Seminar 4 – Part 1 E-Business and E-Commerce Ref: Chapter 6

Learning Objectives 1. Describe electronic commerce, its scope, benefits, limitations, and types. 2. Explain how online auctions and bartering work. 3. Understand the major applications of business- to-consumer commerce, including service industries and the major issues faced by e- tailers. 4. Describer business-to-business applications. 5. Explain why intrabusiness and B2E are considered e-commerce.

Learning Objectives cont’d 6. Describe e-government activities and consumer-to-consumer e-commerce. 7. Identify the e-commerce support services, specifically payments and logistics. 8. Understand the importance and activities of online advertising. 9. Identify and describe ethical and legal issues relating to e-commerce.

Problem – Leader & target for Compaq. Losses exceed $100 million. Solution – Rapid expansion with selling via online. Result – Leading systems provider in US; second worldwide. Fortune’s top 5 “Most Admired” companies since By-product – sell refurbished Dell computers.

Dell’s Vast Customer Base Business-to-Business Dell becomes British Airways' preferred partner Intel invests $23 million in three Indian firms

Dell’s Vast Customer Base – cont’d How Dell Does IT: Order Management Online self-learning about Dell products along with IT & management topics Training services

E-Business and E-Commerce

E-Business(EC) and E-commerce (EB) EC or EB Pure vs Partial EC – Degree of Digitization EC Organisation ◦ Brick-and-Motor  Click-and- Motor  Virtual

EC Transactions B2B C-COMMERCE B2C (e-tailing) C2C B2B2C C2B INTRABUSINESS G2C, G2G, G2B

Click-&-mortar vs Brick-&-mortar organizations More shoppers proceed to checkout onlineMore shoppers proceed to checkout online…………

A General E-Commerce Model

Social Commerce – Company-sponsored Socially Oriented Sites to Bring People Together Hannah Montana TheirSpace.com

Application Programming Interface - Examples

A framework for E-commerce

E-Market Trends Virtual Greats Profile

Major EC Mechanisms e-market e-catalogues e-auctions – soliciting bids from/by buyers and sellers ◦ Forward auction – for sale by sellers ◦ Reverse Auctions – buyer puts request for quote E-bartering

Electronic Catalogs All of Your Suppliers’ Products in One Online Catalog

E-Auctions

E-Classifieds stores business eBay case study

Bartering & Negotiations The New Age of Bartering

B2C Applications E-storefronts – one shop – 1 URL E-malls – collection of shops – 1 URL Cyberbanking Online Securities Trading Online Job Markets E-Travel E-Real Estate E-Entertainment

Electronic Storefronts

Electronic Malls shopping

Amazon – King of E-Tailing Jeff Bezos: The Wizard Of Web Retailing Last Founder Standing The Future of Reading America's Best Leaders: Jeff Bezos, Amazon.com CEO The founder of the massive online retailer is a true Internet pioneer

Online Job Market

Travel Services

Real Estate Online

Customisation and Personalisation The key to successful e-trading

Issues in E-Tailing Resolving channel conflict Resolving conflicts within click-and-motor organisations Organising order fulfillment and logistics Determining the viability and risk of e- tailers Identify appropriate revenue models

B2B Applications Only businesses ◦ Sell-side marketplace – buyer is the organisation ◦ Buy-side marketplaces –  Reverse auctions  E-procurement ◦ Public exchanges

E-Government to C2C B2E – organizations disseminate information to employees over company intranet. E2E – employees communicate with each other. I.e.: goods & services bought & sold among fellow employees. SBU/SBU – company owned dealerships buy goods & services from main company. Improves internal supply chain operations. E-Collaborative – digital technologies that enable collaboration. E-Government – delivers information & services to citizens, business partners & suppliers. I.e.: G2C, G2B, G2G.

EC Support Services Market Research for EC Web Advertising E-Payments – Table 6.4

E-commerce support services

Market Research Online

Credit Cards How e-credit cards work. (The numbers 1-9 indicate the sequence of activities.) (Source: Drawn by E. Turban.)

E-Wallet The use of a mobile phone as an e-wallet. (Source: Koichi Kamoshida/Getty Images.)

E-Wallets – Apple ipod

Order fulfillment and the logistics system

Ethical and Legal Issues in EB and EC Privacy Web tracking - draw back of extensive profiling and personalisation Loss of jobs Buyer protection Seller protection

Managerial Issues E-Commerce failures – common. Solid business analyses a must. Failed initiatives within an organization. Success stories & lessons learned should be shared. Managing resistance to change. Integration into business overall. Lack of qualified personnel & outsourcing. Managing impact on organization. Alliances can be very helpful & productive. Choosing appropriate strategy.

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