E-Commerce and E-Business

Summarized from: (Chapter 5,) Turban, Efraim, Leidner, Dorothy, Mclean, Ephraim, Wetherbe, James, Information Technology For Management - Transforming Organizations in the Digital Economy, John Wiley & Sons, 6th Edition, 2009.

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DEFINITIONS AND CONCEPTS

Pure versus Partial ECBuying an e-book from Amazon.com.Software product from Buy.com is Pure EC.

EC Organizationsclick-and-mortar ones (e.g. Wal-Mart

Online). Bank , airline , or Godiva.

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TYPE OF E-COMMERCE TRANSACTIONS

Business-to-business-to-consumers(B2B2C) Business sells to a business but delivers the

product or service to an individual consumerConsumers-to-business(C2B)

Consumers make know a particular service to consumers. An example is Priceline.com ,where the customer names a product or service and the desired price , and Priceline tries to find a supplier .

EC Business models A complete list is available at

digitalentrprise.org/models/models.html

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EC Newcomers : Representative Examples

Bloggers-There are million of them.Chemistry will find you a perfect match if

Match.com will not.Craigslist is a popular classified meeting

place.Flickr-This is a place for sharing photos and

putting together a photo album (a yahoo! company).

Grouper allows users to share photos , videos, and music on their PCs

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EC Newcomers : Representative Examples(2)

Intrade-You can invest in current events- try it!

MySpace is a ship online hangout for over 50 million visitors.

Pandora-Customize and share your own radio station.

Wikepedia provides a free online encyclopedia and answers to “what is?”.

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E-Commerce Business Models

Name-your-own-price Customers decide how much they are willing to pay.

An intermediary (e.g. Priceline.com) tries to match a provider.

Find-the-best-price Customers specifies a need; An intermediary (e.g.

Hotwire.com) compares providers and shows the lowest piece. Customers may accept offer in a short time or may lose the deal.

Affiliate marketing Venders ask partners to place logos (or banners) on

partner’s site .If customers o click on logo , go to vender’s site, and buy, and pays commissions to partners (See performics.com.)

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E-Commerce Business Models (2)

Virtual marketing Receivers of e-mails send the received or related

information about your product to their friends (word-of-mouth). (Be on the watch for viruses.)

Group purchasing (e-co-ops) Small buyers aggregate several demands to get a

large volume; then the buying group conducts tendering or negotiates a low price(see njnibprofits.org/groupbuy.html).

E-Classifieds Presentation of items for sale at fixed

prices.Popular sites are craigeslist.com and classified2000.com.

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Interesting Student-Targeted Web Sites

Facebook A popular place for students to socialize (available to

nonstudents as of summer 2006). Swook

One of several sites that enables students to exchange textbooks.

Collegerecruiting.com Matches students with universities for best admission

and help helps you write your resume. RateMyProfessor.com

Provides a free message board where students can post opinion about college professors. The site attracts 2 million new visitors each month.

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Interesting Student-Targeted Web Sites(2)

Finaid.com A comprehensive site about getting financial

aid with all related information, dozens of calculators, and information about college admissions and jobs .

Powerstudents.com Combines information from over 20 leading

student-oriented Web sites from searchable scholarships to file sharing.

Collegerecruiter.com Helps you find an internship or a job once you

have graduated.

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IT at work (1)

Cyberbanking For bank, it offers an inexpensive alternative to branch

banking (for example about 2 cents’ cost per transaction versus $1.07 at a physical branch ).

International and Multiple-Currency Banking For example, Hong Kong and Shanghai Bank (hsbc.com.hk) has

developed a special system (called Hexagon) to provide electronic banking in 60 countries.

Online securities Trading An online trade typically costs the trader between $5and

$15,compared to an average fee of $100 form a full-service broker and $25 from a discount broker. Investors can find on the web a considerable amount of information regarding specific companies or mutual funds in which to invest (e.g.money.cnn.com, bloomberg.com) .

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IT at work (2)

The Online Job MarketThe online job market is used by job seekers to

reply online to employment ads to place resumes on various sites, and to use recruiting firms (e.g. monster.com, jobdirect.com, jobcenter.com).

Travel ServicesExamples of comprehensive online travel

services are Expedia.com ,Travelocity.com , and Orbitz.com.

Real Estate

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IT at work (3)

Building your Jaguar online Prospective Jaguar car buyers can build, see, and

price the car at jaguar.com in real time. Cars have been configured online since 1997, but Jaguar was the industry’s first to offer comprehensive services delivered in many languages.

Like most other car manufactures, Jaguar will not let you consummate the purchase online. To negotiate price, customers can go to a Jaguar dealer or use Auto By Tel (autobytel.com), which connects nearby dealers to the customer.

Jaguar’s system helps get customers to the point of purchase.

Research the purchase and explore, price, and visualize options.

E-Procurement

E-Procurement uses reverse auctions (as discussed) as well as two other popular mechanisms :group purchasing and desktop purchasing Group Purchasing

Typically, the orders of small buyers are aggregated by a third-party vendor, such as United Sourcing Alliance (usa-llc.com). Especially popular in the health-care industry (see all-health.com), and education (tepo.org).

Desktop Purchasing In a special case of e-procurement known as desktop

purchasing, suppliers’ catalogs are aggregated into an internal master catalog on the buyer’s server.

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Permission Marketing

In one particular interesting form of permission marketing, companies such as paidsurveysonline.com and CashSurfers.com have built customer lists of millions of people who are happy to receive advertising messages whenever they are on the Web. These customers are paid $0.25 to $0.50 an hour to view messages, they may also be paid $0.10 an hour for the surfing time of any friends they refer to the site.

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Google’s AdSense and AdWords (1)

Google’s AdSence is an affiliates program in which Google offers Web site owners (“publishers”) a chance to earn commissions.

AdSense will automatically deliver advertiser’s text and image ads that are precisely targeted to each site.

Google helps you customize the appearance of the ad and your Web pages-to attract more visitors

Each time a visitor clicks on an ad (which takes her or him to the advertiser’s site), the own site owner shares the commission paid by the advertiser with Google.

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Google’s AdSense and AdWords (2)

Another companion is AdWords for search, which lets Web site owners place Google search boxes on their pages. When a user searches the Web or the site with the search box, Google shares any ad revenue it makes from those searches with the site owner.

Google’s success is attributed to the quality of the matches, the large number of advertise in its network, its ability to use ads in many languages, and its ability to understand the content of Web sites.

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Security in Electronic Payments

Security protection E-Wallets

The wallet stores the financial information of the buyer, such as credit card number, shipping information, and more. Thus, sensitive information does not need to be reentered for each purchase. If the wallet is stored at the vendor’s site, it does not have to travel on the Net. The problem is that you need an e-wallet with each merchant. One solution is to have a wallet installed on your computer (e.g. MasterCard Wallet or AOL Wallet).

Virtual Credit Cards Allow you to shop with an ID number and a password

instead of with a credit card number. The bank that supports your traditional credit card, for example, can provide you transaction number valid for a short period.

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Web tacking

In response, some users install programs such as Cookie Cutter, CookieCrusher, and spam Butcher, which are designed to allow users to have some control over cookies.

Privacy Guardian, MyPrivacy, and Tracks Eraser Pro are examples of software that can protect users’ online privacy by erasing a browser’s cache, surfing histories and cookies. Programs like Ad-Aware are specially designed to detect and remove spyware and data miners such as SahAgent, an application that collects and combines users’ Internet browsing behavior and sends it to ShopAtHomeSelect servers.

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