Enabling Commerce Using the Internet

Chapter 4

Enabling Commerce Using the

Internet By By

Eduardo Orozco

MIS Instructor

Keiser University

• Introductions

• Electronic Commerce EC

• B2B – Business-to-Business

• B2C – Business-to-Consumer

• B2E – Business-to-Employee

C2C – Consumer-to-Consumer

Chapter 4

Enabling Commerce Using the Internet

• C2C – Consumer-to-Consumer

• Internet Marketing

• Emerging Topics in EC

• E-Government

Chapter 4

Enabling Commerce Using the Internet

• Introductions

• Electronic Commerce

• B2B

B2E• B2E

• B2C, C2C

• Internet Marketing

• Emerging Topics in EC

• E-Government

Introductions

Have you ever shop online? How different is from offline shopping?

Enabling Commerce Using the Internet

How does the Internet change consumer andsupplier relationships?

Introductions

Where do you prefer to buy?

Brick and mortar Store? Online store?

Enabling Commerce Using the Internet

Why?

Chapter 4

Enabling Commerce Using the Internet

• Introductions

• Electronic Commerce

• B2B

B2E• B2E

• B2C, C2C

• Internet Marketing

• Emerging Topics in EC

• E-Government

Electronic Commerce

Electronic Commerce

Exchange of goods, services, and money among firms, firms and their customers,and between customers supported by the Internet

Enabling Commerce Using the Internet

Electronic Commerce

Why E-Commerce is different?

Internet and e-commerce technologies are much more rich and powerfulthan previous technology revolutions like radio, television, and the telephone.

What is driving e-commerce adoption?

Enabling Commerce Using the Internet

Electronic Commerce

Enabling Commerce Using the Internet

Electronic Commerce

Online Facts:

Enabling Commerce Using the Internet

Electronic Commerce

Enabling Commerce Using the Internet

Electronic Commerce

Global Information Dissemination: Products and services can be marketedover vast distances based on Internetaccess

Enabling Commerce Using the Internet

Electronic Commerce

Integration: Web sites can be linked to corporate databases to providereal-time access to personalized information

Enabling Commerce Using the Internet

Electronic Commerce

Mass Customization: Firms can tailor their products and services to meetcustomer´s particular needs.

Enabling Commerce Using the Internet

Electronic Commerce

Interactive Communication: Companies can communicate with customers,improving their images of responsiveness

Enabling Commerce Using the Internet

Electronic Commerce

Transactional Support: Clients and businesses can conduct business onlinewithout human support

Enabling Commerce Using the Internet

Electronic Commerce

Disintermediation: reaching customers more directly and efficiently

Enabling Commerce Using the Internet

Electronic Commerce

EC Business Strategies

Enabling Commerce Using the Internet

Electronic Commerce

Brick-and-mortar business strategy

1. Company operate only in physical market

2. Face-to-face advice from sales staff

3. Tangible experience with product before purchase

4. Quick process for returning goods or complaints

Enabling Commerce Using the Internet

5. Department stores, groceries, jewelry stores, car dealers

Electronic Commerce

Click-and-mortar business strategy

1. Operate in physical store and online store

2. IS design to support each aspect of click-and-mortar transaction withcustomers

Enabling Commerce Using the Internet

Electronic Commerce

Click only business strategy

1. No physical store location

2. All customer interaction is via Internet

Enabling Commerce Using the Internet

Electronic Commerce

Business Model: summary of a business´s strategic direction that outlineshow the objectives will be achieved

How a company will generaterevenue

Identifies its product offerings

Enabling Commerce Using the Internet

Includes value added services

Identifies revenue sources

Identifies target customers

Electronic Commerce

Components of a Business Model

Revenue Model

• The way a firm generates income, profits and ROI.

Value Proposition

• The utility that the product/service has to offer customer

Competitive Environment

Enabling Commerce Using the Internet

Competitive Environment

• The existing players in the market and the nature of competition

Marketing Strategy

• The promotion plan of your product/ service

Management Team

• The background and experience of the company leadership

Electronic Commerce

Enabling Commerce Using the Internet

Electronic Commerce

Affiliate Marketing

• Paying business that bring or refer customers to anotherbusiness. Revenue sharing is commonly used

Enabling Commerce Using the Internet

Electronic Commerce

Subscription

• Users pay a monthly or yearly recurring fee for the use of theproduct/service

Enabling Commerce Using the Internet

Electronic Commerce

Licensing

• Users pay a fee for using protected intellectual property (e.g.Software)

Enabling Commerce Using the Internet

Electronic Commerce

Transaction Fee

• A commission is paid to the business for aiding in the transaction(e.g. Paypal, eBay)

Enabling Commerce Using the Internet

Electronic Commerce

Traditional Sales

• A consumer buy a product from the website (e.g. iTunes)

Enabling Commerce Using the Internet

Electronic Commerce

Web Advertising

• A free service/product is supported by advertising displayed onthe website (e..g. Facebook)

Enabling Commerce Using the Internet

Chapter 4

Enabling Commerce Using the Internet

• Introductions

• Electronic Commerce

• Types of E-Commerce

B2B, B2C, C2B, C2C, B2E• B2B, B2C, C2B, C2C, B2E

• Internet Marketing

• Emerging Topics in EC

• E-Government

Types of E-Commerce

Enabling Commerce Using the Internet

Types of E-Commerce

Enabling Commerce Using the Internet

Types of E-Commerce

Business-to-business (B2B) Businesses buying from and selling to each other over

the internet

Enabling Commerce Using the Internet

Types of E-Commerce

Business-to-business (B2B) Businesses buying from and selling to each other over

the internet

Supply Chain : Companies and processes involved in moving productsfrom initial supplier to final customer

Enabling Commerce Using the Internet

B2B EC

accounts

for 93%

of all EC

in U.S.

Types of E-Commerce

Business-to-business (B2B)

EDI

Electronic Data

Enabling Commerce Using the Internet

Electronic Data

Interchange refers to

computer-computer

communication under

regulated protocols

Types of E-Commerce

Business-to-business (B2B) Businesses buying from and selling to each other over

the internet

Extranet: Private part of Internet used for firms to do business

Enabling Commerce Using the Internet

Types of E-Commerce

Business-to-business (B2B) Businesses buying from and selling to each other over

the internet

Extranet: Private part of Internet used for firms to do business

Enabling Commerce Using the Internet

Types of E-Commerce

Business-to-business (B2B) Businesses buying from and selling to each other over

the internet

• Central management of documents

Information always updated

B

E

E

X

Enabling Commerce Using the Internet

• Standard web protocols

Technology Integration

• Easy web navigation

Low Cost with High Value

Automation of business transaction

E

N

E

F

I

T

S

X

T

R

A

N

E

T

Types of E-Commerce

Business-to-business (B2B) Businesses buying from and selling to each other over

the internet

The top five

sites

(Google, Yahoo,

MSN/Bing, AOL,

and Ask.com)

Extranet: Applications (Portals)

Enabling Commerce Using the Internet

and Ask.com)

gather more

than 95 percent

of the Internet

traffic because

of their superior

brand

recognition

(eMarketer,

2010e).

Types of E-Commerce

Boeing´s Supplier Portal

Business-to-business (B2B)

Enabling Commerce Using the Internet

Types of E-Commerce

Business-to-business (B2B)

Dell´s Customer Portal

Enabling Commerce Using the Internet

Types of E-Commerce

Business-to-business (B2B) Télefonicá´s Supplier Portal

Adquira

Enabling Commerce Using the Internet

Types of E-Commerce

Business-to-business (B2B)

Enabling Commerce Using the Internet

Types of E-Commerce

Business-to-Consumer (B2C) Business that sells its products or services to

consumers over the internet

Walt Disney Co.

Apple Inc.

Starbucks

Enabling Commerce Using the Internet

Starbucks

Hallmark Cards

Facebook

Walmart

Amazon

E-TailingSelling goods and services online

Types of E-Commerce

Enabling Commerce Using the Internet

E-TailingSelling goods and services online

E

-

T

A

Types of E-Commerce

Enabling Commerce Using the Internet

A

I

L

I

N

G

E-TailingSelling goods and services online

E

-

T

A

Types of E-Commerce

Enabling Commerce Using the Internet

A

I

L

I

N

G

Types of E-Commerce

Questions Answered by a E-Commerce Strategy

Enabling Commerce Using the Internet

Types of E-Commerce

Consumer-to-Business (C2B) Any consumer that sells a product or service to a

business over the internet

Enabling Commerce Using the Internet

Types of E-Commerce

Consumer-to-Consumer (C2C) Sites primarily involving consumers selling

goods/services directly to consumers

Enabling Commerce Using the Internet

Business-to-Employee (B2E) Interaction between organization and employees or between

its employees

Intranet: All

information

exchange only

within the

boundaries of

Types of E-Commerce

Enabling Commerce Using the Internet

boundaries of

organization

and do not

travel across

Internet.

Business-to-Employee (B2E) Interaction between organization and employees or between

its employees

• Multimedia courses, educational programs, supervisor training

Training

Personalized Intranet Pages

B

E

N

I

N

T

Types of E-Commerce

Enabling Commerce Using the Internet

• Customization for each employee based on job functions

• Managing, distribution, and accessing of updated information

Real time access to Information

• Facilitate collaboration across company and sharing of projectinformation

Collaboration

N

E

F

I

T

S

T

R

A

N

E

T

Web SitesCustomer access to EC offers

• Provide customer hard-to-find goods at reasonable prices

Unique Offer

• Unique look and feel, great colors, high quality images.

Look-and-feel

B

E

N

Types of E-Commerce

Enabling Commerce Using the Internet

• Unique look and feel, great colors, high quality images.

• Easy to Navigate, no heavy pics or information to download, briefsummary of information with hyperlinks.

Easy to Use and Fast

• Create relationship with customer with useful information, productratings, customer reviews, great products and service, fast support

Motivate people to visit, stay, and return

N

E

F

I

T

S

E-GovernmentIS to provide citizens, organizations, and other governmental agencies

information about public services and to allow for interaction with the

government

• Allos interaction betwwen federal, state, and local governments and their citizens.

• IRS Tax filling,

• E-voting

Government-to-Citizens (G2C)

Government-to-Business (G2B)

R

E

L

A

T

Types of E-Commerce

Enabling Commerce Using the Internet

• Business relationships with all levels of government

• E-procurement for purchasing materials directly from suppliers

• Auctions that allow businesses to buy seized and surplus materials

• Verification of employees SSN for job

• Tax filling

Government-to-Business (G2B)

• Electronic interactions betwwen countires or government agencies

• Agency birth sending information to SSN Agency

Government-to-Goverment (G2G)

T

I

O

N

S

H

I

P

S

Internet MarketingKeeping your online business growing

Types of E-Commerce

Enabling Commerce Using the Internet

Internet Marketing

• Entering the name of a product into a search engine (Google) and then visiting the resulting pages

Search Marketing

Paid Search

Types of E-Commerce

Enabling Commerce Using the Internet

• Bidding for being listed in the sponsored top search result

• The search engine receive revenue on a pay-per-click basis

Paid Search

• Ads presented only to users searching for a specific key word

• Adapted by key words, region, time of day

AdWords

Web SitesCustomer access to EC offers

Types of E-Commerce

Enabling Commerce Using the Internet

Search Marketing

Types of E-Commerce

Enabling Commerce Using the Internet

Search Marketing

Types of E-Commerce

Enabling Commerce Using the Internet

Display Ads

Types of E-Commerce

Static and interactive banners ads, or video ads where user can

interact with the advertisement

Enabling Commerce Using the Internet

Email Marketing

Types of E-Commerce

Low cost online email marketing campaigns that includes links or

images that allow tracking on reading and clicking

Enabling Commerce Using the Internet

Social media

Types of E-Commerce

Ads and interactive communication with customers

Enabling Commerce Using the Internet

Mobile Marketing

Types of E-Commerce

Increasing mobile devices adoption based on operating systems

such as Ios, Android provide a new channel to reach customers

Enabling Commerce Using the Internet

Mobile Marketing

Types of E-Commerce

Increasing mobile devices adoption based on operating systems

such as Ios, Android provide a new channel to reach customers

Enabling Commerce Using the Internet

Mobile Marketing

Types of E-Commerce

Enabling Commerce Using the Internet

Legal issues

Types of E-Commerce

Taxation: Keep tax revenue for online pruchases

Enabling Commerce Using the Internet

Legal issues

Types of E-Commerce

Digital Right Management: Allow publishers to control their

digital media (music, movies) to prevent illegal copying or

distribution

Enabling Commerce Using the Internet

Electronic Commerce

Test Drill

Enabling Commerce Using the Internet

Electronic Commerce

Which of the following statements is true about electronic commerce?A) Business-to-business is by far the largest form of electronic commerce in terms of revenues…B) Electronic commerce is limited to transactions between businesses and consumers.C) Electronic commerce between businesses and their employees is impossible.D) All forms of electronic commerce involve business firms.E) Consumer-to-consumer electronic commerce is a complete reversal of the traditional business-to-consumer electronic commerce.

Answer: A

Which of the following is an example of business-to-consumer electronic

Enabling Commerce Using the Internet

Which of the following is an example of business-to-consumer electronic commerce?A) Brenda files her income tax online.B) Kobbler, a shoe manufacturer, conducts business over the Web with its retailers.C) Juan buys Kevin's guitar on eBay.com.D) Reuben buys a pair of shoes on Yebhi.com…E) Sandra, an employee, uses the Web to make a change in her health benefits.Answer: D

Electronic Commerce

The auction site eBay.com is an example of ________ electronic commerce.A) business-to-businessB) consumer-to-consumer…C) business-to-consumerD) consumer-to-businessE) government-to-businessAnswer: B

Enabling Commerce Using the Internet

A state agency reporting birth and death information to the U.S. Social Security Administration using the Internet is an example of ________ electronic commerce.A) business-to-consumerB) government-to-citizenC) government-to-businessD) government-to-government…E) business-to-businessAnswer: D

Electronic Commerce

Which of the following is a result of global information dissemination?A) Firms link Web sites to corporate databases to provide real-time access to personalized information.B) Firms tailor their products and services to meet a customer's particular needs on a large scale.C) Firms market their products and services over vast distances…D) Firms provide immediate communication and feedback to and from customers.E) Firms provide ways for clients and firms to conduct business online without human assistance.Answer: C

Enabling Commerce Using the Internet

Which of the following actions explains mass customization?A) Firms tailor their products and services to meet a customer's particular needs on a large scale…B) Firms provide immediate communication and feedback to and from customers.C) Firms provide ways for clients and firms to conduct business online without human assistance.D) Firms market their products and services over vast distances.E) Firms link Web sites to corporate databases to provide real-time access to personalized information.Answer: A

Electronic CommerceThe phenomenon of cutting out the "middleman" and reaching customers more directly and efficiently is known as ________.A) gentrificationB) demutualizationC) defalcationD) disseminationE) disintermediationAnswer: E

Companies following a ________ business strategy choose to operate solely in the traditional physical markets, approaching business activities in a traditional manner.A) click-only

Enabling Commerce Using the Internet

A) click-onlyB) click-and-mortarC) bricks-and-clicksD) click-and-flipE) brick-and-mortar…Answer: E

Electronic Commerce

Paying businesses that bring or refer customers to another business is known as ________.A) affiliate marketing…B) subscription marketingC) viral marketingD) stealth marketingE) buzz marketingAnswer: A

With respect to typical revenue models for electronic commerce businesses,

Enabling Commerce Using the Internet

With respect to typical revenue models for electronic commerce businesses, iTunes.com is using a(n) ________ revenue model.A) brokerageB) subscriptionC) affiliate marketingD) traditional sales…E) licensingAnswer: D

Electronic Commerce

A way to ensure that a company's site is on the first page users see when looking for a specific termis using ________ advertising.A) stealthB) viralC) buzzD) search…E) affiliateAnswer: D

Enabling Commerce Using the Internet

Under the ________ pricing model, the firm running the advertisement pays only when a Web surfer actually clicks on the advertisement.A) pay-per-refreshB) pay-per-saleC) pay-per-click…D) pay-per-conversionE) click-per-visitAnswer: C

Electronic Commerce

End of Chapter Four

Enabling Commerce Using the Internet