THE DIGITAL FIRM:

1
CHAPTER-4 THE DIGITAL FIRM E-COMMERCE AND E-
BUSINESS
2
ELECTRONIC COMMERCE (E-COMMERCE)

• REFERS TO CONDUCTING BUSINESS TRANSACTION OVER
  ELECTRONIC NETWORKS
• ELECTRONIC COMMERCE RESULTED IN EVOLUTION OF NEW
  TERMS FOR DESCRIBING DIFFERENT TYPES OF
  BUSINESSES
• BRICKS-AND-MORTAR
• CLICKS-AND-MORTAR
• PURE-PLAY

3
DIFFERENT BUSINESS MODELS OF E-COMMERCE

• BUSINESS-TO-CONSUMER (B2C)
• BUSINESS-TO-BUSINESS (B2B)
• CONSUMER-TO-CONSUMER (C2C)
• BUSINESS-TO-EMPLOYEE (B2E)

4
USE OF INTERNET IN E-COMMERCE

• NEW BUSINESS MODELS
• SELLING DIRECTLY TO THE CUSTOMER BY ELIMINATING
  INTERMEDIARIES
• COLLECTING INFORMATION ON CUSTOMERS THROUGH
  INTERACTIVE MARKETING
• PROVIDE CUSTOMER SERVICE AND SUPPORT
• MOBILE COMMERCE (M-COMMERCE)

5
new efficiencies generated by b-to-b e-commerce

•  COMPANIES CAN CONDUCT B-TO-B
• E-COMMERCE IN TWO WAYS
•  
•    USE COMPANYS WEB SITE
•   USE ON-LINE MARKETPLACES
•  
• AN EXCHANGE IS ONE TYPE OF ON-LINE MARKETPLACE
  WHERE MANY BUYERS CAN PURCHASE FROM MANY SELLERS
  USING A BID-ASK SYSTEM.
•  

6
ELECTRONIC COMMERCE PAYMENT SYSTEMS

•  CREDIT CARDS
•   DIGITAL WALLET
•   ELECTRONIC CASH (E-CASH)
•   SMART CARDS
•   PERSON-TO-PERSON PAYMENT SYSTEMS

7
Organizations face the following challenges posed
by the use of internet for e-commerce and
e-business

• NEW BUSINESS MODEL WHICH MAY NOT BE PROFITABLE
• REQUIRE MAJOR CHANGES IN CORE BUSINESS PROCESSES
• TECHNOLOGY ISSUES AND PROBLEMS
• LEGAL ISSUES
• SECURITY AND PRIVACY