01 introduction e-commerce
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E-Commerce IntroductionTRANSCRIPT
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E-Business
Prof. Aditi Ghode
SIMSR
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Understanding the New Internet Economy
Chapter 1
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Electronic Commerce
• The process of buying or selling goods or services across a telecommunications network.
• Many technologies facilitate E-commerce– Electronic funds transfer (EFT)– Electronic data interchange (EDI)– Internet / world wide web (WWW)
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Networks
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Networks
• A network is a group of computers connected by cable, telephone, or wireless device.
• Networks can be “local” or “wide” area.
• The internet is a wide area network.
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The Internet
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The Internet
• The internet is a collection of interconnected networks that use common, universally accepted protocols.
• The internet is a world-wide network.
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The Internet
• The Internet contains computers that are either servers or clients.
• Servers provide that basic resources that users (clients) need.
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Common Internet Services
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The World Wide Web
• The WWW or Web is one of the common Internet services.
• A Web Server is able to serve or supply Web pages containing text, graphics, and multimedia
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E-Commerce v/s E-Business
E-commerce, informally, it the use of the Internet and the Web to transact business.
E-business, refers primarily to the digital enablement of transactions and processes within a firm, involving information systems under the control of the firm.
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E-Business Advantages
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E-Business Disadvantages
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The Value Chain
• A value chain or network is the collection of activities involved in the production of a class of goods or services.
• E-commerce can facilitate these chains or networks by using IT to exchange information between network members.
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Value Chains and E-Commerce
• E-Commerce can “shorten” a Value chain by linking manufacturers with ultimate customers.
• Can eliminate intermediaries such as distributors, and in some cases retailers.
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The Value Chain
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A Value Network
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E-Business Models
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Business to Consumer B2C
• Direct to Customer commerce
• Shortens the supply chain to consumer
• Results in higher margin to business or higher value for customer or both.
• Can take a variety of forms
• Examples…
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Ashfords.com
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Barnes&Noble
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Harry and Davis
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Business to Business (B2B)
• Direct exchanges between businesses.
• Many forms and facilitating technologies.
• Can be used to form stronger links between members.
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Elements of B2B exchanges
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B2B Summary
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Business to Government (B2G)
• Similar to B2B model
• Facilitates sales to governmental entities
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eFederal.com
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Consumer to Consumer (C2C)
• Exchanges between consumers.
• Some sites similar to the “Want-Ads”
• eBay provides a C2C auction function
• InfoRocket provides a link to independent expert consultants who answer questions for $.
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InfoRocket.com
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Consumer to Business (C2B)
• Reverse auction or Demand collection Model
• Name price for commodity or service
• Priceline.com is a well known example.
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Priceline.com
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Next….
Chapter 2
E-Business Models