1. eFirm & eCommerce Digital Firm

2. Contents 1. Introduction 2. The opportunities of technology 3. Electronic Commerce 4. Payment systems 5. Management challenges 6. Summary

3. The opportunities of technology Digital Firm

4. Digital firm uses internet for  Available for customer 24/7  Easiest way to connect with other businesses and customers  Replaces the existing distribution channels  Creating new business models  Reduces costs  Eliminating inefficient intermediaries  Equilibrium between Reach and Richness

5. Reducing costs  Reducing costs of information  Creating  Sending  Storing  Transaction costs  Agency costs

6. Reach & Richness  Before the Internet companies had to make a choice between  Richness  depth and details of information that  business can supply to the customer  business collects about customer  Reach  How many…  people a business can connect with  products it can offer them Richness ReachReach

7. Easy information flow  Nowadays it is possible to gain information direct from product source  Without intermediaries  Without physical visiting shop  Quicker, easier and more convenient

8. Internet Business model  Describes how the enterprise  Produces  Delivers  Sells product/service  Showing how the enterprise creates wealth

9. Internet Business models  Virtual storefront  Content provider  Online marketplace  Virtual community  Online service provider  Portal

10. Virtual storefront  Sells physical products directly to consumers or to individual businesses

11. Content provider  Creates revenue by providing digital content such as  News  Photos  Video  Music

12. Virtual community  Provides online meeting place  Users can communicate and exchange useful information

13. Portal  Provides initial point of entry to the web along with specialized content and other services

14. Electronic commerce eBuisness

15. Categories of electronic commerce  Many ways in which electronic commerce can be classified  Three major categories are:  Business-to-Consumer(B2C) electronic commerce  Business-to-Business(B2B) e. c.  Consumer-to-Consumer(C2C) e. c.

16. eCommerce  B2C  involves retailing products and services to individual shoppers.  B2B  involves sales of goods and services among businesses  C2C  involves consumers selling directly to consumers  B2B and B2C transaction can take place using mobile commerce(m-commerce) technology

17. Direct sales over the Web  Reduce the number of steps in traditional distribution channel  Disintermediation  The removal of organization or business process layers responsible for certain intermediary steps in a value chain ManufacturerDistributorRetailer Customer ManufacturerRetailer Customer Manufacturer Customer

18. Interactive Marketing & personalization  Interactive capabilities  can be used to build closer relationship with customers in marketing and support  Web personalization  Used to deliver content geared to the specific interest of each user  Build personal relationship to the webpage  Make access to the web more and more easier  Learning and examination customers behaviors by the visiting web page is cheaper

19. Net marketplaces  Sometimes called e-hubs  Many sellers  Many buyers  Transaction oriented  Prices established through auctions, negotiations, etc.  Example: internet auctions- eBay, Allegro, aukro Net Marketplace

20. Payment systems eBuisness

21. Payment systems  Digital credit card systems  Digital wallets  Digital cash  P2P payments  Digital checking  Electronic billing presentment and payment

22. Intranet & extranet  Forming the underpinnings of electronic business by providing low cost technology that can run on almost any computer platform  Intranet  inside company  Inexpensive  Accessible for most computer platforms  Scalable  Extranet  Can be used by more than one computer and customers  Private intranets extended to selected users

23. Intranet applications  Finance and accounting  Human resources  Sales and Marketing  Manufacturing and Production

24. Challenges

25. Challenges for managers  Enabling Digital firm requires  Deep organizational change  Redesign business processes  Recasting relationships with  customers  Suppliers  Other business partners  New roles for employees

26. Disadvantages?  Not always more profitable and more efficient than traditional business models  Security  Privacy  Chanel conflicts

27. Thank You for Your Attention