Chapter 7: "The Coming

Electronic Commerce
(R)evolution"
By : Robert L. Segal
 Substantial Information: a
roster vendors that can meet
his technical
specifications;a product list
ranked by price ;schematic
diagrams;and test results,
product reviews ,and
comments from the other
engineers.
EDI pays the bill
electronically.
1.However, as Peter Drucker
points out, " From being
organized around the flow of
things and the flow of money
[the economy] is becoming
organized around the flow of
information".
2. As information
transform
distribution, it will
also transform
industries.
A variable electronic commerce
system consist of five
elements:
• An extremely secure
network linking buyers
and sellers.
• A database of
product/vendor
listings,prices,availability,
product
specifications,and related
technical information.
•Software that provides a consistent ,easy to
use interface; a means of accesing and
sorting the database ; and eventually an
expert systems capability to help uncover
buyer's need.
•E-mail capability enabling
buyers and sellers to seek
information not immediately
available online.
• A mechanism for
shipping,financially,an
d processing orders.
Electronic Commerce Today
 3.CommerceNet
- the most adventure so far
fund by several silicon
Valley companies and the
federal government.
- operates over the Internet
,the forerunner of
information superhighway.
4.Network
- ties together several Phoenic-
based and aerospace /defense
contractors,their suppliers, and
university engineering
departments that provide
research and consulting
services.
The Electronic
Commerce Revolution
To truly understand the
impact of electronic
commerce on
distribution,three keys
issues need to be
considered:
1.Who will run the electronic
networks?
-the ownership and
management of electronic
commerce networks will
clearly influence the
acceptance of electronic
commerce .
 Online Airline Reservation
System
- provide interesting insights
into the ownership issue.
Given this ownership factors and
the current state of electronic
commerce technology,the
network managers and owners
will likely come from:
1.Associations
2.Resellers
3.Manufacturers
4.Technology Companies
5.Partnerships
1.ASSOCIATIONS
•understand the industry
buying and selling
practices and lend the
perception of
independence.
2.RESELLERS
•are in a better
position to own and
manage an entire
network .
3.MANUFACTURERS
•are likely candidates to
set up and manage
Electronic Commerce
(EC) Networks.
4.TECHNOLOGY
COMPANIES
•suppliers of this product
are fascinated by EC
networks,not only as a
means of reaching but as a
huge emerging market for
their products.
5.PARTNERSHIPS
• the most likely organizational
structure.
• EC networks will require a broad
mix of technology,capital,order
handling and processing,trade
financing,and the perception of
independence.
How Will Electronic
Commerce Change the
Structure of Distribution?

-Electronic Commerce will

create a massive
restructuring of the current
distribution system.
3.WHO WILL THE WINNERS AND
LOSERS BE?
- traditional channel marketing
system will undergo a massive
transformation in the next fer
years as online communication
radically alters the way buyers
and sellers exchange
information.
 - The Winners will find means of
graphically displaying data,updating
data on a frequent basis,and
responding to email in a creative and
real time mode.
End of Discussion ...
THANK YOU FOR
COOPERATION
EVERYONE!