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Electronic Commerce: An Introduction

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Abstract

Electronic commercial transactions over the Internet, or "e-commerce," have grown so fast over the last five years that many experts continue to underestimate its growth and development. Whether retail business-to-customer or business-to-business transactions, e-commerce is now a significant part of commercial transactions. In turn, policymakers both in the United States and abroad are likely to face increasingly complex issues of security, privacy, taxation, infrastructure development and other issues in 2001 and beyond. This report will be updated periodically.

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... After an exploration of Internet and how to conduct business on Internet, it was realized that this technological innovation had importance in changing the structure of industries, mainly through the introduction of substitute products, new entrants and through intermediation and disintermediation (Pedersen, 1997;Wigand and Benjamin, 1995;Bloch 1996). Moreover, it was also clear that Internet was contributing to change the business processes of a corporation and that the development of a strategy was necessary. ...
... The electronic commerce concept has developed in the 70's even though electronic commerce under the infant form of EDI or electronic data interchange has been existing since the late 60's with the invention of the first data networks (Pedersen, 1997;Kalakota and Whinston, 1996). Early examples of electronic commerce are electronic order processing systems (e.g. ...
... Among the new business models, the most important ones might be the new electronic-only intermediaries that could form around the electronic commerce business (Pedersen, 1997;Wigand, 1997). However, electronic commerce could also lead to a disintermediation effect as electronic commerce might directly connect the buyer and the seller. ...
... It also influences their backward or forward integration and might give rise to new substitute products. E-commerce, in addition to the effects of other technological innovation, might give rise to an intermediation and disintermediation effect in the value system of an industry (Benjamin and Wigand, 1995; Pedersen, 1997). The publishing industry boundaries are also changing as a result of mergers and alliances between the publishing houses and network providers, telecommunication companies, etc. (See for example the annual report of Munksgaard Publishing or Elsevier Science). ...
... Using electronic commerce systems on the Internet (or similar systems) Prop. C1: makes it easier to bypass an intermediary in a distribution network, due to direct customer contact and the use of a publicly shared infrastructure The hypothesis of intermediation and disintermediation as a consequence of electronic commerce has been discussed by many (Pedersen, 1997; Benjamin and Wigand, 1995, Sarkar et al.). Disintermediation means that many functions done in the marketplace by some intermediaries (e.g., the binders, the printers and the subscription agent in the case of STM publishing) can be suppressed by connecting the producer directly with the consumer. ...
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Chapter
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