Professional Documents
Culture Documents
E Commerce and e Business
E Commerce and e Business
E Commerce and e Business
Introduction to
E-Business
1-2
Course Overview
1-3
Agenda
Definition of e-commerce
Distinction between e-commerce and e-business
Quick History
E-Commerce Models
The e-conomy
Benefits of e-commerce
The internet as an enabler of e-commerce
Effect on business
Effect on the profession
1-4
Definition of E-Commerce
1-5
Is it E-Commerce?
YES!
Trading Partner Interaction:
Shopping
Payment
Medium:
Internet
Value Exchange:
Information
Money/Goods
1-6
Is it E-Commerce?
Money Goods/Services
Personal Info
1-7
Is it E-Commerce?
YES!
Trading Partner Interaction:
Catalogue Browsing
Medium:
Internet
Value Exchange:
Information
1-8
Is it E-Commerce?
1-9
How E-Commerce Differs from
Traditional Commerce
Core strategic decisions are commingled with
technology decisions
Network economics – bigger network is better
Speed-based competition – first mover advantage?
The store is always open
Screen-to-customer interface – mass customization
Customer controls interaction
Online behaviour can be tracked/measured – new
metrics
1-10
E-Commerce Drivers
Expand universe of potential
buyers
Increase sales
Meet customer expectations
Increase brand/product
recognition
Ease of doing business
Competitive pressure
Cost effectiveness
Provide more information to
customers
Improve customer service
New sales channel
1-11
Agenda
Definition of e-commerce
Distinction between e-commerce and e-business
Quick History
E-Commerce Models
The e-conomy
Benefits of e-commerce
The internet as an enabler of e-commerce
Effect on business
Effect on the profession
1-12
Essential Structure of
E-Business
1-13
E-Business
E-Business
E-
Back- Front-
Office Commer office
ce
1-14
Basic Tools of E-Business
Intranet
Company A
Halifax
Extranet
Internet
Extranet
Intranet
Internet Company B
Toronto
Customers Suppliers
1-15
“Front-office”
Customer-facing Activities
Attracting…and keeping
User authentication
Catalog display
Availability
Price comparison
Order taking
Credit check
1-16
“Back-office” Activities
1-17
Agenda
Definition of e-commerce
Distinction between e-commerce and e-business
Quick History
E-Commerce Models
The e-conomy
Tech Bust
Forces of change
Effect on business
Effect on the profession
1-18
Quick History
1-19
Facsimile (FAX)
1-20
Electronic Data Interchange
(EDI)
A standard way of electronically encoding and
exchanging Line of Business documents (such as POs
and invoices) between organizations.
Facilitated by private networks called VANs (Value
Added Networks) or through the internet
EDI is widely used by large corporations and
government agencies to communicate with their
suppliers; e.g., WalMart.
1-21
EDI Standards
1-22
EDI Documents
1-23
EDI Process
Send/Rc
Propriet v.
EDI
ary EDI
Docume
Format Encode /
nt
Docume Decode
nt
Buyer
VAN
Vendor
1-24
Example EDI Sequence
Buyer
(EDI
850)
Vendor
1-25
Beyond EDI
1-26
The World Internet
Population, 1995-2002
1-27
The World Internet
Population, 1995–2002
Internet Population Growth
800
Internet Users
(Millions)
600
400
200
0
1995 1996 1997 1998 1999 2000 2001 2002
Year
SOURCE: Nua Internet (www.nua.ie/surveys/how_many_online/world.html)
1-28
The World Internet Population,
2003
Country % Internet # Internet
Penetration Users
Definition of e-commerce
Distinction between e-commerce and e-business
Quick History
E-Commerce Models
The e-conomy
Tech Bust
Forces of change
Effect on business
Effect on the profession
1-30
Business to Consumer
E-Commerce
One of the trading partners is an end user of a
product/service
Authentication is optional
Base catalogues and prices are identical for all users
Payment is largely through credit card
1-31
Examples of B2C
E-Commerce
Retail:
Online store
Services:
Online travel reservations
Financial Services
ATM, Online Banking, Telephone Banking
Online trading
Online credit approval
1-32
Business to Business
E-Commerce
Both trading partners are businesses
Authentication is required
Catalogues and prices are account-specific
Multiple payment methods/payment terms
1-33
Examples of B2B
E-Commerce
Manufacturing
Line of business document exchange
Supply chain management
Retail:
Online procurement
Online catalogue from distributor/manufacturer
Services:
Airline reservation system
Financial Services:
Wire transfers
Brokerage services
1-34
Other “X” 2 “Y” Concepts
G 2 C - Utility payments
B 2 E - Benefits, etc.
C 2 C - Kazaa
1-35
The Amazon Phenomenon
1-36
The Beginning
1-37
Amazon.com’s
Value Proposition
Traditional Bookstore Amazon.com
<100,000 titles >2,000,000 titles
Focus on best-sellers Broad offering on hard to
Very long reorder times find titles
Little information about Max ships in 6 weeks
books Plenty of information,
Marginal discounts reviews, etc.
One-to-Many marketing Heavily discounted prices
(up to 40% off)
One-to-One marketing
1-38
Amazon.com today
1-39
Dell.com
1-40
Dell.com’s
Value Proposition
Traditional Computer Dell.com
Manufacturer No middle man
Relies on distribution chain Deals directly with customer
No direct feedback from the Computers are configured
end consumer
online, and built according to
Inflexible configurations user specifications
Scarce availability of non- No necessity of stocking pre-
standard configurations
configured PCs
1-41
Dell.com today
1-42
Agenda
Definition of e-commerce
Distinction between e-commerce and e-business
Quick History
E-Commerce Models
The e-conomy
Tech Bust
Forces of change
Effect on business
Effect on the profession
1-43
The e-conomy
1-44
Canadian Shopper Profile
1-45
Agenda
Definition of e-commerce
Distinction between e-commerce and e-business
Quick History
E-Commerce Models
The e-conomy
Tech Bust
Forces of change
Effect on business
Effect on the profession
1-46
The Tech Bust
1-47
The Tech Bust
1-48
A .com Failure
1-49
But…the Tech Bust is not the
end of the story…
E-Commerce is growing rapidly…$3.9 T worldwide in 2003*
Of the 200+ public internet cos. that survived the Tech Bust, 40%
earned a Q4 profit
General spending on IT fell 6% between 2001-2003, but e-business
spending rose 11% in 2002
e-Business spending comprises 27% of all tech spending
Broadband use in U.S. has doubled since 2001 and is growing at a
50% rate
Productivity increases are dramatic, but take several years
1/3 of economy still to be touched by it (agriculture, construction,
health care)
* This slide is based on “The E-Biz Surprise” a cover story by Business Week 05/12/03
1-50
Agenda
Definition of e-commerce
Distinction between e-commerce and e-business
Quick History
E-Commerce Models
The e-conomy
Tech Bust
Forces of change
Effect on business
Effect on the profession
1-51
Forces of Change
1-52
Benefits of E-Commerce
1-53
Cost of Banking
Transactions (US Dollars)
1-54
Removal of Barriers
1-55
Basic Firewall
Architecture
1-56
Forecasts
1-57
Agenda
Definition of e-commerce
Distinction between e-commerce and e-business
Quick History
E-Commerce Models
The e-conomy
Tech Bust
Forces of change
Effect on business
Effect on the profession
1-58
Effect on Business
transactions
security/control
1-59
Strategic Business Trends
1-60
Flexible Business Design
Outsourcing
Partnerships
Joint ventures
Mergers
Takeovers AOL - Time Warner
$165,000,000,000
1-61
Agenda
Definition of e-commerce
Distinction between e-commerce and e-business
Quick History
E-Commerce Models
The e-conomy
Tech Bust
Forces of change
Effect on business
Effect on the profession
1-62
Effect on the Profession
1-63
Thank you