Chapter 5:

Electronic Commerce and

Enterprise Systems
Electronic Commerce and Enterprise Systems

An introduction to Electronic Commerce

by Gebremedhn Mehari
Introduction to Electronic Commerce
Electronic commerce, also known as e-commerce, is the buying and selling of goods and services over the
internet. It involves online transactions between businesses, individuals, or even between businesses and
consumers.

E-commerce has revolutionized the way people shop and do business. It offers numerous benefits such as
convenience, accessibility, and a wider range of products and services. With e-commerce, consumers can
browse and purchase products from the comfort of their homes, while businesses can reach a global audience
without the limitations of physical stores.

E-commerce encompasses various models, including:

1 Business-to- 2 Business-to- 3 Consumer-to-

Consumer (B2C) Business (B2B) Consumer (C2C)
In the B2C model, The B2B model involves In the C2C model,
businesses sell products businesses selling consumers buy and sell
or services directly to products or services to products or services
consumers through other businesses through directly to other
online platforms and online platforms or consumers through
websites. electronic data online marketplaces or
interchange. classified ads websites.
 Electronic and Mobile Commerce Applications

Electronic Commerce (e-commerce) Mobile Commerce (m-commerce)

Electronic commerce, or e-commerce, refers to the buying and Mobile commerce, or m-commerce, refers to the buying and
selling of goods and services online. It involves online transactions selling of goods and services using mobile devices. With the
between businesses and consumers or between businesses widespread use of smartphones and tablets, m-commerce
themselves. Some common applications of e-commerce include: has gained significant popularity. Some common
applications of m-commerce include:

1 Online Retail 1 Mobile Shopping

Businesses selling products directly to Consumers browsing and purchasing products

consumers through online stores or through mobile apps or mobile-optimized websites.
marketplaces.

2 Online Services 2 Mobile Payments

Providers offering services such as online Using mobile payment platforms or digital wallets
banking, ticket booking, or digital to make secure and convenient transactions.
streaming.

3 B2B E-commerce 3 Location-Based Services

Businesses conducting online transactions with other businesses, Utilizing location data to provide personalized
such as supplier portals or online marketplaces. offers, recommendations, or navigation services.
Technology Infrastructure for E-
commerce and M-commerce

1 Website and 2 Secure Payment 3 Robust Data

Mobile App Gateways Storage and
Development Management
Implementing encrypted
To support E-commerce payment gateways is Having a reliable
and M-commerce, crucial to protect infrastructure for data
businesses need to customer data and storage and management
invest in the ensure secure is essential to handle the
development of user- transactions. These large volume of
friendly and responsive gateways employ customer and
websites and mobile advanced security transaction data
applications. measures to safeguard generated by E-
sensitive information. commerce and M-
commerce platforms.

4 Scalable Server and Network 5 Mobile Optimization

Architecture
With the rise in mobile usage, optimizing
E-commerce and M-commerce platforms websites and applications for mobile
require a scalable server and network devices is crucial to provide a seamless and
architecture to handle high traffic loads, intuitive experience for mobile shoppers.
ensuring smooth performance even during
peak periods.
Transaction Processing Systems
Transaction Processing Systems (TPS) are vital for the smooth operation of e-commerce and m-commerce
platforms. They handle the processing and recording of transactions between customers and businesses. Some
key features of TPS include:

1 Real-Time Processing 2 Secure Payment Processing

TPS enable real-time processing of TPS integrate secure payment gateways to
transactions, ensuring immediate updates to facilitate secure and reliable online
inventory, order status, and financial transactions, protecting customer data and
records. preventing fraud.

3 Inventory Management 4 Order Tracking and Customer

Service
TPS track inventory levels in real-time,
providing accurate information on product TPS enable order tracking and customer
availability and enabling efficient order service functionalities, allowing customers
fulfillment. to monitor their orders and receive support
as needed.
 Enterprise Systems for E-commerce
Enterprise Systems are integrated software solutions that enable businesses to manage their operations and support business
processes. They are essential to support the complex operations of e-commerce platforms. Some key features of Enterprise Systems
include:

1 Inventory Management 2 Order Management

Enterprise Systems provide advanced Enterprise Systems enable efficient order
inventory management capabilities, management, from order placement to
enabling businesses to track inventory order fulfillment. They provide end-to-end
levels in real-time, prevent stockouts, and visibility into the order lifecycle, enabling
optimize stock levels to reduce costs. businesses to streamline operations and
improve customer experiences.

3 Customer Relationship 4 Supply Chain Management

Management
Enterprise Systems streamline the supply
Enterprise Systems offer powerful chain, from procurement to delivery. They
customer relationship management tools, provide real-time visibility into supplier
enabling businesses to manage customer performance, inventory levels, and
interactions, personalize customer logistics, enabling businesses to optimize
experiences, and implement loyalty the supply chain and reduce costs.
programs to retain customers.

5 Business Intelligence and 6 Cybersecurity

Analytics
Enterprise Systems integrate robust cybersecurity measures, such as
Enterprise Systems offer advanced analytics and reporting capabilities, encryption and access controls, to protect against cyber threats and
providing businesses with real-time insights into their operations and safeguard sensitive data.
enabling data-driven decision-making.
The Future of E-commerce
Artificial Intelligence Mobile Commerce
AI-powered personalized shopping Mobile devices will continue to dominate e-
experiences and predictive analytics will commerce, with more innovative apps and
transform how customers discover and mobile-friendly websites.
purchase products.

Voice Commerce Augmented Reality

Voice assistants like Amazon Alexa and AR technology will allow customers to
Google Assistant will play a significant role in virtually try products, enhancing the decision-
enabling voice-activated shopping making process and reducing return rates.
experiences.
Thank you.