CHAPTER 7 E-Business and E-Commerce

Announcements Lecture Chapter 7 E-Business and E-Commerce Excel Refresher – due next Weds. Excel Scenario Manager – Friday

Can you name some of the first e-commerce companies? Books Auction Site What about: E-Commerce/E-Business

Overview of E-Business and E-Commerce Definitions and Concepts Types of E-Commerce Major E-Commerce Mechanisms E-Commerce Models Benefits and Limitations of E-Commerce

Definitions and Concepts E-Commerce & E-Business Brick-and-mortar organizations Virtual organizations Click-and-mortar organizations Pure versus Partial Electronic Commerce depends on the degree of digitization involved.

Types of E-Commerce 1. Business-to-Consumer (B2C) Amazon 2. Business-to-Business (B2B) Salesforce 3. Consumer-to-Consumer (C2C) Ebay 4. Business-to-Employee (B2E) UNCW

Major E-Commerce Mechanisms 1. E-Storefronts 2. E-malls 3. Auctions Forward Auctions Reverse Auctions © ZOONAR GMBH LBRF/Age Fotostock America, Inc.

E-Commerce Business Models Online direct marketing Name-your-own-price / Find-the-best-priceFind-the-best-price Marketing: Affiliate and Viral Product customization Deep discounters Membership

Benefits of E-Commerce Benefits to organizations Makes national and international markets more accessible Lowering costs of processing, distributing, and retrieving information Benefits to customers Access a vast number of products and services around the clock (24/7/365)

Limitations of E-Commerce Technological Limitations Lack of universally accepted security standards Insufficient telecommunications bandwidth Non-technological Limitations Perception that EC is unsecure Unresolved legal issues

7.2 Business-to-Consumer (B2C) Electronic Commerce Electronic storefronts Electronic malls

Online Service Industries Cyberbanking Online securities trading Online job market Travel services

Online Advertising Online Advertising methods Banners Pop-up ad Pop-under ad Permission marketing Viral marketing Social Networking Sites are changing organizational approach.

Communitainment Communitainment is the blending of community, communication, and entertainment into a new form of online activity driven by consumers. Predictions: consumers will shift more than 50% of their content consumption over the next decade to communitainment formats (e.g., social networking, video, and photo sharing sites), displacing traditional forms of media content like TV, magazines, and large Internet sites.

Issues in E-Tailing 1. Channel conflict manufacturers disintermediate their channel partners by selling their products directly to consumers, usually over the Internet through electronic commerce. 2. Order fulfillment Difficulties in supply chain

Disintermediation A key issue is disintermediation

7.3 Business-to-Business (B2B) Electronic Commerce In B2B e-commerce, the buyers and sellers are organizations. Sell-Side Buy-Side © Richard Thomas/Age Fotostock America, Inc.

B2B Sell-Side Marketplace Key mechanisms: electronic catalogs and forward auctions Common Sell-Side Marketplaces include: Ariba Dell Auction bigboXX.com © Richard Thomas/Age Fotostock America, Inc.

B2B Buy-Side Marketplace United Sourcing Alliance is a common Sell-Side Marketplace Key mechanism: reverse auctions © Richard Thomas/Age Fotostock America, Inc.

7.4 Electronic Payments Electronic checks (e-checks) Electronic credit cards Electronic cash Stored-value money cards Smart cards Person-to-person payments Frederic Lucano/Stone/Getty Images, Inc.

7.5 Ethical and Legal Issues Ethical Issues Privacy Job Loss

Legal Issues Specific to E-Commerce Fraud on the Internet Domain Names Cybersquatting Source: maxstockphoto/Shutterstock

Legal Issues Specific to E-Commerce (continued) Domain Tasting Taxes and Other Fees Copyright Source: maxstockphoto/Shutterstock

Chapter Review SalesForce is an online company providing technical services for other organizations. This is an example of which type of E- Commerce. a.B2B b.B2C c.C2C d.B2E

Chapter Review Google shopping provides a list of many different stores offering a variety of products. This is what type of B2C? A.Electronic Storefront B.Auction C.Advertising D.Electronic Commerce

Chapter Review The key mechanism for Business-to- Business sell-side marketplaces is _______________. A.Forward Auctions B.Reverse Auctions C.E-Malls