1 INTRODUCTION Introduction to ebusiness and ecommerce EBUSINESS
1. INTRODUCTION Introduction to e-business and e-commerce
E-BUSINESS INNOVATION
E-BUSINESS OPPORTUNITIES Reach �Over 1 billion users globally �Connect to millions of products seamlessly Richness �Detailed product information on 20 billion + pages indexed by Google. Blogs, videos, feeds… �Personalized messages for users Affiliation �Partnerships are key in the networked economy �Affiliate marketing is the process of earning a commission by promoting other people's (or company's) products. You find a product you like, promote it to others and earn a piece of the profit for each sale that you make. �ex: Home Depot, e. Bay and Amazon have affiliate program.
WHAT IS E-COMMERCE AND E-BUSINESS? E-commerce : �All electronically mediated information exchange between an organization and its external stakeholders. �Digitally enabled commercial transactions between and among organizations and individuals E-business: �All electronically mediated information exchanges, both within an organization and with external stakeholders supporting the range of business process. �Digital enablement of transactions and processes within a firm, involving information systems under firm’s control. Does not include commercial transactions involving an exchange of value across organizational boundaries.
Figure 1. 2 The distinction between buy-side and sell-side e-commerce
Figure 1. 3 Three definitions of the relationship between e-commerce and e-business
Figure 1. 4 The relationship between intranets, extranets and the Internet
UNIQUE FEATURES OF ECOMMERCE TECHNOLOGY Ubiquity Global reach Universal standards Information richness Interactivity Information density Personalization/customization Social technology
ORIGINS & GROWTH OF E -COMMERCE Precursors: Predecessor �Electronic Data Interchange (EDI) 1995: Beginning of e-commerce �First sales of banner advertisements Since then, e-commerce fastest growing form of commerce in the United States And today largely set in Bangladesh.
THE GROWTH OF B 2 C ECOMMERCE SOURCES: e. Marketer, Inc. , 2009 a; U. S. Census Bureau, 2009 b;
THE GROWTH OF B 2 B ECOMMERCE SOURCES: U. S. Census Bureau, 2009 a; authors’ estimates.
E-COMMERCE: A BRIEF HISTORY 1995– 2000: Innovation �Key concepts developed �Dot-coms; heavy venture capital investment 2001– 2006: Consolidation(coherent whole) �Emphasis on business-driven approach 2006–Present: Reinvention �Extension of technologies �New models based on user-generated content, social networking, services
TYPES OF E-COMMERCE �Transaction e-commerce sites ( Page. Buzz. com ) �Service-oriented relationship-building site (Car Manufacturer sites) �Brand-building sites Google, Nordstrom �Portal, publisher or media sites (Time Magazine, BBC)
WEB 2. 0 AND BEYOND Web 2. 0 �Examples- Webservices (flickr, Google Maps), Participation(Facebook), User -generated content (Wikipedia), Data exchange between sites, Rich Internet Applications(Secondlife) Web 3. 0 �Research the web to discover what Web 3. 0 technology and features have been used by which company �Example- Web Applications (Google Docs), Cloud Computing, Streamed video (IPTV, youtube), Virtual Worlds Increase, Personal data integration, Semantic web (Intelligent Agents)
Figure 1. 7 Evolution of web technologies Source: Adapted from Spivack (2007)
E-COMMERCE AND SCM What’s Supply Chain Management (SCM) �The coordination of all supply activities of an organization from its supplier and partners to its customers.
Summary and examples of transaction alternatives between businesses, consumers and governmental organizations Figure 1. 8
COST/EFFICIENCY AND COMPETITIVENESS DRIVERS Cost/efficiency drivers �Increasing speed with which supplies can be obtained �Increasing speed with which goods can be dispatched �Reduced sales and purchasing costs �Reduced operating costs Competitiveness drivers �Customer demand fulfilment �Improving the range and quality of services offered �Avoid losing market share
Figure 1. 12 Source: DTI (2002) Barriers to development of online technologies
Figure 1. 13 A simple stage model for buy-side and sell-side e-commerce Stage model of e-commerce
THE MCKINSEY SEVEN-S MODEL Strategy Style Shared Values Structure Staff Skills Systems
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