Virtual Communities 31606 Workshop 6 Virtual Communities & e-Business.

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  • Virtual Communities 31606Workshop 6Virtual Communities & e-Business

  • Team VlansAnthony NguyenDon LeRichard NimKing LamAnamur TranLong Nguyen

  • OverviewVirtual Communitiese-BusinessHistory of e-BusinessVirtual Communities & e-BusinessBenefitsFour dynamics to capture and increase revenue in VCs

  • Overview (cont.)Four Stages of Member DevelopmentAdvantages/Disadvantages of e-BusinessIssues of e-BusinessSuccess factors of e-BusinessConclusionReferences

  • Virtual CommunitiesDefinition: Groups of people with similar interests who communicate and interact in an electronic or online environment. (E. Lawrence pg 388 )

  • e-BusinessA Definition:An e-Business is a business on the Internet Dmitry Nanev.E-business means any Internet or network-enabled business activity.E-business is connecting customers, suppliers and partners across the Internet using tools and standards that work cooperatively to achieve the required outcome in a secure manner.

  • e-BusinessPurposesIncrease RevenueAppeal to a global marketIntegrating dissimilar business processesTraverse organisational boundaries and extend to partners, suppliers and customers.Share information or allow external access

  • e-BusinessCategoriesBusiness 2 Business (B2B)Dell, IBMBusiness 2 Consumer (B2C)Peter AlexanderConsumer 2 Consumer (C2C)

  • History of e-BusinessEarly 70sGovernment and big organizations make good use of IT, and computers in generalBanks use EFT (Electronic Fund Transfer) to speed up paymentsLate 70s, early 80sE-business beginningsElectronic messaging technologies to carry out business transactionsEDI (Electronic Data Interchange)Inter organizational e-mail

  • History of e-BusinessLate 70s, early 80s (cont.)EDI, e-mail Reduce paperwork, speed up transactions, facilitate communications, etc.BUTOnly for large companies (manufacturers, retailers)Complex, expensiveLate 80sSmall companies join the gameUsing e-mail to communicate with big companiesSmall investmentA good move in order to stay in the game

  • History of e-BusinessLate 80s, early 90sOnline services become populare-mail, news, chateducational & technical institutions, special interest groups join the gameTCP-IP used as a common communications backboneBirth of the Internet1995Online services for the large public (AOL)The browser (and HTML) is commercializedThe home page: a new channel for doing business

  • History of e-BusinessLate 90sCompanies began to build home pages to serve as online corporate brochuresAs web technologies matured, the first e-commerce transactions were taking placeAround 2000The dot-com revolution: use the web as a primary channel for product distributionHuge impact on established consumer marketsHuge impact on the supply chain (SC)SC: the chain of processes behind all consumer purchases

  • History of e-BusinessSource: Digital Think & ACM Professional Development Center (,

  • Virtual Communities & e-Business

  • Virtual Communities & e-BusinessGeneral e-Business (slide 1)ShopFast ( Shop ( ( that have Virtual CommunitiesE-bay ( ( Hardware (

  • Example eBay

  • Example - AmazonFriends & Favorites sectionPersonalized Recommendations Uses a Recommender SystemSpecial Occasion ReminderAmazon FriendsWish List that friends can accessDiscussion BoardsAbout You Area Provide information about yourself to othersSuggestions Given Provide ideas to Staff

  • BenefitsBenefits of Virtual Communities to e-BusinessCustomer benefitsMain benefit: Customer generated contentAccess to competing vendorsCommercial orientation

  • Benefits (cont.)Vendor benefitsEnhanced ability to targetBetter Marketing abilitiesIncrease propensity for buyingLower marketing costs

  • Four dynamics to capture and increase revenue in VCsContent attractivenessGenerate product reach, attract customers and foster the virtual community

  • Four dynamics to capture and increase revenue in VCsMember profilePersonalised profiles through intelligent agents & data mining - recommender agents, etc

  • Four dynamics to capture and increase revenue in VCsMember loyaltyCustomer retention through VCs and competitive advantage

  • Four dynamics to capture and increase revenue in VCsTransaction offeringsDeliver value added G+S and focus on customer pulling power

  • Four stages of Member DevelopmentAttract membersMarket the eBusiness to the targetAttractive website with competitive pricingPromote participationIncorporate VC features & functionalityBuild loyaltyFoster community and reward usersCapture valueDevelop vendor and customer relationshipsExpansion and continual innovation

  • Advantages of e-BusinessBenefits for ConsumerCheaper productsGreater range and variety of productsEasier AccessibilityDynamic SupportShop 365 days a year, 24 hours a dayShop at your own pace in your own privacyNo lines, crowds, or annoying salespeople

  • Advantages of e-Business (cont.)Benefits for VendorsCheaper Operating CostsFinancial ReturnsGlobal Market PlaceBusiness operates 24 Hours, 7 Days of the WeekFlexible time Commitment

  • Disadvantages of e-Businessfor ConsumerSocial AspectsLoss of Senses touch, smell, sight, taste, auralCan be Bandwidth Intensivefor VendorMultiple Legal SystemsGreater CompetitionConsumers have immediate access to Competitors

  • Success FactorsIncreased interaction between potential consumersMutual trust between buyer and sellerRepresentation & specification of the productAppropriate functionality within the market placeReaching out to a global marketplace with a competitive advantage through competitive pricing and value added productsProvide an eBusinesss solution that builds on the customers trust and confidence

  • Success Factors (cont.)Have an eBusiness operation that is scalable, secure, manageable and flexibleUtilize the knowledge and experience of the employees in the organisationEngage customers & suppliers into thinking up new ways to improve the business (Leung M. 2002)Enhanced customer experience through automationAdapt to constant and continual change in the InternetFoster the virtual community and customer loyaltyCustomer interfaces

  • Issues - TrustA dynamic process that deepens or weakens according to experience. [Lawrence pg 274]Customers have different concernsSecurity, Privacy and RightsCurrent law isnt enough to protect us

  • Issues - SecuritySecurity concerns include viruses, trojan, spamsDenial-of-Service (DoS) attacksMafiaBoyA 15 year old tennager hacking into CNN

  • Issues Implementing SecurityUpdate the Operating SystemVirus ScannersDigital CertificatesSecured Network InfrastructureSecurity Policy

  • Issues LawLaw conflicts due to International MarketISP responsibility in AustraliaImplement An Agreement of Terms

  • ConclusionVC & e-Businesses improve the overall aim and goals of a business as a whole

    Thank you for your time!Hope you enjoyed the last WorkshopBrought to you by V-Lans 2003.

  • ReferencesTechnology of the Internet Business, Elaine Lawrence 2002Digital Think & ACM Professional Development Center (, Commerce Digital Models for Business, Elaine Lawrence 2000Electronic Commerce Technology Briefing July 10, 1996 Communities in E-Business March 9 - 11, 2003The E-Business Community must be embraced, Don Tapscott September 28, 1998

  • References (cont.)Enabling Knowledge Exchanges For E-Business Communities, Dr. Yogesh Malhotra, 2002Richard Turnbill - eROIanonymous - key success factors for new businessesebiz.enable - Success FactorsMichelle Leung - What are the success factors for eBusiness?Faruk Waja - So whats this about a anew economy?