry and exit is low relative to traditional industries, as firms do not require large sales teams, costly investment in infrastructure or high sunk costs in order to compete effectively. Rising connectivity rates among potential customers ensures increasing competition among e-commerce firms as more are attracted to the source of potential revenue. Importantly, the internet does away with geographical boundaries thereby increasing yet further the extent of competitive rivalry. Intense competition is a characteristic of the internet economy and has spread across all e-business and e-commerce sectors.

If an access to sensitive company information is required by an e-business application, access should be limited to qualified individuals or partners. If there is a restriction to employees in an organization for accessing the information needed, this is called intranet. Intranet refers to a private network used in an organization for sharing information by excluding the access of outsiders.

E-commerce perspectives are as follows: 1. A communications perspective – the delivery of information, products or services or payment by electronic means. 2. A business process perspective – the application of technology towards the automation of business transactions and workflows. 3. A service perspective – enabling cost cutting at the same time as increasing the speed and quality of service delivery. 4. An online perspective – the buying and selling of products and information online (Chaffey, 2007; Chaffey, Hemphill & Edmundson-Bird, 2019). These perspectives shed a light on the definition of e-commerce. Based upon these definitions, it can be said that electronic commerce is not restricted to the buying and selling activities. It also includes pre-sale and post-sale activities along the supply chain (Chaffey, Hemphill & Edmundson-Bird, 2019).

Consumer-to-government model enables consumers to post their concerns, to request feedback, or information directly from their local governments. The applications of C2G include e-democracy, e-voting, information about public services and e-health

Business-to-consumer (B2C) model is the most high profile type of e-business (Combe, 2012). The commercial transactions occur between an organization and the consumers (Chaffey, 2007). B2C model is similar to the traditional retailing process, but the main difference here is using the internet for carrying out the business. In such a method, it is assumed that the consumer has access to the Internet (Anumba and Ruikar, 2008). Some successful examples of B2C model include Amazon.com and e-Bay (Anumba and Ruikar, 2008; Combe, 2012).

Adaptation of processes is not a benefit of e-businesses. Harmonization and standardization of processes is a benefit of e-businesses.

Consumer-to-business (C2B) models are models in which consumers offer products or services to organizations at a cost. It can be said this model is the reverse of traditional business models in which organizations offer goods and services to consumers. Online surveys such as Surveys.com, and SurveyMonkey, are typical examples of C2B models. In these models individuals offer the service to reply to a company’s survey and in return the company pays the individual for their service.

Universal Standards: There exist technical standards of the Internet and, therefore, the technical standards for conducting e-commerce are universal standards which reduce market entry costs for companies and search costs for consumers.

AI can improve the efficiency of businesses through improving decisionmaking around purchases, and the automation of several tasks, provide critical insights, free-up several working hours behind procurement, and making business purchases intelligent and low cost. Hence in B2C and B2B, it is expected to improve customer relations and customization by providing predictive patterns to companies.

Apart from product recommendations, artificial intelligence in the eCommerce industry is being utilized by online retailers for providing chatbot services, analyzing customer comments, and providing personalized services to online shoppers. The use of artificial intelligence in online shopping is transforming the E-commerce industry by predicting shopping patterns based on the products that shoppers buy and when they buy them.

Intelligent Product Recommendations: Among the major applications of artificial intelligence in eCommerce, personalized product recommendations for online shoppers increase conversion rates by 915% and average order values by 3%. With big data, AI in eCommerce is impacting customer choices thanks to its knowledge of previous purchases, searched products, and online browsing habits. Product recommendations provide multiple benefits for eCommerce retailers, including a higher number of returning customers, Improved customer retention and sales, A personalized shopping experience for online shoppers, Enable a personalized business email campaign.

AI Personalization in Ecommerce: Rated among the most effective modes, personalization is at the core of AI in E-commerce marketing. Based on specific data gathered from each online user, AI, and machine learning in eCommerce derive important user insights from the generated customer data.

As a key application empowering e-business (Gartner Group, 2011), Electronic Data Exchange (EDI) is the electronic transmission of the information and the documents (such as invoices or purchase orders) between computer systems in different organizations. It acts as information technology and an essential application of businessto-business electronic commerce (Yunitarini and Santoso, 2018). Transaction processing or communication data for customers are organized in a standard and machine-readable form.

EDI changed how organizations conduct business with their suppliers and customers (Jansenss, 2011). As the most prevalent form of electronic commerce, the use of EDI has the natural effect of increasing inter-organizational coordination activities and increasing the integration that occurs between supply chain members (Lim and Palvia, 2001). EDI adds value to channel relationships through an increase in the efficiency of transaction processing, facilitation of related systems (manufacturing and marketing), and an improvement in coordination and communication systems (O’Callaghan et al., 1992; Yunitarini ve Santoso, 2018).

Challenges of EDI integration:

a. In EDI integration, organizations should consider legal issues and integration issues and keep pace with shifting government regulations, standards, and updates.

b. The legal issues concern that an EDI message may trigger specific actions like the shipment of products, which involve a change of ownership. For example, an inventory management system recognizes a re-order point for a type of material, and this event may trigger a purchase request to be sent to create a (semi)-automatically created purchase order. A similar message will be sent to a supplier’s distribution system where it triggers in a (semi)automatic way the delivery of the requested materials. A purchasing contract may be concluded and settled without human involvement (Jansenns, 2011)

c. EDI needs to accommodate the complexities of global business needs. For example, each trading partner in a B2B network can present unique requirements, such as unique formatting requirements that need to be supported (IBM 2019).

d. Despite its advantages, internet-based EDI bears online security problems increasing the EDI business cost, blocking many potential users (Jansens, 2011). Virtual private networks (VPNs) occur as a remedy. In addition to that, enforcing the regulative framework and legal constraints, creditors and shareholders’ rights, and market technology integration can assure on-line business benefit and increase the on-line business amounts. Hence EDI legal rules are required at the global level (Jansenns, 2011).

Hardware and software components are part of the requirements of EDI implementation, not the challenges it faces.

E-Wallet technology is a must: In addition to boosting sales and conversion rates for merchants, eWallet usage provides customers with ease of use and increased security. They no longer need to enter credit card information on websites or give their credit cards to cashiers; plus many eWallets offer or require dual authentication before use. OECD (2019) also reports that: “Three innovative forms of holding and conducting payments could facilitate e-commerce going forward: digital wallets, mobile money, and cryptocurrencies. These mechanisms are not necessarily discrete –indeed, mobile money and cryptocurrencies can both be stored in forms of digital wallets –and together, they have the potential to drive future developments in the e-commerce landscape.”

Cognitive supply chain management gains momentum: eCommerce companies are increasingly seeking distribution and inventory management systems that are self-learning, predictive, adaptive, and intelligent, known as cognitive supply chains. They result in an improved, personalized customer service and decreased inventory. These systems can also help to mitigate risk, improve insight and performance, and increase transparency.

The data layer or content layer is where the data is maintained and stored to provide web content and transaction, i.e. web content for intranet, extranet and internet sites, customers’ data, transaction data, clickstream data (Chaffey, 2011).

E-business Infrastructure is identified in five layers which are (1) Services and applications layer (2) Systems software (operating systems, utility systems), (3) Network Layer, (4) Storage Layer and (5) Data Layer (Chaffey, 2011) which all must be managed effectively:

• Layer 1- E-Business Services: Applications are continually affecting trends and prospects for business over the Internet, indicating the purpose of e-Business applications. E.g. Supply Chain Management, e-procurement, secure online ordering, customer relationship management.

Application servers typically fulfill the business rules and applications function, and transaction servers perform the business applications. The client request is passed along to an application server that handles all application operations between a user and an organization’s back-end business systems.

Communication Channel Security: This deals with protecting private or sensitive information in transit from an unauthorized third party. Any unauthorized party may intercept the sensitive or private information and tempered with or misuse the information. The main remedial action for such problems is using a cryptography algorithm to protect the data and the information while in transit.