Week 03 topic 06 e business e commerce

Explain business-to-business applications, logistics, procurement, order fulfilment & payment systems; 4.. Major mechanism of e-commerce is the use of electronic markets, which frequentl

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Week 03 - Topic 06

E-BUSINESS & E-COMMERCE

BMIT5103 Course Information Technology for Managers

Dr Huy Nguyen

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STUDY GUIDE

TOPIC 06

“E-Business & E-Commerce”

• Learning outcomes:

1 Describe e-business strategies & e-commerce operations;

2 List effective business-to-consumer e-commerce applications;

3 Explain business-to-business applications, logistics, procurement, order fulfilment & payment systems;

4 Describe e-government activities & public sector e-commerce;

5 Examine e-commerce support services;

6 Identify & describe ethics & legal issues of e-business.

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STUDY GUIDE

TOPIC 06

• Topics overview:

1 e-Commerce & its benefits to organisations, consumers & society;

2 Technological & nontechnological limitations; current technological limitations areexpected to lessen with time;

3 Major mechanism of e-commerce is the use of electronic markets, which frequentlyinclude online catalogues;

4 Another mechanism of e-commerce is auctions; Internet provides an infrastructure forexecuting auctions at lower cost & with many more involved sellers & buyers, includingboth individual consumers & corporations;

5 Two major types of auctions exist: forward auctions & reverse auctions;

6 B2C e-tailing can be pure (such as Amazon.com) or part of a click & mortar organisation(such as Walmart);

7 Direct marketing is done via solo storefronts or in malls; it can be done via electroniccatalogues or by using electronic auctions;

8 The leading online B2C service industries are banking, securities trading, job markets,travel & real estate;

9 The major issues faced by e-tailers are channel conflict, conflict within click & mortar

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STUDY GUIDE

TOPIC 06

• Topics overview (cont.):

10 The major B2B applications are selling from catalogues & by forward auctions (the side marketplace), buying in reverse auctions & in group & desktop purchasing (thebuy-side marketplace) & trading in electronic exchanges;

sell-11 E-government commerce can take place between government & citizens, betweenbusinesses & governments, or among government units It makes governmentoperations more effective & efficient;

12 New electronic payment systems are needed to complete transactions on the Internet.Electronic payments can be made by e-checks, e-credit cards, purchasing cards, e-cash, stored-value money cards, smart cards, personto-person payments via servicessuch as Paypal, electronic bill presentment & payment & e-wallets;

13 Order fulfilments are especially difficult & expensive in B2C because of the need toship relatively small orders to many customers Several activities take place, someofwhich can be done simultaneously; others must be done in sequence Activities that

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STUDY GUIDE

TOPIC 06

No Focus areas Assigned readings

1 e-Business challenges & strategies Chapter 6, pp 160 - 167

2 Business-to-Consumer (B2C) e-commerce Chapter 6, pp 167 - 171

3 Business-to-Business (B2B) e-commerce &

5 e-Commerce support services: payment &

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• e-Commerce support services: payment & order fulfilment

• e-Business ethics & legal issues

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E-BUSINESS CHALLENGES & STRATEGIES

• Dot.Com era 1995 - 2002;

• e-Business & e-commerce fundamentals;

• e-Business websites requirements & challenges;

• e-Business models.

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DOT.COM ERA 1995 - 2002

• Dot-Com bubble inflates: 1995 - 2000;

• Dot-Com bubble bursts and deflates: 2000 - 2002.

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E-BUSINESS & E-COMMERCE FUNDAMENTALS

• Business processes: Carried out and managed via networks;

• Service: Self-service features;

• Collaboration and training: Virtual or online environment;

• Community: Social networks.

• Types of e-Business transactions:

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E-BUSINESS WEBSITE REQUIREMENTS &

CHALLENGES

• Availability;

• Accuracy & quick response;

• Security & PCI DSS compliance;

• Building competitive advantage;

• Integration of e-commerce systems with enterprise systems;

• Web analytics & intelligence software;

• International e-commerce.

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E-BUSINESS MODELS

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E-BUSINESS MODELS

• Comparison shopping engines;

• Affiliate marketing;

• Electronic marketplaces and exchanges;

• Information brokers and matching services

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BUSINESS-TO-CONSUMER (B2C) E-COMMERCE

ONLINE SERVICE INDUSTRIES

• Online banking;

• International & multiple-currency banking;

• Online job market.

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ISSUES IN E-TAILING

• Resolving channel conflict;

• Resolving conflicts within click-and-mortar organizations;

• Managing order fulfillment and logistics;

• Determining viability and risk of online e-tailers;

• Identifying appropriate revenue (business) models.

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ONLINE BUSINESS & MARKETING PLANNING

• Build the marketing plan around the customer;

• Monitor progress toward the one-year vision for the business;

• Identify all key assumptions in the marketing plan;

• Make data-driven, fact-based plans.

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BUSINESS-TO-BUSINESS (B2B) E-COMMERCE & E-PROCUREMENT

SELL-SIDE MARKET PLACES

• Forward auctions and online catalogs;

• Sellers can be:

• Manufacturer;

• Distributor;

• Retailer.

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E-SOURCING (cont.)

• Public & private exchanges:

• Vertical exchanges for direct materials or systematic sourcing: Large quantities;

• Vertical exchanges for indirect materials or spot sourcing: In one industry;

• Horizontal exchanges or MRO for indirect materials: In any industry;

• Functional exchanges.

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• e-Government in the cloud;

• e-Government serves citizens with apps to curb drunken driving.

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BASIC CONCETPS

• Benefits of e-government are:

• Improves the efficiency and effectiveness of the functions of government, including the delivery of public service;

• Enables governments to be more transparent to citizens and businesses

by giving access to more of the information generated by government;

• Offers greater opportunities for citizens to provide feedback to government agencies & to participate in democratic institutions and processes.

• G2C, G2B & G2G.

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E-COMMERCE SUPPORT SERVICES: PAYMENT

& ORDER FULFILMENT

• Market research for e-commerce;

• Web advertising;

• Representative advertising strategies online;

• Electronic payments;

• Security electronic payments;

• Order fulfilment process.

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E-COMMERCE SUPPORT SERVICES: PAYMENT & ORDER FULFILMENT

E-COMMERCE

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• Electronic credit cards.

• Electronic payments methods:

• Electronic funds transfer, electronic checks, purchasing e-cards;

• E-cash - smart card, e-cash - person-to-person;

• Electronic bill presentment and payments;

• Pay at ATMs, micropayments…

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ORDER FULFILLMENT

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E-BUSINESS ETHICS & LEGAL ISSUES

• Ethical & implementation issues;

• Legal issues specific to e-commerce.

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E-BUSINESS ETHICS & LEGAL ISSUES

ETHICAL & IMPLEMENTATION ISSUES

• Privacy;

• Web tracking;

• Loss of jobs;

• Disintermediation & reintermediation;

• Legal issues specific to e-commerce.

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• e-Business & e-commerce fundamentals;

• e-Business websites requirements & challenges;

• Online business & marketing planning

- Business-to-Business (B2B) e-commerce & e-procurement:

• Sell-side market places;

• e-Sourcing;

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STUDY GUIDE

TOPIC 06

• Content summary (cont.):

- e-Government:

• e-Government in the cloud;

• e-Government serves citizens with apps to curb drunken driving

- e-Commerce support services: payment & order fulfilment:

• Market research for e-commerce;

• Web advertising;

• Representative advertising strategies online;

• Electronic payments;

• Security electronic payments;

• Order fulfilment process

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STUDY GUIDE

TOPIC 06

• Study questions:

1 Describe the requirements & challenges of e-business;

2 Describe the major types of e-business transactions;

3 Define a business model & discuss five e-business models;

4 Describe how digital content & services can lead to significantly lower costs;

5 Explain general features make the delivery of online services successful for sellers & buyers;

6 Explain the major issues related to e-tailing;

7 Determine the viability & risk of online e-tailers;

8 Identify appropriate revenue (business) models;

9 Discuss three online marketing planning recommendations;

10.Briefly differentiate between sell-side marketplace & e-sourcing;

11.Explain the advantage of using cloud computing as the platform for e-government;

12.Describe the major e-commerce support services;

13.Describe the issues in e-commerce order fulfilment;

14.Describe some of the online advertisement strategies;

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THANK YOU FOR YOUR ATTENTION !

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