Creating a Winning EBusiness Second Edition Understanding EBusiness
Creating a Winning E-Business Second Edition Understanding E-Business Chapter 1 Creating a Winning E-Business Second Edition, Chapter 1
Learning Objectives § Discuss e-business basics § Describe the Internet and World Wide Web § Discuss the role of e-business in the global economy § List e-business advantages and disadvantages Creating a Winning E-Business Second Edition, Chapter 1 2
Learning Objectives (continued) § Explain e-business value chains and value activities § Identify e-business models Creating a Winning E-Business Second Edition, Chapter 1 3
E-Business Basics § E-commerce – Process of buying or selling goods or services across a telecommunications network § E-business – Widest spectrum of business activities using Internet and Web technologies § Many technologies facilitate e-business – Electronic funds transfer (EFT) – Electronic data interchange (EDI) – Internet / World Wide Web Creating a Winning E-Business Second Edition, Chapter 1 4
The Internet and World Wide Web § Network – Group of two or more computers – Linked by communication media • Cable • Telephone lines • Wireless connections § Networks servers – Give users access to shared network resources – Printers, files, telecommunication lines Creating a Winning E-Business Second Edition, Chapter 1 5
The Internet and World Wide Web (continued) Creating a Winning E-Business Second Edition, Chapter 1 6
The Internet and World Wide Web (continued) § Internet – A worldwide public network that connects private networks – Originated in the late 1960 s as ARPANET – Managed by the National Science Foundation in the 1980 s and early 1990 s as NSFnet – Connected colleges, universities, and research centers – Commercial activity was prohibited until 1991 Creating a Winning E-Business Second Edition, Chapter 1 7
The Internet and World Wide Web (continued) § Internet (continued) – Replaced by commercial high-speed telecommunications backbones in 1995 • Individuals and SMBs connect via an Internet Service Provider (ISP) • Large businesses, colleges, and universities may have direct connection Creating a Winning E-Business Second Edition, Chapter 1 8
The Internet and World Wide Web (continued) Creating a Winning E-Business Second Edition, Chapter 1 9
The Internet and World Wide Web (continued) Creating a Winning E-Business Second Edition, Chapter 1 10
The Internet and World Wide Web (continued) Creating a Winning E-Business Second Edition, Chapter 1 11
The Internet and World Wide Web (continued) § World Wide Web (Web) – A subset of the Internet – Built on the concept of hypertext – System of linked pages called Web pages – Related Web pages are called a Web site – Viewed in a Web browser – Stored on Web servers § Millions of people around the world access the Internet and Web daily Creating a Winning E-Business Second Edition, Chapter 1 12
E-Business and the Global Economy § Widespread linking of individuals and businesses has changed global economy – Time and space are no longer limiting factors – Business value of information is greater – Information is more accessible – Traditional intermediaries have been replaced by new types of intermediaries Creating a Winning E-Business Second Edition, Chapter 1 13
E-Business and the Global Economy (continued) § Buyers are growing more powerful § Internet and Web access has changed buyers expectations – Information on competing products – Transaction speed and convenience Creating a Winning E-Business Second Edition, Chapter 1 14
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E-Business and the Global Economy (continued) Creating a Winning E-Business Second Edition, Chapter 1 19
E-Business and the Global Economy (continued) § Value chain or value network – Activities involved in the production of goods or services – Internet and Web technologies facilitate value chains and networks • Improve communication • Improve transaction speed § Internet and Web access allows businesses to rethink their value chains Creating a Winning E-Business Second Edition, Chapter 1 20
E-Business and the Global Economy (continued) Creating a Winning E-Business Second Edition, Chapter 1 21
E-Business and the Global Economy (continued) Creating a Winning E-Business Second Edition, Chapter 1 22
E-Business Models § Business models – How a company conducts business in order to generate revenue – Widespread access to the Internet and Web allows companies to adapt old models and create new ones § E-business models are often categorized by type of customer Creating a Winning E-Business Second Edition, Chapter 1 23
E-Business Models (continued) Creating a Winning E-Business Second Edition, Chapter 1 24
E-Business Models (continued) § Business-to-consumer (B 2 C) – Retail sales (e-retail) including airline tickets, entertainment venue tickets, hotel rooms, stock purchases, diet and fitness programs § Brick-and-mortar companies are moving to brickand click companies – Sears, Best Buy, Barnes & Noble, the Gap § Pure-play e-retailers and catalog merchants – Amazon. com, e. Bags, Harry and David Creating a Winning E-Business Second Edition, Chapter 1 25
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E-Business Models (continued) § Business-to-business (B 2 B) – Businesses selling to other businesses – Online stores, such as Office Depot, Staples – Internet and Web technologies • • Web hosting Web design Hardware and software Consulting Creating a Winning E-Business Second Edition, Chapter 1 29
E-Business Models (continued) § Business-to-business (B 2 B) – Online trading communities for vertical markets – Exchanges, aggregators, auctions • Virtual marketspaces for buyers and sellers • Elance, ATLA Exchange, Business. com, Hedge. Hog Creating a Winning E-Business Second Edition, Chapter 1 30
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E-Business Models (continued) § Business-to-government (B 2 G) – Businesses provide a marketspace for other businesses and government agencies – Bidmain, B 2 GMarkets Creating a Winning E-Business Second Edition, Chapter 1 34
E-Business Models (continued) Creating a Winning E-Business Second Edition, Chapter 1 35
E-Business Models (continued) § Consumer-to-consumer (C 2 C) – Consumers sell or exchange products and services directly with other consumers – Auctions, online classified ads, expert information exchanges • e. Bay, American Boat Listing, Trader. Online. com, All. Experts Creating a Winning E-Business Second Edition, Chapter 1 36
E-Business Models (continued) Creating a Winning E-Business Second Edition, Chapter 1 37
E-Business Models (continued) Creating a Winning E-Business Second Edition, Chapter 1 38
E-Business Models (continued) § Consumer-to-business (C 2 B) – Reverse auctions in which a single consumer names his or her own price for products or services – Consumer’s offer made to multiple businesses, which can accept or decline offer – Priceline. com Creating a Winning E-Business Second Edition, Chapter 1 39
E-Business Models (continued) Creating a Winning E-Business Second Edition, Chapter 1 40
Chapter Summary § E-business – Conducting a broad spectrum of business activities over a telecommunications network § Internet – A worldwide public network that connects private networks § World Wide Web – A subset of the Internet § Time, space, and geographic location no longer limiting factors Creating a Winning E-Business Second Edition, Chapter 1 41
Chapter Summary (continued) § Buyers are growing more powerful § Businesses are rethinking their value chains § Business model – The way a company conducts its activities in order to generate revenue § Businesses are adapting old business models and creating new ones § E-business models – B 2 C, B 2 B, B 2 G, C 2 C, C 2 B Creating a Winning E-Business Second Edition, Chapter 1 42
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