Group 3

E-Commerce and E-BusinessE-Commerce E-BusinessBuying and selling of

goods and services on-line (Transaction)

- Online shopping- Online purchasing

Example: Buy a Shirt online and try to return it to the retailer

Spin-off of E-commerceInvolves more of the

business processes (Exchange of Information)

-Buying -Selling -Trading-Working with business

partners

Phases to Becoming an E-Business

Does not understand the Internet

Hires outside

company (mostly

informational)

Starts some E-

Commerce Activities

Starting to integrate channels but not quite there yet

Integrating all channels Everyone uses web to conduct business

Four E-Business ModelsBusiness to Business (B2B)Business to Consumer (B2C)Consumer to Business (C2B)Consumer to Consumer (C2C)

- Each model must be approached differently and the business must make sure that they have the appropriate tools to successful implement different strategies.

Business to Business (B2B)Buying, selling, and other business transactions

among businessesCommonly referred to as E-marketplaceBusiness have to make sure that they work with

other businesses that supports their strategy (product quality, price, time)

- Car Manufactures (Glasses and Tires)- Dell Computer (Computer Components)

Business to Consumer (B2C)Selling of products/services to consumersE-shoppingOn-line stores represents the same brand image

as physical stores if they exist. Pure Play (Internet only), Click and Mortar

(Internet and Physical Store), and Brick and Mortar (Physical Store Only)

-

Consumer to Business (C2B)Consumers selling to a businessIndividual are creating value for the firmGrowing Trend

-Surveys -Blogs-Customer Reviews

Consumer to Consumer (C2C)Consumers conducting business between each

otherCompanies can help to facilitate transaction

-Online Auctions (Craig’s List, EBay, and Angie’s List)

Impacts on MarketingIndividuals can stay at home and buyLess time consumingLess costlyMore research can be doneAnytime access to information

Click-throughViral contentMobile computing

Click-ThroughThe process of clicking through an online

advertisement to the advertiser’s destinationCan track:

Where the individual clicked fromWhich pages were visitedWhich links were interesting enough to click

through

Viral ContentViral videos get viewed more often than

regular banner adsViewers pass on interesting or humerous

content to othersRelatively cheap advertising

word of mouthUse of social networks

Increases the chances of making a video go viral

Mobile ComputingCan advertise anywhere to a target market

50% more effective than TV130% more effective than radio

Hasn’t boomed yet, but will very soonDeveloped by phone companies and GoogleThe next form on personalized advertising

Benifits to MarketingBi-directional flow of informationDecreased time lag for customer service

Organization is reachable at any timeDecreased cost of customer servicePersonalized advertisements

More information on customers

Ford’s E-BusinessVirtual store and information center coupled

with physical car dealershipsAverage of $24,000 on an initial purchaseAverage of $68,000 spent in total throughout

the life of the carMore time is spent on the life of the car than

the initial pruchaseE-business maintains customer intamacy for

life

FinanceE-business decreases transaction costsE-business can provide easy acces to

international customersOrganizations may not know how to deal with

international currencies which may increase transaction costs a little

Increased customer service and sales revenues

Finance24-hour online access requires 24-hour order

processingIncreases salesOnline payment methods

Pay pal, Credit cards, Electronic cashFunding for Data acquisition and security

Supply Chain ManagementMass production to demand drivenIncreased supply chain performanceShorten the supply chainCut costsCan eliminate the bullwhip effect

E-Commerce and E-BusinessAdvantages DisadvantagesShortens the supply chainReduced facility costsDecreased processing

timeLower inventory levelsMore personalized buying

experienceMore potential customersIncreased financial data

and salesEliminate the bullwhip

effect

Increased transportation costs

Start-up costs

Case Study: BHP and BHP Steel

Broken Hill Proprietary manufacturing firmIndustries: minerals, copper, petroleum, and

engineering 60,000 employees in 60 countries

BHP Steel $7.6 billion revenuesComplex structure

BHP considered leader in E-commerce

E-commerce Implementationand BenefitsStage 1: Early Implementation-Electronic

Data Interchange Send/receive business documents/orders

Stage 2: Electronic Trading Gateway Centralize all trading

Stage 3: Internet Site Serve Small customers

Obstacles Stage 1: Management Commitment and Lack

of technical knowledge. 1st EDI in AustraliaStage 2: Technology issues (no standards)

and lack of customers participationStage 3: immaturity standards internet and

readiness of third parties

Factors Affecting ImplementationCommitmentTrading partner participationSupplier vs. CustomerTechnology/Media HypeBusiness ValueTraining and EducationRapid technology change +

Complexity/Compatibility (technology and processes)

Management of Information Systems and E-businessIT AuditInformation Flow AnalysisManufacturing Software SelectionIT Project ManagementData Security Audit

Global ImplicationsCater to international customers.Follow international customs procedures,

currencies, taxes and regulationsCustomize to local tasteKnowing the global rules for shipmentMake payment easy for international

customers

Future of E-Commerce and E-BusinessInformation MarketingM-CommerceNew Jobs and Business Oppurtunities

Ethical IssuesSimilar to ethical issues surrounding other

facets of business lifeRelative anonymity, speed of information

create special issues

Ethical IssuesIntellectual Property ConcernsPrivacy ConcernsComputer CrimesConsumer Protection

Ethical IssuesAdwareKey LoggingBait and SwitchEmail SpoofingURL Hijacking

RecommendationImplement E-Commerce and E-BusinessAdvantages outweigh disadvantages