1 University of Palestine E-Business ITBS 3202 Ms. Eman Alajrami 2 nd Semester 2008-2009.
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Transcript of 1 University of Palestine E-Business ITBS 3202 Ms. Eman Alajrami 2 nd Semester 2008-2009.
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University of Palestine
E-BusinessITBS 3202
Ms. Eman Alajrami
2nd Semester 2008-2009
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Reference Textbooks[1] “e-Business and e-Commerce
Management” , by Dave Chaffey
Lecture slides by Eman Alajrami
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Chapter 1Introduction to e-business and
e-commerce
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Learning objectivesDefine the meaning and scope of e-business and
e-commerce and their different elements;Summarise the main reasons for adoption of
e-commerce and e-business and barriers that may restrict adoption;
Use resources to define the extent of adoption of the Internet as a communications medium for consumers and businesses;
Outline the business challenges of introducing e-business and e-commerce to an organization.
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Issues for managersHow do we explain the scope and
implications of e-business and e-commerce to staff?
What are the full-range of benefits of introducing e-business and what are the risks?
How great will the impact of the Internet be on our business? What are the current and predicted adoption levels? How do we assess the validity of forecasts?
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The impact of Internet on businessAndy 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)
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The impact on one industry - banking
Metric May 1995 Dec. 2002
Financial institutions with Web banking (WW) 1 6,000
Financial institutions with Web sites (WW) 50 14,000
Total online banking households (WW) 5 million 100 million
Total online banking households (US) 300,000 28 million
Monthly bank and credit card Web traffic (US) 100,000 50 million
Monthly credit apps submitted via Web (US) 0 1.5 million
Table 1.1 7.5 years of web banking. Source: Online banking report, Number 89, December 10, 2002. Source: Online Banking Report estimates, +/- 25%, 11/02
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UK adults online?
31% 41% 51% 61%
16-24 year olds online?
50% 60% 80% 90%
Percentage bought groceries online?
6% 16% 26% 36%
Source: www.statistics.gov.uk Oct 2002
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The Internet’s impact on youHow many of you have purchased something
on the Internet in the last 6 months?How many times have you used the Internet
as an information source, before buying offline?
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Popularity of online purchases
Source: The Internet Monitor, BMRB, November 2001 (www.bmrb.co.uk)
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DefinitionsYou are asked to distinguish between e-
commerce and e-business at a job interview.Write down your definitions.Use examples to illustrate your points.
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E-commerce defined‘All electronically mediated information exchanges
between an organization and its external stakeholders’
Examples:Buying books online (transactional)Selecting a car online (informational)Interacting with brand online (relationship building /
experiential, e.g. www.tango.com) Asking a customer service query, e.g. www.easyJet.com
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E-business definedAll electronically mediated information exchanges,
both within an organization and with external stakeholders supporting the range of business processes
Examples:Purchasing from suppliers (e-procurement)A company intranet (defined in Ch 3)Supplying partners with information through an extranet
(see Ch 3)
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The distinction between buy-side and sell-side e-commerce
Figure 1.1 The distinction between buy-side and sell-side e-commerce
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Recap – which is correct?
Figure 1.2 Three definitions of the relationship between e-commerce and e-business
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Drivers for e-commerce
Figure 1.6 Attitudes to benefits of online technologies
Source: DTI (2002)
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Barriers to e-commerce
Figure 1.7 Barriers to development of online technologies
Source: DTI (2002)
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Activity – Changes required by e-commerceWhat changes to the overall business would
be required by e-commerce for the B2C and B2B Company?
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Answer – the 7 Ss
Figure 1.9 The McKinsey 7S framework