Professional Documents
Culture Documents
Student CH 03
Student CH 03
Student CH 03
E-BUSINESS
Opening Case Amazon.com Not Your Average Bookstore
McGraw-Hill/Irwin
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SECTION 3.1
McGraw-Hill/Irwin
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LEARNING OUTCOMES
1. Compare disruptive and sustaining technologies 2. Explain how the Internet caused disruption among businesses
3. Define the relationship between the Internet and the World Wide Web
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LEARNING OUTCOMES
4. Describe the different methods an organization can use to access information
5. Compare the three different types of service providers
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DISRUPTIVE TECHNOLOGY
How can a company like Polaroid go bankrupt? Digital Darwinism implies that organizations which cannot adapt to the new demands placed on them for surviving in the information age are doomed to extinction
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What do steamboats, transistor radios, and Intels 8088 processor all have in common?
Disruptive technology a new way of doing things that initially does not meet the needs of existing customers Sustaining technology produces an improved product customers are eager to buy
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Innovators Dilemma - discusses how established companies can take advantage of disruptive technologies without hindering existing relationships with customers, partners, and stakeholders
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Focusing on the unexpected allows an organization to capitalize on the opportunity for new business growth from a disruptive technology
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ISPs, OSPs, and ASPs use service level agreements (SLA) which define the specific responsibilities of the service provider and set the customer expectations Review Figure 3.10 for a listing of the top ISPs, OSPs, and ASPs
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SECTION 3.2
E-BUSINESS
McGraw-Hill/Irwin
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LEARNING OUTCOMES
6. Compare the four types of e-business models
7. Describe how an organizations marketing, sales, accounting, and customer service departments can use e-business to increase revenues or reduce costs 8. Explain why an organization would use metrics to determine a Web sites success
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LEARNING OUTCOMES
9. Describe e-business along with its benefits and challenges 10. Define m-commerce and explain how an e-government could use it to increase its efficiency and effectiveness
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E-BUSINESS BASICS
How do e-commerce and e-business differ?
E-commerce the buying and selling of goods and services over the Internet E-business the conducting of business on the Internet including, not only buying and selling, but also serving customers and collaborating with business partners
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E-BUSINESS BASICS
Industries Using E-Business
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E-BUSINESS MODELS
E-business model an approach to conducting electronic business on the Internet
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E-BUSINESS MODELS
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E-BUSINESS MODELS
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Business-to-Business (B2B)
Electronic marketplace (emarketplace) interactive business communities providing a central market where multiple buyers and sellers can engage in e-business activities
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Business-to-Consumer (B2C)
Common B2C e-business models include: e-shop a version of a retail store where customers can shop any time without leaving their home e-mall consists of a number of e-shops; it serves as a gateway through which a visitor can access other e-shops
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Consumer-to-Business (C2B)
Priceline.com is an example of a C2B ebusiness model The demand for C2B e-business will increase over the next few years due to customers desire for greater convenience and lower prices
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Consumer-to-Consumer (C2C)
Online auctions
Electronic auction (e-auction) - Sellers and buyers solicit consecutive bids from each other and prices are determined dynamically Forward auction - Sellers use as a selling channel to many buyers and the highest bid wins Reverse auction - Buyers use to purchase a product or service, selecting the seller with the lowest bid
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Consumer-to-Consumer (C2C)
C2C Communities
Communities of interest - People interact with each other on specific topics, such as golfing and stamp collecting Communities of relations - People come together to share certain life experiences, such as cancer patients, senior citizens, and car enthusiasts Communities of fantasy - People participate in imaginary environments, such as fantasy football teams and playing one-on-one with Michael Jordan
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Marketing/Sales
Generating revenue on the Internet
Online ad (banner ad) - box running across a Web page that contains advertisements Pop-up ad - a small Web page containing an advertisement Associate program (affiliate program) - businesses generate commissions or royalties Viral marketing - a technique that induces Web sites or users to pass on a marketing message Mass customization - gives customers the opportunity to tailor products or services
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Marketing/Sales
Generating revenue on the Internet (cont.)
Personalization - occurs when a Web site can fashion offers that are more likely to appeal to that person Blog - Web site in which items are posted on a regular basis and displayed in reverse chronological order Real simple syndications (RSS) - a Web feed format used for Web syndication of content Podcasting - the distribution of audio or video files, such as radio programs or music videos, over the Internet to play on mobile devices
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Marketing/Sales
Generating revenue on the Internet (cont.)
Search engine optimization (SEO) - a set of methods aimed at improving the ranking of a Web site in search engine listings Spamdexing - uses a variety of deceptive techniques in an attempt to manipulate search engine rankings, whereas legitimate SEO focuses on building better sites and using honest methods of promotion
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Financial Services
Online consumer payments include:
Financial cybermediary Electronic check Electronic bill presentment and payment (EBPP) Digital wallet
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Financial Services
Online business payments include:
Electronic data interchange (EDI)
Value-added network (VAN)
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Financial Services
Electronic trading network
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Procurement
Maintenance, repair, and operations (MRO) materials (also called indirect materials) materials necessary for running an organization but do not relate to the companys primary business activities
E-procurement - the B2B purchase and sale of supplies and services over the Internet Electronic catalog - presents customers with information about goods and services offered for sale, bid, or auction on the Internet
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Customer Service
Customer service is the business process where the most human contact occurs between a buyer and a seller e-business strategists are finding that customer service via the Web is one of the most challenging and potentially lucrative areas of ebusiness
The primary issue facing customer service departments using e-business is consumer protection
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Consumer Protection
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Consumer Protection
E-business security
Encryption Secure socket layer (SSL) Secure electronic transaction (SET)
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Intermediaries
Intermediaries agents, software, or businesses that bring buyers and sellers together that provide a trading infrastructure to enhance e-business
Reintermediation using the Internet to reassemble buyers, sellers, and other partners in a traditional supply chain in new ways
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E-government - involves the use of strategies and technologies to transform government(s) by improving the delivery of services and enhancing the quality of interaction between the citizen-consumer within all branches of government
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