CHAPTER 7

E-Business and E-Commerce

Announcements

Lecture Chapter 7 E-Business and E-Commerce

Excel Refresher – due next Weds.

Excel Scenario Manager – Friday

Can you name some of the first e-commerce companies? Books

Auction Site

What about:

E-Commerce/E-Business

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Overview of E-Business and E-Commerce

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

Definitions and Concepts

E-Commerce & E-Business 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 (B2C) Amazon

2. Business-to-Business (B2B) Salesforce

3. Consumer-to-Consumer (C2C) Ebay

4. Business-to-Employee (B2E) UNCW

Major E-Commerce Mechanisms

1. E-Storefronts

2. E-malls

3. Auctions Forward Auctions Reverse Auctions

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E-Commerce Business Models

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

Benefits of E-Commerce

Benefits to organizations Makes national and international markets

more accessible Lowering costs of processing, distributing,

and retrieving information

Benefits to customers 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 Insufficient telecommunications bandwidth

Non-technological Limitations Perception that EC is unsecure Unresolved legal issues

7.2 Business-to-Consumer (B2C) Electronic Commerce

Electronic storefronts

Electronic malls

Online Service Industries

Cyberbanking

Online securities trading

Online job market

Travel services

Online Advertising

Online Advertising methods

BannersPop-up adPop-under adPermission marketingViral marketing

Social Networking Sites are changing organizational approach.

Communitainment

Communitainment is the blending of community, communication, and entertainment into a new form of online activity driven by consumers.  

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 manufacturers disintermediate their

channel partners by selling their products directly to consumers, usually over the Internet through electronic commerce.

2. Order fulfillment Difficulties in supply chain

Disintermediation

A key issue is disintermediation

7.3 Business-to-Business (B2B) Electronic Commerce

In B2B e-commerce, the buyers and sellers are organizations.

Sell-Side Buy-Side

© Richard Thomas/Age Fotostock America, Inc.

B2B Sell-Side Marketplace

Key mechanisms: electronic catalogs and forward auctions

Common Sell-Side Marketplaces include:

• Ariba

•Dell Auction

•bigboXX.com

© Richard Thomas/Age Fotostock America, Inc.

B2B Buy-Side Marketplace

United Sourcing Alliance is a common Sell-Side Marketplace

Key mechanism: reverse auctions

© Richard Thomas/Age Fotostock America, Inc. http://www.fedbid.com/

7.4 Electronic Payments

Electronic checks (e-checks)

Electronic credit cards

Electronic cash Stored-value money cards Smart cards Person-to-person payments

Frederic Lucano/Stone/Getty Images, Inc.

7.5 Ethical and Legal Issues

Ethical Issues

PrivacyJob Loss

Legal Issues Specific to E-Commerce

Fraud on the Internet

Domain Names

Cybersquatting

Source: maxstockphoto/Shutterstock

Legal Issues Specific to E-Commerce (continued)

Domain Tasting

Taxes and Other Fees

Copyright

Source: maxstockphoto/Shutterstock

Chapter Review

SalesForce is an online company providing technical services for other organizations. This is an example of which type of E-Commerce.

a.B2Bb.B2Cc.C2Cd.B2E

Chapter Review

Google shopping provides a list of many different stores offering a variety of products. This is what type of B2C?

A.Electronic StorefrontB.AuctionC.AdvertisingD.Electronic Commerce

Chapter Review

The key mechanism for Business-to-Business sell-side marketplaces is _______________.

A.Forward AuctionsB.Reverse AuctionsC.E-Malls