Seminar 4 – Part 1 E-Business and E-Commerce Ref: Chapter 6 Learning Objectives 1. 2. 3. 4. 5. Describe electronic commerce, its scope, benefits, limitations, and types. Explain how online auctions and bartering work. Understand the major applications of businessto-consumer commerce, including service industries and the major issues faced by etailers. Describer business-to-business applications. Explain why intrabusiness and B2E are considered e-commerce. Learning Objectives cont’d 6. Describe e-government activities and consumer-to-consumer 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. 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. Dell’s Vast Customer Base Business-to-Business Dell becomes British Airways' preferred partner Intel invests $23 million in three Indian firms 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 E-Business and E-Commerce E-Business(EC) and E-commerce (EB) EC or EB Pure vs Partial EC – Degree of Digitization EC Organisation ◦ Brick-and-Motor Click-andMotorVirtual EC Transactions B2B C-COMMERCE B2C (e-tailing) C2C B2B2C C2B INTRABUSINESS G2C, G2G, G2B Click-&-mortar vs Brick-&-mortar organizations More shoppers proceed to checkout online………… A General E-Commerce Model Social Commerce – Company-sponsored Socially Oriented Sites to Bring People Together Hannah Montana TheirSpace.com Application Programming Interface Examples A framework for E-commerce E-Market Trends Virtual Greats Profile Major EC Mechanisms e-market e-catalogues e-auctions – soliciting bids from/by buyers and sellers ◦ Forward auction – for sale by sellers ◦ Reverse Auctions – buyer puts request for quote E-bartering Electronic Catalogs All of Your Suppliers’ Products in One Online Catalog E-Auctions E-Classifieds stores eBay case study business Bartering & Negotiations The New Age of Bartering B2C Applications E-storefronts – one shop – 1 URL E-malls – collection of shops – 1 URL Cyberbanking Online Securities Trading Online Job Markets E-Travel E-Real Estate E-Entertainment Electronic Storefronts Electronic Malls shopping 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 Online Job Market Travel Services Real Estate Online Customisation and Personalisation The key to successful e-trading Issues in E-Tailing Resolving channel conflict Resolving conflicts within click-and-motor organisations Organising order fulfillment and logistics Determining the viability and risk of etailers Identify appropriate revenue models B2B Applications Only businesses ◦ Sell-side marketplace – buyer is the organisation ◦ Buy-side marketplaces – Reverse auctions E-procurement ◦ Public exchanges 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. EC Support Services Market Research for EC Web Advertising E-Payments – Table 6.4 E-commerce support services Market Research Online Credit Cards How e-credit cards work. (The numbers 1-9 indicate the sequence of activities.) (Source: Drawn by E.Turban.) E-Wallet The use of a mobile phone as an e-wallet. (Source: Koichi Kamoshida/Getty Images.) E-Wallets – Apple ipod Order fulfillment and the logistics system Ethical and Legal Issues in EB and EC Privacy Web tracking - draw back of extensive profiling and personalisation Loss of jobs Buyer protection Seller protection 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. END