Chapter 4

E – Business, E – Commerce and M-

Commerce
INTRODUCTION TO E – BUSINESS
• Internet (International network) is a large network used by
business organizations to establish e-business and e-commerce
websites.
• It provides business organizations opportunities to build
relationships with their customers and suppliers to help improve
services and customer retention.
• World Wide Web (WWW) provides unrestricted access to and
publishing of information over the Internet using web browsers.
E – Business
• E – Business refers to any
online - run business.
• It is also considered as a
technique used by business
organizations to improve
business strategy and be more
productive and profitable
through the use of IT.
https://www.thefinancialexpress.com.bd/uploads/1547477405.jpg
Computer Networks
• A computer network refers to
the connection between
computers to share
information and resources.

https://cdn.techmesto.com/wp-content/uploads/2011/08/how-to-learn-about-
computer-networking5.jpg
TYPES OF COMPUTER NETWORKS
• Personal Area Network (PAN). This refers to a computer network that is used
to allow communication between devices close to each other.
• Local Area Network (LAN). This is one of the most commonly used computer
networks that cover a small area such as a house, room, or building.
• Campus Area Network (CAN). This type of computer network is specifically
used for academic institutions where LANs are interconnected in a limited
geographical area.
• Metropolitan Area Network (MAN). This type of computer network is within
the area of a town or city where it connects two or more LANs or CANs.
• Wide Area Network (WAN). This type of computer network is used within
regional or national areas.
• International Network (Internet). This is considered as the largest computer
network that allows users to access without restrictions.
TYPES OF COMPUTER NETWORKS
TYPES OF COMPUTER NETWORKS
TYPES OF COMPUTER NETWORKS

Campus Area Network

TYPES OF COMPUTER NETWORKS

Metropolitan Area Network

TYPES OF COMPUTER NETWORKS

Wide Area Network

Networks Used for E-Business
• Intranet.
• It refers to the internal network of a business organization, meaning only
authorized users can access the network through the Internet. It uses web
browsers and file transfer applications, which are under the supervision
and control of the business organization.
• Extranet.
• It refers to the network of a business organization that has a limited
scope giving access only to trusted entities. A business organization
may build an extranet by letting its customers gain access to a
portion of their intranet.
Networks Used for E-Business
• Internet.
• It is the largest network consisting of interconnected government, private,
public, academic, and business entities linked by various technologies
ranging from electronic and wireless to fiber optic. This connection is
offered and managed by service providers.
E – Business Opportunities
• Reach
• It refers to the potential number of
local and international customers of
a business organization that can
interact with each other through
the use of the Internet.
• It can also be defined as the
number of categories and products
that can be covered in a consumer
interface. This includes catalogues,
websites, and so on. https://static.startuptalky.com/2021/11/Copy-of-to-share-startuptalky--1--2.png
E – Business Opportunities
• Richness
• It refers to the information that a business organization can share to their
consumers.
• This may include detailed information about a certain product which
includes the product name, description, price and availability
E – Business Opportunities
• Affiliation
• It refers to the effectiveness of
the linkages between business
organizations.

https://static.startuptalky.com/2021/11/Copy-of-to-share-startuptalky--1--2.png
Risks and Barriers to Business Adoption

• E-business services open a lot of opportunities to business

organizations. However, opportunities need to be balanced against
the risks that may arise when conducting e-business.
• These risks may include
• strategic and
• practical risks.
E – COMMERCE
• Electronic commerce, also • E-commerce is displayed
known as e-commerce, refers through technologies such as:
to commercial transactions • Automated data collection
executed online using the systems
Internet. • Electronic funds transfer
• Electronic data interchange
• Internet marketing
• Inventory systems
• Online transaction processing
• Mobile commerce
• Supply chain management
https://myrepublica.nagariknetwork.com/uploads/media/eeee_20210524140327.png
Buy-Side and Sell-Side E-Commerce

• buy-side e-commerce focuses • sell-side e-commerce focuses on

on suppliers. the consumers or customers.

https://wsp-blog-images.s3.amazonaws.com/uploads/2018/02/08134422/buysell.jpg
Advantages and Disadvantage of E-Commerce

• Advantages of E-Commerce • Disadvantages of E – Commerce

• Efficient transactions done • Lack of privacy of e-transactions
anytime and anywhere • Unsecured use of the Internet
• Quick electronic funds transfer • Depersonalized shopping
• Convenient buying or selling from
home or place of business
• Reduced cost and time of order
processing
• Simpler, faster, and cheaper
supply chain management
• Quick reaching of target
customers for small- and medium-
sized enterprises (SMEs)
• User-friendly ordering systems
Threats of E-Commerce
• Servers containing important files and customer information being
stolen
• Impostors duplicating e-commerce sites to steal customers ‘money
• Hackers attempting to steal customer information or mess up the
site
• Authorized users with hidden motives attacking e-commerce
systems and/or selling information to competitors
Features of E – Commerce
• Ubiquity - This means that the marketable transaction or activity at
anytime, anywhere in the world.
• Global Reach and Security - E-commerce allows a company to get
customers anywhere in the world. It also known as worldwide access, it is
the maximum number of possible consumers a business can reach.
Security is essential when working globally; therefore, customer
information and privacy must be protected and ensured when using an e-
commerce platform.
• Universal Standards - This refers to a website that can be operated on a
standard platform which follows identified methods and systems.
• Richness – This refers to the volume of the content of the website and the
way it is used by consumers. Ensuring a site's richness, by providing a
combination of messages and means to improve customer experience, is
essential for businesses.
Features of E – Commerce
• Interactivity - This feature refers to the relationship between a consumer
and an e-commerce website. It provides face-to-face customer meetings
when conducting business transactions.
• Information Density - This refers to the amount of products that can fit on
a computer screen.
Features of E – Commerce
• Information Density

Shoppee using laptop or

desktop
Shoppee using mobile devices
Business Models of E-Commerce
• Business-to-Business (B2B)
• B2B is a marketing type of
business wherein businesses
provide products or services to
other businesses for the
production of goods, business
operations, or reselling of
products.
Examples of B2B websites in the Philippines

• Philippine Companies - Filipino Business Directory

Examples of B2B websites in the Philippines

• Pinoy Listing
Examples of B2B websites in the Philippines

• Yalwa
Business Models of E-Commerce
• Business to Consumer (B2C)
• B2C is the type of commercial
transaction in which businesses sell
products or service directly to
consumers. It is considered the
most popular form e-commerce. It
originated in e-retail wherein
customers visit a website and
purchases products online. It
reduces transaction costs,
increases the number of
consumers, and allows consumers
to find the most competitive price
of a certain product.
In the Philippines, the following are
the top e-commerce websites:
• Lazada Philippines
• Shopee Philippines
• Zalora Philippines
• Metrodeal
• Globe Online Shop
• eBay Philippines

https://miro.medium.com/max/1400/1*-L5lKdH75u89Xr3SjiyY2w.jpeg
Business Models of E-Commerce
• Consumer-to-Consumer (C2C)
• C2C is used similarly as the
classified advertising section of
a local newspaper or an auction
page. C2C is a convenient way
for consumers to buy and sell
goods without physically going
to a store.
Business Models of E-Commerce
• Business-to-Government • Government-to-Business (G2B)
(B2G) • This business model refers to
• B2G is a business model that government agencies that provide
refers to a business that sells services or information to a
products, services, or business organization.
information to governments
and/or government agencies.
Business Models of E-Commerce
• Government to Citizen (G2C)
• This model is being used by the government to
approach and communicate with citizens in
general.
E – Commerce Security Systems
• Auditability
• Authenticity
• Availability
• Confidentiality
• Encryption
• Integrity
• Non-reputation https://1.bp.blogspot.com/-r5_bWTt2Ec4/WPsTXjrStiI/AAAAAAAAL0A/Vh-yARJjPzcofqGUBJpKqr6vk-
SzZm9mwCLcB/s1600/aasw.jpg
E – Commerce Security Systems
• Auditability - data should be documented in such a way that it
can be audited for the real requirements
• Authenticity - there should be procedures to authenticate a
user before giving him/her access to the required information
• Availability - it is a requirement that information must be
available anytime and anywhere, and it must be bound by a
time limit
• Confidentiality - information should be kept and not be
accessible by an unauthorized user. It should not be interrupted
during the transmission.
E – Commerce Security Systems
• Encryption - is the process of protecting information or data by
using mathematical models to scramble it in such a way that
only the parties who have the key to unscramble it can access
it. Decryption is a process that transforms encrypted
information into its original format.
E – Commerce Security Systems
• Integrity - information must not be modified during its
transmission over a network. Honesty and strong moral
principles must be applied
E – Commerce Security Systems
• Non-reputation - there should be assurance that someone
cannot rebuff on something. It is to certify that a person
involved in the contract or in communication cannot refute the
authenticity of their signature on a document.

Digital Signature - is a mathematical

scheme for verifying the authenticity
of digital messages or documents
M – COMMERCE
• Mobile commerce, also known as M – commerce, refers to the use
of wireless handheld devices, such as mobile phones, to conduct
business – related transactions online.
• M – commerce transactions conquer online business transactions,
which include the purchasing and selling of a wide range of
products and services, online banking, bills payment and
information delivery.

https://chicomobile.ph/wp-content/uploads/2018/02/Evolution-Of-Cell-Phone.jpg
Benefits of mobile technologies
• Ubiquity.
• Reachability.
• Convenience.
• Security.
• Privacy.
• Availability.
Benefits of mobile technologies
• Ubiquity. They allow users access anywhere.
• Reachability. Users are easy to reach.
• Convenience. There is no need for users to have fixed-line
connections.
• Security. They ensure that user information is free from the
risk of loss or theft through authentication.
• Privacy. The degree of privacy is higher compared to a
desktop PC.
• Availability. Users can freely access them at any time of the
day.
Four (4) main forces that support m-commerce

• Fourth (4th) and Third (3rd) Generation Technologies

• Fourth (4th) generation technologies, developed in 2012-2015, with a
maximum data transfer rate of24 Mbit/s, adopted m-commerce.
• Third (3rd) generation technologies were introduced in 2004.

4th Generation 3rd Generation

Four (4) main forces that support m-commerce

• Wireless Application Protocol (WAP)

• This is a technical standard used for the transfer of information to
specific wireless devices, such as mobile phones.
Four (4) main forces that support m-commerce

• iMode Access Platforms

• This is another form of mobile access that was introduced by the Japanese.
Its so-called Japanese iMode standard displays content using HTML.
Four (4) main forces that support m-commerce

• Personalized Services
• Consumers can gain access to wireless service whenever there is an
available network. Personalized services can be used anytime are offered
to mobile users.
Top M – Commerce Application
in the Philippines
• Lazada
• Shopee
• Zalora
• Amazon
• AliExpress
• BeautyMnl .
• eBay
• Sephora
• Alibaba
• Althea
https://www.marketing91.com/wp-content/uploads/2019/08/Important-
Applications-of-M-Commerce.jpg
DIFFERENCES BETWEEN E – BUSINESS
AND M – COMMERCE
Web World (E – Commerce) Mobile World ( M – Commerce)

Internet access through a laptop/desktop is necessary for e –

M – commerce is done through wireless connectivity using mobile.
commerce.

The buying and selling of products and services are done with use of The buying and selling of products and services are done with the use
the Internet. of mobile phones that have access to the internet or cellular data.

It requires devices such as computers and laptops. It requires devices such as cellphones, iPads and tablets.
The platforms used are web stores (mobile version/web app), hybrid
The platform used are web stores.
app, and native app.

Mobility is limited as you cannot carry computers everywhere. Even

As mobile devices are easy to carry, it offers more mobility,
with the use of laptops, one need enough space, and although it is
accessibility and convenience.
portable, it is not light as mobile phones.

It is less costly as the store is created on the web and can be accessed It is costly as a mobile app is required, and cellular data or internet use
using the Internet. is necessary.

As it applicable to a broader area, customization for each user is not Mobile devices are usually owned by individual, so anyone can use the
possible. customized app to fulfill their business or personal needs.

Its interface is more complicated, and more functions are available It promotes easy use because all the functions are simplified.
GUIDELINES AND LAWS GOVERNING
E – COMMERCE
• Taxes • Inventory
• Trademarks, Patents, and • Business Restrictions
Copyrights • Licenses and Permits
• Shipping Restrictions • Payment Card Industry (PCI)
• Air bags Compliance
• Animals • PCI compliance serves as protection
• Perishable materials, such as fresh for on businesses, especially
fruits and vegetables and alcohol software-as-a-service (SaaS) e-
• Hazardous materials, such as commerce platforms, from problems
aerosols, ammunition, cigarettes, such as data theft.
dry ice, explosives, nail polish,
perfumes, and poisons
GUIDELINES AND LAWS GOVERNING
E – COMMERCE
• Taxes - Every state and/or country has different rules and laws regarding
taxes. Therefore, conducting research and understanding your target market
are necessary to avoid problems about taxation.
The percentage tax rate for online sellers is 3% of gross sales or
receipts. However, certain types of sales are subject to a lower
percentage tax rate, such as sales of goods or services to the
government, which are subject to a 1% tax rate.
GUIDELINES AND LAWS GOVERNING
E – COMMERCE
• Trademarks - It is a distinguishing word, phrase, symbol, and/or design that
identifies the uniqueness of a product or service of one party from the
others
GUIDELINES AND LAWS GOVERNING
E – COMMERCE
• Patents - It is a property right granted by the US Patent and Trademark
Office to an invention for its public disclosure for a limited period of time.
The period of time may vary, depending which country it was issued
• Copyrights - It protects works of authorship such as writings, music, and
works of art, that have been tangibly expressed.
 GUIDELINES AND LAWS GOVERNING
E – COMMERCE
• Republic Act 8792 — Electronic Commerce Act of 2000 .
• This covers the mandates of the Philippine government in terms of executing online transactions locally or
internationally.
• Republic Act 10173 — Data Privacy Act of 2012
• This prohibits the communication and sharing of written, electronic, and recorded information by an
individual to another. Information can be from documents, e-books, electronic data messages, and so on. The
law involves the following three (3) main individuals:
• Data Subject.
• Personal Information Controller.
• Personal Information Processor.
• Consumer Protection Regulation — Transactions through E-Commerce
• The Department of Trade and Industry (DTI), with the participation of other government agencies, issued a
consumer protection regulation that provides protection to consumers when buying and selling products and
services through the use of e-commerce.
• Tax Guidelines for E-Commerce Transactions in the Philippines
• On August 5, 2013, the Bureau of Internal Revenue issued Revenue Memorandum Circular No. 55-2013,
Reiterating Taxpayers' Obligations in Relation to Online Business Transactions.
EXAMPLES OF E – COMMERCE AND
M – COMMERCE
• Amazon. It is an American e – commerce website that gives users
an opportunity to buy products online worldwide.
EXAMPLES OF E – COMMERCE AND
M – COMMERCE
• eBay. It is an American e – commerce website that provides various
services to consumers such as auctions, online payments, and
online shopping.
EXAMPLES OF E – COMMERCE AND
M – COMMERCE
• Alibaba. It is a well – known Chinese company that is now part of
the global market of e – commerce. It specializes in retail, the
internet and technology.
EXAMPLES OF E – COMMERCE AND
M – COMMERCE
• Mobile Vouchers
• eToro mobile app. It is a platform that can be used to invest in
stocks or trading.

https://sp-ao.shortpixel.ai/client/q_glossy,ret_img/https://jingdaily.com/wp-
content/uploads/2020/06/voucher_main-1240x698.jpg https://www.etoro.com/wp-
content/themes/etoro/assets/images/templates/trading_platform/sec-8-img.png
Thank You!
Prepared by:
Jane Ann P. Austria