Turban Intro3 Ppt01

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Overview of electronic commerce

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Chapter 1Overview of Electronic Commerce0LEARNING OBJECTIVESDefine electronic commerce (EC) and describe its various categories.Describe and discuss the content and framework of EC.Describe the major types of EC transactions.Discuss e-commerce 2.0.Understand the elements of the digital world.

1-1Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall1LEARNING OBJECTIVESDescribe the drivers of EC as they relate to business pressures and organizational responses.Describe some EC business models.Describe the benefits and limitations of EC to organizations, consumers, and society.1-2Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall2ELECTRONIC COMMERCE: DEFINITIONS AND CONCEPTSelectronic commerce (EC)The process of buying, selling, or exchanging products, services, or information via computer.1-3Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall3ELECTRONIC COMMERCE: DEFINITIONS AND CONCEPTSe-businessA broader definition of EC that includes not just the buying and selling of goods and services, but also servicing customers, collaborating with business partners, and conducting electronic transactions within an organization.

1-4Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall4ELECTRONIC COMMERCE: DEFINITIONS AND CONCEPTSMAJOR EC CONCEPTSPure Versus Partial ECEC can take several forms depending on the degree of digitization (the transformation from physical to digital) of: the product (service) soldthe process (e.g., ordering, payment, fulfillment)the delivery method1-5Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall5

1-6Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall6ELECTRONIC COMMERCE: DEFINITIONS AND CONCEPTSMAJOR EC CONCEPTSEC Organizationsbrick-and-mortar (old economy) organizationsOld-economy organizations (corporations) that perform their primary business offline, selling physical products by means of physical agents.

1-7Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall7ELECTRONIC COMMERCE: DEFINITIONS AND CONCEPTSvirtual (pure-play) organizationsOrganizations that conduct their business activities solely online.click-and-mortar (click-and-brick) organizationsOrganizations that conduct some e-commerce activities, usually as an additional marketing channel.1-8Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall8ELECTRONIC COMMERCE: DEFINITIONS AND CONCEPTSELECTRONIC MARKETS AND NETWORKSelectronic market (e-marketplace)An online marketplace where buyers and sellers meet to exchange goods, services, money, or information.intranetAn internal corporate or government network that uses Internet tools, such as Web browsers, and Internet protocols.extranetA network that uses the Internet to link multiple intranets.1-9Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall9Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall1-10

10THE ELECTRONIC COMMERCE FIELD:CLASSIFICATION, CONTENT, AND HISTORYCLASSIFICATION OF EC BY THE NATURE OF THE TRANSACTIONS AND THE RELATIONSHIPS AMONG PARTICIPANTSbusiness-to-business (B2B)E-commerce model in which all of the participants are businesses or other organizations. business-to-consumer (B2C) E-commerce model in which businesses sell to individual shoppers.1-11Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall11THE ELECTRONIC COMMERCE FIELD:CLASSIFICATION, CONTENT, AND HISTORYe-tailingOnline retailing, usually B2C.business-to-business-to-consumer (B2B2C)E-commerce model in which a business provides some product or service to a client business that maintains its own customers.consumer-to-business (C2B)E-commerce model in which individuals use the Internet to sell products or services to organizations or individuals who seek sellers to bid on products or services they need.1-12Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall12THE ELECTRONIC COMMERCE FIELD:CLASSIFICATION, CONTENT, AND HISTORYintrabusiness ECE-commerce category that includes all internal organizational activities that involve the exchange of goods, services, or information among various units and individuals in an organization.business-to-employees (B2E)E-commerce model in which an organization delivers services, information, or products to its individual employees.consumer-to-consumer (C2C)E-commerce model in which consumers sell directly to other consumers.1-13Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall13THE ELECTRONIC COMMERCE FIELD:CLASSIFICATION, CONTENT, AND HISTORYcollaborative commerce (c-commerce)E-commerce model in which individuals or groups communicate or collaborate online.e-learningThe online delivery of information for purposes of training or education.e-governmentE-commerce model in which a government entity buys or provides goods, services, or information from or to businesses or individual citizens.1-14Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall14THE ELECTRONIC COMMERCE FIELD:CLASSIFICATION, CONTENT, AND HISTORYA BRIEF HISTORY OF ECThe Interdisciplinary Nature of ECThe Google RevolutionEC FailuresEC SuccessesTHE FUTURE OF EC1-15Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall15E-COMMERCE 2.0: FROM WEB 2.0 TO ENTERPRISE SOCIAL NETWORKING AND VIRTUAL WORLDSsocial computingAn approach aimed at making the humancomputer interface more natural.Web 2.0The second generation of Internet-based services that lets people collaborate and share information online in new ways, such as social networking sites, wikis, communication tools, and folksonomies.1-16Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall16E-COMMERCE 2.0: FROM WEB 2.0 TO ENTERPRISE SOCIAL NETWORKING AND VIRTUAL WORLDSsocial networkA category of Internet applications that help connect friends, business partners, or individuals with specific interests by providing free services such as photos presentation, e-mail, blogging, and so on using a variety of tools.1-17Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall17E-COMMERCE 2.0: FROM WEB 2.0 TO ENTERPRISE SOCIAL NETWORKING AND VIRTUAL WORLDSsocial network service (SNS)A service that builds online communities by providing an online space for people to build free homepages and that provides basic communication and support tools for conducting different activities in the social network.social networkingThe creation or sponsoring of a social network service and any activity, such as blogging, done in a social network (external or internal).

1-18Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall18E-COMMERCE 2.0: FROM WEB 2.0 TO ENTERPRISE SOCIAL NETWORKING AND VIRTUAL WORLDSbusiness-oriented networksSocial networks whose primary objective is to facilitate business.Example of a Business-Oriented Social Network: Xing.comENTERPRISE SOCIAL NETWORKSExample of an Enterprise Social Network: Carnivalconnections.com1-19Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall19E-COMMERCE 2.0: FROM WEB 2.0 TO ENTERPRISE SOCIAL NETWORKING AND VIRTUAL WORLDSvirtual worldA user-defined world in which people can interact, play, and do business. The most publicized virtual world is Second Life.How Students Make Money in a Virtual WorldTHE MAJOR TOOLS OF WEB 2.0The Essentials of Twitter for Business1-20Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall20THE DIGITAL WORLD: ECONOMY, ENTERPRISES, AND SOCIETYdigital economyAn economy that is based on digital technologies, including digital communication networks, computers, software, and other related information technologies; also called the Internet economy, the New economy, or the Web economy.1-21Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall21

1-22Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall22THE DIGITAL WORLD: ECONOMY, ENTERPRISES, AND SOCIETYdigital enterpriseA new business model that uses IT in a fundamental way to accomplish one or more of three basic objectives: reach and engage customers more effectively, boost employee productivity, and improve operating efficiency. It uses converged communication and computing technology in a way that improves business processes.1-23Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall23THE DIGITAL WORLD: ECONOMY, ENTERPRISES, AND SOCIETYcorporate portalA major gateway through which employees, business partners, and the public can enter a corporate Web site.THE DIGITAL SOCIETYThe final, and perhaps most important, element of the digital world is people and the way they live and interact.1-24Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall24

1-25Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall25ELECTRONIC COMMERCE DRIVERS AND THECHANGING BUSINESS ENVIRONMENTPERFORMANCE, BUSINESS PRESSURES, AND ORGANIZATIONAL RESPONSESThe Business Environment and Performance Impact ModelBusiness PressuresOrganizational Response Strategies1-26Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall26

1-27Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall27ELECTRONIC COMMERCE BUSINESS MODELSbusiness modelA method of doing business by which a company can generate revenue to sustain itself.value propositionThe benefits a company can derive from using EC.THE STRUCTURE AND PROPERTIES OF BUSINESS MODELSRevenue ModelsSalesTransaction FeesSubscription FeesAdvertising FeesAffiliate Fees1-28Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall28

1-29Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall29ELECTRONIC COMMERCE BUSINESS MODELSFunctions of a Business ModelDescribe the major business processes of a companyDescribe the business models positioning within the value network linking suppliers and customersFormulate the ventures competitive strategy and its long-range pl