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Introduction to e-business and e-commerce

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Introduction to e-business and e-commerce Professor: Nabil Elmjati – PowerPoint PPT presentation

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Title: Introduction to e-business and e-commerce


1
Chapter 1
  • Introduction to e-business and e-commerce
  • Professor Nabil Elmjati

2
Learning outcomes
  • Define the meaning and scope of e-business and
    e-commerce and their different elements
  • Summarize the main reasons for adoption of
    e-commerce and e-business and barriers that may
    restrict adoption
  • Outline the ongoing business challenges of
    managing e-business and e-commerce in an
    organization.

3
Management issues
  • How do we explain the scope and implications of
    e-business and e-commerce to staff?
  • What is the full range of benefits of introducing
    e-business and what are the risks?
  • How do we evaluate our current e-business
    capabilities?

4
E-business innovation
  • Discussion
  • Which company / website impacted on Internet or
    the web?
  • How do we measure their success?
  • What made them successful?

5
Figure 1.1 Google circa 1998Source Wayback
machine archive http//web.archive.org/web/199811
11183552/google.stanford.edu
6
The impact of the Internet on business
  • Andy Grove, Chairman of Intel, one of the early
    adopters of e-commerce, has made a meteorological
    analogy with the Internet.
  • He says
  • Is the Internet a typhoon force, a ten times
    force, or is it a bit of wind? Or is it a force
    that fundamentally alters our business? (Grove,
    1996)

7
E-business opportunities
  • Reach
  • Over 1 billion users globally
  • Connect to millions of products
  • Richness
  • Detailed product information on 20 billion
    pages indexed by Google. Blogs, videos, feeds
  • Personalized messages for users
  • Affiliation
  • Partnerships are key in the networked economy

8
Internet risks what can go wrong with a
transactional site?
9
Internet risks what can go wrong with a
transactional site?
  • Web sites that fail because of spike in visitor
    traffic
  • Hacker penetrating the security of the system
  • A company emails customer without receiving their
    permission
  • Problems with fulfilment
  • E-mail customer-service enquiries from the web
    site dont reach the right person

10
What is e-commerce and e-business?
  • Write down a definition for each
  • E-commerce
  • E-business

11
What is e-commerce and e-business?
  • E-commerce
  • All electronically mediated information exchange
    between an organization and its external
    stakeholders (Chaffey)
  • Digitally enabled commercial transactions between
    and among organizations and individuals

12
What is e-commerce and e-business?
  • E-business
  • All electronically mediated information
    exchanges, both within an organization and with
    external stakeholders supporting the range of
    business process (Chaffey)
  • Digital enablement of transactions and processes
    within a firm, involving information systems
    under firms control. Does not include commercial
    transactions involving an exchange of value
    across organizational boundaries (Laudon)

13
What is e-commerce and e-business? Activity 1.2
  • Use Google Syntax for
  • 'E-business'
  • 'E-commerce'
  • 'Internet
  • Marketing.
  • 'E-marketing'
  • 'Digital marketing'

14
Figure 1.2 The distinction between buy-side and
sell-side e-commerce
15
Figure 1.3 Three definitions of the relationship
between e-commerce and e-business
16
What is e-commerce and e-business?
  • Activity 1.3, P. 11
  • DiscussionQuestion 1
  • Intranet vs. Extranet

17
Intranet vs. Extranet
  • P. 11, Activity 1.3
  • DiscussionQuestion 1

18
Figure 1.4 The relationship between intranets,
extranets and the Internet
19
Why Study E-commerce?
  • E-commerce technology is different, more
    powerful than previous technologies
  • E-commerce bringing fundamental changes to
    commerce
  • Traditional commerce
  • Passive consumer
  • Sales-force driven
  • Fixed prices
  • Information asymmetry

20
Unique Features of E-commerce Technology
  • Global reach
  • Universal standards
  • Information richness
  • Interactivity
  • Information density
  • Personalization/customization
  • Social technology

21
Origins Growth of E-commerce
  • Precursors
  • Electronic Data Interchange (EDI)
  • 1995 Beginning of e-commerce
  • First sales of banner advertisements
  • Since then, e-commerce fastest growing form of
    commerce in the United States

22
The Growth of B2C E-commerce
SOURCES eMarketer, Inc., 2009a U.S. Census
Bureau, 2009b
23
The Growth of B2B E-commerce
SOURCES U.S. Census Bureau, 2009a authors
estimates.
24
E-commerce A Brief History
  • 19952000 Innovation
  • Key concepts developed
  • Dot-coms heavy venture capital investment
  • 20012006 Consolidation
  • Emphasis on business-driven approach
  • 2006Present Reinvention
  • Extension of technologies
  • New models based on user-generated content,
    social networking, services

25
Types of E-commerce
  • Selling Side
  • Transaction e-commerce sites
  • Service-oriented relationship-building site
  • Brand-building sites
  • Portal, publisher or media sites

26
Types of E-commerce
  • Digital Marketing
  • The management and execution of marketing using
    e-media in conjunction with digital data about
    customer
  • Involves using digital technology
  • To achieve these objectives
  • ..
  • Through using these marketing tactics
  • ..

27
Figure 1.5 First Direct Interactive
(www.firstdirect.com)
28
Figure 1.6 Blendtec viral campaign micro-site
(www.willitblend.com)
29
Web 2.0 and Beyond
  • Web 2.0
  • Features-p. 24
  • Web 2 examples
  • Web 3.0 Features-pp. 24-25 Box 1.1
  • Research the web to discover what Web 3.0
    technology and features have been used by which
    company

30
Figure 1.7 Evolution of web technologiesSource
Adapted from Spivack (2007)
31
e-Commerce and SCM
  • Whats Supply Chain Management (SCM)
  • The coordination of all supply activities of an
    organization from its supplier and partners to
    its customers (Both the buy Side and Sell side)
  • Value Chain
  • The value chain is a related concept that
    describes the different value-adding activities
    that connect a companys supply side.
  • We can identify an internal value chain within
    the boundaries of an organization and an external
    value chain where these activities are performed
    by partners.
  • Note that in the era of e-business a company
    will manage many interrelated value chains, so in
    chapter 6 we also consider the concept of a value
    network.

32
Business-Consumer Model of e-Commerce
  • Classified by market relationship
  • Business-to-Consumer (B2C)
  • Business-to-Business (B2B)
  • Consumer-to-Consumer (C2C)
  • Classified by technology used
  • Peer-to-Peer (P2P), e.g., BitTorrent and Napster
  • Mobile commerce (M-commerce)

33
Figure 1.8 Summary and examples of transaction
alternatives between businesses, consumers and
governmental organizations
34
Mini Case Study
  • How does Betfair gains profit
  • Whats the challenges they may face

35
Figure 1.9 Betfair peer-to-peer gambling exchange
36
E-government
  • What is it?
  • E-government refers to the application of
    e-commerce technologies to government and
    public service.
  • What are the benefits?
  • Citizens-facilities for dissemination of
    information and use of online services at local
    and national levels. For example, at a local
    level you can find out when refuse is collected
    and at national level it is possible to fill tax
    returns.
  • Suppliers-government departments have a vast
    network of suppliers. The potential benefits (and
    pitfalls) of electronic supply chain management
    and e-procurement described in chapters 6 and 7
    are equally valid for government.
  • Internal communications _ this includes
    information collection and dissemination and
    e-mail and workflow systems for improving
    efficiency within government departments.

37
E-Business Opportunities
  • what goals does a business can achieve through
    e-business?

38
Business Adoption of E-Commerce/Business
  • Activity You are in a team of advisers at a
    local business link
  • List
  • Drivers to adoption of sell-side e-commerce by
    business and how you can reinforce these by
    marketing benefits
  • Barriers to adoption of sell-side e-commerce by
    business and how you can reinforce these by
    stressing benefits

39
Cost/efficiency and competitiveness drivers
  • Cost/efficiency drivers
  • Increasing speed with which supplies can be
    obtained
  • Increasing speed with which goods can be
    dispatched
  • Reduced sales and purchasing costs
  • Reduced operating costs
  • Competitiveness drivers
  • Customer demand
  • Improving the range and quality of services
    offered
  • Avoid losing market share to businesses already
    using e-commerce

40
E-business Risks and Barriers for Adoption
  • Strategy level issues
  • Practical risks

41
Figure 1.12 Barriers to development of online
technologiesSource DTI (2002)
42
Potential Limitations on B2C E-commerce
  • Expensive technology
  • Sophisticated skill set
  • Persistent cultural attraction of physical
    markets and traditional shopping experiences
  • Persistent global inequality limiting access to
    telephones and computers
  • Saturation and ceiling effects

43
Evaluating an Organizations E-business Capability
  • Is any company ready for e-commerce?

44
Figure 1.13 A simple stage model for buy-side
and sell-side e-commerce
45
Figure 1.14 Variation in different online
activities by genderSource UK National
Statistics (2006) Individuals accessing the
Internet Report from the UK National Statistics
Omnibus Survey. Published online at
www.statistics.gov.uk
46
Internet risks what can go wrong with a
transactional site?
  • Web sites that fail because of spike in visitor
    traffic
  • Hacker penetrating the security of the system
  • A company emails customer without receiving their
    permission
  • Problems with fulfilment
  • E-mail customer-service enquiries from the web
    site dont reach the right person

47
Case Study E-Bay
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