Introduction To E-Commerce and E-Business

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Chapter 6

• Introduction To E-Commerce and E-Business

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E-Commerce and E-Business Concepts

• E-commerce
• The exchange or buying and selling of goods and
  services by electronic means
• E-business
• The use of information and communication
  technologies to perform business functions

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E-Commerce and E-Business Concepts

• Value Chain Concepts
• Value chain
• The series of processes by which a company turns
  raw materials into finished goods and services

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E-Commerce and E-Business Concepts
Figure 6-1
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E-Commerce and E-Business Concepts

• Value Chain Concepts
• Extended value chain
• The sequence of value-adding activities that
  extend beyond the company boundaries

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E-Commerce and E-Business Concepts
Figure 6-2
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Benefits of Doing Business Electronically

• Reducing The Cost of Executing Transactions
• Increasing the Speed of Business
• Doing Business Any Time Anywhere
• Improving Workflow
• Reducing Errors and Improving Quality

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Benefits of Doing Business Electronically

• Collaborating With Suppliers
• Joint product design
• Synchronized production
• Servicing end customers

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Electronic Business Models

• Pure Play vs. Multi Channel
• Pure play
• The initial wave of companies to popularize the
  Web for B2C e-commerce sold only through the Web
  channel

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Electronic Business Models

• Pure Play vs. Multi Channel
• Click-and-mortar
• Clicks and bricks offering the same Web channel
  that the pure-plays provide (the click) but
  also providing stores (the mortar) where
  customers can return items more easily
• Channel Conflict
• Direct sales through Web channel may jeopardize
  relationships with distributors

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Electronic Business Models

• What Is A Business Model?
• Business model
• A broad plan for what products or services a
  company plans to sell and how it plans to earn
  its revenue

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Electronic Business Models

• Producer Models
• Producer earns revenue by selling the products
  that it builds, manufactures, grows, or creates
  the services it provides
• Distributor Models
• Distributor buys in bulk and resells in smaller
  quantities

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Electronic Business Models

• Aggregator Models
• Aggregator adds value by providing one-stop
  shopping
• Advertisement Revenue Models
• Advertisement runners earn revenue by selling
  advertising
• Click-through advertising
• Web portals

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Electronic Business Models

• Maker Market Models
• A market maker earns revenue by bringing together
  buyers and sellers
• Electronic Auctions
• B2B exchanges
• Infomediary Models
• Infomediary earns revenue by collecting and
  selling information

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Electronic Business Models

• E-Government
• E-government
• The model of government in which information
  technology is used to the extent possible to
  facilitate interaction between the government and
  its suppliers, government and the public,
  government and its employees, and among
  government agencies and different governmental
  bodies

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E-Commerce Technologies

• Electronic Data Interchange (EDI)
• Automated exchange of electronic documents
  between computers at different companies
• Standards at general and industry levels
• Mapping software translates application
  input/output for EDI transmission/reception
• Web interfaces exist

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E-Commerce Technologies

• Web Forms
• Extended Markup Language (XML)
• Adds tags to Web page so that data on page can be
  processed by computer
• Web Services
• Software that accepts commands over the Web and
  optionally returns results over the Web

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E-Commerce Implementation Issues

• Resolving Channel Conflict
• Make distributor transparent
• Direct orders and queries to distributors
• Doing Business Internationally
• Language choice on Web page selection
• Currency conversion
• Product branding and design issues

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E-Commerce Implementation Issues

• Security Management
• Need to encrypt transactions
• Weak security at partners can compromise your own
  security

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End of Chapter 6

• Introduction To E-Commerce and E-Business