Electronic commerce (e-commerce) involves buying and selling of products or services over the internet or other computer networks. E-commerce provides advantages to businesses, customers, and society but also poses some risks and limitations. When developing an e-commerce strategy, businesses must consider factors like management commitment, integration of systems, user needs, and technology choices. Electronic data interchange (EDI) allows transmission of common business data between companies using networks and raises authorization issues around data disclosure, modification, and repudiation.

1. IT APPLICATIONS
Professional Stage Application Level, ICAB
Teacher: Mohammad Abdul Matin
Chapter 1
E-Commerce & EDI

2. Chapter Outline
 Importance of IT Strategy
 Process of Developing IT Strategy
 Electronic Commerce
 Risks, Limitations & Advantages of E-commerce
 Electronic Data Interchange (EDI)
 Information Technology in Enterprises in Bangladesh

3. Syllabus
 In the examination, candidates may be required to
a. identify factors to consider in the decision process related to
electronic commerce applications
b. identify authorization issues associated with electronic data
interchange in a business information system
c. identify risks, limitations and advantages of electronic
commerce applications

4. What is Electronic Commerce?
 Buying and selling products or services over the Internet
(including mobile Internet) or computer network systems
are called e-commerce.
* Is advertising on an online newspaper a e-commerce?
* Is buying train tickets using mobile phone a e-commerce?
Some examples of e-commerce:
- Selling plane tickets over Internet website
- Purchasing cloths from online shopping site
- Selling artificial stone ornaments over the Facebook

5. e-Commerce Site (akhoni.com)

6. e-Commerce Sites (amazon.com)

7. e-Commerce Site (elance.com)

8. Decision Making Process
 Commitment from top management with strategic
orientation
 Integration between front-end applications and
subsequent business processes
 Cooperation from partners from own and neighboring
sectors
 Content or added value for customers
 Functions realized with a higher number of users, the
critical mass
 Clear structure and user friendliness, i.e. functionality

9. Decision Making Process (cont.)
 Users encouraged to provide critical feedbacks
 Stringent marketing concept – SEO, SMM, online and
traditional advertisement, etc.
 Achieving “feel good” and building trust in online
shopping
 Using the right technology to achieve all the above

10. John Cato’s Model of Interaction Design
• Do you sell the product I need?Awareness
• Is this exactly the product I think it is?Understanding
• Where can I use the product for?Purpose
• What are my choices?Choice
• Can I easily check out and make
payments?Action

11. AIDA Model
• Attract the attention of the
customerA - Attention
• Raise customer interest by
focusing advantagesI - Interest
• Convince that the product/service
will satisfy their needsD - Desire
• Lead customers towards taking
action, i.e. purchasingA - Action

12. Risks, Limitations and Advantages
 Risks:
– Information Risk
– Technology Risk
– Business Risk
 Advantages:
– To Business / Organization
– To Customers
– To Society

13. Risks, Limitations and Advantages
 Disadvantages:
– Overall
– Technological
– Non-Technological
 Limitations:
– Technical Limitations
– Non-Technical Limitations

14. Electronic Data Interchange (EDI)
 Electronic Data Interchange (EDI) is a method of
transmitting commonly used data between companies
using computers and networks (e.g. Internet)

15. Authorization Issues with EDI
Planning
Analysis &
Design
Construction
&
Installation
Operation
EDI Implementation Process:
Concerns:
 Disclosure of Data
 Modification of Data Contents
 Modification of Data Sequences
 Sender Masquerade
 Repudiation of Data Origin or Receipt

16. Questions
 Briefly explain the John Cato's Model of Interaction
Design and AIDA Model
 Draw a chart showing advantages of e-commerce
applications

17. Thank You
Next Class
Topics: Chapter 1 – IT in Bangladesh Enterprises