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E-commerce in small and medium enterprises: current situation and solutions - 1


FOREIGN TRADE UNIVERSITY FACULTY OF ECONOMICS AND INTERNATIONAL BUSINESS MAJOR IN FOREIGN ECONOMICS

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E-commerce in small and medium enterprises: current situation and solutions - 1


GRADUATION THESIS


Topic:

E-commerce in small and medium enterprises: Current situation and solutions


Student : Nguyen Quynh Ngan

Grade : Japanese 4

Course : K 43

Instructor : Associate Professor, Dr. Vu Sy Tuan


Hanoi, May 2008


PREFACE

In the current era of information technology explosion, the trend of developing e-commerce applications in businesses is an inevitable trend. If e-commerce is not applied quickly, businesses will fall behind the world and the general development trend. E-commerce has been helping businesses, especially small and medium enterprises, make new steps in the production process such as saving costs in finding partners, trading and signing contracts, expanding the market to many areas in the world without spending too much money and human resources ... From these benefits, small and medium enterprises need to clearly recognize the importance of e-commerce to quickly deploy applications in the business. E-commerce has become an indispensable asset for businesses that want to do business successfully.

Realizing the great benefits and strengths of applying e-commerce in small and medium enterprises, enterprises need to build a solid foundation for themselves on e-commerce. Because e-commerce plays an important role in developing business activities, many research projects, competitions and seminars have been organized to raise awareness and level of e-commerce for enterprises, and to propose policies and activities to promote e-commerce in enterprises. From now until enterprises can truly take full advantage of the benefits brought by e-commerce, there is still a lot to do and solve, such as technical infrastructure issues, legal issues and especially security issues in e-commerce.


Based on the need to increase awareness and understanding of e-commerce activities in small and medium enterprises as well as the difficulties that these enterprises encounter in the process of implementing e-commerce applications, I would like to boldly choose the title of my graduation thesis as "E-commerce in small and medium enterprises: Current situation and solutions". In addition to the introduction and conclusion, my thesis is divided into three chapters as follows:

Chapter I: Overview of E-commerce in small and medium enterprises: This chapter outlines the basic concepts of E-commerce as well as the history of the birth and development of the Internet and E-commerce, the benefits that E-commerce brings to society, businesses and consumers, and the limitations of E-commerce. And some basic issues about small and medium enterprises are also mentioned.

Chapter II: E-commerce in small and medium enterprises: This chapter discusses the current situation of E-commerce in small and medium enterprises in countries around the world and in Vietnam. This situation is viewed from aspects such as the legal system on E-commerce, the level of readiness for applying E-commerce of enterprises, the level of implementation of enterprises, and the effectiveness that enterprises achieve after applying E-commerce.

Chapter III: Solutions to develop e-commerce in small and medium enterprises: This chapter deals with solutions to develop e-commerce in small and medium enterprises, solves difficulties that enterprises encounter in the process of application deployment and outlines a basic process for enterprises to initially apply.


This is not a new issue but its urgency cannot be denied. However, from a general perspective, the scale of a graduation thesis topic cannot cover and solve all the problems that businesses encounter in the application process. Therefore, in the process of implementing the topic, there will inevitably be shortcomings due to the writer's lack of practical knowledge, so I would like to receive comments from teachers and readers so that this topic can be more complete and practical.

Finally, I would like to express my sincere thanks to the teachers in the Faculty of Economics and International Business who taught me not only in the subject of E-commerce but also in other subjects, helping me to have comprehensive knowledge to complete this Graduation Thesis well. In particular, I would like to sincerely thank Mr. Vu Si Tuan - Associate Professor, PhD and Vice Principal of the school, who directly guided me to complete this Graduation Thesis.

Hanoi, May 27, 2008 Students

Nguyen Quynh Ngan


CHAPTER I‌‌

OVERVIEW OF E-COMMERCE IN SMALL AND MEDIUM ENTERPRISES


I. SOME BASIC CONCEPTS OF E-COMMERCE

1. History of E-commerce


Internet History


In 1969, the APRAnet network (the precursor to the Internet) was invented by university students in the United States. The network was named APRAnet because it was funded by APRA (the Advanced Research Projects Agency of the US Department of Defense). This network was initially developed with the intention of serving the sharing of resources of many computers, and later it was also used to serve communication, specifically electronic mail (e-mail).

The APRAnet network operates on the principle of no centralized control, allowing multiple users to send and receive information at the same time over the same path (wire, such as telephone lines). The APRAnet network uses the TCP (Transmission Control Protocol) communication protocol.

Later, other organizations around the world also began to deploy intranets, extranets, inter-organizational networks, etc., and many application programs, protocols, network devices, etc. appeared. APRA took advantage of the invention of IP (Internetworking Protocol) to create the TCP/IP protocol - currently used for the Internet.

Initially, the Internet was only used in universities and research institutes, then the military began to focus on using the Internet, and finally, the Government


The US government allowed the use of the Internet for commercial purposes. Soon after, Internet usage exploded across continents at different rates.

The WWW was invented long after the Internet. In 1990, Tim Berners-Lee created the Web when he built the first website at the European Center for Nuclear Research on the border between France and Switzerland. Lee's invention of the URL and http made it possible to create a website with an incredibly large number of documents linked together over a network using the TCP/IP protocol.

There have been many research works on invented web browsers such as Viola browser announced by a student of the University of California named Pei Wei in May 1992. Or in February 1993, a group of students of the University of Illinois led by Mark Andressen released Mosaic browser for IBM compatible personal computers.

After that, other organizations and individuals continued to invent many applications, protocols for www with different programming languages, programs, browsers on different operating systems, ... All of which make the www world as rich as it is today.

History of E-Commerce:


Since Tim Berners-Lee invented www in 1990, organizations and individuals have actively exploited and developed www, including American businesses. Businesses have realized that www helps them a lot in displaying, providing, sharing information, communicating with partners ... quickly, conveniently and economically. Since then, businesses and individuals around the world have actively exploited the strengths of the Internet and www to serve their business, forming the concept of E-commerce. The Internet and the web are important tools.


The most important part of e-commerce, helping e-commerce develop and operate effectively. The Internet has been widely used since 1994. Netscape launched application software to exploit information on the Internet in May 1995. Amazon.com was born in May 1997. IBM launched an advertising campaign for e-business models in 1997 …

With the advent of the Internet and e-commerce, there have been many changes in the way customers think and shop, in this way traditional commerce has gradually been transformed to adapt to the market. Specifically: buyers can now buy goods more easily, more conveniently, at lower prices, can compare prices quickly, and buy from any supplier around the world, especially when buying downloadable electronic products or services provided online.

The Internet enables businesses to maintain one-to-one relationships with a large number of customers without incurring a lot of manpower and costs.

Buyers can learn and research product specifications, accompanying services , etc. online before deciding to buy. Buyers can also easily make their own special requests for suppliers to meet, for example, buying CDs to choose their favorite songs, buying jewelry to design their own style, buying computers with their own configuration. On the other hand, buyers can benefit from businesses cutting costs for advertising on media, instead, discounting or promoting directly to buyers via the Internet, participating in global auctions and together buying a certain item in large quantities to enjoy discounts when buying in bulk. Businesses can interact, find partners, search for


customers faster, more conveniently, at much lower costs than traditional commerce.

2. General concept of E-commerce:


Concept of E-commerce


There are many different definitions of e-commerce today. These definitions look at different perspectives and aspects. From a communications perspective, e-commerce is the ability to deliver products, services, information or payments over a network such as the Internet or the world wide web.

From a communication perspective, e-commerce involves various forms of information exchange between businesses, between customers and businesses, and between customers and customers.

From a business environment perspective: E-commerce includes activities that are directly supported by network connections.

From a structural point of view: E-commerce involves the means of information transmission: text, web pages, Internet telephony, Internet video

*** Here are some different concepts of E-commerce:


E-commerce is any form of transaction conducted over a computer network that involves ownership of a product or service.

According to the broad definition, there are many other definitions of E-commerce such as E-commerce is the entire cycle and business activities related to organizations or individuals or E-commerce is the conduct of commercial activities using electronic means and digital information processing technology.

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