Chapter 13 Chapter 13 Electronic Commerce. Outline Electronic commerce (e- commerce) – concept,...
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Transcript of Chapter 13 Chapter 13 Electronic Commerce. Outline Electronic commerce (e- commerce) – concept,...
Chapter 13Chapter 13
Electronic CommerceElectronic Commerce
OutlineElectronic commerce (e- commerce) – concept, B2C, B2B, C2C typesBusiness models for B2C e-commerceBusiness models for B2B e-commerceDifferences between e-commerce and traditional business modelsMobile commerce (m-commerce)Electronic payment
E-Commerce 2
E-Commerce 3
E-Commerce Concept
E-Commerce: Buying and selling goods and services electronically, via the Internet and other networks and systems:
Business-to-Consumer (B2C; Chapters.com)Business-to-Business (B2B; Covisint) – larger, more stable partConsumer-to-Consumer (C2C; eBay)
E-Commerce requires a new way of thinking about organizational processes (IT support critical), customers and delivery.
Challenges: sustainable e-commerce business models, growth, security and privacy.
E-Commerce 4
Business Models of B2C E-Commerce
Business model: What is the biz, Who is the customer, How money is made
Virtual Storefront Sells goods/services online (Amazon - pure click, no physical stores)
Consumers with access to Internet around globeInteractive Marketing and PersonalizationVirtual storefront as addition to store (Chapters – click & mortar)
E-Commerce 5
Business Models of B2C E-Commerce
Portal : Initial point of entry to Web, provides Internet search
service for free, sells specialized content and advertising
space (Google, Yahoo)
Customer: Global Internet user
Revenue: Advertising
Information Broker: Provides integrated information (Wishabi)
Customer: Global Internet user
Revenue: Referral fee (advertising)
E-Commerce 6
Business Models of B2B E-CommerceDirect linking of buyer-supplier (private networks, Electronic data
Interchange)
Online Exchange (different names)
Buyer/Seller run
Within an industry (GHX)
Across industries (Covisint)
Revenue: Membership fee, Transaction charge, Services Product
catalogue, purchasing/selling, order fulfillment
More information
E-commerce and traditional business models
Biz content: mostly old stuff, some new info-related services. Dependent on IT (Clickstream tracking, Collaborative filtering, Supply chain systems integration)
Customer: Global, Internet/IT capableAttracted by some cost savings (transaction costs) and value offering (dynamic pricing, disintermediation – less of middlemen)
Revenue: Dependent on advertising and variable sources (volume of transactions).
E-Commerce 7
Mobile Commerce (M-commerce)
Commerce using mobile electronic devices (e.g., cell
phone)
Biz content: financial services, advertising,
entertainment
Services: business locator, banking, news,
entertainment
Challenges: screen size, speed, privacy
E-Commerce 8
E-Commerce 9
E-commerce Payment Systems
Important for closing trading cycle
Systems:
Credit card – you, your bank, payee, payee’s bank
Smart card – you, payee, your bank & Mondex; card reader needed
E-cash/digital cash/e-money - you, payee, bank where you have account;
small payments supported; payee can accumulate e-cash and exchange
for cash at will
Person-to-person payments – you, payee, your bank & PayPal site
Challenges : Security, Trust