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eFirm & eCommerce. Digital Firm. Contents. Introduction The opportunities of technology Electronic Commerce Payment systems Management challenges Summary. The opportunities of technology. Digital Firm. Digital firm uses internet for. Available for customer 24/7 - PowerPoint PPT Presentation
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eFirm & eCommerce
Digital Firm
Contents
1. Introduction2. The opportunities of technology3. Electronic Commerce4. Payment systems5. Management challenges6. Summary
The opportunities of technology
Digital Firm
Digital firm uses internet for Available for customer 24/7 Easiest way to connect with other businesses and
customers Replaces the existing distribution channels Creating new business models Reduces costs Eliminating inefficient intermediaries Equilibrium between Reach and Richness
Reducing costs Reducing costs of
information Creating Sending Storing
Transaction costs Agency costs
Reach & Richness Before the Internet
companies had to make a choice between Richness
depth and details of information that business can supply to the
customer business collects about
customer Reach
How many… people a business can connect
with products it can offer them
Richness
Reach
Easy information flow Nowadays it is possible to gain information direct from
product source Without intermediaries Without physical visiting shop
Quicker, easier and more convenient
Internet Business model Describes how the enterprise
Produces Delivers Sells product/service
Showing how the enterprise creates wealth
Internet Business models Virtual storefront Content provider Online marketplace Virtual community Online service provider Portal
Virtual storefront Sells physical products
directly to consumers or to individual businesses
Content provider Creates revenue by
providing digital content such as News Photos Video Music
Virtual community Provides online meeting
place Users can communicate
and exchange useful information
Portal Provides initial point of
entry to the web along with specialized content and other services
Electronic commerce
eBuisness
Categories of electronic commerce Many ways in which electronic commerce can be
classified Three major categories are:
Business-to-Consumer(B2C) electronic commerce Business-to-Business(B2B) e. c. Consumer-to-Consumer(C2C) e. c.
eCommerce B2C
involves retailing products and services to individual shoppers. B2B
involves sales of goods and services among businesses C2C
involves consumers selling directly to consumers B2B and B2C transaction can take place using mobile
commerce(m-commerce) technology
Direct sales over the Web Reduce the number of steps in traditional distribution
channel Disintermediation
The removal of organization or business process layers responsible for certain intermediary steps in a value chain
Manufacture
r
Distributor
Retailer
CustomerM
anufacturer
Retailer
CustomerMa
nufacture
r
Custome
r
Interactive Marketing & personalization Interactive capabilities
can be used to build closer relationship with customers in marketing and support
Web personalization Used to deliver content geared to the specific interest of each
user Build personal relationship to the webpage
Make access to the web more and more easier Learning and examination customers behaviors by the
visiting web page is cheaper
Net marketplaces Sometimes called e-hubs Many sellers Many buyers Transaction oriented Prices established through
auctions, negotiations, etc.
Example: internet auctions- eBay, Allegro, aukro
Net Marketplace
Suppliers
Buyers
Payment systems
eBuisness
Payment systems Digital credit card systems Digital wallets Digital cash P2P payments Digital checking Electronic billing presentment and payment
Intranet & extranet Forming the underpinnings of electronic business by
providing low cost technology that can run on almost any computer platform
Intranet inside company Inexpensive Accessible for most computer platforms Scalable
Extranet Can be used by more than one computer and customers Private intranets extended to selected users
Intranet applications Finance and accounting Human resources Sales and Marketing Manufacturing and Production
Challenges
Challenges for managers Enabling Digital firm requires
Deep organizational change Redesign business processes Recasting relationships with
customers Suppliers Other business partners
New roles for employees
Disadvantages? Not always more profitable and more efficient than
traditional business models Security Privacy Chanel conflicts
Thank You for Your Attention