Unit 4 Creating Collaborative Partnerships in Business Unit 4 Amazon.com www.A9.com Chapter Thirteen – Creating Collaborative Partnerships through E-Business Chapter Fourteen – Enhancing Collaborative Partnerships Chapter Fifteen – Outsourcing Collaborative Partnerships Chapter Sixteen – Integrating Collaborative Partnerships 2 CHAPTER 13 E-Business Learning Outcomes Describe how IT accelerates and enhances ebusiness List and describe the importance of e-business models Explain why forming electronic partnerships and alliances is critical to an organization Differentiate between B2B and B2C e-business models Describe the major digital marketplace structures Describe the benefits of m-commerce 4 Overview The Internet is a powerful channel that presents new opportunities for an organization to: Touch customers Enrich products and services with information Reduce costs E-commerce – the buying and selling of goods and services over the Internet E-business – the conducting of business on the Internet, not only buying and selling, but also serving customers and collaborating with business partners 5 E-Business Economy Individuals and organizations have embraced Internet technologies to enhance productivity, maximize convenience, and improve communications globally A growing number of businesses are using the Internet to: Streamline business processes Procure materials Sell products Automate customer service Create new revenue streams 6 E-Business Model E-business models aim to use and leverage the unique qualities of the Internet and the Web to conduct business E-business model - an approach to conducting electronic business by which a company can become a profitable business on the Internet Exchanges occur between two major entities: Businesses Consumers 7 E-Business Models B2B and B2C Overview B2B advantages Managing inventory more efficiently Adjusting more quickly to customer demand Getting products to market faster Obtaining lower prices on supplies B2C advantages Access to a wider selection of products and services Access to products at lower costs Convenience for transactions or for obtaining information B2B customers are B2C customers are other businesses consumers 9 B2C in addition to online retailers, B2C has grown to include services such as online banking, travel services, online auctions, health information, and real estate sites Primary challenges of E-Business 1. Security concerns – 60% of Internet users consider the Internet unsafe 2. Taxation – Internet remains free of traditional forms of taxation 3. Consumer protection – – – – – Unsolicited goods and communications Illegal or harmful goods, services, and content Insufficient information about goods or their suppliers Invasion of privacy Cyberfraud 11 Security Concerns Hackers Basic security measures such as scanning tools, updated password programs will keep them hackers out Insiders Account for 75% of all security breaches Organizations should establish strict security policies and develop internal processes to enforce those policies. Passwords 12 Electronic Marketplace Electronic marketplace represent a new wave in e-business Electronic marketplace (e-marketplaces) – interactive business communities providing a central market space where multiple buyers and sellers can engage in e-business activities 13 Mobile Commerce (m-commerce) Internet-enabled mobile devices will outnumber PCs m-commerce – the ability to purchase goods and services through a wireless Internet-enabled device 14 Opening Case Study Questions 1. Explain whether Amazon.com is a B2B or B2C 2. Identify how Amazon.com is already integrating its business in the e-marketplace 3. Explain how m-commerce will influence the way Amazon.com conducts business 15 7-Eleven’s Dream Team 7-Eleven Japan has integrated its online site 7dream.com with its physical stores Through the 7dream.com Web site, 7Eleven Japan enables consumers to choose from an online assortment of 100,000 products which are picked up from one of 8,400 store locations 16 7-Eleven’s Dream Team 1. What 7dream.com sells is “convenience.” Explain how integrating the Internet into its existing business is the key to its success 2. Identify new electronic relationships 7Eleven Japan can create to increase customer acquisitions 3. Explain how 7-Eleven Japan can leverage the advantages of an e-marketplace to increase customer retention 17