2. E-Commerce and E-BusinessE-CommerceE-Business Buying and
selling of Spin-off of E-commercegoods and services on-line
Involves more of the business(Transaction)processes (Exchange of-
Online shoppingInformation)- Online
purchasing-Buying-Selling-TradingExample: Buy a Shirt online
-Working with businessand try to return it to the partnersretailer
3. Phases to Becoming an E-BusinessHires outsideStarting to company
integrate(mostlychannels but notinformationalquite there yet) Does
not understand Starts some E-Integrating all the Internet
Commercechannels EveryoneActivitiesuses web to conductbusiness 4.
Four E-Business Models Business to Business (B2B) Business to
Consumer (B2C) Consumer to Business (C2B) Consumer to Consumer
(C2C)- Each model must be approached differently and the business
mustmake sure that they have the appropriate tools to successful
implementdifferent strategies. 5. Business to Business (B2B)
Buying, selling, and other business transactions amongbusinesses
Commonly referred to as E-marketplace Business have to make sure
that they work with otherbusinesses that supports their strategy
(productquality, price, time)- Car Manufactures (Glasses and
Tires)- Dell Computer (Computer Components) 6. Business to Consumer
(B2C) Selling of products/services to consumers E-shopping On-line
stores represents the same brand image as physicalstores if they
exist. Pure Play (Internet only), Click and Mortar (Internet
andPhysical Store), and Brick and Mortar (Physical StoreOnly)- 7.
Consumer to Business (C2B) Consumers selling to a business
Individual are creating value for the firm Growing
Trend-Surveys-Blogs-Customer Reviews 8. Consumer to Consumer (C2C)
Consumers conducting business between each other Companies can help
to facilitate transaction-Online Auctions(Craigs List, EBay, and
Angies List) 9. Marketing 10. Impacts on Marketing Individuals can
stay at home and buy Less time consuming Less costly More research
can be done Anytime access to information Click-through Viral
content Mobile computing 11. Click-Through The process of clicking
through an onlineadvertisement to the advertisers destination Can
track: Where the individual clicked from Which pages were visited
Which links were interesting enough to click through 12. Viral
Content Viral videos get viewed more often than regular bannerads
Viewers pass on interesting or humerous content toothers Relatively
cheap advertising word of mouth Use of social networks Increases
the chances of making a video go viral 13. Mobile Computing Can
advertise anywhere to a target market 50% more effective than TV
130% more effective than radio Hasnt boomed yet, but will very soon
Developed by phone companies and Google The next form on
personalized advertising 14. Benefits to Marketing Bi-directional
flow of information Decreased time lag for customer service
Organization is reachable at any time Decreased cost of customer
service Personalized advertisements More information on customers
15. Fords E-Business Virtual store and information center coupled
withphysical car dealerships Average of $24,000 on an initial
purchase Average of $68,000 spent in total throughout the life
ofthe car More time is spent on the life of the car than the
initialpruchase E-business maintains customer intamacy for life 16.
Finance E-business decreases transaction costs E-business can
provide easy acces to international customers Organizations may not
know how to deal withinternational currencies which may increase
transactioncosts a little Increased customer service and sales
revenues 17. Finance 24-hour online access requires 24-hour
orderprocessing Increases sales Online payment methods Pay pal,
Credit cards, Electronic cash Funding for Data acquisition and
security 18. Supply Chain Management Mass production to demand
driven Increased supply chain performance Shorten the supply chain
Cut costs Can eliminate the bullwhip effect 19. E-Commerce and
E-BusinessAdvantagesDisadvantages Shortens the supply chain
Increased transportation Reduced facility costscosts Decreased
processing time Start-up costs Lower inventory levels More
personalized buyingexperience More potential customers Increased
financial data andsales Eliminate the bullwhip effect 20. Case
Study: BHP and BHP Steel Broken Hill Proprietary manufacturing firm
Industries: minerals, copper, petroleum, andengineering 60,000
employees in 60 countries BHP Steel $7.6 billion revenues Complex
structure BHP considered leader in E-commerce 21. E-commerce
Implementationand Benefits Stage 1: Early Implementation-Electronic
DataInterchange Send/receive business documents/orders Stage 2:
Electronic Trading Gateway Centralize all trading Stage 3: Internet
Site Serve Small customers 22. Obstacles Stage 1: Management
Commitment and Lack oftechnical knowledge. 1st EDI in Australia
Stage 2: Technology issues (no standards) and lack ofcustomers
participation Stage 3: immaturity standards internet and
readinessof third parties 23. Factors Affecting Implementation
Commitment Trading partner participation Supplier vs. Customer
Technology/Media Hype Business Value Training and Education Rapid
technology change + Complexity/Compatibility (technology and
processes) 24. Management of Information Systems and E-business IT
Audit Information Flow Analysis Manufacturing Software Selection IT
Project Management Data Security Audit 25. Global Implications
Cater to international customers. Follow international customs
procedures, currencies,taxes and regulations Customize to local
taste Knowing the global rules for shipment Make payment easy for
international customers 26. Future of E-Commerce and E-Business
Information Marketing M-Commerce New Jobs and Business
Opportunities 27. Ethical Issues Similar to ethical issues
surrounding other facets ofbusiness life Relative anonymity, speed
of information createspecial issues 28. Ethical Issues Intellectual
Property Concerns Privacy Concerns Computer Crimes Consumer
Protection 29. Ethical Issues Adware Key Logging Bait and Switch
Email Spoofing URL Hijacking 30. Recommendation Implement
E-Commerce and E-Business Advantages outweigh disadvantages 31.
Questions?
