E-business Part 1 of 3
E-business
E-Business (1/3)
E-Business
Amy Feng
E-mail: [email protected]
Agenda
• Introduction to e-Business and e-Commerce
• e-Business Models
• Internet Marketing
• Online industry
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1
What is E-Business
Need?
or
Want?
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The Informed Buying Cycle
Strategies Imaging Consideration Purchase
TV, Newspaper,
Magazine Web Publishing, E-Payment
Tactics 1 Book, 2 email, 3 Fund Transfer,
(but, content itself
is the best marketing tool)
Rationale
Consumers Need Trust Need Info Need Mechanism
to Get Closer to Make Decision to Buy Actually
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2
Introduction: Transitioning to the Web
• The Internet has changed the way people communicate,
conduct business and manage their daily lives
• Technologies reviewed
• Resources used
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History of the World Wide Web
• World Wide Web
• Locate and view multimedia-based documents on
almost any subject
• Makes information instantly and conveniently
accessible worldwide
• Possible for individuals and small businesses to get
worldwide exposure
• Changing the way business is done
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3
Brief History of EC
• EC applications first • Limited to:
developed in the early • Large corporations
1970s • Financial institutions
Electronic funds transfer • A few other daring
(EFT) businesses
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Brief History of EC (cont.)
• Electronic data • Enlarged pool of
interchange (EDI) — participants to include:
electronic transfer of • Manufacturers
documents: • Retailers
• Purchase orders • Service providers
• Invoices
• E-payments between
firms doing business
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4
Brief History of EC (cont.)
• Interorganizational systems (IOS)
• Stock trading
• Travel reservation systems
• Internet became more commercialized in the early
1990s
• Almost all medium-and large-sized
organization in the world now has a Web site
• Most large corporations have comprehensive
portals
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EC Definitions & Concepts
• Electronic Commerce (EC) is the process of buying, selling, or
exchanging products, services, and information via computer
networks………
• EC defined from these perspectives
• Communications
• Business process
• Service
• Online
• Collaborations
• Community
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5
EC Definitions & Concepts (cont.)
• E-business is a broader definition of EC that includes
not just the buying and selling of goods and services,
but also
• Servicing customers
• Collaborating with business partners
• Conducting electronic transactions within an
organization
• Pure vs. Partial EC: based on the degree of
digitization of product, process, delivery agent
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EC Definitions & Concepts (cont.)
E-business E-commerce
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6
EC Definitions & Concepts (cont.)
• Traditional commerce: all dimensions are physical
• Old-economy organizations (corporations)
• Perform all business off-line
• Sell physical products by means of physical agents
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EC Definitions & Concepts (cont.)
• Pure EC: all dimensions are digital
• Pure online (virtual) organizations
• Pure Play
• New-economy organization
• Sell products or services only online
• Partial EC: a mix of digital and physical dimensions
• Conduct EC activities
• Do their primary business in the physical world
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7
Electronic Markets vs.
Interorganizational Systems
• E-markets • Interorganizational
Buyers and sellers meet to Information Systems (IOS)
exchange Between two or more
• Goods organizations
• Services • Routine transaction
• Money processing
• Information • Information flow
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Classification of EC by the
Nature of the Transaction
• Business-to-business (B2B) : EC model in which all of
the participants are businesses or other organizations
• Business-to-consumer (B2C): EC model in which
businesses sell to individual shoppers
• Business-to-business-to-consumer (B2B2C): EC model
in which a business provides some product or service to a
client business; the client business maintains its own
customers, to whom the product or service is provided
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8
Classification of EC by the
Nature of the Transaction (cont.)
• Consumer-to-business(C2B): individuals who
use the Internet to sell products or services to
organizations and /or seek sellers to bid on
products or services they need
• Consumer-to-consumer (C2C) : consumers sell
directly to other consumers
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Classification of EC by the
Nature of the Transaction (cont.)
• Mobile commerce (m-commerce) —EC transactions
and activities conducted in a wireless environment
• Location-commerce— (l-commerce)
m-commerce transactions targeted to
individuals in specific locations, at specific times
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9
Classification of EC by the
Nature of the Transaction (cont.)
• Intra-business (organizational) EC: EC category
that includes all internal organizational activities
that involve the exchange of goods, services, or
information among various units and individuals
in an organization
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Classification of EC by the
Nature of the Transaction (cont.)
• Business-to-employee (B2E): EC model in which an
organization delivers services, information, or products to
its individual employees
• Collaborative commerce (c-commerce): EC model in
which individual or groups communicate or collaborate
online
• E-government: Government-to-citizens (G2C): EC
model in which a government entity buys or provides
good, services, or information to businesses or
individual citizens
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10
Classification of EC by the
Nature of the Transaction (cont.)
• Exchange (electronic): a public e-market with
many buyers and sellers
• Exchange-to-exchange (E2E): EC model in
which electronic exchanges formally connect to
one another for the purpose of exchanging
information
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e-Business and e-Commerce Overview
• Successful e-businesses are those that recognize the
needs of their target audiences and match those needs
with relevant content
• Seasoned professionals and young entrepreneurs
• e-Commerce
• Involves exchanges among customers, business
partners and the vendor
• e-Business
• Includes operations that are handled within the
business itself
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11
e-Business and e-Commerce Overview
(cont.)
• Intense competition
• Businesses must adjust to new technologies and implement new
systems
• Customized production capabilities
• Finding and keeping key employees
• 24-by-7 maintenance responsibilities
• Must be reliable, fast, functional and user friendly
• Brick-and-mortar businesses
• Businesses that have only a physical presence
• Click-and-mortar businesses
• Businesses that have both an online and an offline presence
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e-Business and e-Commerce Overview
(cont.)
• Virtual office
• All communications are conducted via phone, voice mail, fax,
e-mail and the emerging capabilities of the Internet
• Personalization
• Tailoring Web pages to users’ individual preferences and
letting users bypass irrelevant content
• Copyright infringement
• Privacy invasion
• The sale of personal data to another organization without the
consumer’s knowledge
• Tracking of Internet activity
• Unauthorized access to credit-card numbers, medical history
and criminal history
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12
e-Business and e-Commerce Overview
(cont.)
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e-Business and e-Commerce Overview
(cont.)
• Virtual office
• All communications are conducted via phone, voice mail, fax,
e-mail and the emerging capabilities of the Internet
• Personalization
• Tailoring Web pages to users’ individual preferences and
letting users bypass irrelevant content
• Copyright infringement
• Privacy invasion
• The sale of personal data to another organization without the
consumer’s knowledge
• Tracking of Internet activity
• Unauthorized access to credit-card numbers, medical history
and criminal history
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e-Business Models
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Introduction
• e-Business
• A company that has an online presence
• E-commerce businesses allow customers to sell, trade
and barter over the Web
• A company’s policy, operations, technology and
ideology define its business model
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14
Business Models
• A method of doing business by which a company
can generate revenue to sustain itself
• Spells out where the company is positioned in the
value chain
• Business models are a component of a business
plan or a business case
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Business Plans & Business Cases
• Business plan • Business case
A written document that A written document that is
identifies the business goals used by managers to garner
and outlines the plan of how funding for specific
to achieve them applications or projects; its
major emphasis is the
justification for a specific
investment
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15
The Content of a Business Plan
• Marketing and sales plan
• Mission statement and • Operations plan
company description
• Financial projections and
• The management team plans
• The market and the • Risk analysis
customers
• Technology analysis
• The industry and
competition
• The specifics of the
products and/or services
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Storefront Model
• Storefront model enables merchants to sell products on
the Web
• Transaction processing, security, online payment,
information storage
• E-commerce allows companies to conduct
business 24-by-7, all day everyday, worldwide
• An e-commerce storefront should include:
• Online catalog of products
• Order processing
• Secure payment
• Timely order fulfillment 32
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Storefront Model (cont.)
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Storefront Model (cont.)
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Storefront Model (cont.)
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Storefront Model (cont.)
• Storefront model enables merchants to sell products on
the Web
• Transaction processing, security, online payment,
information storage
• E-commerce allows companies to conduct
business 24-by-7, all day everyday, worldwide
• An e-commerce storefront should include:
• Online catalog of products
• Order processing
• Secure payment
• Timely order fulfillment 36
18
Shopping Cart Technology
• Shopping Cart
• An order-processing technology allowing customers
to accumulate lists of items they wish to buy as they
continue to shop
• Shopping cart is supported by
• Product catalog
• Merchant server
• Database technology
• Combine a number of purchasing methods to give
customers a wide array of options
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Online Shopping Malls
• Wide selection of products and services
• Offers greater convenience than shopping at multiple
online shops
• Consumers can make multiple purchases in one
transaction
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19
Auction Model
• Online auction sites
• Act as forums through which Internet users can log-on
and assume the role of either bidder or seller
• Collect a commission on every successful auction
• Sellers post items they wish to sell and wait for buyers
to bid
• Reserve price
• The minimum price a seller will accept in a given
auction
• Reverse auctions
• Allow the buyer to set a price as sellers compete to
match or even beat it 39
Auction Model (cont.)
eBay home page. (These materials have been reproduced by Prentice Hall with
the permission of eBay, Inc. COPYRIGHT © EBAY, INC. All Rights Reserved.)
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