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Creating a Winning E-Business
Understanding E-BusinessChapter 1
E-Business Basics E-commerce –
– Process of buying or selling goods or services across a electronic network
E-business – – Widest spectrum of business activities using Internet and
Web technologies together
Many technologies facilitate e-business– Electronic funds transfer (EFT)– Electronic data interchange (EDI)– Internet / World Wide Web– Social Media Networking, including Twitter, Facebook,
LinkedIn and blogging
E-Business and theGlobal Economy
Widespread linking of individuals and businesses has changed global economy– Time and space are no longer limiting factors –
someone from China can buy from a website in US– Business value of information is greater – The
information you need to make a purchase is all there in front of you, less emotional
– Information is more accessible – Amazon rating system
– Traditional intermediaries have been replaced by new types of intermediaries – Banks out, Pay Pal in
E-Business and theGlobal Economy (continued)
Buyers are growing more powerful– The power now is in the buyer’s hands, a
complete turn-around from 10 years ago Internet and Web access has changed
buyers expectations– Information on competing products is accessible
within a click or the same click (comparative websites)
– Transaction speed and convenience
E-Business and theGlobal Economy (continued)
E-Business and theGlobal Economy (continued)
E-Business and theGlobal Economy (continued)
E-Business and theGlobal Economy (continued)
Value chain or value network– Activities involved in the production of goods or
services– Internet and Web technologies facilitate value
chains and networks• Improve communication• Improve transaction speed
Internet and Web access allows businesses to rethink their value – How have we seen this in the marketplace?
E-Business and theGlobal Economy (continued)
E-Business and theGlobal Economy (continued)
Business models– How a company conducts business in order to
generate revenue– Widespread access to the Internet and Web
allows companies to adapt old models and create new ones
E-business models are often categorized by type of customer
E-Business Models
E-Business Models (continued)
Business-to-consumer (B2C)– Retail sales (e-retail) including airline tickets,
entertainment venue tickets, hotel rooms, stock purchases, diet and fitness programs
Brick-and-mortar companies are moving to brick-and click companies– Sears, Best Buy, Barnes & Noble, the Gap
Pure-play e-retailers and catalog merchants– Amazon.com, eBags, Harry and David
E-Business Models (continued)
B2C Models (continued)
Personal
RelevantAnticipated
B2C Models (continued)
E-Business Models (continued)
Business-to-business (B2B)– Businesses selling to other businesses– Online stores, such as Office Depot, Staples– Internet and Web technologies
• Web hosting• Web design• Hardware and software• Consulting
E-Business Models (continued)
Business-to-business (B2B) – Online trading communities for vertical markets– Exchanges, aggregators, auctions
• Virtual marketspaces for buyers and sellers• Elance, ATLA Exchange, Business.com, HedgeHog
B2B Models (continued)
B2B Models (continued)
B2B Models (continued)
E-Business Models (continued)
Business-to-government (B2G)– Businesses provide a marketspace for other
businesses and government agencies– Bidmain, B2GMarkets
B2G Models (continued)
E-Business Models (continued)
Consumer-to-consumer (C2C)– Consumers sell or exchange products and services
directly with other consumers– Auctions, online classified ads, expert information
exchanges• eBay, American Boat Listing, TraderOnline.com,
AllExperts
C2C Models (continued)
E-Business Models (continued)
Consumer-to-business (C2B)– Reverse auctions in which a single consumer
names his or her own price for products or services– Consumer’s offer made to multiple businesses,
which can accept or decline offer– Priceline.com
C2B Models