GROUP 4

UNIT 4
 C E
S S ER
N E MM
S I CO
-U
B E -
E E
& RC
ME
O M
-C
M
At the end of this unit, the student should be able to

1. Define e-business and its contributions to business organizations;

2. Differentiate e-commerce and m-commerce;
3. Understand and apply e-business models in designing e-commerce
websites for business organizations, and
4. Describe the challenges, barriers, and ethical implications involved
in the adoption of e-business in business organizations.
The

E-BUSINESS
An introduction to E-Business
BEFORE WE PROCEED HERES A LITTLE
HISTORY IN REGARDS TO E-
The BUSINESS………

E-BUSINESS
An introduction to E-Business
The

E-BUSINESS
An introduction to E-Business
The Internet
(A.K.A – The International Network)

Is a large network used by

business organizations to
establish e-business and e-
commerce websites.
 WIDE WEB
•Computers connect to each other through the
internet .
•It provides business organizations
opportunities to build relationship with their
customers retention.
•Customers and suppliers are encouraged to use
e-business services as a new and convenient
channel to do business transaction online.
THE WORLD
WIDE WEB
THE WORLD
WIDEProvides
WEB unrestricted
access to and
publishing of
information over the
internet using web
browsers.
What is E-Business?
 NETWORKS
What is E-Business?
•Any online-run business.
•Considered as a technique
•Used by business organization to;
 improve business strategy
 be more productive
 profitable through use of I.T.
COMPUTER
NETWORKS
 COMPUTER
NETWORKS
 Connection
between computers
to share information
and resources.
 TYPES OF COMPUTER
NETWORKS
[Link] (Personal Area Network)
[Link] (Local Area Network)
[Link] (Campus Area Network)
[Link] (Metropolitan Area Network)
[Link] (Wide Area Network)
[Link] (International Network)
 TYPES OF COMPUTER
NETWORKS
[Link] (Personal Area
Network)
Refers to a computer
network that is used to
allow communications
between devices close
to each other.
 TYPES OF COMPUTER
NETWORKS
2. LAN (Local Area Network)
• Most commonly used
computer network
• Covers only small area such as;
House
Room
Building
 TYPES OF COMPUTER
NETWORKS
[Link] (Campus Area Network)
• Specifically used for
academic institutions.
• LANs are interconnected in
a limited geographical
area.
 TYPES OF COMPUTER
NETWORKS
[Link] (Metropolitan Area Network)
• Within the area of
a town or city
where it connects
two or more LANs
or CANs
 TYPES OF COMPUTER
NETWORKS
[Link] (Wide Area Network)
•Used for
regional or
national areas.
 TYPES OF COMPUTER
NETWORKS
[Link] (International Network)
• Largest Computer
Network.
• Allows users to access
without restriction.
 NETWORKS USED
FOR E-BUSINESS
INTRANET EXTRANET INTERNET
 NETWORKS USED
FOR E-BUSINESS
INTRANET EXTRANET INTERNET
 INTRANET
• The internal network of a business
organization
• Only authorized users can access the
network through the internet.
• Uses web browsers and file transfer
applications, which are under the supervision
and control of the business organization.
 EXTRANET
• Refers to the network of a business organization that
has a limited scope, giving access only to trusted
entities.
• For example: Building extranet by letting customers of
a business gain access to a portion of the intranet.
 INTERNET
• Largest network
• consisting of interconnected
• government
• Private or public
• Academic
• and business entities linked by various
technologies ranging from electronic and
wireless to fiber optic
 INTERNET
• Offered and managed by service
providers.
 E-Business Opportunities
• Reach – the potential number of local and international customers
organization that can interact with each other through the use of the
internet.

• Richness – the information that business organizations can share to their

consumers. Like product name & details of it.

• Affiliation – refers to the effectiveness of the linkages between the

organizations. In terms of online partnerships to other organization are
able to gain more influence and reach.
 RISKS AND
BARRIERS TO E-
BUSINESS!!
RISKS AND BARRIERS TO
E-BUSINESS!!
• STRATEGIC RISKS
Carelessly spending and risking too
much money investing online leading to
failure.
• PRACTICAL RISKS
Poor service, issue in privacy or data,
problems with online, neglected
customers email.
The

E-COMMERCE
The Electronic Commerce
 The

E-COMMERCEThe Electronic Commerce

• The transactions executed online using the

internet.

• Uses the World Wide Web for transactions.

 {
Automated data collection system
Where Electronic funds transfer
E-Commerce Electronic data interchange
can be Internet marketing
displayed. Internet systems
Online transactions processing
Mobile Commerce
Supply chain management
 BUY-SIDE SELL-SIDE

•Focuses on • Focuses on
suppliers consumers
or
customers
 BUY-SIDE SELL-SIDE
Has 4 types of online
•Focuses on presence
suppliers I. Transactional and e-
commerce websites
II. Portal or media
websites
III. Brand building
websites
IV. Service oriented
 Advantages of E- Disadvantages of E-Commerce
Commerce
• Efficient transactions done • Lack of privacy of e-
anytime and anywhere transactions
• Quick electronic funds • Unsecured use of the
transfer internet (presence of
• Convenient buying or selling viruses, hackers, and so
from home or place of on)
business • Depersonalized shopping
• Reduced cost and time of
order processing
• Simpler, faster, and cheaper
supply chain management
• Quick reaching if target
customers for small-and
medium side enterprises
 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 – marketable transactions or activity is accessible
ate any time, anywhere in the world.

• Global Reach and Security – e-commerce allows company to

get customers anywhere in the world.

• Universal Standards – can be operated on a standard

platform which follows identified methods and system
 Features of E-commerce
• Richness - The volume of content of the website and the
way it is used by the customers.

• Interactivity – The relationship between a consumer and an

e-commerce website.

• Information Density – Amount of products that can fit on a

computer screen. There is no given standard in this matter.
 BUSINESS MODELS OF E-
COMMERCE
1.B2B (BUSINESS TO BUSINESS)
2.B2C (BUSINESS TO CONSUMER)
3.C2C (CONSUMER TO CONSUMER)
4.B2G (BUSINES TO GOVERNMENT)
5.G2B (GOVERNMENT TO BUSINESS)
6.G2C (GOVERNMENT TO CITIZEN)
 Business to Business (B2B)
• Marketing type of business
wherein businesses
provide products or
services to other
businesses for the
production of goods,
business, operations, or
reselling of products

• E-commerce between
different business
organization.
 Business to Business (B2B)
Examples:
• Philippine
Companies
• Pinoy Lasting
• Yalwa
 Business to Consumer (B2C)
• Businesses sell products or services
directly to consumers.
• Most popular form of e-commerce
• Second largest model
• Originated in e-retail
• Reduces transaction costs
• Increase number of consumers
• Allows consumers to find the most
competitive price of a certain product.
 Business to Consumer (B2C)
• Includes the purchasing of both physical goods
( e.g. books, laptops, phones)and information
goods (e.g. online article, e-books).
Business to Consumer (B2C)
TOP E-COMMERCE WEBSITES

LAZADA PHILIPPINES
Business to Consumer (B2C)
TOP E-COMMERCE WEBSITES

SHOPPEE PHILIPPINES
Business to Consumer (B2C)
TOP E-COMMERCE WEBSITES

ZOLARA PHILIPPINES
Business to Consumer (B2C)
TOP E-COMMERCE WEBSITES

METRODEAL
Business to Consumer (B2C)
TOP E-COMMERCE WEBSITES

GLOBE ONLINE
SHOPPING
Business to Consumer (B2C)
TOP E-COMMERCE WEBSITES

e-Bay PHILIPPINES
 Consumer to Consumer (C2C)
• Used similarly as the
classified advertising
section of a local
newspaper store
• A convenient way for
consumers to buy and
sell goods without
physically going to the
store
Business to Government (B2G)
• Sells products, services or
information to government
and/or government agencies.

• Provides means for

businesses to bid on
government projects or
products that are needed for
their organization.
Business to Government (B2G)
Example:
Land Transportation
Office with their license
cards and plate
numbers.

Commission on
Elections with their
PCOS machines used
during elections.
 Government to Business (G2B)
• Government agencies
provide services or
information to a business
organization.
• Used by government to
approach and communicate
with business organizations.
 Government to Citizen (G2C)
• Used by government to
approach and communicate to
citizens in general.
• Used to reduce the average
time needed for fulfilling
citizens’ requests for various
government services
 Government to Citizen (G2C)
Provides services such as:
• Birth registration
• Acquisition of marriage and
death certificates from the
Philippines Statistics Authority
(PSA)
• Car registration from the Land
Transportation Office (LTO)
E – COMMERCE SECURITY
SYSTEM
 E-commerce security
system
• Audibility – 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 – information must be available, anytime and

 E-commerce security
system
• Confidentiality - information should be kept and not
be accessible by an unauthorized user. It should not be
interrupted during transmission.
• Encryption – Information must be secured through the
encryption and decryption of an unauthorized user.
 E-commerce security
system
• Integrity – information must not be modified
during its transmission over a network. Honesty
and moral principles must be applied.
• Non-reputation – there should be assurance that
someone cannot rebuff on something.
The

M-COMMERCE
The Mobile Commerce
 The

M-COMMERCE The Mobile Commerce

• Use of wireless handheld devices like

phones in purchasing and selling.
 THE EVOLUTION OF MOBILE
PHONE AND THE EMERGENCE OF
The
capabilities
of mobile
Phone have
enormously
evolved
since it was
introduced
into the
1980s.
 In today’s generation,
mobile technologies are
widely used to access the
internet and do online
transactions using mobile
phones
 FORCES
Benefits of Mobile
Technologies
[Link]
[Link]
[Link]
[Link]
[Link]
[Link]
M-COMMERCE
FORCES
4TH and 3rd generation technology
Wireless Application Protocol
iMode Access Platforms
Personalized Service
 4 TH
and 3 generation
rd

technology
•4th generation technologies, developed in
2012-2015, with a maximum data transfer
rate of 24 Mbits/s, adopted m-commerce.
Wireless Application Protocol
• Standard used for transfer of information to
specific wireless devices, such a mobile phones.
 iMode Access Platforms
•Introduced in japan another mobile access
that displays content using HTML.
Personalized Service
• Mobile phone users have increased dramatically over
the past years.
• They can gain access to wireless service whenever
there is an available network.
• Operators can detect user’s
specific location and identification
• Can be used anytime are offered
to mobile users
 TOP M-COMMERCE IN THE
PHILIPPINES
In May 2019, it is
reported that Shoppee and
Lazada were the dominating
m-commerce applications in
the country.

LAZADA
TOP M-COMMERCE IN THE
PHILIPPINES

SHOPPEE
TOP M-COMMERCE IN THE
PHILIPPINES

ZALORA
TOP M-COMMERCE IN THE
PHILIPPINES

AMAZON
TOP M-COMMERCE IN THE
PHILIPPINES

ALIEXPRESS
TOP M-COMMERCE IN THE
PHILIPPINES

BEAUTYMNL
TOP M-COMMERCE IN THE
PHILIPPINES

E-BAY
TOP M-COMMERCE IN THE
PHILIPPINES

SEPHORA
TOP M-COMMERCE IN THE
PHILIPPINES

ALIBABA
TOP M-COMMERCE IN THE
PHILIPPINES

ALTHEA
What exactly is the
difference between
the 3?
 Bu -E
s
Co iEn-e
VS

sm
s
 vs
M-
COMMERC
E
 GUIDELINES AND LAWS
GOVERNING E-COMMERCE
 Guidelines and laws governing e-commerce

• Taxes – Conducting research and understanding

your target market are necessary to avoid problems
about taxation
• Trademarks, Patents & Copyrights. – There’s
misconception in terms of the definition of the
three. Here’s their definition provided by the United
States Patent and Trademark Office;
 Guidelines and laws governing e-commerce
1. Trademark – it is distinguishing word, phrase or
symbol, and/or design that identifies the uniqueness
of a product or service of one party from the other.
2. Patent – 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.
3. Copyright – it protects works of authorship, such as
writing, music, and works of art, that have been
tangibly expressed.
 Guidelines and laws governing e-commerce

• Shipping Restriction – Doing research will

help identify which shipping companies
could best serve a business.
• There are items (e.g. airbags, animals,
perishable materials) that are not allowed
to ship but some companies may allow it
but they may require additional fees.
 Guidelines and laws governing e-commerce

•Inventory – There are rules and

prohibition that align with lease,
deed, or zoning codes when it
comes to stock inventory for
business.
 Guidelines and laws governing e-commerce

• Business Restriction – Different types

of insurance exist for small businesses
such as general, product,
professional, and commercial liability
insurances and home-basedinsurance
 Guidelines and laws governing e-commerce

• Licenses and permits – a license is

needed to sell products or services,
licenses are dependent on the location
of a business and are distributed by a
local licensing department.
 Guidelines and laws governing e-commerce

• Payment Card Industry (PCI)

Compliance – PCI compliance servers
as protection for online businesses,
especially software as a service
(SaaS) e-commerce platforms, form
problems such as data theft.
LAWS IN THE
PHILIPPINES
LAWS IN THE PHILIPPINES
1.) Republic Act 8792 – Electronic:
Commerce Act of 2000
This covers the mandates of the Philippine
government in terms of executing online
transactions locally or intentionally.
LAWS IN THE PHILIPPINES
2.) 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
LAWS IN THE PHILIPPINES
The law involves the following 3 main
individuals:

PERSONAL PERSONAL
DATA SUBJECT INFORMATION INFORMATION
CONTROLLER PROCESSOR
LAWS IN THE PHILIPPINES
3.) Consumer Protection Regulation –
Transactions through E-Commerce – It
ensures that businesses engaging in e-
commerce adhere to fair trade practices,
provide accurate information, and
maintain secure payment systems.
LAWS IN THE PHILIPPINES
4.) Tax Guideline for E-Commerce Transactions in
the Philippines – Guidelines that require all online
sellers, whether individuals or businesses, to register
with the Bureau of Internal Revenue (BIR) and pay the
appropriate taxes. The guidelines aim to ensure that e-
commerce businesses contribute fairly to the economy
and that online transactions are properly documented
and taxed.
EXAMPLES OF E-COMMERCE & M-
COMMERCE IN THE REAL WORLD

E-Commerce
Websites
EXAMPLES OF E-COMMERCE & M-
COMMERCE IN THE REAL WORLD

Examples of M-
Commerce

MOBILE VOUCHERS ETORO MOBILE APP

END OF DISCUSSION
Phoebe Cosmetics Company