Dr. Chen, Electronic Commerce  Prentice Hall & Dr. Chen, Electronic Commerce 1 Chapter 1 Class Exercises Jason Chou-Hong Chen, Ph.D. Professor of MIS Graduate School of Business, Gonzaga University Spokane, WA USA

Dr. Chen, Electronic Commerce  Prentice Hall & Dr. Chen, Electronic Commerce 2 EC Application Case 1.2: Boeing Changes the Nature of its Business with Global Collaboration (p.11) #1. Describe online collaboration and its benefits to Boeing. Online collaboration at Boeing includes the ability to quickly share and evaluate the ideas and inputs of a wide variety of global partners to enhance product design and reduce cycle time.

Dr. Chen, Electronic Commerce  Prentice Hall & Dr. Chen, Electronic Commerce 3 EC Application Case 1.2: Boeing Changes the Nature of its Business with Global Collaboration (cont.) #2. List the levels of collaboration and the parties involved. There are three levels of collaboration. The first level is design collaboration where designs are reviewed and improved by a large group of internal and external designers. The second level is supply chain management where production and logistics are coordinated by the company and its suppliers. The third level is real-time collaboration between all partners as the need arises.

Dr. Chen, Electronic Commerce  Prentice Hall & Dr. Chen, Electronic Commerce 4 EC Application Case 1.2: Boeing Changes the Nature of its Business with Global Collaboration (cont.) #3. How does the technology facilitate collaboration? The technology makes it much easier for individuals and groups to share and comment on information, making it more likely that decisions will be based on wider input.

Dr. Chen, Electronic Commerce  Prentice Hall & Dr. Chen, Electronic Commerce 5 EC Application Case 1.3: MySpace: The World’s Most Popular Social Networking Web Site (p.28) #1. Why does MySpace attract so many visitors? The site provides a variety of tools that makes it easier for individuals to interact. The site also benefits from a large number of users, making the interaction more diverse and interesting. #2.List the major issues faced by the company. Some issues include accessibility, access restriction, liability, security, safety and revenue generation.

Dr. Chen, Electronic Commerce  Prentice Hall & Dr. Chen, Electronic Commerce 6 EC Application Case 1.3: MySpace: The World’s Most Popular Social Networking Web Site (cont.) #3.What are the benefits to MySpace and Google from their collaboration? MySpace benefits from the fees paid and it is now able to add an on-site search feature to users. Google benefits by having access to the users and being the default search tool.

Dr. Chen, Electronic Commerce  Prentice Hall & Dr. Chen, Electronic Commerce 7 Discussion Board Questions 4. Why is it said the EC is a catalyst of fundamental changes in organizations? EC causes fundamental changes in organizations because it requires business models and processes to be redesigned and streamlined. This is required for firms to have successful EC.

Dr. Chen, Electronic Commerce  Prentice Hall & Dr. Chen, Electronic Commerce 8 8. Compare and contrast viral marketing with affiliate marketing. In both viral and affiliate marketing of business, relying on a third party to assist in its marketing effort is necessary. With affiliate marketing, individuals or firms are paid based on the amount of additional business they can send to the selling firm. With viral marketing, individuals are encouraged to market the product to others without any financial gain.

Dr. Chen, Electronic Commerce  Prentice Hall & Dr. Chen, Electronic Commerce Which of the EC limitations do you think will be more easily overcome—the technological or the nontechnological limitations, and why? In most cases technical limitations are easier to overcome, with customer preferences taking more time to adapt.

Dr. Chen, Electronic Commerce  Prentice Hall & Dr. Chen, Electronic Commerce 10 Internet Exercise #1. Visit bigboxx.com and identify the services the company provides to its customers. What type of EC is this? What business model(s) does Bigboxx use? This company provides a large supply of office products, as well as other products and services to customers in the Hong Kong market. This company focuses primarily on B2B sales. This company makes the majority of its revenue through the direct sale of items

Dr. Chen, Electronic Commerce  Prentice Hall & Dr. Chen, Electronic Commerce 11 Example: BigBoxx (cont.) –The company’s portal is attractive and easy to use –Has a tutorial that instructs users on how to use the Web site –Once registered, the user can start shopping using the online shopping cart –Users can look for items by browsing through the online catalog or by searching the site with a search engine

Dr. Chen, Electronic Commerce  Prentice Hall & Dr. Chen, Electronic Commerce 12 Example: BigBoxx (cont.) –Users can pay by cash or by check (upon delivery), via automatic bank drafts, by credit card, or by purchasing card. –Users will soon be able to pay through Internet- based direct debit, by electronic bill presentation and payment, or by Internet banking

Dr. Chen, Electronic Commerce  Prentice Hall & Dr. Chen, Electronic Commerce 13 Example: BigBoxx (cont.) –Using its own trucks and warehouses, Bigboxx.com makes deliveries within 24 hours or even on the same day –Delivery is scheduled online

Dr. Chen, Electronic Commerce  Prentice Hall & Dr. Chen, Electronic Commerce 14 Example: BigBoxx (cont.) –Value-added services for customers check item availability in real time track the status of each item in an order promotions and suggested items based on customers’ user profiles customized prices control and central-approval features automatic activation at desired time intervals of standing orders for repeat purchasing a large number of Excel reports and data

Dr. Chen, Electronic Commerce  Prentice Hall & Dr. Chen, Electronic Commerce 15 Internet Exercise #3.Visit priceline.com and identify the various business models used by Priceline.com. Priceline.com uses the “name your own price” or reverse auction business model. This model allows consumers to place bids for different services with several third-party companies through priceline.com. If the amount paid by the customer meets the third-party company’s minimum sales price, the customer purchases the product or service at that price.

Dr. Chen, Electronic Commerce  Prentice Hall & Dr. Chen, Electronic Commerce 16 Real-World Case: GOOGLE is Changing Everything (p.38) #1. Use Google to conduct a search. What advertising appears next to the search results? Student responses will vary, but should focus on the similarity of the advertising to the search. #2. What is Google trying to do with spreadsheets? Google is hoping to use spreadsheets as web- based applications to create ease of use and foster collaboration.

Dr. Chen, Electronic Commerce  Prentice Hall & Dr. Chen, Electronic Commerce 17 Real-World Case: GOOGLE is Changing Everything (cont.) #3. What is an enterprise search? An enterprise search is the ability to search specific company data by select individuals only. #4. Identify potential revenue models in Google’s activities described here and on its Web site. Some examples include advertising and pay- for-use services.

Dr. Chen, Electronic Commerce  Prentice Hall & Dr. Chen, Electronic Commerce 18 Real-World Case: GOOGLE is Changing Everything (cont.) #5. How do Google’s services benefit a company such as Kaiser? It allows them to easily index and access data to speed activities and reduce costs.

Dr. Chen, Electronic Commerce  Prentice Hall & Dr. Chen, Electronic Commerce 19 End of RWC

Dr. Chen, Electronic Commerce  Prentice Hall & Dr. Chen, Electronic Commerce 20 Team Assignments and Role Playing #2 Each team will research two EC success stories. Members of the group should examine companies that operate solely online and some that extensively utilize a click-and-mortar strategy. Each team should identify the critical success factors for its companies and present a report to the other teams. Responses will vary based on the businesses chosen by students and the source of their information.