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Nica Macasaet

on 9 October 2015

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Transcript of E-COMMERCE

E-Commerce in the Philippines
Republic Act 8792 (known as the Philippine Commerce Law) was signed on June 19, 2000.
this bill was approved to make the country part of legitimate player in the global marketplace.
Some of the salient feaTures of Philippine Commerce Law is that:
it gives legal recognition of data messages, electronic documents and electronic signatures
it allows the formation of contact in electronic form.
it makes banking transactions done through ATM switching networks absolute once consummated.
parties are given the right to choose the type and security methods that suit their needs.
provides the mandate for the electronic implementation of lading non-negotiable seaway bill, charter party hill of lading.
mandates the government to have the capability to do e-commerce within 2 years before June 19, 2000.
mandates RP web to be implemented.
RP WEB is a strategy that intends to connect all government offices to the Internet and provide universal access to the general public.
The Department of Transportation and Communication, National Telecommunication communication, and National Computer Center come up with policies and regulations to facilitate the growth of e-commerce
and provide guidelines as to when a service provider can be liable.
hacking and cracking, which refers to unauthorized access, including the introduction of computer viruses, is
punishable by a fine of P100,000 to maximum commensuration of damage, with imprisonment from 3 months to 6 years.
Piracy through the use of telecommunication network, such as the internet, that infringes the intellectual property right is punishable.
Electric Commerce
What is e-commerce?
E-commerce is trading in products or services using computer networks, such as the Internet.
it consists primarily of distribution, buying , selling, marketing, and servicing of products over electronic networks.
it can involve electronic funds transfer, supply chain management, e-marketing, on-line marketing, on-line transaction processing, electronic data interchange (EDI), automated inventory management systems, and automated data collection system.
Background of e-commerce

E-commerce meant the facilitation of commercial transactions electronically , using technology
such as Electronic Data interchange (EDI) and Electronic Funds Transfer (EFT)

The growth and acceptance of credit cards

Automated Teller Machine

Telephone Banking

Airline Reservation System

The Internet commercialized and users floked to participate in the form of dot-coms or internet start-ups Innovative applications ranging from online direct sales to e-learning experiences

Many European and American business companies offered their services through World Wide Web

Since then, People began to associate a word “E-Commerce”

Information Technology
in Marketing
This is a sophisticated network that can link a large number of firms at different levels of distribution channel.

Allows business partners access to highly sensitive data about current operations, as well as future plans.

Electronic commerce
New business seeking an effective way to reach the market, and
Existing business expanding their access to the market, and their current channel.

Two categories of forms that conduct transactions over the web:
The company’s history, Its mission, corporate philosophy, and general orientation.
Background and general information
Is a form of networking, which involves creating a corporate website and posting information on it.

Electronic information Transfer

Networks are individuals or organization linked together to share data, exchange information and ideas, and perform tasks.

Electronic networking
Was as a part of US Government project. Its original purpose was to link researchers at many different sites and allow them to exchange information.
The Internet
Providing an e-mail link for visitors permitting them to ask questions or comments
Contact point
When electronic networking moves outside the firm, it is known as Electronic data interchange, which is a propriety system, in which data are exchanged between trading partners, to be used for standardized, pre-approved transactions.
Electronic data interchange

connections to other related sites.
Attraction and entertainment features
tools and techniques for engaging site visitors.
Electronic Transaction
Note that e-information site provide information, but they are not designated to make transaction.
Success factors in E-commerce
Providing an easy way for customers to order.
Providing reliability and security.
Providing a 360-degree view of the customer relationship.
Constructing a commercially sound bussiness model.
Engineering an electronic value chain in which one focuses on a “limited” number of core competencies – the opposite of a one-stop shop

Technical and Organizational Aspects

Operating on or near the cutting edge of technology and staying there as technology changes.
Setting up an organization of sufficient alertness and agility.
Providing an attractive website.
Streaming business process, possibly through re-engineering and information technologies.

Technical and Organizational Aspects

Providing value to customers.
Providing service and performance.
Providing an incentive for customers to buy and return.
Providing personal attention.
Providing a sense of community.
Owning the customer’s total experience.
Letting customers help themselves.
Helping customers to do their job of consuming

Customer Oriented
reporter: Kent Tupaz
Reporter: Laine Abrena
Reporter: Nica Lei Macasaet
Reporter: Kevin MagLaqui
"E-Commerce Business Models"
Business -to-Business (B2B)
This implies selling of products and services between corporation and the automation of systems involved.
Business -to- consumer (B2C)
It involves interaction and transcription between a company and consumer, focus is placed on selling goods and services and marketing to the consumer.

Government- to-Business (G2B)

The interactions and transactions between the government and business; like the on-line payment of taxes, and licenses, and fees, government bidding, and application for clearances and permits.

Electronic Commerce “E-Commerce”
-is trading in products or services using computer networks, such as the Internet.

Three steps to analyze when looking at the creation of an on-line business:


reporter: Audrey Anne Pascual
5 strategies for selling online
Rethinking Revenue Streams
-Varieties of methods of selling have been used and are being used to increase their market and their Return of Investment (ROI).

Re-engineering the Business
-Companies reinvent the way they do business, changing how they distribute goods, and how they collaborate within the company and with suppliers.

Empowering Customers
-E-Commerce provides a venue for buyers to have the best choice and best prices for products.
Providing Costumer Service
-Merchants have become more creative in providing value-added services to generate customer loyalty.

Joining the Global Economy
-The web is not just for the technology savvy; it is also for men,women, and children of different countries,religions, and nationalities participating in the new market.

1.Infrastructure aspect of E-Commerce
-Including communications,payments, and distribution.

2. Socio-ecoNomic,cultural, and legal environment.

Development and Initiatives in E-commerce
1. The development/trend in transaction values. It was expected that the higher growth rates for Asian/Pacific representing 86.5 % compared to the world's growth rates, which is 58.4% in the past years. These figures was patterned to the following:

a. A US-centric geographic distribution of the transactions value with the US accounting for almost three fourths (74%) in 2000. This dominance, however, is expected to decline to less than half (47%) in 2004.

b. Even if E-Commerce is growing rapidly, it is still on it's embryonic stage.

c. A substantial proportion of website is not yet equipped with online payment system, but only provide information of products, which can be purchased using orders via telephone or fax on normal over that counter transaction.

2. The development of infrastructure aspects. The growth of E-Commerce depends on the identified three infrastructure system.
Three Infrastructure System

a. Communication infrastructure
b. Payments infrastructure.
C. Distribution and delivery infrastructure.

3. The socio-economic, cultural, and legal environment. Over and above the three infrastructure systems is the social, cultural, and legal environment within which these activities occur.

One way of characterizing the socio-economic and cultural dimension of e-commerce is through the level of access and acceptance of electronic transaction by the population.
Several aspects of characterizing the socio-economic and cultural dimension:
a. The affordability of being on-line.
b. The level of comfort in doing electronic transactions.
c. The legal environment governing electronic transactions.
Initiatives Undertaken by the Government

A. Regional Initiatives

The elements of the plan include:
1. Evolving regional ASEAN information Infrastructure (AID);

2. Create an E-Commerce friendly legal environment;
3. Facilitate the freer flow of trade and investment in ICT goods and services;
4. Addressing societal concern; and
5. Government to lead by example

The pilot projects proposed by the taskforce include:

1. For E-Commerce: Dot Com Incubator, Industry/Business Exchange, ASEAN World Master portal, and regional trade net;
2. ASEAN School Network;
3. E-Entrepreneurship seminar (Romulo, 2000)
The important milestone included for 2001:

1. Enhancing interconnectivity and interoperability;
2. Begin applying Mutual Recognition Agreement (MRA) on telecom equipments;
3. Mutual Recognition of digital signature and electronic documents;
4. For 2002, the establishment of payment mechanism:
5. For 2003, begin the implementation of ICT common marketplace and all members would have enacted UNCITRAL-based e-commerce legislation; and
6. A recent development is the signing of the e-ASEAN Framework Agreement during the fourth ASEAN informal Summit in November 2000 in Singapore. The agreement formalized the agreement on the proposals developed by the e-ASEAN Task Force presented earlier.

Several Significant national initiatives in ASEAN have been launched in recent years.

1. Singapore, the almost fully implemented IT 2000 Master plan is the existing blueprint for using IT in all government departments.

B. National Initiatives
It spawned Singapore One, which was formally launched in june 1996. It aims to deliver a new level of interactive, multimedia application and services to homes, business and schools throughout Singapore. It promises to go beyond what the Internet can deliver. The plan was to deliver two distinct, but integrated levels of information services:
The broadband infrastructure of high capacity network and switches; and
The advanced applications and services using these high capacity networks.
2. Malaysia, for it's part, has launched in June 27, 1998 the Multimedia Super Corridor (MSC). It envisioned to create a "perfect global multimedia climate'" in kilometers, by 50 km strip between Kuala Lumpur City center to Kuala Lumpur International Airport. E-initial applications include:

a. Electronic government
b. SMART School
c. Telemedicine
d. R and D
e. Worldwide Manufacturing Web
f. Borderless Marketing

3. The Philippines' IT21 envisions the country to be the IT human resource center in the region. The poor state of telecommunications infrastructure will continue to be a challnge. In july 2000, the government launched the Government Information System Plan (GSIP), dubbed as the Philippine Government On-line.
4. Thailand is about to finish it's E-Commerce Plan by the end of October 2000. The existing monopoly of Communication Authority of Thailand (CAT) has been cited a major roadblock in the progress of diffusion of Internet use in Thailand (FEER, Sept. 2000). CAT's response to this criticisms is published on their website.
5. Vietnam appears to have similar ptoblems with Thailand regarding the monopoly of Vietnam Posts and Telecommunications (VNPT) of vital international gateways.

Reporter: Romelyn Aberia
reporter: Blesse Angel Balas
Full transcript