Sorry forgot to reference the rest:
• Hardy, C. Dyki, M. 2006. Charles Sturt University MGT220 e-Commerce Study Guide.
• Turban, E. King, D. Viehland, D & Lee, J. 2008. Electronic Commerce: A Managerial Perspective 2008, Pearson Education, USA.
Tuesday, April 15, 2008
Monday, April 14, 2008
In-depth Reflection 1: Electronic Payments
Topic 7 shall be the reviewed for this initial reflection. I think it is important to develop the idea that electronic payment methods and e-Commerce cannot be placed together in the same categories. When people initially think of “e-Commerce”, many would come to the conclusion that it is simply ways for paying other people and businesses over the Internet than manually. Even though this is a major part of e-Commerce, it is not what this subject is completely about as I have found out lately!
The Business Dictionary describes electronic payment as simply “Enables a user to make online payments” This is true, but as a whole there is much more that users of electronic payments do between themselves and businesses.
e-Commerce has enabled people throughout the World who have Internet access to also access the most basic of all online interactions; the ability to pay without the need for physical exchanges. Essentially I think that electronic payment is a non-physical exchange between the three types of relationships, B2C, B2B and C2C.
Obvious examples that personally spring to mind when one thinks of electronic payments include:
• B-Pay.
• EFT.
• Bank accounts and online portals.
• e-Bay.
• Direct Debit.
• Phone banking.
• Cashless shopping.
• Pay-pal.
• EFTPOS/Credit cards.
How Stuff Works gives us a breakdown of the three types of electronic payments that can occur online by utilising Internet and network technologies:
1. A one-time customer-to-vendor payment is commonly used when you shop online at an e-Commerce site, such as Amazon. You click on the shopping cart icon, type in your credit card information and click on the checkout button. The site processes your credit card information and sends you an e-mail notifying you that your payment was received. On some Web sites, you can use an e-check instead of a credit card. To pay by e-check, you type in your account number and your bank's routing number. The vendor authorizes payment through the customer's bank, which then either initiates an electronic funds transfer (EFT) or prints a check and mails it to the vendor.
2. You make a recurring customer-to-vendor payment when you pay a bill through a regularly scheduled direct debit from your checking account or an automatic charge to your credit card. This type of payment plan is commonly offered by car insurance companies, phone companies and loan management companies. Some long-term contracts (like those at gyms or fitness centers) require this type of automated payment schedule.
3. To use automatic bank-to-vendor payment, your bank must offer a service called online bill pay. You log on to your bank's Web site, enter the vendor's information and authorize your bank to electronically transfer money from your account to pay your bill. In most cases, you can choose whether to do this manually for each billing cycle or have your bills automatically paid on the same day each month.
From what I can relate and think about, these three different types of payments are the only ones I personally use, not to mention transactions in the B2B marketplace. Basically the first point is when I wish to pay for goods like when actually at the shop, when I have reoccurring bills such as rent or debt payments and lastly when special cases or managing my funds in-between accounts.
The benefits of such online and electronic payment methods are numerous, importantly for the user but also for the businesses that provide these features. But one major topic still puts a dark cloud over e-payments, the concept of security and trusted online sites.
When describing the benefits of e-payments that e-Commerce gives to the users the following are sum of what I consider to be important:
• Reduced costs.
• Simplified transactions
• Instant processing.
• Instantaneous transaction between accounts.
• Recordable transaction history.
• Retrievable transaction data.
• 24/7 accessibility.
“With all the benefits of electronic payment, it's no wonder that its use is on the rise. More than 12 billion ACH payments were made in 2004, a 20 percent increase from 2003 [ref]. The 2004 Federal Reserve Payments Study noted that from 2000 to 2003, electronic payments grew as payment by check declined, which suggests that electronic payments are replacing checks.”
(Sourced - How stuff Works Online Resource.)
But all of these factors lead to one word which states why electronic payments are becoming so popular and part of everyday life, its the Convenience it provides!
Basically, I think when you look at the raw positives and negatives of electronic payment, the benefits of using it far outweigh the traditional forms of payment. Still security and trust issues still persist as users remain very cautious of online secure payment. Portals that use programs that have secure payment facilities, the greatest example I can think of is e-Bay focus on protecting against the following concepts such as:
• Fraud.
• Money laundering.
• Crime financing.
• Privacy issues.
• Identity theft.
• Hacking or interception of payment data.
By paring other computer programs which may manage funds, banking, taxes, expenses and revenues with electronic online payment methods, the average customer or business process becomes much more simplified and quicker.
I almost neglected to touch on the topic of how electronic payments also exist in physical form that almost everyone in 1st class countries use, the Debit and/or Credit Card. The concept of how such cards were implemented relates to the need to achieve “Critical Mass” in order for that form of e-Payment to be fully established and therefore accepted.
For such a product and service to be setup and implemented amongst entire countries let alone the World, would require special strategic control and development. Products and services that the involve such encompassing of the Worlds financial services include:
Smart Cards – Basically a debit or credit card that is more powerful, with more memory and has better encryption capabilities. Recently American Express has been advertising their new cards. A very good new product as card fraud is on the rise and I think that the magnetic strip technology is far outdated.
Stored Value Cards – The Company I work for provides the majority of these types of cards within Australia under “Creditline” products. Store branded cards that are prepaid with a value nominated to them for one time use only.
e-Micropayments – Very small value amounts held on cards that currently are hard finance due to their insignificance. iTunes seems to have mastered this market for their iTunes store.
e-Checking – Virtual electronic checks, basic swap over.
Electronic bill payments – B-pay as it’s known here allows people to electronically pay their bills they receive from businesses such as Telstra, Energy Australia and AGL, etc. Avery convenient method.
Reference:
• Business Dictionary.
http://www.businessdictionary.com/definition/electronic-payment-system.html
• How Stuff Works Online Resource.
http://communication.howstuffworks.com/electronic-payment2.htm
The Business Dictionary describes electronic payment as simply “Enables a user to make online payments” This is true, but as a whole there is much more that users of electronic payments do between themselves and businesses.
e-Commerce has enabled people throughout the World who have Internet access to also access the most basic of all online interactions; the ability to pay without the need for physical exchanges. Essentially I think that electronic payment is a non-physical exchange between the three types of relationships, B2C, B2B and C2C.
Obvious examples that personally spring to mind when one thinks of electronic payments include:
• B-Pay.
• EFT.
• Bank accounts and online portals.
• e-Bay.
• Direct Debit.
• Phone banking.
• Cashless shopping.
• Pay-pal.
• EFTPOS/Credit cards.
How Stuff Works gives us a breakdown of the three types of electronic payments that can occur online by utilising Internet and network technologies:
1. A one-time customer-to-vendor payment is commonly used when you shop online at an e-Commerce site, such as Amazon. You click on the shopping cart icon, type in your credit card information and click on the checkout button. The site processes your credit card information and sends you an e-mail notifying you that your payment was received. On some Web sites, you can use an e-check instead of a credit card. To pay by e-check, you type in your account number and your bank's routing number. The vendor authorizes payment through the customer's bank, which then either initiates an electronic funds transfer (EFT) or prints a check and mails it to the vendor.
2. You make a recurring customer-to-vendor payment when you pay a bill through a regularly scheduled direct debit from your checking account or an automatic charge to your credit card. This type of payment plan is commonly offered by car insurance companies, phone companies and loan management companies. Some long-term contracts (like those at gyms or fitness centers) require this type of automated payment schedule.
3. To use automatic bank-to-vendor payment, your bank must offer a service called online bill pay. You log on to your bank's Web site, enter the vendor's information and authorize your bank to electronically transfer money from your account to pay your bill. In most cases, you can choose whether to do this manually for each billing cycle or have your bills automatically paid on the same day each month.
From what I can relate and think about, these three different types of payments are the only ones I personally use, not to mention transactions in the B2B marketplace. Basically the first point is when I wish to pay for goods like when actually at the shop, when I have reoccurring bills such as rent or debt payments and lastly when special cases or managing my funds in-between accounts.
The benefits of such online and electronic payment methods are numerous, importantly for the user but also for the businesses that provide these features. But one major topic still puts a dark cloud over e-payments, the concept of security and trusted online sites.
When describing the benefits of e-payments that e-Commerce gives to the users the following are sum of what I consider to be important:
• Reduced costs.
• Simplified transactions
• Instant processing.
• Instantaneous transaction between accounts.
• Recordable transaction history.
• Retrievable transaction data.
• 24/7 accessibility.
“With all the benefits of electronic payment, it's no wonder that its use is on the rise. More than 12 billion ACH payments were made in 2004, a 20 percent increase from 2003 [ref]. The 2004 Federal Reserve Payments Study noted that from 2000 to 2003, electronic payments grew as payment by check declined, which suggests that electronic payments are replacing checks.”
(Sourced - How stuff Works Online Resource.)
But all of these factors lead to one word which states why electronic payments are becoming so popular and part of everyday life, its the Convenience it provides!
Basically, I think when you look at the raw positives and negatives of electronic payment, the benefits of using it far outweigh the traditional forms of payment. Still security and trust issues still persist as users remain very cautious of online secure payment. Portals that use programs that have secure payment facilities, the greatest example I can think of is e-Bay focus on protecting against the following concepts such as:
• Fraud.
• Money laundering.
• Crime financing.
• Privacy issues.
• Identity theft.
• Hacking or interception of payment data.
By paring other computer programs which may manage funds, banking, taxes, expenses and revenues with electronic online payment methods, the average customer or business process becomes much more simplified and quicker.
I almost neglected to touch on the topic of how electronic payments also exist in physical form that almost everyone in 1st class countries use, the Debit and/or Credit Card. The concept of how such cards were implemented relates to the need to achieve “Critical Mass” in order for that form of e-Payment to be fully established and therefore accepted.
For such a product and service to be setup and implemented amongst entire countries let alone the World, would require special strategic control and development. Products and services that the involve such encompassing of the Worlds financial services include:
Smart Cards – Basically a debit or credit card that is more powerful, with more memory and has better encryption capabilities. Recently American Express has been advertising their new cards. A very good new product as card fraud is on the rise and I think that the magnetic strip technology is far outdated.
Stored Value Cards – The Company I work for provides the majority of these types of cards within Australia under “Creditline” products. Store branded cards that are prepaid with a value nominated to them for one time use only.
e-Micropayments – Very small value amounts held on cards that currently are hard finance due to their insignificance. iTunes seems to have mastered this market for their iTunes store.
e-Checking – Virtual electronic checks, basic swap over.
Electronic bill payments – B-pay as it’s known here allows people to electronically pay their bills they receive from businesses such as Telstra, Energy Australia and AGL, etc. Avery convenient method.
Reference:
• Business Dictionary.
http://www.businessdictionary.com/definition/electronic-payment-system.html
• How Stuff Works Online Resource.
http://communication.howstuffworks.com/electronic-payment2.htm
Saturday, April 12, 2008
Personal Reflection 2: Business 2 Business e-Commerce.
I think covering topic 5, the commercial side of the business environment is very important. The majority of transactions that occur everyday throughout the world are ones between chain suppliers to eventually provide a product or service to a consumer.
“It is estimated that B2B e-commerce is the real growth area on the Net with predictions that B2B may account for almost 3/4ths of all Internet commerce revenue by 2004.
B2B covers a wide range of activities, including (electronic data interchange (EDI ) to centralised electronic hubs or exchanges, electronic communications, electronic payment provisions, e-procurement, and more.”
(Sourced – Canberra University B2B: Management and Legal Issues.)
Canberra University B2B: Management and Legal Issues also states: “B2B brings with it many potential benefits including, less need for warehousing, reduced documentation requirements, more transparent pricing, greater stock control, better interaction, opportunity to identify new trading partners and improved logistics.”
The manner in which the B2B business segments can be categorised I found broader than initially. Since my current position in my job is one that primarily deals with Business 2 Business transactions by supplying lending & finance products. Thus I can recognise the importance and relevance of e-Commerce’s role in B2B relationships.
The main difference between the major types of business relationships concerns supply & demand and trading processes. I can see that due to the specific and different manner in which businesses interact with each other, more complex relationships between say for example Distributors and Dealers who have consistent purchasing amounts & pay periods, the ability to purchase with economies of scale and special terms and conditions.
The place I work for would be considered as essentially a “Sell-Side B2B”. The marketplace though would be tagged as a “Many 2 Many” exchanges. This is one that demonstrates extensive open marketplaces with many financial & lending suppliers with many businesses that need funding/finance products. Our financial products are sold through our many different supply channels and departments to wholesalers who provide goods to consumers. e-Commerce is the major tool that allows all of the businesses functions to work, from invoicing procedures to managerial decision making implementation.
Specifically though, e-Commerce facilitates virtually 100% of our business. The businesses infrastructure is based upon the Internet, networks, online portals, e-payments, IM communication and information gathering, the list is endless. These are tools that allow both consumers and business to streamline basic selling and purchasing processes.
I think how e-Commerce provides the advantage of automation is the single most important factor to its success amongst businesses. I think that this alone has revolutionised how business operate and how they implement all processes. These automatic process save time, resources and therefore money. But I think it’s very important to remember that e-Commerce also allows these same benefits for the consumers as well. Online web portals, login systems, b-Pay, EFT, email, online database management, information access, are all products and services which empower the user (usually the consumer).
e-Commerce is the tool that solves the problem with creating a uniform platform in which both buyers and sellers in B2B marketplaces can come together and exchange. The development of how e-Commerce has the ability for consumers to take a greater role and accept more responsibility in the selling process is fantastic for businesses. In B2B relationships, having less responsibility equates to less risk, processing time, implementation and the quicker ability to respond to change.
B2B relationships in the modern company would not be able to survive without the presence of e-Commerce and its ability to transform basic supply chain interactions and processes with EDI.
Reference:
• Canberra University B2B: Management and Legal Issues.
http://209.85.173.104/search?q=cache:WZETz2xWxw0J:www.canberra.edu.au/ncf/publications/b2bmanagement.pdf+b2b+accounts+for&hl=en&ct=clnk&cd=6&gl=au
“It is estimated that B2B e-commerce is the real growth area on the Net with predictions that B2B may account for almost 3/4ths of all Internet commerce revenue by 2004.
B2B covers a wide range of activities, including (electronic data interchange (EDI ) to centralised electronic hubs or exchanges, electronic communications, electronic payment provisions, e-procurement, and more.”
(Sourced – Canberra University B2B: Management and Legal Issues.)
Canberra University B2B: Management and Legal Issues also states: “B2B brings with it many potential benefits including, less need for warehousing, reduced documentation requirements, more transparent pricing, greater stock control, better interaction, opportunity to identify new trading partners and improved logistics.”
The manner in which the B2B business segments can be categorised I found broader than initially. Since my current position in my job is one that primarily deals with Business 2 Business transactions by supplying lending & finance products. Thus I can recognise the importance and relevance of e-Commerce’s role in B2B relationships.
The main difference between the major types of business relationships concerns supply & demand and trading processes. I can see that due to the specific and different manner in which businesses interact with each other, more complex relationships between say for example Distributors and Dealers who have consistent purchasing amounts & pay periods, the ability to purchase with economies of scale and special terms and conditions.
The place I work for would be considered as essentially a “Sell-Side B2B”. The marketplace though would be tagged as a “Many 2 Many” exchanges. This is one that demonstrates extensive open marketplaces with many financial & lending suppliers with many businesses that need funding/finance products. Our financial products are sold through our many different supply channels and departments to wholesalers who provide goods to consumers. e-Commerce is the major tool that allows all of the businesses functions to work, from invoicing procedures to managerial decision making implementation.
Specifically though, e-Commerce facilitates virtually 100% of our business. The businesses infrastructure is based upon the Internet, networks, online portals, e-payments, IM communication and information gathering, the list is endless. These are tools that allow both consumers and business to streamline basic selling and purchasing processes.
I think how e-Commerce provides the advantage of automation is the single most important factor to its success amongst businesses. I think that this alone has revolutionised how business operate and how they implement all processes. These automatic process save time, resources and therefore money. But I think it’s very important to remember that e-Commerce also allows these same benefits for the consumers as well. Online web portals, login systems, b-Pay, EFT, email, online database management, information access, are all products and services which empower the user (usually the consumer).
e-Commerce is the tool that solves the problem with creating a uniform platform in which both buyers and sellers in B2B marketplaces can come together and exchange. The development of how e-Commerce has the ability for consumers to take a greater role and accept more responsibility in the selling process is fantastic for businesses. In B2B relationships, having less responsibility equates to less risk, processing time, implementation and the quicker ability to respond to change.
B2B relationships in the modern company would not be able to survive without the presence of e-Commerce and its ability to transform basic supply chain interactions and processes with EDI.
Reference:
• Canberra University B2B: Management and Legal Issues.
http://209.85.173.104/search?q=cache:WZETz2xWxw0J:www.canberra.edu.au/ncf/publications/b2bmanagement.pdf+b2b+accounts+for&hl=en&ct=clnk&cd=6&gl=au
Sunday, April 6, 2008
Personal Reflection 1: An Introduction To e-commerce.
My first entry to this blog will be about the first topic as I thought this would be a good place to start a review on the introduction to e-commerce.
I find that using the concepts that e-commerce encompasses in the real world occurs at almost every part of the working day in my environment, from doing my personal online banking to communicating with brokers for a clients draw down of funds. I do also recognise that e-commerce is more than simple transactions using B-pay or EFT, but anything that involves modern technology and online means of performing actions that results in business transactions.
The question is that whether e-commerce is as simple as transferring or adapting old methods and business processes into electronic formats? The concept that e-commerce was always a course of natural progression could be debated. B2C, C2C and B2B commerce models would of always moved into the online realm. Personally I consider that e-commerce was always the natural manner in which business strategies would progress, as concepts such as reducing costs, increasing exposure, increasing communication and leveraging more effective and efficient means of doing business.
Evidence of how integral e-commerce has become in our world today, sum of the largest companies on the Earth are ones whose primary strategic business units are providing online services and products. Not only are their primary sources of incomes converted through the online portal realm, the overall business is steered due through concepts of
e-commerce. It was good to also take note that despite this surging boom in e-commerce, not all answers can be found or problems fixed by utilising it. Some of the largest corporate crashes have been caused by failures or failure to take certain actions. Since computers are such powerful tools, manipulation of data and access to sensitive files are some of the negative aspects that will destroy a company from the inside out.
The concept relating to information being created and treated as a purchasable commodity I found to be quite agreeable. Information today is probably the most sort after and powerful form of “good” one can buy. If information is power, e-commerce is the tool that allows for business and customers alike to acquire it. Everything from travel information to the trading of national secrets is done through online resources.
e-commerce and the Internet itself is such a powerful tool that all the major types of interactions encompassing the Business 2 Consumer model, Consumer 2 Consumer model and Business 2 Business model have a specific role online. These 3 major models have shaped the manner in which we (the consumers) look at all marketplaces today. The Internet as a tool for seeking information on commonly used terms such as “pricing, industries, competitors, offers, alternatives, rare items and international access” has become second nature to many, many people.
I find that using the concepts that e-commerce encompasses in the real world occurs at almost every part of the working day in my environment, from doing my personal online banking to communicating with brokers for a clients draw down of funds. I do also recognise that e-commerce is more than simple transactions using B-pay or EFT, but anything that involves modern technology and online means of performing actions that results in business transactions.
The question is that whether e-commerce is as simple as transferring or adapting old methods and business processes into electronic formats? The concept that e-commerce was always a course of natural progression could be debated. B2C, C2C and B2B commerce models would of always moved into the online realm. Personally I consider that e-commerce was always the natural manner in which business strategies would progress, as concepts such as reducing costs, increasing exposure, increasing communication and leveraging more effective and efficient means of doing business.
Evidence of how integral e-commerce has become in our world today, sum of the largest companies on the Earth are ones whose primary strategic business units are providing online services and products. Not only are their primary sources of incomes converted through the online portal realm, the overall business is steered due through concepts of
e-commerce. It was good to also take note that despite this surging boom in e-commerce, not all answers can be found or problems fixed by utilising it. Some of the largest corporate crashes have been caused by failures or failure to take certain actions. Since computers are such powerful tools, manipulation of data and access to sensitive files are some of the negative aspects that will destroy a company from the inside out.
The concept relating to information being created and treated as a purchasable commodity I found to be quite agreeable. Information today is probably the most sort after and powerful form of “good” one can buy. If information is power, e-commerce is the tool that allows for business and customers alike to acquire it. Everything from travel information to the trading of national secrets is done through online resources.
e-commerce and the Internet itself is such a powerful tool that all the major types of interactions encompassing the Business 2 Consumer model, Consumer 2 Consumer model and Business 2 Business model have a specific role online. These 3 major models have shaped the manner in which we (the consumers) look at all marketplaces today. The Internet as a tool for seeking information on commonly used terms such as “pricing, industries, competitors, offers, alternatives, rare items and international access” has become second nature to many, many people.
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