CHAPTER 13 : E-BUSINESS

E-BUSINESS

• The internet is a powerful channel that presents new opportunities for an organization to :

          - Touch customers
          - Enrich products and services with information
          - Reduce costs

• How do e-commerce & e-business differ?

         - E-commerce -the buying and selling of goods and services over the internet
         - E-business - the conducting of business on the internet including, not only buying and selling                                   but also serving customers and collaborating with business partners

-Industries using E-Business

E-BUSINESS MODELS

- E-BUSINESS MODEL = an approach to conducting electronic

                        business on the internet

BUSINESS-TO-BUSINESS (B2B)

• Electronic markerplace (e-market place) - interactive business communities providing a                                                                                central market where multiple buyers and                                                                                      sellers can engage in e-business activities

BUSINESS-TO-CONSUMER (B2C)

• e-shop - a version of a retail store where customers can shop at any hour of the day without                      leaving their home or office
• e-mall - consists of a number of e-shop ; it serves as a getaway through which a visitor can                     access other e-shops
• Business type:

          - Brick-and-mortar business

          - Click-and-mortar business

          - Pure-play business

BUSINESS-TO-BUSINESS (C2B)

• Priceline.com is an example of a C2B e-business model
• The demand for C2B e-business will increase over the next few years due to customer's desire for greater convenience and lower prices
• Online auctions

          - Electronic auction (e-auction) -sellers and buyer solicit consecutive bids from each other                                                                         and prices are determined dynamically

          - Forward auction - sellers use as a selling channel to many buyers and the highest bid wins

          - Reverse auction - buyers use to purchase a product or service, selecting the sellers with the                                              lowest bids

CONSUMER-TO-CONSUMER (C2C)

• C2C communities include :

          - Communities of interest - people interact with each other on specific topics such as golfing                                                           and stamp collecting

          - Communities of relations - people come together to share certain life experiences such as                                                                 cancer patients, senior citizens and car enthusiasts

          - Communities of fantasy - people participate in imaginary environments such as fantasy                                                                football teams and playing one-on-one with Michael Jordan

E-BUSINESS BENEFITS AND CHALLENGES

• E-business benefits include :

         - Highly accessible

         - Increase  customers loyalty

         - Increase convenience 

• E-business challenges include :

          - Protecting consumers

          - Increasing liability

          - Providing security

• Numerous advantages & limitations in e-business revenue models including:

          - Transactions fees

          - License fees

          - Advertising fees

E-BUSINESS TOOLS FOR CONNECTING & COMMUNICATING 

• E-mail
• Podcasting 
• Web conferencing

MASHUPS

• Web mashup - a Web site or web application that use content from more  than one source to                              create a completely new service

          - Application programming interface (API) - a sets of routines , protocols, and tools for                                                                                                building software applications

          - Mashup editor - WSYIWYGs ( What You See Is What You Get ) for mashups.