1. E-Business University of Palestine Eng. Wisam Zaqoot April 2010 ITSS 4201 Internet Insurance and Information Hiding

2. E-Commerce:  E-commerce transactions include buying and selling products and services, the delivery of information, providing customer service before and after sale, collaborating with business partners…etc.  E-commerce and E-business terms in many cases are used interchangeably, but we prefer here to use the term E-business to refer to the complete spectrum of internet business activities.

3. E-Business Models  Business Model: is the way in which a business generates revenues.  The most common e-business models are the:  Business-to-Consumer (B2C)  Business-to-Business (B2B)  Business-to-Government (B2G)  Consumer-to-Consumer (C2C)  Consumer-to-Business (C2B)  These are the broad categories and the models are implemented in various ways.

4. E-Business Models E-Business Example Description E-Business Model Amazon.com A company selling products or services directly to consumers B2C houstonstreet.com (an energy exchange site) A company selling products or services to other companies. Or bringing multiple buyers and sellers together in a central marketplace B2B Worldbid.com (marketplace for business and government agencies) Businesses selling to government agencies B2G eBay.comtraderonline.com Consumers selling directly to other consumers C2C Priceline.com Consumers name own price which businesses accept or decline C2B

5. Business-to-Consumer  In this model, customers buy products, arrange financing, arrange shipment, download digital products (software) and receive services after sale.  B2C transactions include retail sales, buying airline tickets, buying shares of stock, reserving hotel rooms...etc.  Some traditional retailers are working online at the same time, while others have moved completely to the internet.

6. Business-to-Business  Although B2C is the most familiar form of e-business, B2B is bigger in value.  A lot of companies today use their “intranets” to handle the activities within these companies. The intranet allows employees to view and use internal websites that are not accessible to the outside world.  B2B can be transacted over an “extranet”. An extranet connects two or more intranets via the internet.

7. Business-to-Business  B2B can take a variety of forms like:  Basic B2B internet storefront: a website that belongs to company which sell products to other companies.  B2B exchange: a website where buyers and sellers gather in a virtual centralized marketspace to buy and sell to each other.  Business trading community: this is a special type of B2B exchange where a central source of information is provided for companies working in the same field or selling the same products (vertical market). Examples of vertical markets including insurance companies, transportation companies, car manufacturers...etc.

8. Business-to-Government  Similar to B2B exchange model, except that the companies in this case are selling products and services to the government agencies.

9. Consumer-to-Consumer  The power shift more and more to consumers in the new internet economy.  In this model, consumers sell directly to other consumers.  Consumers can sell products for a predetermined price or after an auction.

10. Consumer-to-Business  Sometimes called the “reverse auction”.  In this model, the buyers (i.e. the companies) choose a price for a specific product or service. The website collects these prices and offers the bids to participating sellers (i.e. the individuals).

11. E-Business Models  As E-business continues to evolve in the marketplace and internet technologies advance, some e-business models will prove to be unsuccessful while new models will emerge.

12. Advantages of E-business E-business advantages for buyers E-business advantages for sellers Wider product availability Increased sales opportunities Customized and personalized buying options Decreased transactions costs Ability to shop 24 hours a day, 7 days a week Working 24 hours a day, 7 days a week Easy to compare prices and offers from different sellers Ability to reach narrow market that is widely distributed geographically Access to global markets Quick delivery of digital products ( they can simply be downloaded) Speed and accuracy in exchanging information Ability to create a one-on-one relationship with seller. Ability to maintaining strong customer relationships by direct interaction with individual customers.

13. Advantages of E-business E-business disadvantages for buyers E-business disadvantages for sellers More concerns about security and privacy Problems in maintaining system security and reliability Lack of trust for unfamiliar sellers Insufficient telecommunications or bandwidth in some areas Inability to touch and feel products before purchase Difficulty in integrating existing systems with e-business software Resistance to unfamiliar buying processes and electronic money Rapidly changing technology Complicated legal environment especially when buying from abroad, and the lack of return policies in many cases. Global market issues including different languages, laws and currencies

14. Terminology  Enterprise Resources Planning (ERP): The overall process of integrating data between business processes and the software used for this integration.  Customer Relationship Management (CRM): An integrated marketing, sales, and service strategy of attracting and retaining customers, using integrated information. - Among the most famous providers of ERP and CRM systems are SAP, Oracle and Siebel.  Supply Chain Management (SCM): Management of flow of materials, information, and funds across the entire supply chain including all activities and processes to supply a product or service to a final customer.  Materials Requirements Planning (MRP): Management of flow of materials in order to know What is needed When.  Electronic Data Interchange (EDI): Sharing and exchanging information electronically between a company and its suppliers and customers using precisely defined transactions.

15. Electronic Data Interchange Suppliers, manufacturers, and retailers exchanging information electronically using an EDI system.