The Internet & Electronic Commerce
THE ELECTRONIC MALL
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Traditional Commerce: Buyer
Traditional Commerce: Seller
Business processes suited for e-commerce --
Group Exercise
What are some advantages of e-commerce
Re: sales and costs; other??
What are some disadvantages of ecommerce?
Human
Technological
Social, cultural
What business processes involving HR are
amenable to e-commerce type solutions?
Three Questions Regarding
E-Commerce
How will e-commerce change our customer’s
priorities?
How can we construct a new business design
to meet these new customer priorities?
What technology investments must we make
to survive, let alone thrive?
From Kalakola and Robinson “E-business: Roadmap
for Success
How does this question relate to HR?
International Electronic
Commerce
Language barriers must be overcome
Political structures
Currency conversion
Tariffs and import/export restrictions
Legal, tax, and privacy concerns
Who has jurisdiction to levy taxes?
How is personal information handled?
The Internet and World Wide Web
 The Internet is a large system of interconnected
networks that spans the globe
 The World Wide Web (WWW) is part of the
Internet and allows users to share information
with an easy-to-use interface
 Client server architecture; graphical user
interface; dynamic links
 Developed by the U.S. Department of Defense in
the early 1960s
Some Characteristics
Ubiquitous
Global reach
Universal standards
Information richness
Interactive
Density of information
Personalization and customization
Intranets and Extranets
Intranet:
Internal network using
web technology
Overcomes computer
platform differences
Often installed on
existing network
infrastructure
Extranet
 Allows select users
outside organization to
use its intranet:
 Customers
 Business partners
 Vendors
 Used in B2B
What are some applications
of each? Benefits?
E-Commerce and Industry Value
Chains
E-Commerce and Firm Value Chains
Value Chain Observation
How does e-commerce impact the value
chain?
How does one firm using e-commerce impact
others?
INTERNET BUSINESS MODELS
 VIRTUAL STOREFRONT: Sells
goods, services on-line
 MARKETPLACE CONCENTRATOR:
Concentrates information from
several providers
 ON-LINE EXCHANGE: Bid-ask
system, multiple buyers, sellers
 INFORMATION BROKER: Provide
info on products, pricing, etc.
 TRANSACTION BROKER: Buyers
view rates, terms from various
sources
 AUCTION: Electronic clearinghouse
products, prices, change in response
to demand
 REVERSE AUCTION: Buyer sets
price, submits to multiple sellers
 DIGITAL PRODUCT DELIVERY:Sell,
download software, other digital
products
 CONTENT PROVIDER: Creates
revenue through providing client for
a fee, and advertising
 ON-LINE SERVICE PROVIDER:
Provides service, support for
hardware, software products
Business-to-Business
Electronic Commerce
Automation Of Purchase, Sale Transactions
From Business To Business
Electronic Data Interchange (EDI): Older
System, Being Replaced By Internet,
Intranet
Provides Alternative Sources
Two Main Type of Internetbased B2B Commerce
Pure Types of Net
Marketplaces
Electronic Commerce Support
Systems
WEB HOSTING SERVICES: provides large
servers for Web sites of fee-paying
customer
ELECTRONIC PAYMENT SYSTEM: using
Web for electronic funds transfers, credit ,
smart & debit cards
Types of Online Communities

Different sponsors or
members



focused discussion groups,
help, information, and
knowledge relating to an area
of shared practice
Interest communities

Affinity communities

opportunities to interact with
a general audience organized
into general topics
Practice communities


focused discussion groups
based on a shared interest in
some specific subject

focused discussions and
interaction with other people
who share the same affinity.
Affinity refers to self- and
group identification
Sponsored communities

created by government,
nonprofit, or for-profit
organizations for the purpose
of pursuing organizational
goals -- often commercial
goals
Internet Benefits To
Organization
Reduces Communication Costs
Enhances Communication; Coordination
Accelerates Knowledge Distribution
Other ???
Internet Challenges
SECURITY: Exposure to Thieves & Vandals;
Hackers Steal, Use Passwords; Not Yet Safe
for Large Business Transactions
TECHNOLOGY: Lack of Uniform Standards;
Transfer of Graphics, Video can be Costly
LEGAL ISSUES: Need More Laws Governing
Electronic Commerce; Are e-mail Contracts,
Electronic Signatures Legal?