E-Business

Prof. Aditi Ghode

SIMSR

Understanding the New Internet Economy

Chapter 1

Electronic Commerce

• The process of buying or selling goods or services across a telecommunications network.

• Many technologies facilitate E-commerce– Electronic funds transfer (EFT)– Electronic data interchange (EDI)– Internet / world wide web (WWW)

Networks

Networks

• A network is a group of computers connected by cable, telephone, or wireless device.

• Networks can be “local” or “wide” area.

• The internet is a wide area network.

The Internet

The Internet

• The internet is a collection of interconnected networks that use common, universally accepted protocols.

• The internet is a world-wide network.

The Internet

• The Internet contains computers that are either servers or clients.

• Servers provide that basic resources that users (clients) need.

Common Internet Services

The World Wide Web

• The WWW or Web is one of the common Internet services.

• A Web Server is able to serve or supply Web pages containing text, graphics, and multimedia

E-Commerce v/s E-Business

E-commerce, informally, it the use of the Internet and the Web to transact business.

E-business, refers primarily to the digital enablement of transactions and processes within a firm, involving information systems under the control of the firm.

E-Business Advantages

E-Business Disadvantages

The Value Chain

• A value chain or network is the collection of activities involved in the production of a class of goods or services.

• E-commerce can facilitate these chains or networks by using IT to exchange information between network members.

Value Chains and E-Commerce

• E-Commerce can “shorten” a Value chain by linking manufacturers with ultimate customers.

• Can eliminate intermediaries such as distributors, and in some cases retailers.

The Value Chain

A Value Network

E-Business Models

Business to Consumer B2C

• Direct to Customer commerce

• Shortens the supply chain to consumer

• Results in higher margin to business or higher value for customer or both.

• Can take a variety of forms

• Examples…

Ashfords.com

Barnes&Noble

Harry and Davis

Business to Business (B2B)

• Direct exchanges between businesses.

• Many forms and facilitating technologies.

• Can be used to form stronger links between members.

Elements of B2B exchanges

B2B Summary

Business to Government (B2G)

• Similar to B2B model

• Facilitates sales to governmental entities

eFederal.com

Consumer to Consumer (C2C)

• Exchanges between consumers.

• Some sites similar to the “Want-Ads”

• eBay provides a C2C auction function

• InfoRocket provides a link to independent expert consultants who answer questions for $.

InfoRocket.com

Consumer to Business (C2B)

• Reverse auction or Demand collection Model

• Name price for commodity or service

• Priceline.com is a well known example.

Priceline.com

Next….

Chapter 2

E-Business Models