BUSINESS DRIVEN TECHNOLOGY

UNIT 4: Creating Collaborative Partnerships in Business

UNIT FOUR OPENING CASEAmazon.com – Just a Click Away

Unit Four

• The chapters in this unit include: – Chapter Thirteen – Creating Collaborative

Partnerships through E-Business– Chapter Fourteen – Enhancing Collaborative

Partnerships – Chapter Fifteen – Outsourcing Collaborative

Partnerships– Chapter Sixteen – Integrating Collaborative

Partnerships

BUSINESS DRIVEN TECHNOLOGY

Chapter Thirteen: Creating Collaborative

Partnerships through E-Business

LEARNING OUTCOMES

13.1 Describe how IT accelerates and enhances e-business

13.2 List and describe the importance of e-business models

13.3 Explain why forming electronic partnerships and alliances is critical to an organization

LEARNING OUTCOMES

13.4 Differentiate between B2B and B2C e-business models

13.5 Describe the major digital marketplace structures

13.6 Describe the benefits of m-commerce

CHAPTER THIRTEEN OVERVIEW

• The Internet is a powerful channel that presents new opportunities for an organization to:– Touch customers– Enrich products and services with information– Reduce costs

• E-commerce – the buying and selling of goods and services over the Internet

• E-business – the conducting of business on the Internet, not only buying and selling, but also serving customers and collaborating with business partners

EVOLUTION OF E-BUSINESS

• Individuals and organizations have embraced Internet technologies to enhance productivity, maximize convenience, and improve communications globally

E-Business Economy

• A growing number of businesses are using the Internet to:– Streamline business processes– Procure materials– Sell products– Automate customer service– Create new revenue streams

THE IMPORTANCE OF THE E-BUSINESS MODEL

• E-business models aim to use and leverage the unique qualities of the Internet and the Web to conduct business

– E-business model- an approach to conducting electronic business by which a company can become a profitable business on the Internet

• Exchanges occur between two major entities:1. Businesses2. Consumers

THE IMPORTANCE OF THE E-BUSINESS MODEL

• Basic Internet business models

Types of E-Commerce

Start

Business-to-Business (B2B) Overview

• Business advantages of B2B include:– Managing inventory more efficiently– Adjusting more quickly to customer demand– Getting products to market faster– Obtaining lower prices on supplies

Business-to-Consumer (B2C) Overview

• Business advantages of B2C include:– Access to a wider selection of products and services– Access to products at lower costs– Convenience for transactions or for obtaining

information

• The difference between B2B and B2C are the customers:– B2B customers are other businesses– B2C customers are consumers

CHALLENGES OF THE E-BUSINESS MODELS

• Three primary challenges include:1. Security concerns

– 60% of Internet users consider the Internet unsafe2. Taxation

– Internet remains free of traditional forms of taxation3. Consumer protection

– Unsolicited goods and communications– Illegal or harmful goods, services, and content– Insufficient information about goods or their suppliers– Invasion of privacy– Cyberfraud

CHALLENGES OF THE E-BUSINESS MODELS

THE EVOLUTION OF THE E-MARKETPLACE

• Electronic marketplace represent a new wave in e-business

– Electronic marketplace (e-marketplaces) – interactive business communities providing a central market space where multiple buyers and sellers can engage in e-business activities

THE NEXT GENERATION: M-COMMERCE

• In a few years, Internet-enabled mobile devices will outnumber PCs

– Mobile commerce (m-commerce) – the ability to purchase goods and services through a wireless Internet-enabled device

CHAPTER THIRTEEN Opening Case Study Questions

1. Explain whether Amazon.com is a B2B or B2C

2. Identify how Amazon.com is already integrating its business in the e-marketplace

3. Explain how m-commerce will influence the way Amazon.com conducts business

CHAPTER THIRTEEN CASE7-Eleven’s Dream Team

• 7-Eleven Japan has integrated its online site 7dream.com with its physical stores

• Through the 7dream.com Web site, 7-Eleven Japan enables consumers to choose from an online assortment of 100,000 products which are picked up from one of 8,400 store locations

CHAPTER THIRTEEN CASE QUESTIONS

1. What 7dream.com sells is “convenience.” Explain how integrating the Internet into its existing business is the key to its success

2. Identify new electronic relationships 7-Eleven Japan can create to increase customer acquisitions

3. Explain how 7-Eleven Japan can leverage the advantages of an e-marketplace to increase customer retention