Upload
roy-green
View
230
Download
5
Tags:
Embed Size (px)
Citation preview
4Lecture
Electronic Business Electronic Business and Electronic and Electronic
CommerceCommerce
Electronic Business Electronic Business and Electronic and Electronic
CommerceCommerce
OBJECTIVES
• Analyze how Internet technology has changed business value and models
• Define electronic commerce and describe how it has changed consumer retailing and business-to-business transactions
Management Information SystemsManagement Information SystemsLecture 4 Lecture 4
Electronic Business and Electronic CommerceElectronic Business and Electronic Commerce
ELECTRONIC BUSINESS, ELECTRONIC COMMERCE, AND THE EMERGING DIGITAL FIRM
Internet Technology and the Digital Firm
• Information technology infrastructure: The Internet provides a universal and easy-to-use set of technologies and technology standards that can be adopted by all organizations.
• Direct communication between trading partners: Disintermediation removes intermediate layers.
Management Information SystemsManagement Information SystemsLecture 4 Lecture 4
Electronic Business and Electronic CommerceElectronic Business and Electronic Commerce
ELECTRONIC BUSINESS, ELECTRONIC COMMERCE, AND THE EMERGING DIGITAL FIRM
• Round the clock service: Web sites available to consumers 24 hours
• Reduced transaction costs: Costs of searching for buyers, declines
Management Information SystemsManagement Information SystemsLecture 4 Lecture 4
Electronic Business and Electronic CommerceElectronic Business and Electronic Commerce
Internet Technology and the Digital Firm (Continued)
ELECTRONIC BUSINESS, ELECTRONIC COMMERCE, AND THE EMERGING DIGITAL FIRM
Business Model:
• Defines an enterprise – offer the scope of business.
• Describes how the enterprise delivers a product or service
• Shows how the enterprise creates wealth
New Business Models and Value Propositions
Management Information SystemsManagement Information SystemsLecture 4 Lecture 4
Electronic Business and Electronic CommerceElectronic Business and Electronic Commerce
ELECTRONIC BUSINESS, ELECTRONIC COMMERCE, AND THE EMERGING DIGITAL FIRM
• Information asymmetry: One party in a transaction has more information than the other. The Internet decreases information asymmetry.
• Increases richness: The Internet increases the depth, detail, and scope of information.
• Increases reach: The Internet increases the number of people who can be contacted efficiently.
The Changing Economies of Information
Management Information SystemsManagement Information SystemsLecture 4 Lecture 4
Electronic Business and Electronic CommerceElectronic Business and Electronic Commerce
ELECTRONIC BUSINESS, ELECTRONIC COMMERCE, AND THE EMERGING DIGITAL FIRM
The Changing Economics of Information
Figure 4-1
Management Information SystemsManagement Information SystemsLecture 4 Lecture 4
Electronic Business and Electronic CommerceElectronic Business and Electronic Commerce
ELECTRONIC BUSINESS, ELECTRONIC COMMERCE, AND THE EMERGING DIGITAL FIRM
• Virtual storefront: Sells goods or services online (Amazon.com)
• Information broker: Provides information on products or services (Edmunds.com)
• Transaction broker: Provides online transaction facility (eTrade.com, Expedia.com)
• Online marketplace: Provides a trading platform for individuals and firms (eBay.com)
Internet Business Models
Management Information SystemsManagement Information SystemsLecture 4 Lecture 4
Electronic Business and Electronic CommerceElectronic Business and Electronic Commerce
ELECTRONIC COMMERCE
Categories of Electronic Commerce
• Business-to-customer (B2C): Retailing of products and services directly to individual customers (Wal-Mart.com)
• Business-to-business (B2B): Sales of goods and services to other businesses (Grainger.com, Ariba.com)
• Consumer-to-consumer (C2C): Individuals using the Web for private sales or exchange (eBay.com )
Management Information SystemsManagement Information SystemsLecture 4 Lecture 4
Electronic Business and Electronic CommerceElectronic Business and Electronic Commerce
Business-To-Consumer
Advantages of E-commerce:
• Customer-centered retailing: Closer and more personalized relationship with customers is possible
• Web sites: Provide a corporate-centered portal for the consumer to quickly find information on products, services, prices, orders
ELECTRONIC COMMERCE
Management Information SystemsManagement Information SystemsLecture 4 Lecture 4
Electronic Business and Electronic CommerceElectronic Business and Electronic Commerce
• Disintermediation: The elimination of organizations or business process, responsible for certain intermediary steps in a value chain, reducing costs to the consumer
ELECTRONIC COMMERCE
Management Information SystemsManagement Information SystemsLecture 4 Lecture 4
Electronic Business and Electronic CommerceElectronic Business and Electronic Commerce
Business-To-Consumer
Advantages of E-Commerce: (Continued)
The Benefits of Disintermediation to the Consumer
Figure 4-2
ELECTRONIC COMMERCE
Management Information SystemsManagement Information SystemsLecture 4 Lecture 4
Electronic Business and Electronic CommerceElectronic Business and Electronic Commerce
Clickstream tracking tools:
• Collect data on customer activities at Web sites and store them in a log • Predict what the user would like to see next. The software then makes
recommendations to users based on their assumed interests
ELECTRONIC COMMERCE
Interactive Marketing and Personalization
Management Information SystemsManagement Information SystemsLecture 4 Lecture 4
Electronic Business and Electronic CommerceElectronic Business and Electronic Commerce
• Create unique personalized Web pages for each customer
• Increased closeness to customer, while reducing costs of interacting with the customer
ELECTRONIC COMMERCE
Web Personalization
Management Information SystemsManagement Information SystemsLecture 4 Lecture 4
Electronic Business and Electronic CommerceElectronic Business and Electronic Commerce
• Electronic Data Interchange (EDI): Enables the computer-to-computer exchange between two organizations of standard transactions. Currently 80% of B2B e-commerce uses this system.
• EDI is being replaced by more powerful Web-based alternatives.
Business-to-Business Electronic Commerce: New Efficiencies and Relationships
ELECTRONIC COMMERCE
Management Information SystemsManagement Information SystemsLecture 4 Lecture 4
Electronic Business and Electronic CommerceElectronic Business and Electronic Commerce
ELECTRONIC COMMERCE
• Distributors: B2B online catalogs provide buyers with access to thousands of parts and other goods (Grainger.com)
• Procurement platforms: Platforms for purchasing goods and materials, negotiating with suppliers, paying for goods, and making delivery arrangements (Ariba.com)
Two different types of Net Marketplaces:
Net Marketplaces
Management Information SystemsManagement Information SystemsLecture 4 Lecture 4
Electronic Business and Electronic CommerceElectronic Business and Electronic Commerce
ELECTRONIC BUSINESS AND THE DIGITAL FIRM
• Connectivity: Accessible from most computing platforms
• Can be tied to internal corporate systems and core transaction databases
• Platforms for interactive applications
• Scalable to larger or smaller computing platforms
Benefits of Intranets
Management Information SystemsManagement Information SystemsLecture 4 Lecture 4
Electronic Business and Electronic CommerceElectronic Business and Electronic Commerce
ELECTRONIC BUSINESS AND THE DIGITAL FIRM
• Finance and accounting
• Human resources
• Sales and marketing
• Manufacturing and production
Functional Applications of Intranets
Management Information SystemsManagement Information SystemsLecture 4 Lecture 4
Electronic Business and Electronic CommerceElectronic Business and Electronic Commerce
ELECTRONIC BUSINESS AND THE DIGITAL FIRM
Functional Applications of Intranets
Figure 4-8
Management Information SystemsManagement Information SystemsLecture 4 Lecture 4
Electronic Business and Electronic CommerceElectronic Business and Electronic Commerce
MANGEMENT OPPORTUNITIES, CHALLENGES, AND SOLUTIONS
The Internet provides firms with extraordinary
opportunities to develop:
1.new products and services
2.new distribution channels
3.new avenues for marketing and sales
4.new business models.
Management Information SystemsManagement Information SystemsLecture 4 Lecture 4
Electronic Business and Electronic CommerceElectronic Business and Electronic Commerce
Management Opportunities: