CHAPTER 7 EBusiness and ECommerce Announcements n Lecture

CHAPTER 7 E-Business and E-Commerce

Announcements n Lecture Chapter 7 n E-Business and E-Commerce n Excel Refresher – due next Weds. n Excel Scenario Manager – Friday

E-Commerce/E-Business n Can you name some of the first e-commerce companies? n Books n Auction Site n What about: http: //www. cnet. com/1990 -11136_1 -6278387 -1. html

Overview of E-Business and E-Commerce n Definitions and Concepts n Types of E-Commerce n Major E-Commerce Mechanisms n E-Commerce Models n Benefits and Limitations of E-Commerce

Definitions and Concepts E-Commerce & E-Business n n n Brick-and-mortar organizations Virtual organizations Click-and-mortar organizations Pure versus Partial Electronic Commerce depends on the degree of digitization involved.

Types of E-Commerce 1. Business-to-Consumer (B 2 C) n Amazon 2. Business-to-Business (B 2 B) n Salesforce 3. Consumer-to-Consumer (C 2 C) n Ebay 4. Business-to-Employee (B 2 E) n UNCW

Major E-Commerce Mechanisms 1. E-Storefronts 2. E-malls 3. Auctions n Forward Auctions n Reverse Auctions © ZOONAR GMBH LBRF/Age Fotostock America, Inc.

E-Commerce Business Models n Online direct marketing n Name-your-own-price / Find-the-best-price n Marketing: Affiliate and Viral n Product customization n Deep discounters n Membership

Benefits of E-Commerce Benefits to organizations Makes national and international markets more accessible n Lowering costs of processing, distributing, and retrieving information n Benefits to customers n Access a vast number of products and services around the clock (24/7/365)

Limitations of E-Commerce Technological Limitations Lack of universally accepted security standards n Insufficient telecommunications bandwidth n Non-technological Limitations Perception that EC is unsecure n Unresolved legal issues n

7. 2 Business-to-Consumer (B 2 C) Electronic Commerce Electronic storefronts Electronic malls

Online Service Industries n Cyberbanking n Online securities trading n Online job market n Travel services

Online Advertising methods Banners n Pop-up ad n Pop-under ad n Permission marketing n Viral marketing n Social Networking Sites are changing organizational approach.

Communitainment n Communitainment is the blending of community, communication, and entertainment into a new form of online activity driven by consumers. n Predictions: consumers will shift more than 50% of their content consumption over the next decade to communitainment formats (e. g. , social networking, video, and photo sharing sites), displacing traditional forms of media content like TV, magazines, and large Internet sites.

Issues in E-Tailing 1. Channel conflict n manufacturers disintermediate their channel partners by selling their products directly to consumers, usually over the Internet through electronic commerce. 2. Order fulfillment n Difficulties in supply chain

Disintermediation A key issue is disintermediation

7. 3 Business-to-Business (B 2 B) Electronic Commerce In B 2 B e-commerce, the buyers and sellers are organizations. n Sell-Side n Buy-Side © Richard Thomas/Age Fotostock America, Inc.

B 2 B Sell-Side Marketplace Key mechanisms: electronic catalogs and forward auctions Common Sell-Side Marketplaces include: • Ariba • Dell Auction • bigbo. XX. com © Richard Thomas/Age Fotostock America, Inc.

B 2 B Buy-Side Marketplace Key mechanism: reverse auctions United Sourcing Alliance is a common Sell-Side Marketplace © Richard Thomas/Age Fotostock America, Inc. http: //www. fedbid. com/

7. 4 Electronic Payments n Electronic checks (e-checks) n Electronic credit cards Frederic Lucano/Stone/Getty Images, Inc. n Electronic cash n n n Stored-value money cards Smart cards Person-to-person payments

7. 5 Ethical and Legal Issues Ethical Issues n Privacy n Job Loss

Legal Issues Specific to E-Commerce n Fraud on the Internet n Domain Names n Cybersquatting Source: maxstockphoto/Shutterstock

Legal Issues Specific to E-Commerce (continued) n Domain Tasting n Taxes and Other Fees n Copyright Source: maxstockphoto/Shutterstock

Chapter Review Sales. Force is an online company providing technical services for other organizations. This is an example of which type of ECommerce. a. b. c. d. B 2 B B 2 C C 2 C B 2 E

Chapter Review Google shopping provides a list of many different stores offering a variety of products. This is what type of B 2 C? A. Electronic Storefront B. Auction C. Advertising D. Electronic Commerce

Chapter Review The key mechanism for Business-to. Business sell-side marketplaces is ________. A. Forward Auctions B. Reverse Auctions C. E-Malls