E-commerce 2009 Part 1 - 2

+ I: Infrastructure: Information and communication technology infrastructure. A typical example is ADSL broadband Internet service. In our country, according to 2008 statistics of the Department of E-commerce, up to 99% of businesses have connected to the Internet, of which 98% of businesses use ADSL broadband service to access the Internet at a speed high enough to conduct online transactions. After all, if Internet services are not popularized, e-commerce cannot be developed. Therefore, UNCTAD suggests that the first area that needs to be developed is Information and communication technology infrastructure, creating the first shell for e-commerce.

+ M: Message: Issues related to Data Messages. Messages are all types of information transmitted over the network, over the Internet in e-commerce. For example, electronic contracts, online offers, inquiries, electronic payment documents ... are all considered messages, more precisely "data messages". In countries and in Vietnam, data messages when used in e-commerce transactions are recognized as having legal value. This is reflected in the United Nations Model Law on Electronic Transactions or the E-commerce Law of countries, as well as in the Law on Electronic Transactions of Vietnam.

+ B: Basic Rules: The basic rules regulating general e-commerce: are the laws regulating the fields related to e-commerce in a country or region and internationally. For example: in Vietnam today, there is the Law on Electronic Transactions (3/2006), the Law on Information Technology (6/2006). For regions with framework agreements on e-commerce of regions such as the EU, ASEAN, ... WTO Agreement on Information Technology, on Intellectual Property Protection, and on the recognition of legal value when transacting across national "borders".

+ S: Sectorial Rules/ Specific Rules: Separate rules, regulating each specialized field of e-commerce such as electronic authentication, electronic signature, banking

Electronic (electronic payment). Legal aspects in Vietnam can be detailed Decrees on each field. Or new international trade practices such as the Rules for presentation of electronic documents in international payments (e-UCP), or the rules for using electronic bills of lading (of Bolero)

+ A: Applications : These are understood as e-commerce applications, or e-commerce business models that need to be adjusted, as well as invested in and encouraged to develop, on the basis of solving the above 4 problems. For example: National e-commerce portal models (ECVN.gov), B2B e-commerce trading floors (Vnemart.com) as well as B2C models (golmart.com.vn, Amazon.com), C2C models (Ebay.com), or websites of import-export companies... are all considered e-commerce applications.

- WTO: E-commerce includes the production, advertising, sale and distribution of products that are bought and paid for over the Internet, but the delivery can be tangible or delivered over the Internet in digital form.

- AEC (Association for Electronic Commerce): E-commerce is doing business using electronic tools, this definition is broad, considering most business activities from simple phone calls to complex EDI information exchanges as e-commerce.

The United Nations Commission on International Trade Law (UNCITRAL Model Law on Electronic Commerce, 1996) defines: Electronic commerce is the exchange of commercial information through electronic means, without the need to print out any stage of the entire transaction process.

“Information” is understood to mean anything that can be transmitted electronically, including letters, text files, databases, spreadsheets, designs, graphics, advertisements, inquiries, orders, invoices, price lists, contracts, animations, sounds, etc.

“Commercial” is understood in a broad sense and covers matters arising from all relationships of a commercial nature, whether contractual or not. Commercial relationships include, but are not limited to, transactions

any transaction for the supply or exchange of goods or services; commercial representation or agency; factoring; leasing; construction of works; consultancy; engineering; financing; banking; insurance; exploitation agreement or concession; joint venture and other forms of industrial or business co-operation; carriage of goods or passengers by sea, air, rail or road.

Although the subject is called e-commerce, the scope of study is

more broadly covering both e-business models and issues with the aim of equipping learners with knowledge and skills in e-commerce and e-business for application in all business areas and related organizations.

1.3. Means of implementing e-commerce

The means of implementing e-commerce (also known as electronic means) include: telephone, fax, television, wireless telephone, interconnected computer networks, ... and the Internet. However, e-commerce develops mainly through the Internet and really becomes important when the Internet is popularized. However, recently, commercial transactions through electronic means are more diverse, mobile electronic devices are also gradually taking an important position, this form is known as mobile e-commerce (Mobile-commerce or M-commerce).

- Telephone: is a popular, easy-to-use means, and appeared almost the earliest among the electronic means mentioned. Some services can be provided directly via telephone such as postal services, banking, Q&A, consulting, entertainment. With the development of mobile phones, satellite communication, the application of telephones is becoming more widespread. However, telephones have a limitation in that they can only transmit sound and all transactions must still be completed by paper. In addition, the cost of telephone transactions, especially long-distance telephone transactions, is quite expensive. E-commerce still uses telephones as an important tool, however, "telephone" is understood in a broad sense, not limited to landline telephones but is understood as all forms of voice communication via electronic means: telephone over the Internet, "voice chat", "voice message"

via Yahoo Messenger (YM) or Skype... This is also the outstanding advantage of the Internet with voice transmission applications through this environment and electronic devices such as computers used in this e-commerce transaction. For example: negotiating, signing contracts via YM & email.

- Fax machine: Can replace traditional mail and dispatch services. However, the limitation of fax machines is that they can only transmit written documents, not sound, animations, or three-dimensional images. Faxing via the Internet is a new service that is widely used to reduce costs in electronic transactions. Electronic devices are not limited to traditional fax machines but extend to computers and other electronic devices using software that allows sending and receiving fax documents. This activity also expands the concept of e-commerce and regulations on original documents, evidence, and documents because the original of the fax was previously a paper document, the original of the fax via computer can be an electronic document. For example: using Winfax to send a word document from a computer to a partner's fax machine.

- Television: today, television has become one of the most popular electronic tools. Television plays an important role in commerce, especially in advertising goods. However, television is only a one-way communication tool. Through television, customers cannot search for offers or negotiate with sellers on specific terms of sale. Recently, when television sets are connected to computers, its uses have been expanded. Transactions and negotiations by "video conference" via the Internet have become important and promoted e-commerce because it saves time and costs for all parties while still being as effective as traditional direct transaction negotiations. For example, e-learning uses video-conference and net-meeting.

- Computers and the Internet: e-commerce only really became important when computers and the Internet exploded in the 90s of the 20th century. Computers and the Internet help businesses conduct transactions, cooperate in production, provide services, manage activities within businesses, connect businesses globally, and form new business models. Not limited to computers, electronic devices and other telecommunications networks

It is also strongly applied in commerce to diversify e-commerce activities from the use of smart cards in electronic payments, mobile phones in small value electronic transactions, e-commerce systems in transportation to process train, bus, and plane tickets to securities transactions, finance, electronic banking, domestic and international electronic customs. Global corporations also share information in commercial activities through their own networks or via the Internet. For example: e-banking, e-procurement.

1.4. Basic operations system in e-commerce

According to Michael Porter, e-commerce can be applied to all stages in the value chain. Of course, when applied deeply and widely, e-commerce here is understood in a broad sense, becoming e-business.

Online shopping

- Buy raw materials online (car and airplane manufacturing...)

- Online bidding to purchase raw materials

- ERP connection between companies and suppliers

- Share raw material information with suppliers

Outbound logistics

- Online order management

- Sign contracts automatically online

- Allows customers to access new product catalogs and delivery times

- Contract implementation process management

After sales service

- Track online sales

- Online customer support

- Customer relationship management

- Manage sales of accessories/replacement goods

Products and Services 1

Inbound Logistics

2

Handle

business 3

Outbound Logistics

4

Marketing & After Service

Sales 5

sales 6

Electronic R&D

- Online R&D

- Design new products for clothes and computers

- Develop new products faster (cars)

Electronics manufacturing

- Manufactured according to customer orders

- Cooperation between component manufacturers and assemblers

- Share knowledge

- Planning the use of resources

E-Marketing

- Marketing by customer target

- Electronic market research

- Electronic advertising

- Interact with customers

- Online sales

- Online transaction processing

- Interactive pricing

Figure 1.1. Application of e-commerce in stages of the value chain

Source: Marketing Management, Porter ME 2001

1.5. E-commerce development process

E-commerce develops through 3 main stages

* Phase 1: Information commerce (i-commerce)

This stage has seen the appearance of the Website. Information about the goods and services of the business as well as about the business itself has been posted on the web. However, the above information is only for introduction and reference purposes. The exchange of information, negotiation of contract terms, between businesses or between businesses and individual customers is mainly through email, forums, chat rooms... Information in this stage is mostly one-way, two-way information between sellers and buyers is limited and does not meet the needs.

actual demand. During this period, consumers can make online purchases, but payment is still made using traditional methods .

* Phase 2: Transactional commerce (t-commerce)

Thanks to the emergence of electronic payment , information e-commerce has entered another stage in the development of e-commerce, which is transactional e-commerce. The emergence of electronic payment has perfected online shopping activities. During this stage, many new products have been born, such as e-books and many digital products .

During this period, businesses have built internal networks to share data between units within the business, as well as apply software to manage Human Resources, Accounting, Sales, Production, Logistics, and conduct electronic contract signing.

* Phase 3: Collaborative Commerce (c-Business)

This is the highest development stage of e-commerce today. This stage requires high collaboration and coordination between the enterprise itself, the enterprise with suppliers, customers, banks, and state management agencies. This stage requires the application of information technology in the entire cycle from the input of the production process to the distribution of goods.