E-BUSINESS: NOT JUST SELLING ON THE WEB! Using the Internet to Enhance Business Internet Penetration Historical Perspective Telephone 38 years - 50 million Television 13 years - 50 million Internet 4 years - 50 million English 330 million Chinese 132 million http://www.witiger.com/ecommerce/ecommercestatistics.htm Type of Sales business-to-business (B2B) business-to-consumer (B2C) business-to-employee (B2E) business-to-government (B2G) government-to-business (G2B) government-to-government (G2G) government-to-citizen (G2C) consumer-to-consumer (C2C) consumer-to-business (C2B) Sales Retail E-commerce Sales (US sales) $37.2 billion in sales for Christmas 2011 15 % increase (ComScore) Steady Growth from 2000 20% of GDP from Internet Over a Trillion Dollars* (wholesale and retail) http://www.census.gov/mrts/www/data/html/08Q3.html Type of Online Business Models Selling a Product - Amazon Providing a Service – Legal Zoom or Consulting Free Products but selling access or information Help Desk & Online Support Save Money by: Reduces Phone Calls Faster Response to Customer Needs Document Depository Lower Labor Cost Marketing Market Research New Market Demographics Current Market Competitors Buyer Demographics Market Statistics & Economic Projections Marketing Product Positioning Image Control Damage Control Financial Year End Report IPO Project Proposals Fund Raising Banking Online Banking Online Management of Resources Capital Acquisition Public & Private Loans Auctions / Inventory Reduction E-bay Craig’s List Yahoo Google Communications Company to Customer Company to Vendor Company to Employee Division to Division Document Control Cost Publish Documents Update Documents Review Documents Track Documents Education & Training Changing Work Force Upgrade Skills Just In Time Training Employment Advertise Openings Targets a Population with some Computer Skills Low Cost to Company. E-Government FirstGov (US) Arizona (State) Maricopa (County) Phoenix (Local) Reasons for the Internet Bubble Bad Business Plans Under Estimated Advertising Dollars Under Estimated Profit Margins Poor Customer Service