IT in Business - Lect_12
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IT in Business
ElectronicCommerce andElectronic BusinessLecture 12
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What is Electronic Commerce?Definition
Electronic Commerce (e-commerce): Use ofcommunication networks, including the public
Internet, to conduct commercial transactions
between businesses or with consumers.
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Whatis Elec
tronic C
ommerce?Types of Electronic Commerce
Business-to-Consumer (B2C) E-Commerce:
Electronic commerce carried out by anenterprise in order to serve its consumer
customers.
Business-to-business (B2B) E-Commerce:
Companies doing business electronically
with other businesses.
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What is Electronic Commerce?Types of Electronic Commerce (Continued)
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What is Electronic Commerce?Types of Electronic Commerce (Continued)
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What is Electronic Commerce?Benefits of E-Commerce
Geographic Reach
Speed
Productivity
Information Sharing
New Features LowerCosts
Competitive Advantage
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What is Electronic Commerce?Benefits of E-Commerce (Continued)
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What is Electronic Commerce?Growth of E-Commerce
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What is Electronic Commerce?Growth of E-Commerce (Continued)
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Business-to-ConsumerE-Commerce ApplicationsOnline Retailing and Electronic Storefronts
Online Retailing: Shoppers visit a store over
the Internet and check out the products.
Electronic Storefront: Home page of an
online retailing business.
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Business-to-ConsumerE-Commerce ApplicationsElectronic Markets
Electronic Markets (e-markets):A collection ofindividual shops accessible through a single location
on the World Wide Web.
Auctions: Shoppers make bids to determine the saleprice of an item rather than relying on predeterminedfixed prices.
Brick and Mortar:Any physical store or building,regardless of how it is constructed or where it islocated.
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Business-to-ConsumerE-Commerce ApplicationsElectronic Markets (Continued)
ForwardAuction: Shoppers bid on a desired itemwith the knowledge that the seller will take thehighest offer.
Reverse Auction: The direct opposite of a traditionalauction. The bidders list their product or service
requirements and the maximum price they are willingto pay for it. Potential sellers who can provide thegood or service reverse bid against each other byposting their bids for buyers. The bidder offering therequested products or services at the best price wins
the bid.
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Business-to-ConsumerE-Commerce ApplicationsElectronic Markets (Continued)
Dutch Auctions: On electronic markets, the
market operator displays a high openingprice for an item and asks for buyers willing
to pay the price. At pre-specified intervals,
the price is lowered until a bidder is willing to
pay the displayed price.
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Business-to
-Co
nsum
er
E-Comm
erce Applic
atio
nsPortal
Portal:A gateway or hub site, such as Yahoo!, that provideschat rooms.
ContentAggregator:An e-commerce portal that assemblesinformation (that is, content) from a variety of sources,organizing the information into a form that is useful to visitors tothe Web site.
Infomediary:A Web site that locates, retrieves, and organizesspecialized information for potential users. The term is acomposite of information and intermediary.
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Business-to
-Co
nsum
er
E-Comm
erce Applic
atio
nsOnline Services
Electronic Banking/Cyber-banking: Customersconduct their banking activities without going to a
physical bank office. Virtual Bank:Operates exclusively over the Internet.
Personal Finance and Bill Payment Automatic Transfer of Bank Loan and Mortgage Payments
Automatic Payment of Utility Bills Online Bill Payment
Electronic Bill Presentment
Combined Electronic Bill Presentment and Payment
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Business-to
-Co
nsum
er
E-Comm
erce Applic
atio
nsOnline Services (Continued)
Securities and Investments
Travel Services
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Func
tio
ns Perform
ed by B2C E-C
ommerce Si
teCommon Functions ofB2C sites
Catalog and Content Management Content: Information distributed over the Internet.
Shopping and Checkout
Back Office Processing
BackOffice: Deals with the final steps in the sale. Processing Customer Payment
Updating Inventory Records
Preparing Item forDistribution
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Func
tio
ns Perform
ed by B2C E-C
ommerce Si
teCommon Functions ofB2C sites (Continued)
Advertising
Search Engines Banner Ads
Interactive Marketing: The use of customeradvertising prepared to fit the profile of a specificvisitor to a site. Interactive Coupon: Offered online.
E-Mail Spam: Unsolicited advertising by e-mail.
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Business-to-Business E-Commerce ApplicationsSupplyChain Management
Supply Chain Characteristics
Supply Chain: The flow of parts, components,materials, funds, and information between a
companys sources and its customers.
Supply Chain Management: The oversight of
activities interconnecting suppliers and buyers.
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Business-to-Business E-Commerce ApplicationsSupplyChain Management (Continued)
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Business-to-Business E-Commerce ApplicationsSupplyChain Management (Continued)
Supply Chain Software
Capacity Requirements Planning Demand Planning Module
Manufacturing Planning Module
Distribution Planning Module
Logistics Planning Module
Transportation Planning Module
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Business-to
-Business E-Comm
erce Applic
atio
nsSupplyChain Management (Continued)
Supply Chain Integration Strategies
Supply ChainIntegration:
The synchronization of all partiesinvolved in making a product or delivering a service in order
to meet buyer, seller, and customer needs.
Efficient Consumer Response/Continuous Replenishment:
Data and information on products are captured at the point
of sale and shared with suppliers periodically (usually daily)
so that both can work together to jointly forecast futuredemand for replenish able items, monitor trends, and detect
opportunities for new items.
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Business-to
-Business E-Comm
erce Applic
atio
nsSupplyChain Management (Continued)
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Business-to
-Business E-Comm
erce Applic
atio
nsSupplyChain Management (Continued)
Supply Chain Integration Strategies
Efficient Consumer Response/ContinuousReplenishment
Disintermediation: Name given to removing
intermediaries (like brokers and distributors) from the
supply chain.
Vendor-ManagedInventory: Companies dealdirectly with vendor, that is, manufacturers or
suppliers.
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Business-to
-Business E-Comm
erce Applic
atio
nsSupplyChain Management (Continued)
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Business-to
-Business E-Comm
erce Applic
atio
nsE-Procurement
ElectronicProcurement (e-procurement): Giveemployee access to catalogs of products and
services from multiple suppliers.
Direct Spending: To obtain materials or componentsfrom suppliers for use in the manufacture of aproduct or delivery of a service.
Indirect Spending/Maintenance, Repair, andOperations (MRO): Buys goods and services thatsupport operation of the company as a whole.
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Business-to
-Business E-Comm
erce Applic
atio
nsE-Procurement
E-ProcurementObjectives
Reducing Purchasing Costs Providing Employee Self-Service
Increasing Leverage with Suppliers
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Business-to
-Business E-Comm
erce Applic
atio
nsElectronic Exchange
Electronic Exchange/B2B hub:Commerce sites onthe Internet where buyers and sellers can come
together to shop, exchange information, or carry outtransactions to buy or sell products and services.
Public Exchange/Independent Exchange:A thirdparty the market maker operates the electronic
market, displays the markets information content,and provides electronic tools for conducting trade. Vertical Exchange: Structured to serve members of a
specific industry.
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Business-to
-Business E-Comm
erce Applic
atio
nsElectronic Exchange (Continued)
Public Exchange/Independent Exchange
Horizontal Exchange
:Seeks to simultaneously serve theinterests of companies across different industries.
Customers seek their services because of functional
expertise rather than industry expertise.
Consortia-led Exchange: Industry players combineforces to create a common forum for the exchange of
goods and services.
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Business-to
-Business E-Comm
erce Applic
atio
nsElectronic Exchange (Continued)
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Business-to
-Business E-Comm
erce Applic
atio
nsElectronic Exchange (Continued)
Private Exchange:An Internet-base trading
forum (I.e., an electronic market)implemented by a single company with a
select group of suppliers and customers.
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Business-to
-Business E-Comm
erce Applic
atio
nsElectronic Exchange (Continued)
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The End
Thank You