Managing E-Business
Course Code: MNGM2000
Professor: Pierre Dion
Office: H221S
Email: pierre.dion@geogiancollege.ca
Room: H116 at 11:00 Tuesday
September 13, 2016: Chapter 1
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Yale 12 best words
o you, save, money, easy, guarantee, health, proven, safety, discovery, new,
love, results
The internet came from the military
The first transaction was at Stanford for a drug deal
E-Commerce
o The process of buying, selling, or exchanging products, services, or information via
computer
E-business
o A broader definition of EC that includes not just the buying and selling of goods and
services, ut also servicing customers, collaboration with business partners, and
conducting electron transactions within an organization
MAJOR EC CONCEPTS
o Pure Versus Partial EC
o EC Organizations
o brick-and-mortar (old economy) organizations
 Old-economy organizations (corporations) that perform their primary business
offline, selling physical products by means of physical agents
o virtual (pure-play) organizations
 Organizations that conduct their business activities solely online
o click-and-mortar (click-and-brick) organizations
 Organizations that conduct some e-commerce activities, usually as an additional
marketing channel
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ELECTRONIC MARKETS AND NETWORKS
o electronic market (e-marketplace)
 An online marketplace where buyers and sellers meet to exchange goods,
services, money, or information
o intranet
 An internal corporate or government network that uses Internet tools, such as
Web browsers, and Internet protocols
o extranet
 A network that uses the Internet to link multiple intranets
 You can log into a companies intranet and have access to addition intranets
Majority of E-commerce is B2B (90%)
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AN EC FRAMEWORK
o EC applications are supported by infrastructure and by the following five support areas:
 People
 Public policy
 Marketing and advertising
 Support services
 Information systems, MIS. Business partnerships
 Business partnerships
CLASSIFICATION OF EC BY THE NATURE OF THE TRANSACTIONS AND THE
RELATIONSHIPS AMONG PARTICIPANTS
o business-to-business (B2B)
 E-commerce model in which all of the participants are businesses or other
organizations
 Alibaba
o business-to-consumer (B2C)
 E-commerce model in which businesses sell to individual shoppers
o e-tailing
 Online retailing, usually B2C
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C-Commerce
o Collaborative commerce
F-Commerce
o Facebook Commerce
M-Commerce
o Messaging commerce
Business-to-business-to-consumer (B2B2C)
o E-commerce model in which a business provides some product or service to a client
business that maintains its own customers
Consumer-to-business (C2B)
o E-commerce model in which individuals use the Internet to sell products or services to
organizations or individuals who seek sellers to bid on products or services they need
Intrabusiness EC
o E-commerce category that includes all internal organizational activities that involve the
exchange of goods, services, or information among various units and individuals in an
organization
Business-to-employees (B2E)
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o E-commerce model in which an organization delivers services, information, or products
to its individual employees
Consumer-to-consumer (C2C)
o E-commerce model in which consumers sell directly to other consumers
Collaborative commerce (c-commerce)
o E-commerce model in which individuals or groups communicate or collaborate online
E-government
o E-commerce model in which a government entity buys or provides goods, services, or
information from or to businesses or individual citizens
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A BRIEF HISTORY OF EC
o The Interdisciplinary Nature of EC
o The Google Revolution
o f-commerce
 E-commerce activities conducted on Facebook or influenced by the site
o EC Failures
o EC Successes
o THE FUTURE OF EC
E-Commerce 2.0
o Social computing
 An approach aimed at making the human–computer interface more natural
o Web 2.0
 The second generation of Internet-based services that lets people collaborate
and share information online in new ways, such as social networking sites, wikis,
communication tools, and folksonomies
 Web 2.0 reflates to conversation back and fourth 2 way conversation
 Web 3.0 is three way communication with social media facilitation of discussion
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o Social network
 A category of Internet applications that help connect friends, business partners,
or individuals with specific interests by providing free services such as photo
presentation, e-mail, blogging, and so on using a variety of tools
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o Social networking service (SNS)
 A service that builds online communities by providing an online space for people
to build free homepages and that provides basic communication and support
tools for conducting different activities in the social network
o Social networking
 The creation or sponsoring of a social network service and any activity, such as
blogging, done in a social network (external or internal)
 Any time you contribute to a SNS
ENTERPRISE SOCIAL NETWORKS
o Social commerce
 The e-commerce activities conducted in social networks and/or by using social
software (i.e., Web 2.0 tools)
 When you promote through SNS
VIRTUAL WORLDS AND SECOND LIFE
o Virtual world
 A user-defined world in which people can interact, play, and do business; the
most publicized virtual world is Second Life
 How Students Make Money in a Virtual World
o THE MAJOR TOOLS OF WEB 2.0
 Wikis
 RSS feeds
 Real simple syndication
 Blogs
 Microblogs (e.g.,Twitter)
Digital economy
o An economy that is based on digital technologies, including digital communication
networks, computers, software, and other related information technologies; also called
the Internet economy, the new economy, or the Web economy
o Bitcoin moving away from analog to digital
Digital enterprise
o A new business model that uses IT in a fundamental way to accomplish one or more of
three basic objectives: reach and engage customers more effectively, boost employee
productivity, and improve operating efficiency; uses converged communication and
computing technology in a way that improves business processes
Corporate portal
o A major gateway through which employees, business partners, and the public can enter
a corporate website.
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THE DIGITAL SOCIETY
THE CHANGING BUSINESS ENVIRONMENT
o PERFORMANCE, BUSINESS PRESSURES, AND ORGANIZATIONAL RESPONSES AND
EC SUPPORT
 The Business Environment and Performance Impact Model
 Business Pressures
 Organizational Response Strategies
 The support of EC
 The Major Capabilities of E-Commerce
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Business model
o A method of doing business by which a company can generate revenue to sustain itself
THE STRUCTURE AND PROPERTIES OF BUSINESS MODELS
Revenue Models
value proposition
o The benefits a company can derive from using EC
Functions of a Business Model
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TYPICAL EC BUSINESS MODELS
Online direct marketing
o Click on my shit buy it
Tendering (bidding) system
o Model in which a buyer requests would-be sellers to submit bids; the lowest bidder
wins.
o Government betting
Electronic marketplaces and exchanges
Viral marketing
Group purchasing
THE BENEFITS AND IMPACTS OF EC
o EC as a Provider of Competitive Advantage
THE LIMITATIONS AND BARRIERS OF EC
o Ethics
 The branch of philosophy that deals with what is considered to be right and
wrong
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Marginal Issues
o Is EC real?
o Why is B2B e-commerce so essential and successful?
o Which EC business model should I choose?
o How can we exploit social commerce?
o What are the top challenges of EC today?
September 20, 2016: Chapter 2
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Electronic Commerce Mechanisms: An Overview
EC ACTIVITIES & SUPPORT MECHANISMS
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Electronic Commerce Mechanisms: An Overview
o SELLERS, BUYERS, AND TRANSACTIONS
o The Purchasing Process
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E-Marketplaces
o E-marketplace - An online market, usually B2B, in which buyers and sellers exchange
goods or services; the three types of e-marketplaces are private, public, and consortia
o Components of & Participants in E-Marketplaces
 Marketspace: a marketplace in which sellers and buyers exchange goods and
services for money (or for other goods and services), but do so electronically
o The major components and players in a marketspace are:
 Customers
 Sellers
 Products and services
 digital products
 Goods that can be transformed to digital format and delivered over the
Internet
 Infrastructure
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o front end
 The portion of an e-seller’s business processes through which customers
interact, including the seller’s portal, electronic catalogs, a shopping cart, a
search engine, and a payment gateway
o back end
 The activities that support online order fulfillment, inventory management,
purchasing from suppliers, payment processing, packaging, and delivery
o intermediary
 A third party that operates between sellers and buyers
ERP – Enterprise resource planning
o Enterprise resource planning (ERP) is business process management software that
allows an organization to use a system of integrated applications to manage the
business and automate many back office functions related to technology, services and
human resources.
EDI – Electronic Data Interchange
o is the transfer of data from one computer system to another by standardized message
formatting, without the need for human intervention. EDI permits multiple companies
-- possibly in different countries -- to exchange documents electronically.
Radio-frequency Identification (RFID)
KPI – Key Performance Indicator
o Figuring out what a company is doing in the field and how they are doing
o Consumer spending and where the company is going
RSS – Really Simple syndication
TYPES OF E-MARKETPLACES
o Sell-side e-marketplace
 A private e-marketplace in which one company sells either standard and/or
customized products to qualified companies
 In order to get the best deal on steel on work on a RFQ (Request for quote)
 Or a RFQ (Request for qualification)
o buy-side e-marketplace
 A private e-marketplace in which one company makes purchases from invited
suppliers
Customer Shopping Mechanisms: Storefronts, Malls, and Portals
o Webstore (storefront)
 A single company’s website where products or services are sold; usually has an
online shopping cart associated with it
 Many Webstores target a specific industry and find their own unique corner of
the market.
 Microsites
o E-mall (online mall)
 An online shopping center where many online stores are located
o TYPES OF STORES AND MALLS
 General stores/malls
 Specialized stores/malls
 Regional versus global stores
 Pure-play versus click-and-mortar stores
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Web (information) portal
o A single point of access, through a Web browser, to critical business information located
inside and outside an organization (via Internet)
Types of Portals
 Commercial (public) portals
 Corporate portals
 Publishing portals
 Personal portals
o Mobile portal
 A portal accessible via a mobile device.
Voice portal
 A portal accessed by telephone or cell phone.
Roles & Value of Intermediaries In e-marketplaces
o Brokers
Infomediaries
o Electronic intermediaries that provide and/or control information flow in cyberspace,
often aggregating information and selling it to others
E-distributor
o An e-commerce intermediary that connects manufacturers with business buyers
(customers) by aggregating the catalogs of many manufacturers in one place—the
intermediary’s website
Electronic catalogs (e-catalogs)
o The presentation of product information in an electronic form; the backbone of most eselling sites
Online Catalogs Versus Paper Catalogs
o (Class Exercise)
Internet/Web Search
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Enterprise Search
o The practice of identifying and enabling specific content across the enterprise to be
indexed, searched, and displayed to authorized users
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Desktop Search
o Search tools that search the contents of a user’s or organization’s computer files, rather
than searching the Internet
o The emphasis is on finding all the information that is available on the user’s PC,
including Web browser histories, e-mail archives, and word-processed documents, as
well as in all internal files and databases.
Search Engine
o A computer program that can access databases of Internet resources, search for specific
information or key words, and report the results
Software (Intelligent) Agents
o Programs that run and do something that you are asking them to do
Questions & Answers Online
Voice-Powered Search
Visual Shopping Search Engine
Electronic Shopping Cart
o An order-processing technology that allows customers to accumulate items they wish to
buy while they continue to shop
OTHER MECHANISMS IN MERCHANT SOFTWARE
o Other Shopping Engines
o Product Configuration
Auction:
o Competitive process in which a seller solicits consecutive bids from buyers (forward
auctions) or a buyer solicits bids from sellers (backward auctions); prices are
determined dynamically by the bids
Dynamic Pricing:
o Prices that change based on supply and demand relationships at any given time
TRADITIONAL AUCTIONS VERSUS E-AUCTIONS
o Limitations of Traditional Offline Auctions
o electronic auctions (e-auctions)
TYPES OF AUCTIONS:
o One Buyer, One Seller
o One Seller, Many Potential Buyers
 Forward auction
 An auction in which a seller entertains bids from buyers; bidders increase price
sequentially
One Buyer, Many Potential Sellers
Reverse Auction (bidding or tendering system)
o Auction in which the buyer places an item for bid (tender) on a request for quote (RFQ)
system, potential suppliers bid on the job, with the price reducing sequentially, and the
lowest bid wins; primarily a B2B or G2B mechanism
Name-your-own-price model
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o Auction model in which a would-be buyer specifies the price (and other terms) he or
she is willing to pay to any willing and able seller; a C2B model that was pioneered by
Priceline.com.
Many Sellers, Many Buyers
o double auction
 An auction in which multiple buyers and their bidding prices are matched
with multiple sellers and their asking prices, considering the quantities
on both sides
o Penny Auction
 A formal auction in which participants pay a nonrefundable small fee for
each bid; bid level changes by small increments
Limitation of E-Auctions
o Minimal Security
o Possibility of Fraud
o Limited Participation
 Impacts of Auctions:
Auctions as a Social Mechanism to Determine a Price
Auctions as a Highly Visible Distribution Mechanism
Auctions as an EC Component in a Business Model
Auctions for Profit for Individuals
 ONLINE BARTERING
 bartering
The exchange of goods and services
 e-bartering (electronic bartering)
Bartering conducted online, usually in a bartering exchange
 bartering exchange
A marketplace in which an intermediary arranges barter transactions
 ONLINE NEGOTIATING
 Social Software
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 A software product that enables people to rendezvous, connect, and collaborate through
computer-mediated communication
Blog
 A personal website that is open to the public to read and to interact with; dedicated to
specific topics or issues
 vlog (or video blog): a blog with video content
Microblogging:
 Blogging that allows users to write messages (usually up to 140 characters) and publish
them, either to be viewed by anyone or by a restricted group that can be chosen by the
user; these messages can be submitted by a variety of means, including text messaging,
instant messaging, e-mail, or just on the Web
Twitter
 A free microblogging service that allows its users to send and read other users’ updates
tweets
 Text-based posts up to 140 characters in length posted to Twitter
The Essentials of Twitter for Business
 The Major Benefits of Twitter
 Examples of Twitter as Enterprise Tools
wiki (wikilog)
 A blog that allows everyone to participate as a peer; anyone may add, delete, or change
content
Business Applications of Wikis
Web 2.0 Tools: Tags, Folksonomy, Mashups, Social Bookmarks
 tag
 A nonhierarchical key word or term assigned to a piece of information (such as
an Internet bookmark, digital image, video clip, or any computer document)
Mash up
 Combination of information from multiple websites – map on your site
Folksonomy (collaborative tagging, social tagging)
 The practice and method of collaboratively creating, classifying, and managing tags to
annotate and categorize content
 Organizing different collaborative content
Mash up
 Combination of two or more websites into a single website that provides the content of
both sites (whole or partial) to deliver a novel product to consumers
Social bookmarking
 Web service for sharing Internet bookmarks; the sites are a popular way to store,
classify, share, and search links through the practice of folksonomy techniques on the
Internet and intranets
Virtual community
 A group of people with similar interests who interact with one another using the
Internet
TRADITIONAL ONLINE COMMUNITIES AND THEIR CLASSIFICATION
 Types of Communities
 Associations
 Affinity portals
 Ethnic communities
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 Gender communities
 Catering to young people
 Communities of practice
 Neighborhood communities
 Social networks sites
 Virtual worlds
Business-oriented social networks
 A social network whose major interest is business topics and whose members are
professional people; such networks are used mostly for creating contacts, providing
requirements, and enlisting members’ support for problem solving and knowledge
sharing
Example of a Business-Oriented Social Network
 Business Models and Services Related to Social Networking
 Social Network Analysis Software
 Xanga
 Digg
Mobile Social Networking:
 Members converse and connect with one another using cell phones or other mobile
devices
 Mobile Community Activities
Virtual world
 A user-defined world in which people can interact, play, and do business; the most
publicized virtual world is Second Life
Avatars
 Animated computer characters that exhibit humanlike movements and behaviors
BUSINESS ACTIVITIES AND VALUE IN VIRTUAL WORLDS
 Collaboration
 Research and Marketing
 Virtual Shopping
 Trading Virtual Properties
WEB 3.0 and Web 4.0
 Web 3.0
 A term used to describe the future of the World Wide Web; it consists of the
creation of high-quality content and services produced by individuals using Web
2.0 technology as an enabling platform
 Semantic Web
 An evolving extension of the Web in which Web content can be expressed not
only in natural language, but also in a form that can be understood, interpreted,
and used by intelligent computer software agents, permitting them to find, share,
and integrate information more easily
 Web 4.0
 The Web generation after Web 3.0 that is still an unknown entity; however, it is
envisioned as being based on islands of intelligence and as being ubiquitous
 Understanding language itself
 THE TECHNOLOGICAL ENVIRONMENT
 McKinsey & Company’s Prediction
 Nicholas Carr’s & Company’s Prediction
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Managerial Issues
o Should we use auctions for selling?
o Should we barter?
o How do we select merchant software?
o How can we use Facebook and other social networks in our business?
o How shall we start using Web 2.0 tools?
o Shall we take part in virtual worlds?
o How should we deal with Web 2.0 risks?
October 4, 2016 : Unit 4
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Presentation of key terms
business-to-business e-commerce (B2B EC)
o Transactions between businesses conducted electronically over the Internet, extranets,
intranets, or private networks; also known as eB2B (electronic B2B) or just B2B
o THE BASIC TYPES OF B2B TRANSACTIONS AND ACTIVITIES:
 Sell-side
 Buy-side
 Exchanges
 Supply chain improvements and collaborative commerce
o One-to-Many and Many-to-One: Private E-Marketplaces - company-centric EC
 E-commerce that focuses on a single company’s buying needs (many-to- one, or
buy-side) or selling needs (one-to- many, or sell-side)
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Many-to-Many: Public Exchanges
o exchanges (trading communities or trading exchanges)
 Many-to-many e-marketplaces, usually owned and run by a third party or a
consortium, in which many buyers and many sellers meet electronically to trade
with each other
o public e-marketplaces
 Third-party exchanges open to all interested parties (sellers and buyers)
o Supply Chain Improvers and Collaborative Commerce
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E-CRM
o Electronic – Customer relationship Management
o Managing the relationship with customers
Components of B2B
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B2B CHARACTERISTICS
o Parties to the Transaction: Sellers, Buyers, and Intermediaries
 Online intermediary
 An online third party that brokers a transaction online between a buyer and a
seller; may be virtual or click-and-mortar
Types of B2B Transactions: How Do Firms Buy?
o spot buying
 The purchase of goods and services as they are needed, usually at prevailing
market prices
 Similar to Just in time buying
 Want things to arrive just as you need them
o strategic (systematic) sourcing
 Purchases involving long-term contracts that usually are based on private
negotiations between sellers and buyers
 Long term contracts – longer contracts better price
o Types of Materials Traded: What Do Firms Buy?
 direct materials
 Materials used in the production of a product (e.g., steel in a car or
paper in a book)
 indirect materials
 Materials used to support production (e.g., office supplies or light
bulbs)
MRO (maintenance, repair, and operation)
 Indirect materials used in activities that support production
The Direction of the Trades
o Vertical marketplaces
 Markets that deal with one industry or industry segment (e.g., steel,
chemicals)
o Horizontal marketplaces
 Markets that concentrate on a service, material, or a product that is used in
all types of industries (e.g., office supplies, PCs)
Relationships
o CRM
 Extremely important word of mouth and keeping business going
o SUPPLY CHAIN RELATIONSHIPS IN B2B
o SERVICE INDUSTRIES ONLINE IN B2B
o PARTNER AND SUPPLIER RELATIONSHIP MANAGEMENT
o Partner relationship management (PRM)
 Business strategy that focuses on providing comprehensive quality service to
business partners
o Supplier relationship management (SRM)
 A comprehensive approach to managing an enterprise’s interactions with the
organizations that supply the goods and services it uses.
o THE BENEFITS AND LIMITATIONS OF B2B
Sell-side e-marketplace
o A Web-based marketplace in which one company sells to many business buyers from
e-catalogs or auctions, frequently over an extranet
o Sell side you are walking around the market
o B2B Sellers
o Customer Service
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SALES FROM CATALOGS: STOREFRONT
o Customization and Self-Configuration
o Benefits and Limitations of Online Sales from Catalogs
 Benefits
 Easy to sell
 Always have access
 Don’t have to more as many people
 Easy access to using Just in time sales
 Limitations
 Mistakes – they have to be honoured
 Security
o COMPREHENSIVE SELL-SIDE SYSTEMS
Selling Via Distributors and Other Intermediaries
o Manufacturers can sell directly to businesses, and they do so if the customers are large
buyers.
o Frequently they use intermediaries to distribute their products to a large number of
smaller buyers.
o The intermediaries buy products from many manufacturers and aggregate them into
one catalog from which they sell to customers or to retailers.
Selling via E-Auction
o USING AUCTIONS ON THE SELL SIDE
 Revenue generation
 Cost savings
 Increased “stickiness”
Always want to be drawn back (people going back to the website (e.g.
Facebook)
 Member acquisition and retention
o AUCTIONING FROM THE COMPANY’S OWN SITE
o USING INTERMEDIARIES IN AUCTIONS
o EXAMPLES OF B2B FORWARD AUCTIONS
One-from-Many: E-Procurement at Buy-Side E-Marketplaces
o Buy-side e-marketplace
 A corporate-based acquisition site that uses reverse auctions, negotiations,
group purchasing, or any other e-procurement method
o INEFFICIENCIES IN TRADITIONAL PROCUREMENT MANAGEMENT
 Procurement management
 The planning, organizing, and coordinating of all the activities relating to
purchasing goods and services needed to accomplish the organization’s
mission
 Maverick buying
 Unplanned purchases of items needed quickly, often at non-prenegotiated higher prices
 That last minute purchase that you buy just before you get to the checkout – last minute unplanned purchase
 Costly – with planning get a better price
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E-procurement (electronic procurement)
o The electronic acquisition of goods and services for organizations via the Internet, EDI,
etc.
THE GOALS AND PROCESS OF E-PROCUREMENT
o Types of E-Procurement
 E-sourcing
 E-tendering
 E-reverse auctioning
 E-informing
 Web-based ERP
 Enterprise resource planning
 E-market sites
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E-MRO
 Maintenance repair operations – doing repair online
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THE BENEFITS AND LIMITATIONS OF E-PROCUREMENT
o The Benefits of E-Procurement
 You don’t have to jump through the hoops
 Empowers employees to know more about clients
 Limited warehousing
 Easy to keep track of orders and demands
 Simple ability to track the goods, sales, purchases, shipments
o The Limitations and Challenges of E-Procurement
 Faults in the system
 Faults in the entering process
 Bypassing your managers – demanding customers
 Lets say you are selling and someone ask for 5 million semi conductors to
Samsung and someone on their end puts in an order for 5 million dollars and
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sends it out and does not check with upper management to make sure it is
approved
Reverse Auctions
o Request for quote (RFQ)
 The “invitation” to participate in a tendering (bidding) system
o CONDUCTING REVERSE AUCTIONS
 E-Tendering by Governments
o GROUP REVERSE AUCTIONS
Other online procurement systems
o Internal procurement marketplace
 The aggregated catalogs of all approved suppliers combined into a single internal
electronic catalog
 Benefits of Internal Aggregated Catalogs
 Very popular in the tech industry
 Have access in the tech industry making sure that all the things fit with
the product you are making
 Desktop purchasing
 Direct purchasing from internal marketplaces without the approval of
supervisors and without the intervention of a procurement department
o Group purchasing
 The aggregation of orders from several buyers into volume purchases so that
better prices can be negotiated
 Internal Aggregation of Purchasing Orders
 External Aggregation for Group Purchasing
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o BUYING AT SELLERS’ SITES
 Purchasing Direct Goods
 ACQUISITION VIA ELECTRONIC BARTERING
 Bartering exchange
 An intermediary that links parties in a barter; a company submits its
surplus to the exchange and receives points of credit, which can be used
to buy the items that the company needs from other exchange
participants
 SELECTING AN APPROPRIATE E-PROCUREMENT SOLUTION
B2B Exchanges
o Functions of Exchanges
 Matching buyers and sellers
 Facilitating transactions
 Maintaining exchange policies and infrastructure
o Services Provided by Exchanges
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The back office
o Where data input happens
o Managing the processes that you don’t see
o Can be offsite just the bitch work
OWNERSHIP OF B2B EXCHANGES
o Third-Party Independent Marketplaces
o Consortium trading exchange (CTE)
 An exchange formed and operated by a group of major companies in an
industry to provide industry-wide transaction services
 People coming together to be a group to make systems integrated and
better deals
DYNAMIC PRICING IN B2B EXCHANGES
o Dynamic pricing
 A rapid movement of prices over time and possibly across customers, as a
result of supply and demand matching
 The chaos of prices changing and the demands that are going on in our
society
ADVANTAGES, LIMITATIONS, AND THE REVENUE MODEL OF EXCHANGES
o Revenue Models
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B2B Portals and Directories
o B2B portals
 Information portals for businesses
o Vortals
 B2B portals that focus on a single industry or industry segment; “vertical
portals”
Corporate (enterprise) portal
o A major gateway through which employees, business partners, and the public can enter
a corporate website
o Examples
 Types of Corporate Portals
 Portals for Suppliers and Other Partners
 Customer Portals
 Employee Portals
 Executive and Supervisor Portals
 mobile portals
 Portals accessible via mobile devices, especially cell phones and PDAs
 Started with sales people because they are on the on the road constantly
B2B Internet Marketing
o B2B marketing
 Marketing by manufacturers and wholesalers along the sell-side of the supply
chain
o ORGANIZATIONAL BUYER BEHAVIOR
 A Behavioral Model of Organizational Buyers
o THE MARKETING AND ADVERTISING PROCESSES IN B2B
o METHODS FOR B2B ONLINE MARKETING
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 Targeting Customers
o AFFILIATE PROGRAMS, MARKET RESEARCH, AND DATA MINING
 Affiliate Programs
 B2B Market Research
Managerial issues
o Which B2B model(s) should we use for e-procurement?
o Which B2B model(s) should we use for online B2B sales?
o Which exchange should we join?
o Which solutions and vendor(s) should we select?
o What is the organizational impact of B2B?
o What are some ethical issues in B2B?
o How shall we manage the suppliers?
o Which type of social network should we use—private (proprietary) or public?
o Can we use B2C marketing methods and research in B2B?
Summary
o The B2B field
o The major B2B models
o The characteristics and models of sell-side marketplaces
o Sell-side intermediaries
o The characteristics of buy-side marketplaces and e-procurement
o B2B reverse auctions
o B2B aggregation and group purchasing
o Other procurement methods
o Exchanges defined and the major types of exchanges
o B2B portals
o Third-party exchanges
o B2B in Web 2.0 and social networks
o B2B Internet marketing methods and organizational buyers
Unite 5 : October 4, 2016
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E-Government
o E-government
 E-commerce model in which a government entity buys or provides goods,
services, or information to businesses or individual citizens
 Control what people are seeing
 For example in china you can have access to anything at anytime
 The more open and honest they are the more they can generate
 Canada has very little online
o Government-to-citizens (G2C)
 E-government category that includes all the interactions between a government
and its citizens
 Electronic Voting
 Electronic Benefits Transfer
o Government-to-business (G2B)
E-government category that includes interactions between governments and
businesses (government selling to businesses and providing them with services
and businesses selling products and services to the government)
o Government E-Procurement
o Group Purchasing
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o Government-to-government (G2G)
 E-government category that includes activities within government units and
those between governments
o Government-to-employees (G2E)
 E-government category that includes activities and services between
government units and their employees
 Internal Efficiency and Effectiveness (IEE)
IMPLEMENTING E-GOVERNMENT
o THE TRANSFORMATION TO E-GOVERNMENT
o Government 2.0
 How government makes use of Web 2.0 technologies to interact with citizens and
provide government services
o The Promise of Government 2.0
Mobile government (m-government)
o The wireless implementation of e-government mostly to citizens but also to businesses
 The Benefits of M-Government
 Some Implementation Issues
 Applications
E-Learning
o e-learning
o The online delivery of information for purposes of education, training, or knowledge
management
o BENEFITS AND DRAWBACKS OF E-LEARNING
Distance learning
o distance learning
 Formal education that takes place off campus, usually, but not always, through
online resources
o virtual university
 An online university from which students take classes from home or other offsite
locations, usually via the Internet
o Innovations in E-Learning
ONLINE CORPORATE TRAINING
o Examples of Corporate Training
Social learning
o Learning, training, and knowledge sharing in social networks and by using social
software tools for learning
LEARNING IN VIRTUAL WORLDS AND SECOND LIFE
VISUAL INTERACTIVE SIMULATION
learning on-demand
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o Learning provided to an employee while the work is being done (in terms of
troubleshooting or performance support) In a learning on-demand environment,
courses, references, help files, documents, Webcasts, audios, videos, books, and
presentations are all made available when and where a worker needs them.
learning management system (LMS)
o Software applications for the administration, documentation, tracking, and reporting of
training programs, classroom and online events, e-learning programs, and training
content
o i.e blackboard, acorn
IMPLEMENTING E-LEARNING AND E-TRAINING
o Some Representative E-Learning Tools
Electronic book (e-book)
o A book in digital form that can be read on a computer screen or on a special device
o Devices for Reading E-Books
o Advantages and Limitations of E-Books
knowledge management (KM)
o The process of capturing or creating knowledge, storing it, updating it constantly,
disseminating it, and using it whenever necessary
KM TYPES AND ACTIVITIES
o Create knowledge
o Capture knowledge
o Refine knowledge
o Store knowledge
o Manage knowledge
o Disseminate knowledge
ONLINE ADVICE AND CONSULTING
o Medical advice
 Mayo clinic
 Web M.D.
o Management consulting
o Legal advice
o Gurus
o Financial advice
o Social networks
o Other advisory services
Automated question/answer (QA) system
o A system that locates, extracts, and provides specific answers to user questions
expressed in natural language
o Live Chat with Experts
Expert location systems (ELS)
o Interactive computerized systems that help employees find and connect with colleagues
who have expertise required for specific problems—whether they are across the
country or across the room—in order to solve specific, critical business problems in
seconds
o With the ability to use people in other places
o Involves collaborative work i.e voice over collaborative work
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o VOIP – Skype - Facetime
Seeking Expertise in Social Networks
Collective Commerce
o Collaborative commerce (c-commerce)
 The use of digital technologies that enable companies to collaboratively plan,
design, develop, manage, and research products, services, and innovative EC
applications
 Using all information systems i.e design, translation overseas
o Collaboration hub (c-hub)
 The central point of control for an e-market; a single c-hub, representing one emarket owner, can host multiple collaboration spaces (c-spaces) in which trading
partners use c-enablers to exchange data with the c-hub
Collaborative Commerce
o REPRESENTATIVE EXAMPLES OF COLLABORATIVE COMMERCE
 Vendor-managed inventory (VMI)
 A system in which retailers make their suppliers fully responsible for
determining when to order and possibly how much to order
 Retailer make supplier responsible for re-supplying
 Retailer-Supplier Collaboration
 Example: Target
Collaborative Commerce
 Reducing Transportation and Inventory Costs
 Reduction of Design Cycle Time
 Reduction of Product Development Time
 Elimination of Channel Conflict: Collaboration with Dealers and Retailers
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o IMPLEMENTING C-COMMERCE
 Everyone holding up their end of the deal
o BARRIERS TO C-COMMERCE
 Overcoming Barriers to Collaboration
Consumer to consumer electronic commerce
o consumer-to-consumer (C2C) EC
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E-commerce model in which consumers sell directly to other consumers
o E-COMMERCE: C2C APPLICATIONS
 C2C Auctions
 Classified Ads
 Personal Services
 File-Sharing Utilities: Napster and Others
 C2C Activities in Social Networks and Trading Virtual Properties
FTP – File Transfer Protocol
o Set up to send large files to other
Material issues
o What are the e-government opportunities?
o How do we design the most cost-efficient government e-procurement system?
o How do we design the portfolio of e-learning knowledge sources?
o How do we incorporate social networking–based learning and services in our organization?
o What will the impact be of the e-book platform?
o How do we connect our expert location system and social networking initiatives?
o How difficult is it to introduce e-collaboration?
o Can we capitalize on C2C EC?
o How much can be shared with business partners?
o Who benefits from vendor-managed inventory?
Summary
o E-government activities
o Implementing e-government to citizens, businesses, and its own operations
o E-learning and training
o E-books and their readers
o Knowledge management and dissemination as an e-business
o Online advisory systems
o C-commerce
o Collaboration 2.0
o C2C activities
o RFID
o KPI
o EDI
o ERP
Chapter 6: October 11, 2016
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Mobile commerce (m-commerce; m-business)
o Any business activity conducted over a wireless telecommunications network or from
mobile devices
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THE ATTRIBUTES OF M-COMMERCE
o Ubiquity
o Convenience
o Interactivity
o Personalization
o Localization
DRIVERS OF M-COMMERCE
o Widespread availability of more powerful mobile devices
o The handset culture
o The service economy
o Vendor’s push
o The mobile workforce and mobile enterprise
o Improved price/performance
o Improving bandwidth
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AN OVERVIEW OF THE APPLICATIONS OF M-COMMERCE
o Field mobility
o Fleet mobility
 Monitoring trucks
o Warehouse management
o Direct store delivery (DSD) route accounting
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THE BENEFITS OF M-COMMERCE
o Benefits for Organizations
o Benefits for Individuals and Customers
 No being tied to your desk
o Other Benefits
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 Ubiquity
 Being able to do anything anywhere
 Cost savings – quality control
OVERVIEW OF MOBILE COMPUTING
o Wireless mobile computing (mobile computing)
o Computing that connects a mobile device to a network or another computing device,
anytime, anywhere
MOBILE DEVICES
o Personal digital assistant (PDA)
 A stand-alone handheld computer principally used for personal information
management
o Smartphone
 A mobile phone with PC-like capabilities
o Tablets
MOBILE COMPUTING SOFTWARE AND SERVICES
o Mobile portal
 A gateway to the Internet optimized for mobility that aggregates and provides
content and services for mobile users
o Content providers
o Short message service (SMS)
 A service that supports the sending and receiving of short text messages on
mobile phones
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Multimedia messaging service (MMS)
o The emerging generation of wireless messaging; MMS is able to deliver rich media
Location-Based Services
Voice-Support Services
Interactive voice response (IVR)
o A voice system that enables users to request and receive information and to enter and
change data through a telephone to a computerized system i.e Siri
o Voice portal
 A website with an audio interface that can be accessed through a telephone call
 Skype, facetime
WIRELESS TELECOMMUNICATIONS NETWORKS
o Personal area network (PAN)
 A wireless telecommunications network for device-to-device connections within
a very short range
o Bluetooth
 A set of telecommunications standards that enables wireless devices to
communicate with each other over short distances
o Wireless local area network (WLAN)
 A telecommunications network that enables users to make short-range wireless
connections to the Internet or another network
o Wi-Fi (wireless fidelity)
 The common name used to describe the IEEE 802.11 standard used on most
WLANs
o WiMAX
 A wireless standard (IEEE 802.16) for making broadband network connections
over a medium-size area such as a city
o Wireless wide area network (WWAN)
 A telecommunications network that offers wireless coverage over a large
geographical area, typically over a cellular phone network
Mobile financial applications
o mobile banking
 Performing banking activities such as balance checks, account transactions,
payments, credit applications, etc., via a mobile device
o OTHER FINANCIAL-RELATED MOBILE APPLICATIONS
 Mobile Stock Trading
 Real Estate
Mobile enterprise solutions
o DEFINING MOBILE ENTERPRISE
 mobile enterprise
 Application of mobile computing inside the enterprise (e.g., for improved
communication among employees)
o THE FRAMEWORK AND CONTENT OF MOBILE ENTERPRISE APPLICATIONS
 The sales application
 The support application
 The service application
o Mobile worker
Any employee who is away from his or her primary work space at least 10 hours
a week or 25 percent of the time
o DEFINING MOBILE ENTERPRISE
 Mobile enterprise
 Application of mobile computing inside the enterprise (e.g., for improved
communication among employees)
o THE FRAMEWORK AND CONTENT OF MOBILE ENTERPRISE APPLICATIONS
 The sales application
 The support application
 The service application
 Mobile worker
 Any employee who is away from his or her primary work space at least 10
hours a week or 25 percent of the time
o Benefits of mobile workforce support
 Sales force automation
 Field force automation
 Mobile office applications
 Mobile CRM (e-CRM) and PRM
o Challenges of mobile workforce support
 Network coverage gaps and interruptions
 Internetwork roaming
 Device and network management
 Bandwidth management
FLEET AND TRANSPORTATION MANAGEMENT
o Fleet Maintenance
 Great for the owners terrible for drivers
 Really helps out logistics
o Tracking People and Vehicles
o Transportation Management
MOBILE APPLICATIONS IN WAREHOUSES
o Typical Mobile Devices Used in Warehouses
 Vehicle mount solutions
 Handheld solutions
 Hands-free and voice solutions
 Other solutions
OTHER ENTERPRISE MOBILE APPLICATIONS
o iPad in the Enterprise
Mobile entertainment
o Any type of leisure activity that utilizes wireless telecommunication networks, interacts
with service providers, and incurs a cost upon usage
o MOBILE MUSIC AND VIDEO PROVIDERS
o MOBILE GAMES
o Hurdles for Growth
 Population
o MOBILE GAMBLING
o MOBILITY AND SPORTS
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SERVICE INDUSTRY CONSUMER APPLICATIONS
o Health Care
 Patient management
 Make sure everything is monitored
o Hospitality Management
o Public Safety and Crime Prevention
o Other Industries
Location-based m-commerce (l-commerce)
o Delivery of m-commerce transactions to individuals in a specific location, at a specific
time
o Used for remote operations used for energy conservations, you set up a time where
everyone is online
Real-time location system (RTLS)
o Systems used to track and identify the location of objects in real time
L-COMMERCE INFRASTRUCTURE
o Mobile devices
o Communication network
o Positioning component
o Service or application provider
o Data or content provider
Geolocation
o The process of automatically identifying a Web user’s physical location without that
user having to provide any information
Network-based positioning
o Relies on base stations to find the location of a mobile device sending a signal or sensed
by the network
Terminal-based positioning
o Calculating the location of a mobile device from signals sent by the device to base
stations
Global positioning system (GPS)
o A worldwide satellite-based tracking system that enables users to determine their
position anywhere on the earth
Location-Based Data
o Locating
o Navigating
o Searching
o Identifying
o Event checking
Geographical Information System (GIS)
o A computer system capable of integrating, storing, editing, analyzing, sharing, and
displaying geographically referenced (spatial) information
Location-based service (LBS)
o An information service accessible from and to mobile devices through a mobile network
utilizing the ability to make use of the geographical position of the mobile device to
deliver a service to the user
o Automatic vehicle location (AVL)
A means for automatically determining the geographic location of a vehicle and
transmitting the information to a request
o Social location-based marketing
 Marketing activities that are related to social behavior and are related to social
networking activities
BARRIERS TO LOCATION-BASED M-COMMERCE
o Lack of GPS in mobile phones
o Accuracy of devices
o The cost–benefit justification
o Limited network bandwidth
o Invasion of privacy
Ubiquitous computing (ubicom)
o Computing capabilities that are being embedded into the objects around us, which may
be mobile or stationary
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Pervasive computing
o Computing capabilities embedded in the environment but typically not mobile
Principles of Pervasive Computing
o Decentralization
o Diversification
o Connectivity
o Simplicity
Context-aware computing
o Application’s ability to detect and react to a set of environmental variables that is
described as context (which can be sensor information or other data including users’
attitudes)
Internet of Things
o IBM is supposed to be on the forefront push into the next level and get rid of the
digital divide
o Making sure all systems can communicate effectively
SMART APPLICATION: GRID, HOMES, CARS, AND MORE
o Smart grid
 An electricity network managed by utilizing digital technology
Smart Homes and Appliances
o Lighting
o Energy management
o Water control
o Home security and communication
o Home entertainment
o Smart appliances
Smart and Driverless Cars
Radio frequency identification (RFID)
o A short-range radio frequency communication technology for remotely storing and
retrieving data using devices called RFID tags and RFID readers
o Sensor network
 A collection of nodes capable of environmental sensing, local computation, and
communication with its peers or with other higher performance nodes
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o Smart Sensor Applications
PRIVACY ISSUES IN UBIQUITOUS COMPUTING
Implementation Issues in Mobile Commerce
o M-COMMERCE SECURITY AND PRIVACY ISSUES
o TECHNOLOGICAL BARRIERS TO M-COMMERCE
o FAILURES IN MOBILE COMPUTING AND M-COMMERCE
o ETHICAL, LEGAL, PRIVACY, AND HEALTH ISSUES IN M-COMMERCE
o MOBILITY MANAGEMENT
Chapter 7 : October 11, 2016
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L-commerce
o Location based commerce
M-commerce
o Mobile commerce
E-commerce
F-commerce – Facebook
Over 40% of businesses globally found new customers via social networks
Role in social commerce
o Connector
o Salesman
o Seeker
o Maven
o Self-sufficient
o Unclassified
RATINGS AND REVIEWS, SOCIAL RECOMMENDATIONS, ADVICE, COMPARISONS, AND
CONVERSATIONS
o Ratings and Reviews
 Customer ratings and reviews
 Expert ratings and reviews
 Sponsored reviews
 Conversational marketing
 Video product review
 Customer testimonials
Social Recommendations and Referrals
o Share with your network (social bookmarking)
o Referral programs
o Social recommendations
o Innovative methods
GROUP BUYING, DEAL PURCHASING, AND SHOPPING TOGETHER
o Deal Purchases (Flash Sales)
o Group Buying in China
o Real-Time Online Shopping Together
SHOPPING COMMUNITIES AND CLUBS
o Private Online Shopping Clubs and Retail by Invitation
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o Kaboodle, a Unique Social Community
Social marketplace
o An online community that harnesses the power of one’s social networks for the
introduction, buying, and selling of products, services, and resources, including one’s
own creations; also may refer to a structure that resembles a social network but is
focused on individual members
o Direct Sales from Social Networks
WHAT COMPONENTS TO EXPECT IN A SOCIAL SHOPPING SITE
o B2B Social Networking
o Socially-Oriented Person to Person (P2P) Selling, Buying, Renting, or Bartering
o Social Shopping in the Near Future