Turban and Volonino
Chapter 6
E-Business and E-Commerce
Information Technology for Management
Improving Performance in the Digital Economy
7th edition
John Wiley & Sons, Inc.
Slides contributed by Dr. Sandra Reid
Chair, Graduate School of Business & Professor, Technology
Dallas Baptist University
Copyright 2010 John Wiley & Sons, Inc.
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Chapter Outline
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6.1 Overview of E-Business and E-Commerce
6.2 Major EC Mechanisms
6.3 Business-to-Consumer Applications
6.4 Business-to-Business Applications
6.5 Major Models of E-Business: From EGovernment to C2C
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Chapter Outline (cont’d)
• 6.6 E-Commerce Support Services: Payment
and Order Fulfillment
• 6.7 Ethical and Legal Issues in E-Business
• 6.8 Managerial Issues
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Learning Objectives
1. Describe electronic commerce, its scope, benefits,
limitations, and types.
2. Explain how online auctions and bartering work.
3. Understand the major applications of business-toconsumer commerce, including service industries
and the major issues faced by e-tailers.
4. Describer business-to-business applications.
5. Explain why intrabusiness and B2E are considered
e-commerce.
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Learning Objectives cont’d
6. Describe e-government activities and consumer-toconsumer e-commerce.
7. Identify the e-commerce support services,
specifically payments and logistics.
8. Understand the importance and activities of online
advertising.
9. Identify and describe ethical and legal issues
relating to e-commerce.
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Figure IT7eU
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• Problem – Leader & target for Compaq.
Losses exceed $100 million.
• Solution – Rapid expansion with selling via
online.
• Result – Leading systems provider in US;
second worldwide. Fortune’s top 5 “Most
Admired” companies since 1999.
By-product – sell refurbished Dell computers.
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Dell’s Vast Customer Base
Business-to-Business
Dell becomes British Airways' preferred partner
Intel invests $23 million in three Indian firms
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Dell’s Vast Customer Base – cont’d
How Dell Does IT: Order Management
Training services
Online self-learning about Dell products
along with IT & management topics
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6.1 Overview of E-Business and E-Commerce
E-Business / E-Commerce
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Click-&-mortar vs Brick-&-mortar organizations
More shoppers proceed to
checkout online…………
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Figure 6.1 E-commerce in our company.
(Source: Drawn by E. Turban)
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Table 6.1
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Online Advertisers, Marketers & Students
Powerstudents.com
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Company-sponsored Socially Oriented Sites
Hannah Montana
TheirSpace.com
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Application Programming Interface - Examples
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Figure 6.2 A framework for E-commerce.
(Source: Drawn by E. Turban)
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Table 6.2
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Table 6.3
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6.2 IS Major EC Mechanisms
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E-Market Trends
Virtual Greats Profile
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Electronic Catalogs
All of Your Suppliers’ Products in
One Online Catalog
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E-Auctions
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E-Classifieds
stores
eBay case study
business
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Bartering & Negotiations
The New Age of Bartering
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6.3 Business-to-Consumer Applications
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Electronic Storefronts
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Electronic Malls
shopping
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Amazon – King of E-Tailing
Jeff Bezos: The Wizard Of Web Retailing
Last Founder Standing
The Future of Reading
America's Best Leaders: Jeff Bezos,
Amazon.com CEO
The founder of the massive online retailer
is a true Internet pioneer
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Online Job Market
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Travel Services
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Real Estate Online
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6.4 B2B Applications
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ChemConnect Case Study
ChemConnect
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6.5 Major Models of E-Business:
From E-Government to C2C
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E-Government to C2C
• B2E – organizations disseminate information to employees
over company intranet.
• E2E – employees communicate with each other. I.e.: goods
& services bought & sold among fellow employees.
• SBU/SBU – company owned dealerships buy goods &
services from main company. Improves internal supply
chain operations.
• E-Collaborative – digital technologies that enable
collaboration.
• E-Government – delivers information & services to citizens,
business partners & suppliers. I.e.: G2C, G2B, G2G.
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6.6 E-Commerce Support Services:
Payment, & Order Fulfillment
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Figure 6.3 E-commerce support services.
(Source: Drawn by E. Turban.
Based on S.Y. Choi et al., 1997, p. 18.)
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Market Research Online
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Table 6.4
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Figure 6.4
How e-credit cards work. (The numbers 1-9 indicate the
sequence of activities.) (Source: Drawn by E. Turban.)
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Figure 6.5
The use of a mobile phone as an e-wallet.
(Source: Koichi Kamoshida/Getty Images.)
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Figure 6.6
Order fulfillment and the logistics system.
(Source: Turban et al., Electronic Commerce: A Managerial
Perspective 2008, Exhibit 13.2, p. 591).
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6.7 Ethical & Legal Issues in E-Business
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Table 6.5
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6.8 Managerial Issues
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Managerial Issues
• E-Commerce failures – common. Solid business
analyses a must.
• Failed initiatives within an organization.
• Success stories & lessons learned should be shared.
• Managing resistance to change.
• Integration into business overall.
• Lack of qualified personnel & outsourcing.
• Managing impact on organization.
• Alliances can be very helpful & productive.
• Choosing appropriate strategy.
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