File: IBCFD001 $53BC$ ALLGEMEINE LINKS
E-Commerce
Table of contents
E-Commerce......
Table of contents......
Introduction in general......
Foil 1......
Main parts......
Introduction......
Introduction of the topic......
Foil 2......
1. E-Commerce......
What is E-Commerce?......
Foil 3......
Trade-chain......
Foil 4......
2. Figures......
Turnover worldwide......
Foil 5......
Market survey in Austria......
Foil 6......
3. Security......
Security and legal requirements......
Foil 7......
Identification......
Encoding......
Integrity......
4. Applications......
The increasing market of E-Commerce......
Foil 8......
The closing......
Vocabulary......
Introduction in general
Foil 1
Good evening Ladies and Gentlemen.
Thank you for visiting my presentation.
My name is Klaus Pirchl.
I am going to talk to you today about the topic of E-Commerce.
This will take about ten minutes.
If you have any questions, please feel free to interrupt me.
I have divided my talk into four main parts where I will show you eight overhead-foils.
- First of all I will give you some information about shopping habits in general.
- The first main part explains the idea of E-Commerce.
- In my second part I will give you some information about the figures of E-Commerce.
- The third part includes the security.
- And in my last part I want to tell you about the applications and the benfits of E-Commerce.
Main parts
Introduction
Introduction of the topic
Foil 2
Now let's start about shopping habits in general.
I made a list of shopping possiblilities. This list gives us a survey how we can spend our money. Shopping doesn't only include paying for goods, it includes ordering, bills, receipts and other forms of the trade too. But at first I start with my list.
- Cash: You pay your purchase outright. This can be, for goods, for food or other materials or articles.
- If you have an account, you can also pay by check, credit card, eurocheque card or a credit enterprise card. Some days later a deduction of the card company is coming and withdraw the money of your bank account. For this service you have to pay a commision. You often pay cash for unique and little amounts. For regularly and high amounts are used transfers of accounts or buying by cards (credit terms).
Further posibilities: bank transfer, bill of exchange, letter of credit, by post office... .
- Smart cards are means of payment with which you pay your bank an amount in advance. Then you are able to buy your goods in shops in which there are particular installments for use.
- You can order from mail order catalogue, by telephone, fax, electronic banking and e-mail. The company delivers the goods to your home adress then.
COD: cash (collect) on delivery, you have to pay the person (postman, carman) who delivers the goods the full price of the goods and any delivery charges at the time of delivery.
- The use of telephone, fax and the other modern communication facilities are also used in the general way of trade.
- Private networks, as EDI and Telex is manly used for business actions, like purchases and payments. These actions are transfered via electronic lines and processed by computers.
- Electronic banking, online shopping.
Some ways of these applications include E-Commerce handling in some parts.
Let's move on to my first main part of the presentation.
1. E-Commerce
What is E-Commerce?
Foil 3
I cannot explain E-Commerce better than it is written on the overhead foil.
The name of E-Commerce consists of Electronic and Commerce. I chose this topic due to the important influence of the trade today and furthermore of the future.
The borders disappeard and the trade will be more global. E-Commerce supports this development.
E-Commerce is the process between two or more parties making business transactions via computer and some type of network.
It contains digital payment and digital transactions.
E-Commerce describes the relationship between the profit chain and the possibilities of independent transfer.
E-Commerce is not only shopping by internet. E-Commerce includes the whole business actions about the trade with electronic transfers, like bills, receipts, orders and so on.
In my next overhead-foil about the trade-chain you can see the relationship between the different facilities better.
Trade-chain
Foil 4
The participants are customers, manufacturers, suppliers and of the economy in general. In my foil I show you the traditional way via the trade. It is also possible that there are more or less steps via the chain. More suppliers, more manufactureres and so on. Manufacturers need material for producing goods. Therefor some suppliers supply raw-materials for producing these articles.
Manfucaturers supply the wholesale trade and sometimes the retail trade too.
Customers buy their goods at shops of the trade.
There are two necessary applications. At first the flow of information as ordering, terms of payment, bills, receipts an so on. Secondly the cash-flow. How do I get the money?
This can be direct or by the way of electronic transfer too.
The information will be processed by specialized programmes and protocolls by the EDV.
If you look at my next foil you can see the increasing figures of the turnover of electronic commerce worldwide.
2. Figures
Turnover worldwide
Foil 5
I refer to the source of Hambrecht & Quist and Goldman Sachs Pollsters.
Business to Consumer (B2C) made an turnover of 16,8 Mrd $.
But the turnover of Business to Business (B2B) is ten time as high than the turnover of Business to Consumer.
This involves great pressure and competiton. Companies have to lower their costs in order to react on the market.
Money and payment costs money too. First you have to print it then to secure and transport it in huge amounts and you also need much time for these actions, whereas in E-Commerce you can only click and, simply said, all is done.
The next sheet gives you a survey about the Austrian market of E-Commerce.
Market survey in Austria
Foil 6
The source of this sheet is OGM Pollster.
You can see the high rise of E-commerce in general on the Austrian market.
But there are also different problems, as you can see from my next overhead foil.
3. Security
Security and legal requirements
Foil 7
Security and legal requirements are the heavy challenge for the future.
Some people think it is not safe enough. But the E-Commerce industry improves the security day by day.
Identification
Who ordered?
A contract is now right if both agreed with the terms.
Mostly you give your name and address in at an ordersite of your PC if you are there for the first time. If you come to these sites more often, you will get a password or a code. Sometimes you also need a digital subscriber certification.
Authorize
Is the order genuine?
Which person of a company placed the order? This person has to authorize himself if an order is made. With a digital subscriber certification everyone can find out the person who ordered. You get a digital subscriber certification from definite companies or definite departments of the government which get the assignment to issue it.
There are some levels. Light to strong. A light certification can be an online registration. A strong certification has to be made personal.
Encoding
Is the transaction sure?
Security of the transfer itself is also a problem. A manipulation can happen on the way between the subscriber and the provider or a virus comes up into the system.
These possibilities ought to be prevented.
In the rule the message will be codified because the message can be made more sure and you can recognize any irregularity.
Integrity
Is the content of the order genuine?
It is often used by protocols which check the message for mistakes of the content too.
No dispute
Is made the order really?
The way across the line will be stored. You need codes for yourself and the transaction too. Your action should not lead to a dispute.
Now let's move to my last foil.
4. Applications
The increasing market of E-Commerce
Foil 8
The great advantage of E-Commerce is a chance for everyone and will also change the trade. It is a new distribution of goods and services between producers and customers. Some shops have to change their activities and their services too.
Nowadays for big companys there is a duty to be present in the internet.
And there is also a new way of doing business, increasing its service and lowering its overheads.
You can be present everytime time from 0 - 24 o'clock (round the clock), 24 hours and seven days a week and this all over the world. The market is getting bigger and bigger. Disadvantaged regions can make a profit of this situation. It is faster and you have direct contact to your clients. There is no middleman any more. Costs decrease for you and your customers. Your service can be more comprehensive, and so can be your range of products.
The closing
Now I am at the end of my presentation and would like to sum up the main points again.
The introduction was about, shopping habits in general
Then I explained, the idea of E-Commerce
The next point was about the figures of E-Commerce
The third part was about, security and legal requirements
And in my last part I told you about, applications and benefits of E-Commerce
So I hope I have given you a survey about E-Commerce.
Thank you for your attention.
I am now willing to answer any questions which you have about E-Commerce.
Vocabulary
foil...... Folie
application...... Anwendung
benefit...... Vorteil
installment...... Installation
proccess...... verarbeiten
payment...... Bezahlung
relationship...... Beziehung
habit...... Gewohnheit
independet...... Unabhängig
supply...... liefern
challenge...... Herausforderung
encoding...... verschlüsseln
integrity...... Rechtschaffenheit, Integrität
genuine...... echt
authorize...... bevollmächtigen, autorisieren
dispute...... streiten
Date: 12 May 2001page 1/7 Klaus Pirchl, B4