Overview of Electronic Commerce

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Chapter 1

• Overview of Electronic Commerce

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Learning Objectives

• Define electronic commerce (EC) and describe its
  various categories.
• Describe and discuss the content and framework of
  EC.
• Describe the major types of EC transactions,
  technologies and interactions.
• Describe some EC business models.
• Describe the benefits of EC to organizations,
  consumers, and society.
• Describe the limitations of EC.

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Electronic Commerce Definitions and Concepts

• What is electronic commerce (EC)?
• What is e-business?

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Electronic Commerce Definitions and Concepts

• Pure Versus Partial EC
• EC takes several forms depending on the degree of
  digitization (the transformation from physical to
  digital)
• (1) the product (service) sold,
• (2) the process,
• (3) the delivery agent (or intermediary
• Examples?

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Electronic Commerce Definitions and Concepts

• EC organizations
• brick-and-mortar organizations
• virtual (pure-play) organizations
• click-and-mortar (click-and-brick) organizations
• Examples?
• Godiva.com
• What type of an organization is Godiva?
• Navigational features of the site exercise
• Lotus Bowl platter with truffles

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Electronic Commerce Definitions and Concepts

• Where E-business is conducted
• electronic market (e-marketplace)
• interorganizational information systems (IOSs)
• intraorganizational information systems

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Exhibit 1.2 A Framework for Electronic
Commerce
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EC Classification Transactions

• Classification by nature of the transactions or
  interactions
• business-to-business (B2B)
• business-to-consumer (B2C)
• consumer-to-consumer (C2C)
• Examples?

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EC Classification Technology

• peer-to-peer
• mobile commerce (m-commerce)
• what is location-based commerce (l-commerce)?
• example?

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EC Classification Type of Interaction

• collaborative commerce (c-commerce)
• what is collaborative commerce?
• example?
• e-learning

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Electronic Commerce Major Historical Landmarks

• ETF (1970s)
• EDI (1980s), proprietary, expensive
• WWW (1990s)
• .com boom (late 1990s, early 2000s)
• .com bust (2001-2002)
• Google IPO (2004)

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Digital Evolution Drives EC

• Digital economy
• What are three characteristics of digital
  economy?
• Digital Convergence

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Business Environment Drives EC

• Critical Response Activities What companies must
  do to survive in competitive business environment
  as it changes
• Traditional Responses?
• Innovative Responses?
• Categories of business pressures
• market (economic) examples?
• Societal examples?
• Technological examples?

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Business Environment Drives EC

• Organizational response strategies What
  EC-enabled initiatives can organizations and
  businesses undertake to deal with those
  pressures?
• BPR
• CRM
• Business Alliances
• Electronic Markets
• Time to Market Reduction
• Mass Customization

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EC Business Models

• The Structure of Business Models
• What are the six elements of a comprehensive
  business model?

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EC Business Models

• What are major revenue models?
• Examples?

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EC Business Models

• Value proposition (to whom?)
• What are some typical EC Business Models?

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EC Business Models Orbis Group

• Describe Traditional Supply Chain (process) for
  product catalog acquisition.
• Describe Process with ProductBank.
• What processes are eliminated?
• What players are eliminated?
• Who benefits?
• Who loses?

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Benefits of EC
Benefits to Organizations
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Benefits of EC
Benefits to Consumers
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Benefits of EC

• Benefits to Society

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Exhibit 1.7 Limitations of EC

• Most prominent technical limitations/barriers?
• Most prominent non-technical limitations/barriers?
  
• How can we overcome them?

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Exhibit 1.8 The Networked Organization
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Summary

• Definition of EC and description of its various
  categories.
• The content and framework of EC.
• The major types of EC transactions.
• The major EC business models.
• Benefits of EC to organizations, consumers, and
  society.
• Limitations of EC.