Chapter 1 Overview of Electronic Commerce

EC 2006Prentice Hall 2 Learning Objectives 1.Define electronic commerce (EC) and describe its various categories. 2.Describe and discuss the content and framework of EC. 3.Describe the major types of EC transactions, technologies and interactions. 4.Describe some EC business models. 5.Describe the benefits of EC to organizations, consumers, and society. 6.Describe the limitations of EC.

EC 2006Prentice Hall 3 Electronic Commerce: Definitions and Concepts What is electronic commerce (EC)? What is e-business?

EC 2006Prentice Hall 4 Electronic Commerce: Definitions and Concepts Pure Versus Partial EC –EC takes several forms depending on the degree of digitization (the transformation from physical to digital) (1) the product (service) sold, (2) the process, (3) the delivery agent (or intermediary Examples?

EC 2006Prentice Hall 5 Electronic Commerce: Definitions and Concepts EC organizations brick-and-mortar organizations virtual (pure-play) organizations click-and-mortar (click-and-brick) organizations Examples? Godiva.com –What type of an organization is Godiva? –Navigational features of the site exercise “Lotus Bowl platter with truffles”

EC 2006Prentice Hall 6 Electronic Commerce: Definitions and Concepts Where E-business is conducted electronic market (e-marketplace) interorganizational information systems (IOSs) intraorganizational information systems

EC 2006Prentice Hall 7 Exhibit 1.2 A Framework for Electronic Commerce

EC 2006Prentice Hall 8 EC Classification: Transactions Classification by nature of the transactions or interactions business-to-business (B2B) business-to-consumer (B2C) consumer-to-consumer (C2C) Examples?

EC 2006Prentice Hall 9 EC Classification: Technology peer-to-peer mobile commerce (m-commerce) what is location-based commerce (l-commerce)? example?

EC 2006Prentice Hall 10 EC Classification: Type of Interaction collaborative commerce (c-commerce) what is collaborative commerce? example? e-learning

EC 2006Prentice Hall 11 Electronic Commerce: Major Historical Landmarks ETF (1970’s) EDI (1980’s), proprietary, expensive WWW (1990’s).com boom (late 1990’s, early 2000’s).com bust ( ) Google IPO (2004)

EC 2006Prentice Hall 12 Digital Evolution Drives EC Digital economy: What are three characteristics of digital economy? Digital Convergence

EC 2006Prentice Hall 13 Business Environment Drives EC Critical Response Activities: What companies must do to survive in competitive business environment as it changes –Traditional Responses? –Innovative Responses? Categories of business pressures –market (economic): examples? –Societal: examples? –Technological: examples?

EC 2006Prentice Hall 14 Business Environment Drives EC Organizational response strategies: What EC- enabled initiatives can organizations and businesses undertake to deal with those pressures? –BPR –CRM –Business Alliances –Electronic Markets –Time to Market Reduction –Mass Customization

EC 2006Prentice Hall 15 EC Business Models The Structure of Business Models: –What are the six elements of a comprehensive business model?

EC 2006Prentice Hall 16 EC Business Models What are major revenue models? Examples?

EC 2006Prentice Hall 17 EC Business Models Value proposition (to whom?) What are some typical EC Business Models?

EC 2006Prentice Hall 18 EC Business Models: Orbis Group Describe Traditional Supply Chain (process) for product catalog acquisition. Describe Process with ProductBank. –What processes are eliminated? –What players are eliminated? –Who benefits? –Who loses?

EC 2006Prentice Hall 19 Benefits of EC Benefits to Organizations

EC 2006Prentice Hall 20 Benefits of EC Benefits to Consumers

EC 2006Prentice Hall 21 Benefits of EC Benefits to Society

EC 2006Prentice Hall 22 Exhibit 1.7 Limitations of EC Most prominent technical limitations/barriers? Most prominent non-technical limitations/barriers? How can we overcome them?

EC 2006Prentice Hall 23 Exhibit 1.8 The Networked Organization

EC 2006Prentice Hall 24 Summary 1.Definition of EC and description of its various categories. 2.The content and framework of EC. 3.The major types of EC transactions. 4.The major EC business models. 5.Benefits of EC to organizations, consumers, and society. 6.Limitations of EC.