Chapter 1: Introduction To E-business

Slides:



Advertisements
Similar presentations
Chapter 3 E-Strategy.
Advertisements

Internet Applications
Fifth Edition 1 M a n a g e m e n t I n f o r m a t i o n S y s t e m s M a n a g I n g I n f o r m a t i o n T e c h n o l o g y i n t h e E – B u s i.
Eleventh Edition 1 Introduction to Information Systems Essentials for the Internetworked E-Business Enterprise Irwin/McGraw-Hill Copyright © 2002, The.
Marketing in the Internet Age
McGraw-Hill/Irwin Copyright © 2008, The McGraw-Hill Companies, Inc. All rights reserved.
MANAGEMENT & LEGAL IMPLICATIONS OF eCOMMERCE Definitions  eBusiness The use of computer based information systems for the management and coordination.
E-business Infrastructure
4 Lecture Electronic Business and Electronic Commerce.
Learning Goals Be able to identify the major forces shaping the new digital age. Understand how companies have responded to the Internet with e-business.
The Internet & Electronic Commerce THE ELECTRONIC MALL.
McGraw-Hill/Irwin Copyright © 2008, The McGraw-Hill Companies, Inc. All rights reserved. Electronic Business Systems Chapter 7.
Chapter9 Introduction to Information Technology Turban, Rainer and Potter John Wiley & Sons, Inc. Copyright 2005.
What is an Information System? Input of DataResourcesProcessing Data Data Control of System Performance Storage of Data Resources Output of InformationProducts.
4.1 © 2006 by Prentice Hall 4 Chapter The Digital Firm: Electronic Business and Electronic Commerce.
Information Technology and E- Business Chapter 20.
Chapter 7 Electronic Business Systems
Chapter 2: Strategy and Sales Program Planning
1 Chapter 9 Electronic Commerce and Electronic Business.
Electronic Commerce Systems
Chapter 1 Marketing: Creating and Capturing Customer Value
Introduction to Electronic Commerce
E-commerce E-commerce is defined "as the process of buying, selling, or exchanging products, services, or information via computer networks, including.
E commerce Sri hermawati.
Karolina Muszyńska Based on
E-business and Supply Chain COSC 648 Sungchul Hong.
Electronic Commerce and Electronic Business Lecture – 12
COMP 6125 An Introduction to Electronic Commerce Session 4: E-Business Strategies.
For use with Strategic Electronic Marketing: Managing E-Business, 2 e Copyright 2003 South-Western College Publishing Chapter 1 Slide: 1 Chapter 1: Introduction.
1 California State University, Fullerton Chapter 12 Electronic Commerce and the Strategic Impact of Information Systems.
Course code: ABI 204 Course Name: Introduction to E-Commerce
Chapter 17: Internet Marketing Copyright © 2010 Pearson Education Canada E-Business 1 E-Business is more embracing than E-Commerce. E-Business embraces:
Prof. Yuan-Shyi Peter Chiu
For use with Strategic Electronic Marketing: Managing E-Business, 2 e Copyright 2003 South-Western College Publishing Chapter 1 Slide: 1 What is E-Business.
Eleventh Edition 1 Introduction to Information Systems Essentials for the Internetworked E-Business Enterprise Irwin/McGraw-Hill Copyright © 2002, The.
Eleventh Edition 1 Introduction to Information Systems Essentials for the Internetworked E-Business Enterprise Irwin/McGraw-Hill Copyright © 2002, The.
Irwin/McGraw-Hill Copyright © 2001, The McGraw-Hill Companies, Inc. All rights reserved. I n t r o d u c t i o n t o I n f o r m a t i o n S y s t e m.
Chapter 1: Introduction To E-business
Learning Goals Know why companies use distribution channels and understand the functions that these channels perform. Learn how channel members interact.
2.1 © 2007 by Prentice Hall 2 Chapter How Businesses Use Information Systems.
Marketing in the Digital Age: Making New Customer Connections Chapter 3.
Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Developed by Cool Pictures and MultiMedia Presentations.
Marketing Management Online marketing
For use with Strategic Electronic Marketing: Managing E-Business Copyright 2000 South-Western College Publishing Chapter 8 Slide: 1 Chapter 8: E-Business.
Lead Black Slide Powered by DeSiaMore1. 2 Chapter 12 Electronic Commerce and the Strategic Impact of Information Systems.
Chapter 10 10/18/ :45 PM1. Supply Chains And The Value Delivery Network Supply chain Downstream Marketing channels or distribution channels, such.
Lecture 3 Strategic E-Marketing Instructor: Hanniya Abid
1.less than 3 million. 2.less than 10 million. 3.over 23 million. 4.over 100 million. 5.Not sure In the U.S., the number of managers that rely on Information.
Overview: Electronic Commerce Electronic Commerce, Seventh Annual Edition.
Lead Black Slide. © 2001 Business & Information Systems 2/e2 Chapter 12 Electronic Commerce and the Strategic Impact of Information Systems.
Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved. Introduction to Marketing.
Marketing Channels and Supply Chain Management Chapter 12.
Chapter 12. Providing a Strategic Impact Electronic Commerce Systems Inter-organizational Information Systems Global Information Systems Strategic Information.
Chapter 1 Introduction to Electronic Commerce. Learning Objectives In this chapter, you will learn about: The basic elements of electronic commerce Differences.
Strategy e-Business.
Management Information Systems Islamia University of Bahawalpur Delivered by: Tasawar Javed Lecture 9.
Chapter 1 Introduction to Electronic Commerce. Traditional Commerce and Electronic Commerce To many people, the term electronic commerce means shopping.
E-commerce: Digital Markets, Digital Goods
1 MARKETING AND MARKETING MANAGEMENT Module 1. 2 Objectives Defining marketing and marketing management The scope of marketing Some fundamental marketing.
ELC 200 Day 4. Agenda Questions Assignment 1 posted  assignment1.pdf assignment1.pdf  Due Next Class, Jan 9:35 AM Assignment 2 will be posted soon.
MGT301 Principles of Marketing Lecture-42. Summary of Lecture-41.
E-Marketing Strategic E-Marketing and Performance Metrics 2-1.
4 THE DIGITAL FIRM: ELECTRONIC COMMERCE & ELECTRONIC BUSINESS.
Chapter 17 Using Technology in a Competitive Environment.
Subject Name: MANGEMENT INFORMATION SYSTEM Subject Code:10IS72
Management Information Systems
Chapter 2: Introduction to Electronic Commerce
Marketing in the Digital Age: Making New Customer Connections
E-Marketing 5/E Judy Strauss and Raymond Frost
Chapter 1: Introduction To E-business
Presentation transcript:

Chapter 1: Introduction To E-business

Learning Objectives (1) Explain what a business model is and how it is used. List the technologies that are being used to foster e-business. Recommend how a business can use e-business techniques to develop long term marketing relationships. Identify the components of a marketing system.

Learning Objectives (2) List the components of an e-business based marketing system. List the components of an e-business value chain. Explain how and why businesses need to evolve and change to maintain competitiveness. Explain the importance of evaluating the ethical practices of a business and outline an ethical framework for e-business. For use with Strategic Electronic Marketing: Managing E-Business, 2e Copyright 2003 South-Western College Publishing

Vignette: General Electric (1) www.GE.com Suppliers linked through Extranet deliver just-in-time. Supplies bid online. Consumer product delivered through distributors or shippers. Product shipped from inventory or order is routed to factory. Web page provides information and ordering. Customer gathers information and purchases through Web page. Database monitors equipment Payments are made by online through Web page. For use with Strategic Electronic Marketing: Managing E-Business, 2e Copyright 2003 South-Western College Publishing

Vignette: GE (2) Thinking Strategically Explain why Jack Welch would see e-business as important for GE. Consider where e-business could have a bigger impact for GE, in the business-to-business arena or the business-to-consumer arena. List reasons why GE has been able to implement a new e-business model so quickly. Visit the GE website (www.ge.com). Speculate on the advantages of using a Website to develop and maintain customer relationships.

Changing Nature of Marketing Capture data electronically at the point of sale and route that information from the retailer to the supplier and/or the manufacturer. Electronically linked distribution systems are speeding products through the channel of distribution and helping to forge strong relationships between firms. The World Wide Web is allowing businesses to reach customers around the world rather than just local markets. Information on the customer’s shopping behavior is being stored in databases to profile individuals for targeted promotions and customized products.

Business Models New information technologies are allowing businesses to redesign business models and change business practice A business model, or commerce model, is the basic process flow indicating how a business operates. It indicates how business functions are linked together. Internet based business models requires fewer hard assets (bricks and mortar assets) Brick and mortar businesses have tangible physical assets such a factory, office building, warehouses, etc.

What is E-Business E-business, or electronic business, systems use a number of information technology-based business practices to enhance relationships between the business and the customer. E-business includes changes in marketing communication, distribution systems, and business models. www.ibm.com/e-business/

What is E-Commerce E-Commerce: consists of using electronic information based systems to engage in transactions or commerce online. This includes automating purchasing through Web sites.

Table 1.1: E-Business Industry Terms (1) Internet: A global network of computer networks that use a common interface for communication. World Wide Web: A graphically based Internet standard that allows easy access to information from around the world. E-Business: This is the process of using information technology (IT) to support a fuller operation of a business.

Table 1.1: E-Business Industry Terms (2) E-Commerce: Uses electronic information based systems to engage in transactions or commerce online. Extranet: An Internet based connection between a business and its suppliers, distributors, and partners. This is not open to the general public. Intranets: Internal private network that use the same types of hardware, software, and connections as the Internet.

Four Layers Of The Internet Economy Layer one: Internet Infrastructure Layer Includes companies with products and services that help create an IP based network infrastructure. Layer two: Internet Applications Layer Builds off of layer one and includes the products and services that make it technologically feasible to perform business activities online. Layer three: Internet Intermediary Layer Allows the investments in infrastructure to turn into business transactions by facilitating the meeting of buyers and sellers over the Internet. Layer four: Internet Commerce Layer Includes the sales of products and services to consumers or businesses over the Internet.

Table 1.2: E-Business Growth and Projections How big is the Internet: 500 million users worldwide - 2005 expected 1 billion. How much will consumers spend online: 1.8 billion - 2005: 16 billion. How much will businesses spent online: 1.3 trillion - 2005: 4.3-8 trillion. Numbers are too small. Seen as high as 750 million by 2005. Look at this Christmas.

Marketing Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services that create exchanges that satisfy individual and organizational needs. Relationship marketing implies that business undertake strategies that will hold desirable customers over a long time period.

A Systems Approach (1) Helps decision-makers look at how all aspects of a strategic business unit (SBU) interact with each other. Systems are seen as being organic in that they must change in response to their environment or face the possibility of becoming extinct.

A Systems Approach (2) All of the components of a business must work in unison to allow the marketing system to operate in its environment. This system must organize itself and find an advantage over its competitors to ensure long-term sustainability.

The Traditional Business System Distribution Flow Product Target Customers Communication Price Look at this as a system. Information Flow Payment Flow

Figure 1.2:The Traditional Marketing System Strategic Plan Strategic Goal Environment: Technological Competitive Political and Legal Social Supply Chain

What Are The Business’ Goals? Pure Play Internet? Communicate or Sell? Multi-Channel Sales Approach? Support Brick and Mortar? Hold Current Customers? Enhance Relationship Development?

E-Business Systems E-Business Systems are fostering a number of changes to the marketing system: Customized production. Increasing price pressure resulting in lowering prices. Shorter channels of distribution dominated by facilitators. Extranet-enhanced supply chain management. Non-linear promotions. Electronic transfer of funds. Database information management systems.

E-Business Systems Shorter Channels Dominated by Facilitators Customized Production Customized Non-Linear Promotion Market-of-One Customer Dynamic Pricing Look at this as a system. Knowledge Management & Data Warehousing Electronic Payments

The E-Business System Strategic Plan Strategic Goal Environment: Constant Technological Change Increased Competitive Pressure Weakened Political and Legal Influence Greater Social Acceptance of Change Extranet Supply Chain

E-Business Value Chain (1) E-business value chains view information technology as part of a business’ overall value chain adding to the competitive advantages of a business Competitive Advantage Through Stronger Customer Relationships (Ch 11 Strategy and Business Models) Distribution Inbound Logistics Extranets: Lowers costs increase speed (Ch 4) Value Production Differential Advantages Customization Dynamic Pricing (Ch 5) Marketing/ Sales E-commerce: Lower costs, new market entry. (Ch 6) E-business Promotion (Ch 7) Customer (Ch 8) Targeting & Support Databases and CRM (Ch 9) Management (Ch 10) Leadership: Management Intranets: Lower costs, better communication. Innovativeness: Speed, flexibility, new product ideas How does an e-business create value? More than software, shift in management, power, change in process. E-Business Communication Platforms (Ch 3) E-Business Technological Infrastructure (Ch 2)

International E-business The United States is expected to account for only half of the expected global $7 trillion in e-business-facilitated transactions. Markets outside of the United States are expected to grow the fastest in areas such as wireless and HDTV delivery of Internet content. Cultural barriers to seamless global e-business: Language differences, currency conversions, shipping problems, a lack of global brand recognition, differing legal and ethical standards, and a lack of trust in foreign markets.

Levels of E-Commitment Brochure Sites Sets up a Web page to promote a business. This can also allow contacts through email and simple product ordering. E-Commerce Allows for purchasing online with automated credit card clearance and links to inventory through databases. E-Business Refocuses business practice to take advantage of new technologies to lower costs, improve value, and respond quickly to environmental change. Costs Costs Costs ?? As commitment level increases, so do costs.

Political, Legal, and Ethical Environments The political and legal environment: Represents the rules by which businesses and society operates. Social goal is to increase the overall economic welfare or the net benefits an economic system provides to a society. Ethics The study of how individuals or businesses make decisions given the consequences of those decisions