E-Commerce and E-Business
Summarized from: (Chapter 5,) Turban, Efraim, Leidner,
Dorothy, Mclean, Ephraim, Wetherbe, James,
Information Technology For Management - Transforming
Organizations in the Digital Economy, John Wiley & Sons,
6th Edition, 2009.
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DEFINITIONS AND CONCEPTS

Pure versus Partial EC
Buying an e-book from Amazon.com.
 Software product from Buy.com is Pure EC.


EC Organizations
click-and-mortar ones (e.g. Wal-Mart
Online).
 Bank , airline , or Godiva.

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TYPE OF E-COMMERCE
TRANSACTIONS

Business-to-business-toconsumers(B2B2C)


Consumers-to-business(C2B)


Business sells to a business but delivers the
product or service to an individual consumer
Consumers make know a particular service to
consumers. An example is
Priceline.com ,where the customer names a
product or service and the desired price , and
Priceline tries to find a supplier .
EC Business models

A complete list is available at
digitalentrprise.org/models/models.html
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EC Newcomers : Representative
Examples
Bloggers-There are million of them.
 Chemistry will find you a perfect match if
Match.com will not.
 Craigslist is a popular classified meeting
place.
 Flickr-This is a place for sharing photos
and putting together a photo album (a
yahoo! company).
 Grouper allows users to share photos ,
videos, and music on their PCs

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EC Newcomers : Representative
Examples(2)
Intrade-You can invest in current eventstry it!
 MySpace is a ship online hangout for
over 50 million visitors.
 Pandora-Customize and share your own
radio station.
 Wikepedia provides a free online
encyclopedia and answers to “what is?”.

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E-Commerce Business Models

Name-your-own-price


Find-the-best-price


Customers decide how much they are willing to pay.
An intermediary (e.g. Priceline.com) tries to match
a provider.
Customers specifies a need; An intermediary (e.g.
Hotwire.com) compares providers and shows the
lowest piece. Customers may accept offer in a short
time or may lose the deal.
Affiliate marketing

Venders ask partners to place logos (or banners)
on partner’s site .If customers o click on logo , go
to vender’s site, and buy, and pays commissions to
partners (See performics.com.)
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E-Commerce Business Models
(2)

Virtual marketing


Group purchasing (e-co-ops)


Receivers of e-mails send the received or
related information about your product to their
friends (word-of-mouth). (Be on the watch for
viruses.)
Small buyers aggregate several demands to
get a large volume; then the buying group
conducts tendering or negotiates a low
price(see njnibprofits.org/groupbuy.html).
E-Classifieds

Presentation of items for sale at fixed
prices.Popular sites are craigeslist.com and
classified2000.com.
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Interesting Student-Targeted Web
Sites

Facebook


Swook


One of several sites that enables students to exchange
textbooks.
Collegerecruiting.com


A popular place for students to socialize (available to
nonstudents as of summer 2006).
Matches students with universities for best admission
and help helps you write your resume.
RateMyProfessor.com

Provides a free message board where students can post
opinion about college professors. The site attracts 2
million new visitors each month.
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Interesting Student-Targeted Web
Sites(2)

Finaid.com


Powerstudents.com


A comprehensive site about getting financial aid
with all related information, dozens of
calculators, and information about college
admissions and jobs .
Combines information from over 20 leading
student-oriented Web sites from searchable
scholarships to file sharing.
Collegerecruiter.com

Helps you find an internship or a job once you
have graduated.
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IT at work (1)

Cyberbanking

For bank, it offers an inexpensive alternative to branch
banking (for example about 2 cents’ cost per transaction
versus $1.07 at a physical branch ).

International and Multiple-Currency Banking


For example, Hong Kong and Shanghai Bank (hsbc.com.hk) has
developed a special system (called Hexagon) to provide electronic
banking in 60 countries.
Online securities Trading

An online trade typically costs the trader between $5and
$15,compared to an average fee of $100 form a fullservice broker and $25 from a discount broker. Investors
can find on the web a considerable amount of
information regarding specific companies or mutual
funds in which to invest (e.g.money.cnn.com,
bloomberg.com) .
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IT at work (2)

The Online Job Market


Travel Services


The online job market is used by job
seekers to reply online to employment ads
to place resumes on various sites, and to
use recruiting firms (e.g. monster.com,
jobdirect.com, jobcenter.com).
Examples of comprehensive online travel
services are Expedia.com ,Travelocity.com ,
and Orbitz.com.
Real Estate
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IT at work (3)

Building your Jaguar online




Prospective Jaguar car buyers can build, see, and
price the car at jaguar.com in real time. Cars have
been configured online since 1997, but Jaguar was
the industry’s first to offer comprehensive services
delivered in many languages.
Like most other car manufactures, Jaguar will not
let you consummate the purchase online. To
negotiate price, customers can go to a Jaguar
dealer or use Auto By Tel (autobytel.com), which
connects nearby dealers to the customer.
Jaguar’s system helps get customers to the point of
purchase.
Research the purchase and explore, price, and
visualize options.
E-Procurement

E-Procurement uses reverse auctions (as
discussed) as well as two other popular
mechanisms :group purchasing and
desktop purchasing

Group Purchasing


Typically, the orders of small buyers are aggregated
by a third-party vendor, such as United Sourcing
Alliance (usa-llc.com). Especially popular in the
health-care industry (see all-health.com), and
education (tepo.org).
Desktop Purchasing

In a special case of e-procurement known as
desktop purchasing, suppliers’ catalogs are
aggregated into an internal master catalog on the
buyer’s server.
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Permission Marketing

In one particular interesting form of
permission marketing, companies such
as paidsurveysonline.com and
CashSurfers.com have built customer
lists of millions of people who are happy
to receive advertising messages
whenever they are on the Web. These
customers are paid $0.25 to $0.50 an
hour to view messages, they may also
be paid $0.10 an hour for the surfing
time of any friends they refer to the site.
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Google’s AdSense and AdWords (1)
Google’s AdSence is an affiliates program in
which Google offers Web site owners
(“publishers”) a chance to earn commissions.
 AdSense will automatically deliver advertiser’s
text and image ads that are precisely targeted to
each site.
 Google helps you customize the appearance of
the ad and your Web pages-to attract more
visitors
 Each time a visitor clicks on an ad (which takes
her or him to the advertiser’s site), the own site
owner shares the commission paid by the
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advertiser with Google.

Google’s AdSense and AdWords
(2)


Another companion is AdWords for search,
which lets Web site owners place Google
search boxes on their pages. When a user
searches the Web or the site with the
search box, Google shares any ad revenue
it makes from those searches with the site
owner.
Google’s success is attributed to the quality
of the matches, the large number of
advertise in its network, its ability to use
ads in many languages, and its ability to
understand the content of Web sites.
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Security in Electronic Payments


Security protection
E-Wallets


The wallet stores the financial information of the buyer,
such as credit card number, shipping information, and
more. Thus, sensitive information does not need to be
reentered for each purchase. If the wallet is stored at
the vendor’s site, it does not have to travel on the Net.
The problem is that you need an e-wallet with each
merchant. One solution is to have a wallet installed on
your computer (e.g. MasterCard Wallet or AOL Wallet).
Virtual Credit Cards

Allow you to shop with an ID number and a password
instead of with a credit card number. The bank that
supports your traditional credit card, for example, can
provide you transaction number valid for a short period.
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Web tacking

In response, some users install programs such
as Cookie Cutter, CookieCrusher, and spam
Butcher, which are designed to allow users to
have some control over cookies.
 Privacy Guardian, MyPrivacy, and Tracks Eraser
Pro are examples of software that can protect
users’ online privacy by erasing a browser’s
cache, surfing histories and cookies. Programs
like Ad-Aware are specially designed to detect
and remove spyware and data miners such as
SahAgent, an application that collects and
combines users’ Internet browsing behavior and
sends it to ShopAtHomeSelect servers.
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