The Internet & Electronic Commerce

THE ELECTRONIC MALL

Online Sales

Traditional Commerce: Buyer

Traditional Commerce: Seller

Business processes suited for e-commerce --

Group Exercise

What are some advantages of e-commerceRe: sales and costs; other??

What are some disadvantages of e-commerce?HumanTechnologicalSocial, cultural

What business processes involving HR are amenable to e-commerce type solutions?

Three Questions Regarding E-Commerce

How will e-commerce change our customer’s priorities?

How can we construct a new business design to meet these new customer priorities?

What technology investments must we make to survive, let alone thrive?From Kalakola and Robinson “E-business:

Roadmap for SuccessHow does this question relate to HR?

International Electronic Commerce

Language barriers must be overcomePolitical structures

Currency conversionTariffs and import/export restrictions

Legal, tax, and privacy concernsWho has jurisdiction to levy taxes?How is personal information handled?

The Internet and World Wide Web

The Internet is a large system of interconnected networks that spans the globe

The World Wide Web (WWW) is part of the Internet and allows users to share information with an easy-to-use interfaceClient server architecture; graphical user

interface; dynamic links Developed by the U.S. Department of Defense

in the early 1960s

Some Characteristics

UbiquitousGlobal reachUniversal standardsInformation richnessInteractiveDensity of informationPersonalization and customization

Intranets and Extranets

ExtranetAllows select users

outside organization to use its intranet:

CustomersBusiness partnersVendorsUsed in B2B

Intranet:

Internal network using web technology

Overcomes computer platform differences

Often installed on existing network infrastructure

What are some applications of each? Benefits?

E-Commerce and Industry Value Chains

E-Commerce and Firm Value Chains

Value Chain Observation

How does e-commerce impact the value chain?

How does one firm using e-commerce impact others?

INTERNET BUSINESS MODELS VIRTUAL STOREFRONT: Sells

goods, services on-line MARKETPLACE CONCENTRATOR:

Concentrates information from several providers

ON-LINE EXCHANGE: Bid-ask system, multiple buyers, sellers

INFORMATION BROKER: Provide info on products, pricing, etc.

TRANSACTION BROKER: Buyers view rates, terms from various sources

AUCTION: Electronic clearinghouse products, prices, change in response to demand

REVERSE AUCTION: Buyer sets price, submits to multiple sellers

DIGITAL PRODUCT DELIVERY:Sell, download software, other digital products

CONTENT PROVIDER: Creates revenue through providing client for a fee, and advertising

ON-LINE SERVICE PROVIDER: Provides service, support for hardware, software products

Business-to-Business Electronic Commerce

Automation Of Purchase, Sale Transactions From Business To Business

Electronic Data Interchange (EDI): Older System, Being Replaced By Internet, Intranet

Provides Alternative Sources

Two Main Type of Internet-based B2B Commerce

Pure Types of Net Marketplaces

Electronic Commerce Support Systems

WEB HOSTING SERVICES: provides large servers for Web sites of fee-paying customer

ELECTRONIC PAYMENT SYSTEM: using Web for electronic funds transfers, credit , smart & debit cards

Types of Online Communities

Different sponsors or members opportunities to interact

with a general audience organized into general topics

Practice communities focused discussion groups,

help, information, and knowledge relating to an area of shared practice

Interest communities focused discussion groups

based on a shared interest in some specific subject

Affinity communities focused discussions and

interaction with other people who share the same affinity. Affinity refers to self- and group identification

Sponsored communities created by government,

nonprofit, or for-profit organizations for the purpose of pursuing organizational goals -- often commercial goals

Internet Benefits To Organization

Reduces Communication CostsEnhances Communication; CoordinationAccelerates Knowledge DistributionOther ???

Internet Challenges

SECURITY: Exposure to Thieves & Vandals; Hackers Steal, Use Passwords; Not Yet Safe for Large Business Transactions

TECHNOLOGY: Lack of Uniform Standards; Transfer of Graphics, Video can be Costly

LEGAL ISSUES: Need More Laws Governing Electronic Commerce; Are e-mail Contracts, Electronic Signatures Legal?