Chapter 1 Overview f Electrnic Cmmerce 1-0
Learning Objectives 1. Define electrnic cmmerce (EC) and describe its varius categries. 2. Describe and discuss the cntent and framewrk f EC. 3. Describe the majr types f EC transactins. 4. Discuss e-cmmerce 2.0. 5. Describe scial cmmerce and scial sftware. 1-1
Learning Objectives 6. Understand the elements f the digital wrld. 7. Describe the drivers f EC as they relate t business pressures and rganizatinal respnses. 8. Describe sme EC business mdels. 9. Describe the benefits f EC t rganizatins, cnsumers, and sciety. 10. List and describe the majr limitatins f EC. 1-2
Electrnic Cmmerce: Definitins and Cncepts electrnic cmmerce (EC) The prcess f buying, selling, r exchanging prducts, services, r infrmatin via cmputer e-business A brader definitin f EC that includes nt just the buying and selling f gds and services, but als servicing custmers, cllabrating with business partners, and cnducting electrnic transactins within an rganizatin 1-3
Electrnic Cmmerce: Definitins and Cncepts MAJOR EC CONCEPTS Pure Versus Partial EC EC Organizatins brick-and-mrtar (ld ecnmy) rganizatins Old-ecnmy rganizatins (crpratins) that perfrm their primary business ffline, selling physical prducts by means f physical agents virtual (pure-play) rganizatins Organizatins that cnduct their business activities slely nline click-and-mrtar (click-and-brick) rganizatins Organizatins that cnduct sme e-cmmerce activities, usually as an additinal marketing channel 1-4
1-5
Electrnic Cmmerce: Definitins and Cncepts ELECTRONIC MARKETS AND NETWORKS electrnic market (e-marketplace) An nline marketplace where buyers and sellers meet t exchange gds, services, mney, r infrmatin intranet An internal crprate r gvernment netwrk that uses Internet tls, such as Web brwsers, and Internet prtcls extranet A netwrk that uses the Internet t link multiple intranets 1-6
1-7
Classificatin, Cntent, and a Brief AN EC FRAMEWORK Histry EC applicatins are supprted by infrastructure and by the fllwing five supprt areas: 1. Peple 2. Public plicy 3. Marketing and advertising 4. Supprt services 5. Business partnerships 1-8
Classificatin, Cntent, and a Brief Histry CLASSIFICATION OF EC BY THE NATURE OF THE TRANSACTIONS AND THE RELATIONSHIPS AMONG PARTICIPANTS business-t-business (B2B) E-cmmerce mdel in which all f the participants are businesses r ther rganizatins business-t-cnsumer (B2C) E-cmmerce mdel in which businesses sell t individual shppers e-tailing Online retailing, usually B2C 1-9
1-10
Classificatin, Cntent, and a Brief Histry business-t-business-t-cnsumer (B2B2C) E-cmmerce mdel in which a business prvides sme prduct r service t a client business that maintains its wn custmers cnsumer-t-business (C2B) E-cmmerce mdel in which individuals use the Internet t sell prducts r services t rganizatins r individuals wh seek sellers t bid n prducts r services they need 1-11
Classificatin, Cntent, and a Brief Histry intrabusiness EC E-cmmerce categry that includes all internal rganizatinal activities that invlve the exchange f gds, services, r infrmatin amng varius units and individuals in an rganizatin business-t-emplyees (B2E) E-cmmerce mdel in which an rganizatin delivers services, infrmatin, r prducts t its individual emplyees 1-12
Classificatin, Cntent, and a Brief Histry cnsumer-t-cnsumer (C2C) E-cmmerce mdel in which cnsumers sell directly t ther cnsumers cllabrative cmmerce (c-cmmerce) E-cmmerce mdel in which individuals r grups cmmunicate r cllabrate nline e-gvernment E-cmmerce mdel in which a gvernment entity buys r prvides gds, services, r infrmatin frm r t businesses r individual citizens 1-13
1-14
Classificatin, Cntent, and a Brief Histry A BRIEF HISTORY OF EC The Interdisciplinary Nature f EC The Ggle Revlutin f-cmmerce E-cmmerce activities cnducted n Facebk r influenced by the site EC Failures EC Successes THE FUTURE OF EC 1-15
Frm Scial Cmmerce t Virtual scial cmputing Wrlds An apprach aimed at making the human cmputer interface mre natural Web 2.0 The secnd generatin f Internet-based services that lets peple cllabrate and share infrmatin nline in new ways, such as scial netwrking sites, wikis, cmmunicatin tls, and flksnmies 1-16
Frm Scial Cmmerce t Virtual scial netwrk Wrlds A categry f Internet applicatins that help cnnect friends, business partners, r individuals with specific interests by prviding free services such as pht presentatin, e-mail, blgging, and s n using a variety f tls 1-17
Frm Scial Cmmerce t Virtual Wrlds scial netwrking service (SNS) A service that builds nline cmmunities by prviding an nline space fr peple t build free hmepages and that prvides basic cmmunicatin and supprt tls fr cnducting different activities in the scial netwrk scial netwrking The creatin r spnsring f a scial netwrk service and any activity, such as blgging, dne in a scial netwrk (external r internal) 1-18
Frm Scial Cmmerce t Virtual Wrlds ENTERPRISE SOCIAL NETWORKS scial cmmerce The e-cmmerce activities cnducted in scial netwrks and/r by using scial sftware (i.e., Web 2.0 tls) 1-19
Frm Scial Cmmerce t Virtual Wrlds VIRTUAL WORLDS AND SECOND LIFE virtual wrld A user-defined wrld in which peple can interact, play, and d business; the mst publicized virtual wrld is Secnd Life Hw Students Make Mney in a Virtual Wrld THE MAJOR TOOLS OF WEB 2.0 Wikis RSS feeds Blgs Micrblgs (e.g.,twitter) 1-20
The Digital Wrld: Ecnmy, Enterprises, and Sciety digital ecnmy An ecnmy that is based n digital technlgies, including digital cmmunicatin netwrks, cmputers, sftware, and ther related infrmatin technlgies; als called the Internet ecnmy, the new ecnmy, r the Web ecnmy 1-21
The Digital Wrld: Ecnmy, Enterprises, and Sciety digital enterprise A new business mdel that uses IT in a fundamental way t accmplish ne r mre f three basic bjectives: reach and engage custmers mre effectively, bst emplyee prductivity, and imprve perating efficiency; uses cnverged cmmunicatin and cmputing technlgy in a way that imprves business prcesses crprate prtal A majr gateway thrugh which emplyees, business partners, and the public can enter a crprate website. THE DIGITAL SOCIETY 1-22
Organizatins Respnse, and EC Supprt THE CHANGING BUSINESS ENVIRONMENT PERFORMANCE, BUSINESS PRESSURES, AND ORGANIZATIONAL RESPONSES AND EC SUPPORT The Business Envirnment and Perfrmance Impact Mdel Business Pressures Organizatinal Respnse Strategies The supprt f EC The Majr Capabilities f E-Cmmerce 1-23
1-24
1-25
Electrnic Cmmerce Business business mdel Mdels A methd f ding business by which a cmpany can generate revenue t sustain itself 1-26
Electrnic Cmmerce Business Mdels THE STRUCTURE AND PROPERTIES OF BUSINESS MODELS Revenue Mdels value prpsitin The benefits a cmpany can derive frm using EC Functins f a Business Mdel 1-27
1-28
Electrnic Cmmerce Business Mdels TYPICAL EC BUSINESS MODELS 1. Online direct marketing 2. tendering (bidding) system Mdel in which a buyer requests wuld-be sellers t submit bids; the lwest bidder wins. 3. Electrnic marketplaces and exchanges 4. Viral marketing 5. Grup purchasing 1-29
and Impacts f Electrnic Cmmerce THE BENEFITS AND IMPACTS OF EC EC as a Prvider f Cmpetitive Advantage THE LIMITATIONS AND BARRIERS OF EC ethics The branch f philsphy that deals with what is cnsidered t be right and wrng WHY STUDY E-COMMERCE? 1-30
1-31
1. Is EC real? Managerial Issues 2. Why is B2B e-cmmerce s essential and successful? 3. Which EC business mdel shuld I chse? 4. Hw can we explit scial cmmerce? 5. What are the tp challenges f EC tday? 1-32
Summary 1. Definitin f EC and descriptin f its varius categries 2. The cntent and framewrk f EC 3. The majr types f EC transactins 4. E-cmmerce 2.0 5. Descriptin f scial cmmerce and scial sftware 1-33
Summary 6. The elements f the digital wrld 7. The drivers f EC 8. The majr EC business mdels 9. Benefits f EC t rganizatins, cnsumers, and sciety 10. Limitatins f e-cmmerce 1-34