ch01 ecommerce introduction (1)

8/2/2019 Ch01 Ecommerce Introduction (1)

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Overview of Electronic Commerce


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Copyright 2010 Pearson Education, Inc.Publishing as Prentice Hall

electronic commerce (EC)

The process of buying, selling, or exchanging

products, services, or information via computer

e-business

A broader definition of EC that includes not just

the buying and selling of goods and services, but

also servicing customers, collaborating withbusiness partners, and conducting electronic

transactions within an organization

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OTHER EC CONCEPTS Pure Versus Partial EC

EC Organizations brick-and-mortar (old economy) organizations

Old-economy organizations (corporations) that perform theirprimary business off-line, selling physical products by meansof 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-commerce activities,usually as an additional marketing channel

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electronic market (e-marketplace)

An online marketplace where buyers and

sellers meet to exchange goods, services,

money, or information

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Interorganizational information systems (IOSs)

Communications systems that allow routine

transaction processing and information flow

between two or more organizations Intraorganizational information systems

Communication systems that enable e-commerce

activities to go on within individual organizations

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intranet

An internal corporate or government network

that uses Internet tools, such as Web

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 AND DIRECTIONOF TRANSACTIONS AND INTERACTIONS

business-to-business (B2B)

E-commerce model in which all of the participants are

businesses or other organizations business-to-consumer (B2C)

E-commerce model in which businesses sell toindividual shoppers

e-tailingOnline 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 use the

Internet to sell products or services toorganizations or individuals who seek sellers to bid

on products or services they need

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intrabusiness EC

E-commerce category that includes all internal

organizational activities that involve the exchange

of goods, services, or information among variousunits and individuals in an organization

business-to-employees (B2E)

E-commerce model in which an organizationdelivers services, information, or products to its

individual employees

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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 individual citizens

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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 socialnetworking 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 providingfree services such as photo presentations,

e-mail, blogging, and so on using a variety of

tools

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social network service (SNS)

A service that builds online communities byproviding an online space for people to build freehomepages and that provides basiccommunication and support tools for conductingdifferent activities in the social network

social networking

The creation or sponsoring of a social networkservice and any activity, such as blogging, done ina social network (external or internal)

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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 most

publicized 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 digital communication

networks, computers, software, and other

related information technologies; also called

the Internet economy, the new economy, or

the Web economy

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digital enterprise

A new business model that uses IT in afundamental way to accomplish one or more

of three basic objectives: reach and engagecustomers more effectively, boost employeeproductivity, and improve operating efficiency.It uses converged communication andcomputing technology in a way that improvesbusiness processes

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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 factorshave created a highly competitive businessenvironment in which customers are becoming more

powerful

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

Companies need to react quickly to both the problemsand the opportunities resulting from this newbusiness environment

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business model

A method of doing business by which a

company can generate revenue to sustain

itself

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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 exchanges4. 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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Copyright 2010 Pearson Education Inc

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 a digitalone?

5. How should we evaluate the magnitude of businesspressures and technological advancement?

6. How can we exploit social/business networking?7. What should be my companys strategy toward EC?

8. What are the top challenges of EC?

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ch01 ecommerce introduction (1)

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