Introduction To E-Commerce and E-Business

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

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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

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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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