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Chapter 13 Chapter 13 Electronic Commerce Electronic Commerce

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Page 1: Chapter 13 Chapter 13 Electronic Commerce. Outline Electronic commerce (e- commerce) – concept, B2C, B2B, C2C types Business models for B2C e-commerce

Chapter 13Chapter 13

Electronic CommerceElectronic Commerce

Page 2: Chapter 13 Chapter 13 Electronic Commerce. Outline Electronic commerce (e- commerce) – concept, B2C, B2B, C2C types Business models for B2C e-commerce

OutlineElectronic commerce (e- commerce) – concept, B2C, B2B, C2C typesBusiness models for B2C e-commerceBusiness models for B2B e-commerceDifferences between e-commerce and traditional business modelsMobile commerce (m-commerce)Electronic payment

E-Commerce 2

Page 3: Chapter 13 Chapter 13 Electronic Commerce. Outline Electronic commerce (e- commerce) – concept, B2C, B2B, C2C types Business models for B2C e-commerce

E-Commerce 3

E-Commerce Concept

E-Commerce: Buying and selling goods and services electronically, via the Internet and other networks and systems:

Business-to-Consumer (B2C; Chapters.com)Business-to-Business (B2B; Covisint) – larger, more stable partConsumer-to-Consumer (C2C; eBay)

E-Commerce requires a new way of thinking about organizational processes (IT support critical), customers and delivery.

Challenges: sustainable e-commerce business models, growth, security and privacy.

Page 4: Chapter 13 Chapter 13 Electronic Commerce. Outline Electronic commerce (e- commerce) – concept, B2C, B2B, C2C types Business models for B2C e-commerce

E-Commerce 4

Business Models of B2C E-Commerce

Business model: What is the biz, Who is the customer, How money is made

Virtual Storefront Sells goods/services online (Amazon - pure click, no physical stores)

Consumers with access to Internet around globeInteractive Marketing and PersonalizationVirtual storefront as addition to store (Chapters – click & mortar)

Page 5: Chapter 13 Chapter 13 Electronic Commerce. Outline Electronic commerce (e- commerce) – concept, B2C, B2B, C2C types Business models for B2C e-commerce

E-Commerce 5

Business Models of B2C E-Commerce

Portal : Initial point of entry to Web, provides Internet search

service for free, sells specialized content and advertising

space (Google, Yahoo)

Customer: Global Internet user

Revenue: Advertising

Information Broker: Provides integrated information (Wishabi)

Customer: Global Internet user

Revenue: Referral fee (advertising)

Page 6: Chapter 13 Chapter 13 Electronic Commerce. Outline Electronic commerce (e- commerce) – concept, B2C, B2B, C2C types Business models for B2C e-commerce

E-Commerce 6

Business Models of B2B E-CommerceDirect linking of buyer-supplier (private networks, Electronic data

Interchange)

Online Exchange (different names)

Buyer/Seller run

Within an industry (GHX)

Across industries (Covisint)

Revenue: Membership fee, Transaction charge, Services Product

catalogue, purchasing/selling, order fulfillment

More information

Page 7: Chapter 13 Chapter 13 Electronic Commerce. Outline Electronic commerce (e- commerce) – concept, B2C, B2B, C2C types Business models for B2C e-commerce

E-commerce and traditional business models

Biz content: mostly old stuff, some new info-related services. Dependent on IT (Clickstream tracking, Collaborative filtering, Supply chain systems integration)

Customer: Global, Internet/IT capableAttracted by some cost savings (transaction costs) and value offering (dynamic pricing, disintermediation – less of middlemen)

Revenue: Dependent on advertising and variable sources (volume of transactions).

E-Commerce 7

Page 8: Chapter 13 Chapter 13 Electronic Commerce. Outline Electronic commerce (e- commerce) – concept, B2C, B2B, C2C types Business models for B2C e-commerce

Mobile Commerce (M-commerce)

Commerce using mobile electronic devices (e.g., cell

phone)

Biz content: financial services, advertising,

entertainment

Services: business locator, banking, news,

entertainment

Challenges: screen size, speed, privacy

E-Commerce 8

Page 9: Chapter 13 Chapter 13 Electronic Commerce. Outline Electronic commerce (e- commerce) – concept, B2C, B2B, C2C types Business models for B2C e-commerce

E-Commerce 9

E-commerce Payment Systems

Important for closing trading cycle

Systems:

Credit card – you, your bank, payee, payee’s bank

Smart card – you, payee, your bank & Mondex; card reader needed

E-cash/digital cash/e-money - you, payee, bank where you have account;

small payments supported; payee can accumulate e-cash and exchange

for cash at will

Person-to-person payments – you, payee, your bank & PayPal site

Challenges : Security, Trust