ch01-ecommerce

7/23/2019 CH01-ECommerce

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Overview of Electronic Commerce


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Copyright 2010 Pearson Education, Inc.

Publishing as Prentice Hall

1. Define electronic commerce (EC) and

describe its various categories.

2. Describe and discuss the content andframework of EC.

3. Describe the major types of EC

transactions.

4. Discuss e-commerce 2.0.

5. Understand the elements of the digital

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6. Describe the drivers of EC as they relate

to business pressures and organizational

responses.7. Describe some EC business models.

8. Describe the benefits and limitations of

EC to organizations, consumers, and

society.

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electronic commerce (EC)

The process of buying, selling, or exchanging

products, services, or information viacomputer

e-business

A broader definition of EC that includes not

just the buying and selling of goods andservices, but also servicing customers,

collaborating with business partners, and

conducting electronic transactions within an

or anization 1-3


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OTHER EC CONCEPTS Pure Versus Partial EC

EC Organizations

brick-and-mortar (old economy) organizationsOld-economy organizations (corporations) that performtheir primary business off-line, selling physical productsby means of physical agents

virtual (pure-play) organizations

Organizations that conduct their business activities

solely online click-and-mortar (click-and-brick) organizations

Organizations that conduct some e-commerceactivities, usually as an additional marketing channel

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intranet

An internal corporate or government

network that uses Internet tools, such asWeb browsers, and Internet protocols

extranet

A network that uses the Internet to linkmultiple intranets

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AN EC FRAMEWORK

Five support areas for EC applications

People

Public policy

Marketing and advertisement

Support services

Business partnerships

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EC IS CLASSIFIED BY THE NATURE ANDDIRECTION OF TRANSACTIONS ANDINTERACTIONS

business-to-business (B2B)E-commerce model in which all of the participantsare businesses or other organizations

business-to-consumer (B2C)

E-commerce model in which businesses sell to

individual shoppers e-tailing

Online retailing, usually B2C

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business-to-business-to-consumer

(B2B2C)

E-commerce model in which a business

provides some product or service to a client

business that maintains its own customers

consumer-to-business (C2B)

E-commerce model in which individuals usethe Internet to sell products or services to

organizations or individuals who seek sellers

to bid on products or services they need

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consumer-to-consumer(C2C)

E-commerce model in which consumers sell

directly to other consumers

collaborative commerce (c-commerce)

E-commerce model in which individuals or

groups communicate or collaborate online

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e-learning

The online delivery of information for

purposes of training or education

e-government

E-commerce model in which a government

entity buys or provides goods, services, or

information from or to businesses or individualcitizens

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social computing

An approach aimed at making the human-computer interface more natural

Web 2.0

The second-generation of Internet-basedservices that let people collaborate and

share information online in new ways,such as social networking sites, wikis,communication tools, and folksonomies

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social network

A category of Internet applications that

help connect friends, business partners, or

individuals with specific interests by

providing free services such as photo

presentations,

e-mail, blogging, and so on using a varietyof tools

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enterprise-oriented networks

Social networks whose primary objective

is to facilitate business Examples of Enterprise Social Networks

carnivalconnections.com

xing.com

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virtual world

A user-defined world in which people can

interact, play, and do business. The mostpublicized virtual world is Second Life

How Students Make Money in a Virtual World

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digital economy

An economy that is based on digital

technologies, including digitalcommunication networks, computers,

software, and other related information

technologies; also called the Internet

economy, the new economy, or the Webeconomy

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digital enterprise

A new business model that uses IT in afundamental way to accomplish one ormore of three basic objectives: reach andengage customers more effectively, boostemployee productivity, and improveoperating efficiency. It uses convergedcommunication and computing technologyin a way that improves businessprocesses

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corporate portal

A major gateway through which employees,

business partners, and the public can enter a

corporate Web site

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The Changing Business Environment Economic, legal, societal, and technological

factors have created a highly competitive

business environment in which customers arebecoming more powerful

These environmental factors can change quickly,vigorously, and sometimes in an unpredictablemanner

Companies need to react quickly to both theproblems and the opportunities resulting from thisnew business environment

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The Business Environment and Performance

Impact Model

Business Pressures

Organizational Response Strategies

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business model

A method of doing business by which a

company can generate revenue to sustainitself

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THE STRUCTURE AND PROPERTIES

OF BUSINESS MODELS

Revenue Models

Sales

Transaction fees

Subscription fees

Advertising fees

Affiliate fees

Other revenue sources

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value proposition

The benefits a company can derive from

using EC Functions of a Business Model

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TYPICAL EC BUSINESS MODELS

1. Online direct marketing

2. Electronic tendering systems tendering (bidding) system

Model in which a buyer requests would-be sellers

to submit bids; the lowest bidder wins

3. Electronic marketplaces and exchanges

4. Viral marketing

5. Social networking and Web 2.0 tools

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THE BENEFITS AND IMPACTS OF EC

EC provides benefits to organizations,

individual customers, and society

Ethical Issues

ethics

The branch of philosophy that deals with what is

considered to be right and wrong

WHY STUDY E-COMMERCE?

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1. Is it real?

2. Why is B2B e-commerce so essential?

3. What should be my business model?

4. How do we transform our organization into adigital one?

5. How should we evaluate the magnitude ofbusiness pressures and technological

advancement?6. How can we exploit social/business networking?

7. What should be my companys strategy towardEC?

8. What are the top challenges of EC? 1-34

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