1. OHT 1.1 19 augustus 2003augustus 2003 Chapter 1 Introduction to e-business and e- commerce

2. BICT 2 WBT sheets week 1 Learning objectives Define the meaning and scope of e-business and e-commerce and their different elements; Summarise the main reasons for adoption of e-commerce and e-business and barriers that may restrict adoption; Use resources to define the extent of adoption of the Internet as a communications medium for consumers and businesses; Outline the business challenges of introducing e-business and e- commerce to an organization.

3. BICT 3 WBT sheets week 1 The impact of Internet on business Andy Grove, Chairman of Intel, one of the early adopters of e-commerce, has made a meteorological analogy with the Internet. He says: Is the Internet a typhoon force, a ten times force, or is it a bit of wind? Or is it a force that fundamentally alters our business? (Grove, 1996)

4. BICT 4 WBT sheets week 1 The impact on one industry – banking  (exercise) MetricMay 1995Dec. 2002 Financial institutions with Web banking (WW)16,000 Financial institutions with Web sites (WW)5014,000 Total online banking households (WW)5 million100 million Total online banking households (US)300,00028 million Monthly bank and credit card Web traffic (US)100,00050 million Monthly credit apps submitted via Web (US)01.5 million Table 1.1 7.5 years of web banking. Source: Online banking report, Number 89, December 10, 2002. Source: Online Banking Report estimates, +/- 25%, 11/02

5. BICT 5 WBT sheets week 1 Online UK

6. BICT 6 WBT sheets week 1 The Internet’s impact on you How many of you have purchased something on the Internet in the last 6 months? – What is the number of transactions? – Total value? How many times have you used the Internet as an information source, before buying offline?

7. BICT 7 WBT sheets week 1 Popularity of online purchases Source: The Internet Monitor, BMRB, November 2001 (www.bmrb.co.uk)

8. BICT 8 WBT sheets week 1 Definitions You are asked to distinguish between e-commerce and e-business at a job interview. Write down your definitions.

9. BICT 9 WBT sheets week 1 E-commerce defined ‘All electronically mediated information exchanges between an organization and its external stakeholders’ Examples: – Buying books online (transactional) – Selecting a car online (informational) – Asking a customer service query, e.g. www.easyJet.comwww.easyJet.com

10. BICT 10 WBT sheets week 1 E-business defined All electronically mediated information exchanges, both within an organization and with external stakeholders supporting the range of business processes Examples: – Purchasing from suppliers (e-procurement) – A company intranet (defined in Ch 3) – Supplying partners with information through an extranet (see Ch 3)

11. BICT 11 WBT sheets week 1 The distinction between buy-side and sell-side e- commerce Figure 1.1 The distinction between buy-side and sell-side e-commerce

12. BICT 12 WBT sheets week 1 Recap – which is correct? Figure 1.2 Three definitions of the relationship between e-commerce and e-business

13. BICT 13 WBT sheets week 1 Activity – drivers and barriers to adoption You are in a team of advisers at a local Business Link (a local government agency encouraging adoption of e-commerce) List: – Drivers to adoption of sell-side e-commerce by business and how you can reinforce these by marketing benefits – Barriers to adoption of sell-side e-commerce by business and how you can reinforce these by stressing benefits

14. BICT 14 WBT sheets week 1 DriverMarketing approach 1 Reduced costsExamples? 2 Increase reach to new marketsExamples? 3 Customer demandData on those researching and buying online 4 Competitive threatsDitto 5 6 Business drivers to going online

15. BICT 15 WBT sheets week 1 BarrierMarketing approach 1 SecurityReassurance, what can be done about this? 2 No needIllustrate with data of businesses researching and buying online 3 CostsIllustrate low cost options 4 SkillsSummarise skills alternatives 5 6 Business barriers to going online

16. BICT 16 WBT sheets week 1 Drivers for e-commerce Figure 1.6 Attitudes to benefits of online technologies Source: DTI (2002)

17. BICT 17 WBT sheets week 1 Barriers to e-commerce Figure 1.7 Barriers to development of online technologies Source: DTI (2002)

18. BICT 18 WBT sheets week 1 B2B, B2C Business to Business – example Business to Consumer – example Differences? Why differentiate? Two examples, see next sheets

19. BICT 19 WBT sheets week 1 Intro to B2B Company Employs 600 people worldwide Turnover £100m Products – composites and speciality polymers – See www.globalcomposites.comwww.globalcomposites.com Distribution – 90 companies worldwide via joint ventures and agents Competitors: – Derakan (www.dow.com/derakane)www.dow.com/derakane – Scott Bader (www.scottbader.com)www.scottbader.com – Owens Corning (www.owenscorning.com)www.owenscorning.com

20. BICT 20 WBT sheets week 1 Intro to B2C Company Established 1984, 80 staff Products – Kitchenware Distribution – Through retailers and transactional web sites Competitors – Cooking.com (www.cooking.com)www.cooking.com – Lakeland (www.lakelandlimited.com)www.lakelandlimited.com – Tupperware (www.tupperware.com).www.tupperware.com

21. BICT 21 WBT sheets week 1 Activity - Benefits to B2B and B2C Company See activity 1.6 Give examples of these benefits of an online presence. Which of these are most important to each: – Cost reduction – New capability – Communication – Customer service – Control – Competitive advantage Indicate with +/- which benefits are more/less important for B2B and B2C. See website Chaffey for indications answers