Chapter 5 Electronic Commerce I. E-Commerce II. B2C III. B2B IV. Internet, Intranet, and Extranet.

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Chapter 5 Electronic Commerce I. E-Commerce II. B2C III. B2B IV. Internet, Intranet, and Extranet

I. E-Commerce and Four Types 1. What is E-Commerce? “Commerce that is accelerated and enhanced by IT, in particular the Internet.” (Haag et al.)

2. Four Types of E-Commerce B2C e-commerce: business organization sells products or services directly to customers on Web sites.B2C B2B e-commerce: business organization sells products or services directly to business organization through Internet. C2C e-commerce: Web site that brings together individuals who sell and buy products or services. They deal directly with each other through Internet.C2C C2B e-commerce: Web site that combines purchase requests from individual customers into a single large order which justifies a discount from business.C2B

II. B2C E-Commerce 1.Advantages of B2C (p.192) Faster and more convenient shopping Change offerings and prices instantaneously Web-based call center: , chat room, speech recognition Application of broadband telecommunication technology –ISDN (Integrated Services Digital Network) –DSL (Digital Subscriber Line) –Difference between ISDN and DSL (speed and scalable speed, special line installation).Difference

2. Lessons of Dot-Com Crash (p.198) NASDAQ 5100 at Spring of 2000 / new measure for investment (hit-count) Good for uniform products Good for digital products Attractive Web site (how p.200) Merchandising – product selection and attractively displayedMerchandising Backend systems –execute business processes well Domain knowledge – pick your sector carefully Watch competitors – your business models and ideas can be easily copied

III. B2B E-Commerce 1.Complex network of relationship between the enterprise, its customers, intermediaries, complementors and suppliers (p. Keen et al.) 2.Purchasing of direct materials and EDI Computer-to-computer exchange between business organizations Standard business documents (transfer of invoice, purchase order, shipping notice, etc.) Standard format – computer can interpret and use the information without human intervention.

III. B2B E-Commerce (continued) 3. Purchasing of indirect materials Electronic catalog online Search engine to locate items Shopping cart and backend systems 4. B2B marketplaces Bring together buyers and sellers Software matches buyers and sellers and helps transactions Reverse auction: buyer posts what and how many to buy, sellers submit bids.

IV. Internet, Intranet, and Extranet Internet is available for everyone to use. Intranet uses the same Web interface but put up firewalls (a special security software) so that only employees could access the company’s Web site. It is an internal organizational Internet. Extranet is somewhere between Internet and Intranet. It also uses firewalls, but it allows only selected outsiders, such as business partners, suppliers, and customers, to access the company’s Web site.