1. Electronic Commerce and Operations Management

2. E-Commerce
The use of computer networks, primarily the internet, to buy and sell products, services, and information.

3. E-Business
“… all about cycle time, speed, globalization, enhanced productivity, reaching new customers and sharing knowledge across institutions for competitive advantage.”
Louis Gerstner,
Chairman, IBM

4. E-Commerce Transactions (1 of 2)
Business-to business (B2B) Both sides of the transaction are businesses, non-profit organizations, or governments.
Business-to-consumer (B2C) E-commerce transactions where customers are individual consumers
Consumer-to-consumer (C2C) Consumers sell directly to each other.
Consumer-to-business (C2B) Individuals sell services or goods to businesses

5. E-Commerce Transactions (2 of 2)
Business
Consumer
B2B
GM/Ford/Daimler’s Covisint exchange
B2C
Amazon, Dell, Net Grocer.com
C2B
Priceline, Travelocity
C2C
Ebay

6. Business-to-Consumer E-Commerce

7. Value Chain (1 of 2) (a) Traditional Value Chain
Manufacturer
Wholesaler/
distributor
Retailer
Consumer
(a) Traditional Value Chain
(b) A New Value Chain:
Intermediaries Eliminated (Deintermediation)

8. Value Chain (2 of 2) (a) Traditional Value Chain
Manufacturer
Wholesaler/
distributor
Retailer
Consumer
Infomediary
E-Retailer
Aggregator
Portal
(a) Traditional Value Chain
(b) Intermediaries Eliminated (Deintermediation)
(b) New Intermediaries Introduced (Reintermediation)

9. An Integrated Value Chain (1 of 2)
Manufacturer
Supplier
Customer
Flow of information (customer order)

10. An Integrated Value Chain (2 of 2)
Manufacturer
Supplier
Customer
Flow of information (customer order)
Flow of product (order fulfillment)

11. The Growth of E-Commerce
B2B
B2C
8000 –
6000 –
4000 –
2000 –
0 –
| | | | |
Year
Trillions of Dollars

12. Business-to-Business E-Commerce

13. For which purposes do businesses use the Internet?
To communicate designs, contracts and agreements
To schedule work and deliveries
To buy and sell from suppliers
To transfer funds
To track orders or shipments
To track inventories
To provide information about products or services
To promote products and services
To share knowledge, ie. to transact business

14. Types of B2B Transactions
Buyer Seller
Buyers
Sellers
Buyer
Buyers Sellers
(a) Electronic Storefront (b) Seller’s Auction
(c) Buyer’s Auction (d) Exchange or E-Marketplace

15. E-Business Promotes (1 of 2):
Better customer relations
More efficient processes
Lower cost of materials
Information technology synergy
Better and faster decision making

16. E-Business Promotes-(2 of 2):
New forms of organizations
Expanded supply chain
Higher customer expectations
New ways of doing business
Globalization (global presence of companies, global choices of customers)