First, Overview of E-Business and E-Commerce:
v The dot-com
era
v Over 1.9 billion people are now connected to
the Internet
v
More than 130 million people are buying online
v
E-commerce began in 1995
v
Marketplace →
Marketplace
E-Commerce
(EC): describes the process of buying, selling, transferring or exchanging
of products, services or information via computer networks, including the
Internet.
E-business: is a broader
definition of EC, including
ü buying and selling of goods and services
ü servicing customers
ü collaborating with partners
ü conducting e-learning
ü conducting electronic transactions within an
organization.
·
Pure versus Partial EC depends on the degree of
digitization involved:
- The product
can be physical or digital.
- The process
can be physical or digital.
- The delivery
agent can be physical or digital
·
Brick-and-mortar: purely physical
organizations
·
Click-and-mortar: organizations
are those that conduct some EC activities, yet their business is primarily done
in the physical world [multichannneling]
·
Pure Play: organizations that are
engaged only in EC
Types
of E-Commerce:
v
Business-to-Consumer (B2C): the sellers are organizations and the buyers are individuals
v
Business-to-Business (B2B): both the sellers and buyers are business organizations
v
Consumer-to-Consumer (C2C): both the sellers and buyers are individuals
v
Business-to-Employee (B2E): An organization uses e-commerce internally to provide information and
services to its employees.
v
E-Government (E-Gov.): the
use of Internet technology to deliver information about public services to
citizens (Government-to-Citizen [G2C]), business partners and suppliers (called
government-to-business [G2B]) and between governments [G2G].
ü Mobile Commerce
(m-commerce): e-commerce that
is conducted using a mobile phone
E-Commerce Business Models :
ü Online Direct Marketing: manufacturers sell directly to
o customers
ü Electronic Tendering System: businesses (or governments) request quotation from suppliers [uses B2B
or G2B] -[Example: e-tendering The Tender Board ]
ü E-auction – an auction
which is held over the Internet
ü Forward Auction: the
highest bidder wins the auction
ü Reverse Auction: the
lowest bidder wins the auction
ü Name-your-own-price: customers decide how much they want to pay www.priceline.com
ü Find-the-best-price: customers specify a need and an intermediary compares providers and
shows the lowest price
ü Viral
marketing: receivers send information about your product
to their friends.
ü Group purchasing: small buyers aggregate demand to get a large
volume discount [E-Coops]
ü Product
customization: customers use the Internet to self-configure
products or services. Sellers then price them and fulfill them quickly.
ü
Deep discounters: company
offers deep price discounts. Appeals to customers who consider only price in
their purchasing decisions
ü
Membership: only
members can use the services provided, including access to certain information,
conducting trade, etc.
Benefits of E-Commerce
·
Benefits to organizations
o
Makes national and international markets more accessible
o
Lowering costs of processing, distributing, and retrieving information
·
Benefits to customers
o
Access a vast number of products and services around the clock
(24/7/365)
·
Benefits to Society
o
Ability to easily and conveniently deliver information, services and
products to people in cities, rural areas and developing countries
Limitations of E-Commerce
v Technological
Limitations
o
Lack of universally accepted security standards
o
Insufficient telecommunications bandwidth
o
Expensive accessibility
v Non-technological
Limitations
o
Perception that EC is unsecure
o
Unresolved legal issues
o
Lacks a critical mass of sellers and buyers
Second, Business-to-Consumer
B2C
Electronic
retailing (E-tailing): the
direct sale of products and services through the Internet
E-marketplace: a central, virtual market space on the Web
where many buyers and sellers can conduct E-commerce and E-Business activities
E-storefront: a Web site that represent a single store
E-mall/
Cybermall: a collection of
individual shops under one Internet address
http://www.e-mall.com.sa/
- Referral
Mall www.bing.com/shopping
Online Service Industries:
A key issue is disintermediation
Cyberbanking: involves conducting banking
activities from home, a place of business or on the road instead of at a
physical bank location.
E-Bank / virtual Bank/
Cyber Bank: a bank
that is dedicated only to Internet transactions
Online job market :The internet offers promising new
environment for job seekers and for companies searching for hard-to-find
employees.
Travel services :The internet is an ideal place to plan,
explore and arrange almost any trip economically .
Issues in E-Tailing:
Channel conflict: occurs when manufacturers
disintermediate their channel partners such as distributors, retailers,
dealers, and sales representatives, by selling their products directly to
consumers, usually over the Internet through e-commerce.
[Ford allows customers to configure
a car online but requires them to pick it up from a dealer, where they arrange
financing, warranties and services]
Multichanneling: is a process in which a company
integrates its offline and online channels.
Order fulfillment: finding the product to be shipped;
packaging the product; arrange for speedy delivery to the customer; and handle
the return of unwanted or defective products.
Third, Business-to-Business (B2B)
In B2B e-commerce, the buyers and
sellers are organizations
There are several business models for B2B
applications:
- B2B Sell-Side
Marketplace
- B2B Buy-Side
Marketplace
- Electronic
Exchanges
- In the sell-side marketplace, organizations sell their
products or services to other organizations electronically from their own
Web site and/or from a third-party Web site.
This model is similar
to the B2C model in which the buyer comes to the seller’s site, views catalogs,
and places an order. In the B2B
sell-side marketplace, the buyers are organizations.
- The buy-side marketplace is a model in which
organizations buy needed products and services from other organizations
electronically.
v Exchanges independently own by a third party and connect
many buyers and many sellers
- Vertical
Exchanges: connects buyers and sellers in a given industry
- Horizontal
Exchanges: connects buyers and sellers across many industries, and are
used mainly for MRO materials
- Functional
Exchanges: needed services
such as temporary
help or extra office
space are traded on
an “as-needed” basis
Fourth, Electronic
Payments
n Implementing EC
typically requires E-payment
n E-payment systems
enable you to pay for goods and services electronically.
E-check: encrypted check with digital signature
that is similar to a paper check, and is used mostly in B2B.
E-credit card: allows customers to charge
online payments to their credit card account, and is used mostly in B2C.
Fifth, Ethical and Legal Issues:
v
Privacy: ecommerce provides opportunities for
businesses to track online consumers using cookies or special spyware
v Cybersquatting
refers to the practice of registering domain names solely for the purpose of
selling them later at a higher price.
The
original owner of www.tom.com received $8
million for the name
v Taxes and other Fees:
when and where (and in some cases whether) electronic sellers should pay taxes
v Copyright: protecting
intellectual property in e-commerce and enforcing copyright laws is extremely
difficult
ليست هناك تعليقات:
إرسال تعليق