‫طراحي و ساخت سيستمهاي تجارت الکترونيک‬
‫اصول و مباني تجارت الکترونيک (‪)EC‬‬
‫مقدمات و کليات تجارت الکترونيک‬
‫مثال اوليه ازکاربرد تجارت الکترونيک‬
Qantas Airways
A New Way to Compete
• The Problem
– Increased fuel costs placed pressure on the airline
industry
– Qantas faced two major competitors and higher fees
at Sydney Airport
– Air traffic dwindled after September 11th
– Qantas needed to replace aircraft in order to stay
competitive
– Australian economy slowed down
4
Qantas Airways (cont.)
• The Solution
– Bought fuel contracts for future dates
(traditional response)
– Took major steps to implement ecommerce (EC) involving buying,
selling, and exchanging goods, services,
information, and payments electronically
5
Qantas Airways (cont.)
Business-to-business (B2B)
• E-marketplace member
• Joined Airnew Co.—links
major airlines with
suppliers
–
–
–
–
Fuel
Fuel services
Light maintenance services
Catering
• Joined Corporcure.com.au with
13 other large Australian
corporations
• Electronically purchase general
goods and services
– Office supplies
– Light bulbs
– Maintenance services
6
Qantas Airways (cont.)
• Formed Pan-Pacific exchange
– E-marketplace
– Business-to-business-to-consumer (B2B2C)
– Provides
• Full spectrum travel services
• Products and services to business partners
– Travel agencies who can use this marketplace to sell
directly to consumers
7
Qantas Airways (cont.)
• Business-to-customer
(B2C):
– Online booking
• E-mails to frequent-flyer
members
• Mileage bonuses and
opportunities to win
$10,000 AU
• Business-to-employee
(B2E):
– Online training
– Online banking
– Wireless communications
8
Qantas Airways (cont.)
• The Results
– Qantas expects to see an estimated $85
million AU in cost reductions per year by
2003
– Qantas expects to increase annual
revenues by $700 million AU from
nontravel sales
– Outlasted one competitor
9
EC Definitions & Concepts
EC Definitions & Concepts
• Electronic Commerce (EC) is the process of buying,
selling, or exchanging products, services, and
information via computer networks
• EC defined from these perspectives
– Communications
– Business process
– Service
– Online
– Collaborations
– Community
11
EC Definitions & Concepts (cont.)
• E-business is a broader definition of EC that
includes not just the buying and selling of
goods and services, but also
– Servicing customers
– Collaborating with business partners
– Conducting electronic transactions within
an organization
– Pure vs. Partial EC: based on the degree of
digitization of product, process, delivery
12
agent
Exhibit 1.1
The Dimensions of Electronic Commerce
13
EC Definitions & Concepts (cont.)
– Traditional commerce: all dimensions are
physical
• Brick-and-mortar organizations
–Old-economy organizations
(corporations)
–Perform all business off-line
–Sell physical products by means of
physical agents
14
EC Definitions & Concepts (cont.)
– Pure EC: all dimensions are digital
• Pure online (virtual) organizations
• New-economy organization
• Sell products or services only online
– Partial EC: a mix of digital and physical
dimensions
• Click-and-mortar organizations
• Conduct EC activities
• Do their primary business in the physical 15
world
EC Definitions & Concepts (cont.)
• Internet vs. Non-Internet EC
– VANs—value-added networks
– LANs—local area networks
– Single computerized machines
• Using a smart card in a vending machine
• Using a cell phone to make an online purchase
16
Electronic Markets vs.
Interorganizational Systems
• E-markets
Buyers and sellers meet to
exchange
•
•
•
•
Goods
Services
Money
Information
• Interorganizational
Information Systems
(IOS)
Between two or more
organizations
• Routine transaction
processing
• Information flow
17
Exhibit 1.2
A Framework for EC
18
Classification of EC by the
Nature of the Transaction
Classification of EC by the
Nature of the Transaction
• Business-to-business (B2B) : EC model in which all of
the participants are businesses or other organizations
• Business-to-consumer (B2C): EC model in which
businesses sell to individual shoppers
• Business-to-business-to-consumer (B2B2C): EC
model in which a business provides some product or
service to a client business; the client business
maintains its own customers, to whom the product or
service is provided
20
Classification of EC by the
Nature of the Transaction (cont.)
• Consumer-to-business(C2B): individuals
who use the Internet to sell products or
services to organizations and /or seek sellers
to bid on products or services they need
• Consumer-to-consumer (C2C) : consumers
sell directly to other consumers
21
Classification of EC by the
Nature of the Transaction (cont.)
• Mobile commerce (m-commerce)—EC
transactions and activities conducted in a
wireless environment
• Location-commerce—(l-commerce)
m-commerce transactions targeted to
individuals in specific locations, at specific
times
22
Classification of EC by the
Nature of the Transaction (cont.)
• Intrabusiness (organizational) EC: EC
category that includes all internal
organizational activities that involve the
exchange of goods, services, or information
among various units and individuals in an
organization
23
Classification of EC by the
Nature of the Transaction (cont.)
• Business-to-employee (B2E): EC model in which an
organization delivers services, information, or products
to its individual employees
• Collaborative commerce (c-commerce): EC model in
which individual or groups communicate or collaborate
online
• E-government: Government-to-citizens (G2C):
EC model in which a government entity buys or
provides good, services, or information to
businesses or individual citizens
24
Classification of EC by the
Nature of the Transaction (cont.)
• Exchange (electronic): a public e-market
with many buyers and sellers
• Exchange-to-exchange (E2E): EC model in
which electronic exchanges formally
connect to one another for the purpose of
exchanging information
25
Interdisciplinary Nature of EC
• Marketing
• Computer sciences
• Consumer behavior and
psychology
• Finance
• Economics
• Management information
systems
• Accounting and auditing
• Management
• Business law and ethics
• Others
26
Business Models
Business Models
• A method of doing business by which a
company can generate revenue to sustain
itself
• Spells out where the company is positioned
in the value chain
• Business models are a component of a
business plan or a business case
28
Business Plans & Business Cases
• Business plan
A written document that
identifies the business
goals and outlines the
plan of how to achieve
them
• Business case
A written document that is
used by managers to
garner funding for
specific applications or
projects; its major
emphasis is the
justification for a specific
investment
29
The Content of a Business Plan
• Mission statement and
company description
• The management team
• The market and the
customers
• The industry and
competition
• The specifics of the
products and/or services
• Marketing and sales plan
• Operations plan
• Financial projections and
plans
• Risk analysis
• Technology analysis
30
Structure of Business Models
All business models must specify their revenue model
(the description of how the company or an EC project will
earn revenue)
Revenue sources are
– Transaction fees
– Subscription fees
– Advertisement fees
– Affiliate fees
– Sales
– Other models
Value proposition is the description of the benefits a
company can derive from using EC
31
Typical Business Models in EC
• Online, direct marketing
• Electronic tendering systems
– Reverse auction is a tendering system sellers are
invited to bid on the fulfillment of an order to
produce a product or provide a service; the lowest
bid wins
• Name your own price
• Find the best price
32
Typical Business Models in EC (cont.)
• Affiliate marketing is an arrangement whereby
a marketing partner (business, organization or
individual) refers consumers to the selling
company’s Web site
• Viral marketing is word-or-mouth marketing
in which customers promote a product or
service to friends or other people by using the
Internet
33
Typical Business Models in EC (cont.)
• Group purchasing is getting many small buyers together to
by in large quantities
• Online auctions
• Product and service customization
Customization is the creation of a product or service according to
the buyer’s specifications
• Electronic marketplaces and exchanges
Vertical marketplace is a marketplace that concentrates on one
industry; also called vertical portals or vortals
• Supply chain improvers
34
Exhibit 1.3
The Business Model of 7dream.com
35
The Limitations of EC
• Technical limitations
– There is a lack of universally accepted standards for quality,
security, and reliability
– The telecommunications bandwidth is insufficient
– Software development tools are still evolving
– There are difficulties in integrating the Internet and EC software
with some existing (especially legacy) applications and
databases.
– Special Web servers in addition to the network servers are
needed (added cost).
– Internet accessibility is still expensive and/or inconvenient
36
Electronic Marketplaces
Electronic Marketplaces
Markets facilitate
exchange of
Information
Goods
Services
Payments
Markets create
economic value for
Buyers
Sellers
Market
intermediaries
Society at large
Electronic Marketplaces (cont.)
• 3 main functions of markets
– Matching buyers and sellers
– Facilitating the exchange of information,
goods, services, and payments associated
with market transactions
– Providing an institutional infrastructure
Market space Components
• Market space :
– a marketplace in which sellers and buyers
exchange goods and services for money (or for
other goods and services), but do so electronically
• Market Space Components:
– Customers
– Sellers
– Goods (physical or digital)
Market space Components
–
–
–
–
–
Infrastructure
Front-end
Back-end
Intermediaries/business partners
Support services
Market space Components (cont.)
• Customers
– Web surfers looking for
• Bargains
• customized items
• Collectors’ items
• entertainment etc.
– Organizations account for over 85 percent of EC activities
• Sellers
– Hundreds of thousands of storefronts are on the Web
– Advertising and offering millions of Web sites
– Sellers can sell
• Direct from their Web site
• E-marketplaces
Market space Components (cont.)
• Products
– Physical products
– Digital products—goods that can be transformed to digital
format and delivered over the Internet
• Infrastructure
– Hardware
– Software
– Networks
Market space Components (cont.)
• Front-end business processes include
–
–
–
–
–
Seller’s portal
Electronic catalogs
shopping cart
Search engine
Payment gateway
• Back-end activities are related to
–
–
–
–
–
Order aggregation and fulfillment
Inventory management
Purchasing from suppliers
Payment processing
Packaging and delivery
Market space Components (cont.)
• Intermediary
– a third party that operates between sellers and
buyers
• Other business partners
– collaborate on the Internet, mostly along the
supply chain
• Support services such as
– Certification and trust services
– Knowledge providers
Types of Electronic Markets
Types of Electronic Markets
• Electronic storefronts
– a single company’s Web site where products and services are sold
• Mechanisms for conducting sales
– Electronic catalogs
– Payment gateway
– Search engine
– Shipment court
– Customer services
– Electronic cart
– E-auction facilities
• Electronic malls (e-malls)—an online shopping center where
many stores are located
Types of Electronic Markets (cont.)
• Types of stores and malls
– General stores/malls
• large market spaces that sell all types of products
– Public portals
– Specialized stores/malls
• sell only one or a few types of products
– Regional vs. global stores
– Pure online organizations vs. click-and-mortar
stores
E-Marketplaces
• E-marketplaces
– online market, usually B2B, in which buyers and
sellers negotiate
• Types of e-marketplaces
– private
– public
– consortia
E-Marketplaces
•
Private e-marketplaces
– online markets owned by a single company:
• Sell-side:
– company sells either standard or customized products to
qualified companies
• Buy-side marketplaces:
– company makes purchases from invited suppliers
• Public e-marketplaces
– B2B markets, usually owned and/or managed by an
independent third party, that include many sellers and many
buyers (exchanges)
Intermediation in E-Commerce
• Intermediaries provide value-added activities and
services to buyers and sellers: wholesalers, retailers,
infomediaries
• Roles of intermediaries
–
–
–
–
–
Search costs: databases on customer preferences
Lack of privacy: anonymity of sellers and buyers
Incomplete information: gather product information
Contract risk: protect sellers against non-payment
Pricing inefficiencies: induce appropriate trades
E-Distributors on B2B
• E-distributor:
– an e-commerce intermediary that connects manufacturers
(suppliers) with buyers by aggregating the catalogs of
many suppliers in one place (the intermediary’s Web site)
• E-distributors also provide support services
–
–
–
–
Payments
Deliveries
Escrow services
Aggregate buyers’ and or sellers’ orders
Syndication as an EC Mechanism
• Syndication:
– the sale of the same good (e.g., digital content) to
many customers, who then integrate it with other
offerings and resell it or give it away free
Competition in the Internet Ecosystem
•
Competition in the Internet ecosystem
(business model of the online economy)
– Inclusive with low barriers to entry
– Self-organizing
– Old rules may no longer apply
• Competition is tense
– Lower buyers’ search cost
– Speedy comparisons
– Differentiation and personalization
Competition in the Internet Ecosystem
• Differentiation
– providing a product or service that is unique
• Personalization
– the ability to tailor a product, service, or Web
content to specific user preferences
• Lower prices
Competition in the Internet Ecosystem
• Customer service is an extremely important
competitive factor
• Some competitive factors are less important as
a result of EC:
–
–
–
–
Size of company is no longer significant
Geographical location is insignificant
Language barriers are being removed
Digital products do not have normal wear and tear
Competition in the Internet Ecosystem
•
EC supports efficient markets and could result in
almost perfect competition with these characteristics:
– Many buyers and sellers must be able to enter the market at
no entry cost
– Large buyers or sellers are not able to individually
influence the market
– The products must be homogeneous
– Buyers and sellers must have comprehensive information
about the products and about the market participants’
demands, supplies, and conditions
E-Market Success Factors
• Contributors to e-market success
– Product characteristics
• Type
• Price
• Availability of standards and product information
– Industry characteristics
• Brokers currently necessary
• Intelligent systems may replace brokers
– Seller characteristics
• Consumers find sellers with the lowest prices
• Low-volume, higher-profit-margin transactions
– Consumer characteristics
• Impulse buyers
• Patient buyers
• Analytical buyers
Electronic Catalogs
• Electronic catalogs
– the presentation of product information in an electronic
form
– the backbone of most e-selling sites
• Evolution of electronic catalogs
– Merchants: advertise and promote
– Customers: source of information and price comparisons
– Consist of product database, directory and search capability and
presentation function
– Replication of text that appears in paper catalogs
– More dynamic, customized, and integrated
Classifications of Electronic Catalogs
• Dynamics of information presentation:
– static or dynamic
• Degree of customization: ready-made or customized
• Electronic catalogs allow integration of:
– Order taking and fulfillment
– Electronic payment
– Intranet workflow
– Inventory and accounting system
– Suppliers’ extranet
– Relationship to paper catalogs
Customized Catalogs
•
Assembled specifically for:
– A company
– An individual shopper
• Customization systems can:
– Create branded, value-added capabilities
– Allows user to compose order
– May include individualized prices, products, and
display formats
– Automatically identify the characteristics of
customers based on the transaction records
Electronic Catalogs at Boise Cascade
Search Engines, Intelligent Agents
and Shopping Carts
• E-commerce users use both search engines and
intelligent agents
– Search engines find products or services
– Software agents conduct other tasks (comparisons)
• Electronic shopping cart
– an order-processing technology that allows
customers to accumulate items they wish to buy
while they continue to shop
Search Engines, Intelligent Agents
and Shopping Carts
• Search engine
– a computer program that can access a database of
Internet resources, search for specific information
or keywords, and report the results
• Software (intelligent) agent
– software that can perform routine tasks that require
intelligence
Auctions
• Auction
– a market mechanism by which a seller places an
offer to sell a product and buyers make bids
sequentially and competitively until a final price is
reached
• Auctions deal with products and services for
which conventional marketing channels are
ineffective or inefficient
Auctions
• Limitations of Traditional Auctions
– Traditional auctions are generally a rapid
process
– It may be difficult for sellers to move goods
to the auction site
– Commissions are fairly high
Electronic Auctions
•
Electronic auctions (e-auctions):
– Auctions conducted online
– Host sites on the Internet serve as brokers offering:
• Services for sellers to post their goods for sale
• Allowing buyers to bid on those items
– Many sites have certain etiquette rules that must be
adhered to in order to conduct fair business
Electronic Auctions
• Major online auctions offer:
–
–
–
–
–
–
–
Consumer products
Electronic parts
Artwork
Vacation packages
Airline tickets
Collectibles
Excess supplies and inventories being auctioned
off by B2B marketers
Dynamic Pricing
• Dynamic pricing:
– prices that change based on supply and demand
relationships at any given time
• The four major categories of dynamic pricing
are based on the number of buyers and sellers
involved:
–
–
–
–
One buyer, one seller
One seller, many potential buyers
One buyer, many potential sellers
Many sellers, many buyers
Dynamic Pricing
Dynamic Pricing
• One buyer, one seller uses
– Negotiation
– Bargaining
– Bartering
• Price will be determined by:
– Each party’s bargaining power
– Supply and demand in the item’s market
– Possibly business environment factors
Dynamic Pricing
•
One seller, many potential buyers
– Forward auction:
• an auction in which a seller entertains bids from buyers
– English auction:
• an auction in buyers bid on an item in sequence and the
price increases with time
– Yankee auction:
• auction of multiple identical items in which bidders can
bid for any number of the items offered, and the highest
bid wins
Dynamic Pricing
– Dutch auction:
• auction of multiple identical items, with prices starting
at a very high level and declining as the auction time
passes
– Free-fall (declining price) auction:
• a variation of the Dutch auction in which only one item
is auctioned at a time
• the price starts at a very high level and declines at fixed
time intervals, the winning bid is the lowest one when
the time expires
English Auction, Ascending Price
Dynamic Pricing (cont.)
•
One buyer, many potential sellers
– Reverse auction (bidding, or tendering system):
• 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 price reducing
sequentially, and the lowest bid wins
• primarily a B2B or G2B mechanism
The Reverse Auction Process
Dynamic Pricing (cont.)
•
One buyer, many potential sellers (cont.)
– ”Name-your-own-price” model
– Consumer-to-business (C2B) model
• Many sellers, many buyers
– Double Auction
• buyers and their bidding prices and sellers and their
asking prices are matched, considering the quantities on
both sides
Limitations of Electronic Auctions
• Possibility of fraud—defective goods or receive
goods/services without paying
• Limited participation—invitation only or Open to
dealers only
• Lack of security—C2C auctions sometimes not done
in an unencrypted environment
• Limited software—only a few “complete”or “off-theshelf” market-enabling solutions
Impacts of Auctions
•
•
•
•
Auctions as a coordination mechanism
Auctions as a social mechanism to determine a price
Auctions as a highly visible distribution mechanism
Auctions as a component in e-commerce
Online Negotiating
• Online negotiation:
– electronic negotiation, usually done by software
(intelligent) agents that perform searches and comparisons;
improves bundling and customization of products and
services
• Dynamic prices can be determined by negotiation
• Negotiated prices result from interactions and
bargaining among sellers and buyers
– Expensive items like cars and real estate
– Deal with non pricing terms like payment method and
credit
Online Negotiating (cont.)
• Three factors that facilitate negotiated prices
– Intelligent agents that perform searches and
comparisons
– Computer technology that facilitates negotiation
process
– Products and services that are bundled and
customized
Retailing in E-Commerce:
Products and Services
Amazon.com: King of E-Tailing
• The Problem
– Amazon.com has recognized that it must
continually enhance its electronic store by
expanding product selection and improving the
customer experience
• The Solution
Amazon.com now offers specialty stores
• Professional and technical store
• Expanded book editorial content
• Increased product selection
Amazon.com (cont.)
• Some key features of the Amazon.com are:
–
–
–
–
Easy browsing and searching
Useful product information
Low prices
One-Click order technology
• Features that make the online shopping
experience more enjoyable
– Gift ideas
– E-cards
Amazon.com (cont.)
• Various marketplace services
– Amazon Auctions
– zShops service hosts electronic storefronts for a
monthly fee
• Customer relationship management
– Creates interesting and informative front-end
– Highly automated and efficient back-end support
– Personalized service
• Diversification through business alliances
Amazon.com (cont.)
• The Results
– Financial performance
• annual sales for Amazon.com have trended upward,
from $15.7 million in 1996 to $4 billion in 2002
– Offers several features for international customers
– Declared its first profit for the 2001 first quarter
– Yet the company’s financial success is by no
means assured
Prentice Hall, 2003
E-Tailing and B2C Market Growth
• A retailer is a sales intermediary, a seller that
operates between manufacturers and
customers
• Electronic retailing (e-tailing)—retailing
conducted online, over the Internet
– Catalog sales free a retailer from the need for a
physical store
– Manufacturer sells directly to the customer,
cutting out the intermediary
What Sells Well on the Internet?
• Computers and
electronics
• Sporting goods
• Office supplies
• Books and music
• Toys
•
•
•
•
•
•
Health and beauty
Entertainment
Apparel
Cars
Services
Others
Prentice Hall, 2003
Characteristics of Successful E-Tailing
• Brand recognition and guarantees
• Guarantee provided by highly reliable or well-known
vendors
• Digitized products
• Inexpensive items
• Frequently purchased
• Commodities with standard specifications
• Well-known packaged items that cannot be opened
even in a traditional store
E-Tailing Business Models
•
E-tailing business models can be classified in
several ways:
– By the scope of items handled
• General-purpose
• Specialty e-tailing
– By scope of the sales region covered
• Global
• Regional
– Two main models
• Direct selling model
• Distribution channel
Classification by Revenue Model
• Product sales models
– Charge customers directly for products or services
• Subscription models
– Charge monthly or annual subscription fee for service
• Transaction-fee models
– Charge service fee based on the level of transaction offered
• Advertising-supported models
– Charge fee to advertisers instead of customers
• Sponsorship models
– Companies sponsor the business through donations (usually
supplemental income)
Classification by Distribution Channel
• Direct marketing
– manufacturers sell directly from company sites to
individual customers
• Pure-play e-tailers
– have no physical stores, only an online sales
presence
• Click-and-mortar retailers
– traditional retailers with a supplementary Web site
Direct Marketing by Manufacturers
or Mail-Order Companies
•
Direct marketing
– broadly, marketing that takes place without
intermediaries between manufacturers and buyers
– marketing done online between the seller and the
buyer
– Disintermediation
• removal of organizations or business process layers
responsible for certain intermediary steps in a given
supply chain
Exhibit 3.1: Disintermediation in the
B2C Supply Chain
Direct Marketing by Manufacturers
or Mail-Order Companies
• Parties in direct marketing have a greater
opportunity to influence each other
• Make-to-order online
– direct sales by manufacturers are gaining
popularity due to the ability to customize products
or services
Virtual (Pure-Play) E-Tailers
•
Virtual e-tailers sell over the Internet without
a physical sales channel
– General purpose e-tailers (Amazon.com)
• Broad range of products
• Large number of consumers
– Specialty or niche e-tailers (CatToys.com)
• One specific product area
• High demand items in the area
• Effective practices for customer appeal
Buying Cars Online: Build to Order
• Traditional system—”build-to-stock”:
– Manufacturers conduct market research to estimate which
features and options will sell well
– Make the cars they wish to sell
– Cars are sold from stock at a loss when there is insufficient
demand for a particular vehicle
• Auto giants intend to transform themselves from
build-to-stock to build-to-order companies
– Cutting inventory requirements in half
– Giving customers exactly what they want
Buying Cars Online: Build to Order
•
Using a virtual car at jaguar.com
– Consumers custom configure their car’s features
and components, see it online, price it, have it
delivered to a nearby dealer
• Web site helps with the research process
• The configuration is transmitted to the production
floor:
– Reducing delivery time
– Contributing to increased customer satisfaction
Click-and-Mortar Retailers
• Brick-and-mortar retailers
– retailers who do business in the non-Internet, physical
world in traditional brick-and-mortar stores
• Click-and-mortar retailers
– brick-and-mortar retailers with a transactional Web site
from which to conduct business
• Traditional retailing frequently involves a single
distribution channel, the physical store
– may also operate a mail-order business
• Multichannel store
– firm that operates both physical stores and an online e-tail
site
E-Tailers Working Backgrounds
• Travel and Tourism Services Online
– Corporate Travel
– Intelligent Agents in Travel Services
• The Employment Placement and the Job Market
– The Internet Job Market
– Matching Workers with Jobs in the Philippines
– Intelligent Agents in the Electronic Job Market
• Insurance Online
• Online Stock Trading
– Investment Information
E-Tailers Working Backgrounds
• Banking & Personal Finance Online
–
–
–
–
Capabilities of Home Banking
International and Multiple-Currency Banking
Personal Finance Online
Online Billing and Bill Paying
• On-Demand Delivery Service (ODDS)
• Digital Delivery
• Business Rating Sites & Trust Verification Sites
Exhibit 3.5
Virtual Job Employment Agent
Exhibit 3.6
Online Electronic Stock Trading
Capabilities of Home Banking
Get current account balances any time
Obtain charge and credit card statements
Pay bills
Download account transactions
Transfer money between accounts
Balance accounts
Send e-mail to the bank
Expand the meaning of “banker’s hours”
Handle finances when traveling
Additional services
Free phone banking
Waive checking fees
Implementation Issues in
Online Financial Transactions
• Using bank intranets
– Banks provide large business customers with personalized
service by allowing them access to the bank’s intranet to
access accounts, historical transactions, intranet-based
decision-support applications
• Imaging systems
– allow customers to view images of all:
• Incoming checks
• Invoices
• Other related online correspondence
Personal Finance Online
•
•
•
•
•
•
•
•
•
Bill paying and e-checks
Tracking bank accounts etc.
Portfolio management
Investment tracking
Stock quotes and prices (past and current)
Budget organization
Record keeping
Tax computations
Retirement goals, planning and budgeting
Personal Finance Online
• Automatic transfer of mortgages
– This method has existed for several years
– The payer authorizes its bank to pay the mortgage,
including tax escrow payments
• Automatic transfer of funds to pay monthly
utility bills
• Paying bills from online banking account
Personal Finance Online
• A merchant-to-customer direct billing
– A merchant posts bills on its Web site
– Customers can view and pay their bill
• Using an intermediary
– A third party consolidates all bills related to each
customer in one site in a standard format
– Collects a certain commission
– Makes it convenient to complete transactions
Personal Finance Online
• Person-to-person direct payment
Paypal.com (now an eBay company)—enables you
to send funds to another individual over the
Internet
• Online billing and bill-paying can be classified
into B2C, B2B, or C2C.
• Opportunities exist in B2B services
– can save businesses about 50 percent of billing costs
On-Demand Delivery Service (ODDS)
• On-demand delivery service (ODDS)
– express delivery made fairly quickly after an
online order is received
• On-Demand Delivery Services (ODDS)
– May own a fleet of delivery vehicles for regular
deliveries and delivery within short time period
Exhibit 3.7
On-Demand Delivery Services Model
Digital Delivery
•
Digital (“soft”) goods
– Music, movies, videos, software, newspapers,
magazines, graphics, etc.
– Can be delivered in “hard” or “soft” form
• Computer program on CD-ROM with owner’s manual
and warranty card
• Download from Web site after payment
Problems with E-Tailing & Lessons
Learned
•
Profitability
– Lose money on every sale as they try to grow to a
profitable size and scale
– Underlying cost and revenue models were not sound
– Long-run success requires financial viability
• Manage new risk exposure
– Local companies contend with local customers and local
regulations
– National firms have more constituents
– Global firms deal with numerous cultural perspectives
Problems with E-Tailing & Lessons
Learned
• Branding
– drive to establish brand can lead to excessive
spending
• Starting with insufficient funds
• Keep it interesting
– Static design is a “turn-off”
– Dynamic sites with rich databases of information
appeal most to customers
Disintermediation & Reintermediaries
•
Disintermediation
– manufacturer sells directly to consumer
• Reintermediearies
– new intermediary roles in the digital
environment offer new ways to:
• Reach new customers
• Bring value to customers
• Generate revenues
Intermediary’s New Role
•
Role will shift to one that emphasizes valueadded services such as:
– Assisting customers in comparison shopping from
multiple sources
– Providing total solutions by combining services
from several vendors
– Providing certifications and trusted third-party
control and evaluation systems
Cybermediation and Hypermediation
• Cybermediation (electronic intermediation)
– use of software (intelligent) agents to facilitate
intermediation
• Hypermediation
– extensive use of both human and electronic
intermediation to provide assistance in all phases
of an e-commerce venture