EBUSINESS

CHAPTER 14 : E BUSINESS

E BUSINESS

- The Internet is a powerful channel that presents new opportunities for an organization to:

  

        –Touch customers

        –Enrich products and services with information

        –Reduce costs

- How do ecommerce and ebusiness differ?

–Ecommerce – the buying and selling of goods and services over the Internet

–Ebusiness – the conducting of business on the Internet including, not only buying and selling, but also serving customers and collaborating with business partners

Industries Using E business

E business Models

•Ebusiness model – an approach to conducting electronic business
                       on the Internet

Business-to-Business (B2B)

•Electronic marketplace (emarketplace) – interactive business communities providing a central market where multiple buyers and sellers can engage in ebusiness activities.

Business-to-Consumer(B2C)

•Common B2C ebusiness models include:

–eshop – a version of a retail store where customers can shop at any hour of the day without leaving their home or office

–emall – consists of a number of eshops; it serves as a gateway through which a visitor can access other eshops

•Business types:

–Brick-and-mortar business

–Pure-play business

–Click-and-mortar business

Consumer-to-Business(C2B)

•Priceline.com is an example of a C2B ebusiness model

•The demand for C2B ebusiness will increase over the next few years due to customer’sdesirefor greater 
convenience and lower prices

Consumer-to-Consumer(C2C)

Online auctions :

        –Electronic auction (eauction) - Sellers and buyers solicit consecutive bids from each other and prices are determined dynamically

        –Forward auction - Sellers use as a selling channel to many buyers and the highest bid wins

        –Reverse auction - Buyers use to purchase a product or service, selecting the seller with the lowest bid.

- C2C communities include:

        –Communities of interest - People interact with each other on specific topics, such as golfing and stamp collecting

        –Communities of relations - People come together to share certain life experiences, such as cancer patients, senior citizens, and car enthusiasts

        –Communities of fantasy - People participate in imaginary environments, such as fantasy football teams and playing one-on-one with Michael Jordan.

E Business Benefits And Challenges

- E business benefits include:

         –Highly accessible

         –Increased customer loyalty

         –Improved information content

         –Increased convenience

         –Increased global reach

         –Decreased cost 

- E business challenges include:

         –Protecting consumers

         –Leveraging existing systems 

         –Increasing liability 

         –Providing security

         –Adhering to taxation rules

- There are numerous advantages and limitations in ebusiness revenue models including:

         –Transaction fees

         –License fees

         –Subscription fees

         –Value-added fees

         –Advertising fees

Mashups

- Web mashup - a Web site or Web application that uses content from more than one source to create a completely new service

–Application programming interface (API) - a set of routines, protocols, and tools for building software applications

–Mashup editor - WSYIWYGs (What You See Is What You Get) for mashups