4.1 Prof Jess UEAB THE DIGITAL FIRM: ELECTRONIC COMMERCE & ELECTRONIC COMMERCE & ELECTRONIC BUSINESS

4.2 Prof Jess UEAB 2012 We need to know HOW INTERNET TRANSFORMS BUSINESS HOW INTERNET TRANSFORMS BUSINESS COMPARE CATEGORIES OF ELECTRONIC COMMERCECOMPARE CATEGORIES OF ELECTRONIC COMMERCE EVALUATE PRINCIPAL ELECTRONIC PAYMENT SYSTEMSEVALUATE PRINCIPAL ELECTRONIC PAYMENT SYSTEMS* © 2008 by Prentice Hall

4.3 Prof Jess UEAB 2012 LEARNING OBJECTIVES DEMONSTRATE HOW INTERNET TECHNOLOGY SUPPORTS ELECTRONIC BUSINESS, SUPPLY CHAIN MANAGEMENTDEMONSTRATE HOW INTERNET TECHNOLOGY SUPPORTS ELECTRONIC BUSINESS, SUPPLY CHAIN MANAGEMENT EXAMINE CHALLENGES OF INTERNET TO BUSINESS & SOCIETYEXAMINE CHALLENGES OF INTERNET TO BUSINESS & SOCIETY*

4.4 Prof Jess UEAB 2012 As a manager, you will want to know how your firm can benefit from e- business and e- commerce.

4.5 Prof Jess UEAB 2012 MANAGEMENT CHALLENGES EMERGING DIGITAL FIRMEMERGING DIGITAL FIRM ELECTRONIC COMMERCEELECTRONIC COMMERCE ELECTRONIC BUSINESSELECTRONIC BUSINESS CHALLENGES & OPPORTUNITIESCHALLENGES & OPPORTUNITIES*

4.6 Prof Jess UEAB 2012 MANAGEMENT CHALLENGES 1. ELECTRONIC COMMERCE & ELECTRONIC BUSINESS REQUIRE NEW MIND SET 2. FINDING SUCCESSFUL INTERNET BUSINESS MODEL *

4.7 Prof Jess UEAB 2012

4.8 INTERNET TECHNOLOGY & THE DIGITAL FIRM INFORMATION TECHNOLOGY INFRASTRUCTURE: Information flows seamlessly throughoutINFORMATION TECHNOLOGY INFRASTRUCTURE: Information flows seamlessly throughout DIRECT COMMUNICATION BETWEEN TRADING PARTNERS: DISINTERMEDIATION removes intermediate layers streamlines processDIRECT COMMUNICATION BETWEEN TRADING PARTNERS: DISINTERMEDIATION removes intermediate layers streamlines process*

4.9 Prof Jess UEAB 2012 INTERNET TECHNOLOGY & THE DIGITAL FIRM VENDORS CAN PROVIDE INFORMATION 24 HOURS A DAYVENDORS CAN PROVIDE INFORMATION 24 HOURS A DAY CAN EXTEND DISTRIBUTION CHANNELSCAN EXTEND DISTRIBUTION CHANNELS CAN REDUCE TRANSACTION COSTSCAN REDUCE TRANSACTION COSTS*

4.10 Prof Jess UEAB 2012 INTERNET TECHNOLOGY & THE DIGITAL FIRM REDUCES INFORMATION ASYMMETRY: Asymmetry exists when one party has more information than otherREDUCES INFORMATION ASYMMETRY: Asymmetry exists when one party has more information than other INCREASES RICHNESS: Depth & detail of informationINCREASES RICHNESS: Depth & detail of information INCREASES REACH: Number of people contactedINCREASES REACH: Number of people contacted*

4.11 Prof Jess UEAB 2012 INTERNET BUSINESS MODELS VIRTUAL STOREFRONT: Sells goods, services on-lineVIRTUAL STOREFRONT: Sells goods, services on-line MARKETPLACE CONCENTRATOR: Concentrates information from several providersMARKETPLACE CONCENTRATOR: Concentrates information from several providers ON-LINE EXCHANGE: Bid-ask system, multiple buyers, sellersON-LINE EXCHANGE: Bid-ask system, multiple buyers, sellers*

4.12 Prof Jess UEAB 2012

4.13 INFORMATION BROKER: Provide info on products, pricing, etc.INFORMATION BROKER: Provide info on products, pricing, etc. TRANSACTION BROKER: Buyers view rates, terms from various sourcesTRANSACTION BROKER: Buyers view rates, terms from various sources AUCTION: Electronic clearinghouse products, prices, change in response to demandAUCTION: Electronic clearinghouse products, prices, change in response to demand* INTERNET BUSINESS MODELS

4.14 Prof Jess UEAB 2012 REVERSE AUCTION: Buyer sets price, submits to multiple sellersREVERSE AUCTION: Buyer sets price, submits to multiple sellers AGGREGATOR: Group pools orders for volume discountAGGREGATOR: Group pools orders for volume discount DIGITAL PRODUCT DELIVERY: Sell, download software, other digital productsDIGITAL PRODUCT DELIVERY: Sell, download software, other digital products* INTERNET BUSINESS MODELS

4.15 Prof Jess UEAB 2012 CONTENT PROVIDER: Creates revenue through providing client for a fee, and advertisingCONTENT PROVIDER: Creates revenue through providing client for a fee, and advertising ON-LINE SERVICE PROVIDER: Provides service, support for hardware, software productsON-LINE SERVICE PROVIDER: Provides service, support for hardware, software products VIRTUAL COMMUNITY: Chat room, online meeting placeVIRTUAL COMMUNITY: Chat room, online meeting place* INTERNET BUSINESS MODELS

4.16 Prof Jess UEAB 2012 PORTAL: Initial point of entry to Web, specialized content, servicesPORTAL: Initial point of entry to Web, specialized content, services SYNDICATOR: Aggregate information from several sources sold to other companiesSYNDICATOR: Aggregate information from several sources sold to other companies* INTERNET BUSINESS MODELS

4.17 Prof Jess UEAB 2012 ELECTRONIC COMMERCE BUSINESS-TO-CONSUMER (B2C)BUSINESS-TO-CONSUMER (B2C) BUSINESS-TO-BUSINESS (B2B)BUSINESS-TO-BUSINESS (B2B) CONSUMER-TO-CONSUMER (C2C): Individuals use Web for private sales or exchangeCONSUMER-TO-CONSUMER (C2C): Individuals use Web for private sales or exchange*

4.18 Prof Jess UEAB 2012 BUSINESS-TO-CONSUMER WEB SITES: Provide information on products, services, prices, ordersWEB SITES: Provide information on products, services, prices, orders CUSTOMER-CENTERED RETAILING: Closer, yet more cost-effective relationship with customersCUSTOMER-CENTERED RETAILING: Closer, yet more cost-effective relationship with customers INFORMATION BROKERS: Comparison shops to customer ’ s requirements, reintermediationINFORMATION BROKERS: Comparison shops to customer ’ s requirements, reintermediation*

4.19 Prof Jess UEAB 2012 BUSINESS-TO-BUSINESS ELECTRONIC COMMERCE AUTOMATION OF PURCHASE, SALE TRANSACTIONS FROM BUSINESS TO BUSINESS PROVIDES ALTERNATIVE SOURCESPROVIDES ALTERNATIVE SOURCES ELECTRONIC HUBS: Online marketplaces, point-to-point connections, integrated informationELECTRONIC HUBS: Online marketplaces, point-to-point connections, integrated information*

4.20 Prof Jess UEAB 2012 The benefits of disintermediation to the consumer

4.21 Prof Jess UEAB 2012 Web site visitor tracking Web site personalization

4.22 Prof Jess UEAB 2012 BUSINESS-TO-BUSINESS ELECTRONIC COMMERCE EXCHANGES: Commercial on-line market, many buyers, sellers POTENTIAL FOR INTEGRATING PRODUCT INFORMATIONPOTENTIAL FOR INTEGRATING PRODUCT INFORMATION PROVIDES SERVICE, VALUEPROVIDES SERVICE, VALUE*

4.23 Prof Jess UEAB 2012 Electronic data interchange (EDI)

4.24 Prof Jess UEAB 2012 A private industrial network

4.25 Prof Jess UEAB 2012 A Net marketplace

4.26 Prof Jess UEAB 2012 ELECTRONIC COMMERCE PAYMENT SYSTEMS

4.27 Prof Jess UEAB 2012 Functional applications of intranets

4.28 Prof Jess UEAB 2012 INTRANETS AND ELECTRONIC BUSINESS BENEFITSBENEFITS FUNCTIONAL APPLICATIONSFUNCTIONAL APPLICATIONS SUPPLY CHAIN MANAGEMENTSUPPLY CHAIN MANAGEMENT*

4.29 Prof Jess UEAB 2012 Collaborative commerce

4.30 Prof Jess UEAB 2012 BENEFITS OF INTRANETS: CONNECTIVITYCONNECTIVITY CAN BE TIED TO LEGACY SYSTEM & TRANSACTION PROCESSINGCAN BE TIED TO LEGACY SYSTEM & TRANSACTION PROCESSING INTERACTIVE APPLICATIONS WITH TEXT, AUDIO, VIDEOINTERACTIVE APPLICATIONS WITH TEXT, AUDIO, VIDEO SCALABLE TO LARGER OR SMALLER SYSTEMS AS REQUIREDSCALABLE TO LARGER OR SMALLER SYSTEMS AS REQUIRED*

4.31 Prof Jess UEAB 2012 BENEFITS OF INTRANETS: EASY TO USE BROWSER INTERFACEEASY TO USE BROWSER INTERFACE LOW START-UP COSTSLOW START-UP COSTS RICH, RESPONSIVE INFORMATION ENVIRONMENTRICH, RESPONSIVE INFORMATION ENVIRONMENT REDUCED INFORMATION DISTRIBUTION COSTSREDUCED INFORMATION DISTRIBUTION COSTS*

4.32 Prof Jess UEAB 2012 FUNCTIONAL APPLICATIONS: FINANCE & ACCOUNTINGFINANCE & ACCOUNTING HUMAN RESOURCESHUMAN RESOURCES SALES & MARKETINGSALES & MARKETING MANUFACTURING & PRODUCTIONMANUFACTURING & PRODUCTION*

4.33 Prof Jess UEAB 2012 FINANCE & ACCOUNTING: GENERAL LEDGER REPORTINGGENERAL LEDGER REPORTING PROJECT COSTINGPROJECT COSTING ANNUAL REPORTSANNUAL REPORTS BUDGETINGBUDGETING*

4.34 Prof Jess UEAB 2012 HUMAN RESOURCES: CORPORATE POLICIESCORPORATE POLICIES EMPLOYEE SAVINGS PLANSEMPLOYEE SAVINGS PLANS BENEFITS ENROLLMENTBENEFITS ENROLLMENT ON-LINE TRAININGON-LINE TRAINING JOB POSTINGJOB POSTING*

4.35 Prof Jess UEAB 2012 SALES & MARKETING: COMPETITOR ANALYSISCOMPETITOR ANALYSIS PRICE UPDATESPRICE UPDATES PROMOTIONAL CAMPAIGNSPROMOTIONAL CAMPAIGNS SALES PRESENTATIONSSALES PRESENTATIONS SALES CONTRACTSSALES CONTRACTS*

4.36 Prof Jess UEAB 2012 MANUFACTURING & PRODUCTION : QUALITY MEASUREMENTSQUALITY MEASUREMENTS MAINTENANCE SCHEDULESMAINTENANCE SCHEDULES DESIGN SPECIFICATIONSDESIGN SPECIFICATIONS MACHINE OUTPUTMACHINE OUTPUT ORDER TRACKINGORDER TRACKING*

4.37 Prof Jess UEAB 2012 SHIPPINGINVENTORY PLANNING & FORECASTING ORDER PROCESSING PRODUCTION PROCUREMENT ACCOUNTING SUPPLIERSCUSTOMERS LOGISTICS SERVICES DISTRIBUTORS INTRANET INTRANET SUPPLY-CHAIN MANAGEMENT

4.38 Prof Jess UEAB 2012 CHALLENGES & OPPORTUNITIES UNPROVEN BUSINESS MODELSUNPROVEN BUSINESS MODELS BUSINESS PROCESS CHANGE REQUIREMENTSBUSINESS PROCESS CHANGE REQUIREMENTS CHANNEL CONFLICTSCHANNEL CONFLICTS LEGAL ISSUESLEGAL ISSUES SECURITY & PRIVACYSECURITY & PRIVACY*

4.39 Prof Jess UEAB 2012 The emerging digital firm requires this level of information integration, and companies increasingly depend on such an infrastructure today to remain efficient and competitive. Internet technology has emerged as the key enabling technology for this digital integration.

4.40 Prof Jess UEAB 2012

4.41 THE DIGITAL FIRM: ELECTRONIC COMMERCE & ELECTRONIC COMMERCE & ELECTRONIC BUSINESS