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OVERVIEW OF ELECTRONIC
COMMERCE
Spring 2011
e-Commerce Implementation
What are e-Business and e-Commerce?
Definitions and specific applications vary. Field is dynamic,
changing rapidly.
e-Business:
e-Commerce:
Terms often used (inappropriately) as synonyms
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e-Business vs. e-Commerce
e-Business
e-Commerce
Subdivisions of EB and EC
Often divided based on involved parties:
B2C—Business-to-Consumer
B2B—Business-to-Business
C2C—Consumer-to-Consumer
C2B—Consumer-to-Business
Field is young. What we now consider e-Commerce began in
mid-1990’s.
Many new business models, applications of technology, etc.
exist.
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Dell: e-Commerce Pioneer
Founded in 1985 as Dell Computer Corp. by Michael Dell.
By 1993, one of top 5 computer makers worldwide. But, loss of
$100 million in 1994.
One of first companies to move to Web for commerce.
In 2000, tops in worldwide PC shipments. $50 million in daily
Internet sales; $18 billion annually.
Now, sales top $60 billion annually. $3-4 billion annual profit.
e-Commerce Definitions and Concepts
Pure vs. Partial EC—to what degree is technology used:
Product—digital or physical?
Process—order receipt and fulfillment
Delivery—digital or physical?
Pure EC delivers a digital product using a digital process using
digital delivery.
Not all companies can be “pure play,” but moving that direction
as possible is worthwhile.
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e-Commerce Virtual Continuum
EC Definitions and Concepts
Virtual Organizations: companies that exist only online.
Brick-and-mortar: only do business in physical world.
Click-and-mortar (bricks and clicks): do business in both
physical and electronic world.
e-Commerce Virtual Continuum:
Physical
Exxon
Virtual
Sears
Amazon iTunes
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How would you respond?
"e-Business is just a fad. Twenty years from now businesses will
have moved on to something else and we'll just laugh about
all the effort we wasted."
Why EB and EC? What’s in it for individuals?
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What’s in it for companies?
What challenges exist?
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Power of EB and EC
Communication—critical to business. Easier, cheaper, quicker
using electronic means.
Downsides: Employee sabotage, hackers, wasted time on
personal communication, etc.
Business Reengineering—technology is transforming the way
many jobs are done.
Service—heart of successful business.
Can cut service costs while improving both quality of goods
and increasing delivery speed.
Potential Power of EB and EC
Improved communication
+ Better ways of doing business
+
Better service
+
Lower Costs
Increased customer satisfaction
Higher profits
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Business Environment Impact Model
The dot com bubble. What was it?
In 1999, a large number of EC companies began to fail.
Variety of reasons:
Many questioned whether EC was just a fad.
Just because a business is on the Internet does not make it a
winning idea.
EC, however, continued to grow.
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Business Models
Ultimately a business must establish 2 important elements:
Value of EB, EC for our company is only as good as the plan we
have in place for making things work.
EC Business Model Elements
Customers--Who are they? How do we reach them?
Products and Services--What value do we provide?
Business Process--How do we make and deliver products and
services?
Resources--How do we identify and source requisite
components?
Supply Chain--Who are our (direct) customers? Who are our
suppliers?
Finances--How will we make money? Where will our operating
capital come from? How will we manage costs?
Can we create a unique, sustainable competitive advantage?
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Social Networking and e-Business
EXHIBIT 1.4 Mind Map of Web 2.0 Source: Angermeier, M. The Huge Cloud Lense Web 2.0. Kosmar.de, November 11, 2005.
kosmar.de/archives/2005/11/11/the-huge-cloud-lens-bubble-map-web20 (accessed July 2009). Reprinted by permission of Markus Angermeier.
Copyrights
Presentation prepared by and copyright of Dr. Tony
Pittarese, East Tennessee State University, Computer and
Information Sciences Dept. (pittares@etsu.edu)
Podcast lecture related to this presentation available via
ETSU iTunesU.
Selected slide content taken from Electronic Commerce 2010: A Managerial Perspective by Turban, King, et al.
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