Chapter 6

E-Business and E-Commerce

Turban and Volonino

Information Technology for Management

Improving Performance in the Digital Economy

7th edition
John Wiley & Sons, Inc.

Slides contributed by Dr. Sandra Reid

Chair, Graduate School of Business & Professor, Technology
Dallas Baptist University

Copyright 2010 John Wiley & Sons, Inc. 6-1

 Chapter Outline

• 6.1 Overview of E-Business and E-Commerce

• 6.2 Major EC Mechanisms
• 6.3 Business-to-Consumer Applications
• 6.4 Business-to-Business Applications
• 6.5 Major Models of E-Business: From E-
Government to C2C

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 Chapter Outline (cont’d)

• 6.6 E-Commerce Support Services: Payment

and Order Fulfillment
• 6.7 Ethical and Legal Issues in E-Business
• 6.8 Managerial Issues

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 Learning Objectives

1. Describe electronic commerce, its scope, benefits,

limitations, and types.
2. Explain how online auctions and bartering work.
3. Understand the major applications of business-to-
consumer commerce, including service industries
and the major issues faced by e-tailers.
4. Describer business-to-business applications.
5. Explain why intrabusiness and B2E are considered
e-commerce.

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 Learning Objectives cont’d

6. Describe e-government activities and consumer-to-

consumer e-commerce.
7. Identify the e-commerce support services,
specifically payments and logistics.
8. Understand the importance and activities of online
advertising.
9. Identify and describe ethical and legal issues
relating to e-commerce.

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Figure IT7eU

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• Problem – Leader & target for Compaq.
Losses exceed $100 million.
• Solution – Rapid expansion with selling via
online.
• Result – Leading systems provider in US;
second worldwide. Fortune’s top 5 “Most
Admired” companies since 1999.
By-product – sell refurbished Dell computers.

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 Dell’s Vast Customer Base

Business-to-Business

Dell becomes British Airways' preferred partner

Intel invests $23 million in three Indian firms

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 Dell’s Vast Customer Base – cont’d

How Dell Does IT: Order Management

Online self-learning about Dell products

Training services along with IT & management topics

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6.1 Overview of E-Business and E-Commerce
E-Business / E-Commerce

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Click-&-mortar vs Brick-&-mortar organizations

More shoppers proceed to

checkout online…………

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Figure 6.1 E-commerce in our company.
(Source: Drawn by E. Turban)

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 Table 6.1

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 Online Advertisers, Marketers & Students

Powerstudents.com

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Company-sponsored Socially Oriented Sites

Hannah Montana

TheirSpace.com

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Application Programming Interface - Examples

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Figure 6.2 A framework for E-commerce.
(Source: Drawn by E. Turban)

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 Table 6.2

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 Table 6.3

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6.2 IS Major EC Mechanisms

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 E-Market Trends

Virtual Greats Profile

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 Electronic Catalogs

All of Your Suppliers’ Products in

One Online Catalog

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 E-Auctions

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 E-Classifieds

stores

eBay case study

business

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Bartering & Negotiations

The New Age of Bartering

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6.3 Business-to-Consumer Applications

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Electronic Storefronts

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 Electronic Malls

shopping

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 Amazon – King of E-Tailing

Jeff Bezos: The Wizard Of Web Retailing

Last Founder Standing

The Future of Reading

America's Best Leaders: Jeff Bezos,

Amazon.com CEO
The founder of the massive online retailer
is a true Internet pioneer

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Online Job Market

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Travel Services

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Real Estate Online

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6.4 B2B Applications

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ChemConnect Case Study

ChemConnect

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6.5 Major Models of E-Business:
From E-Government to C2C

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 E-Government to C2C

• B2E – organizations disseminate information to employees

over company intranet.
• E2E – employees communicate with each other. I.e.: goods
& services bought & sold among fellow employees.
• SBU/SBU – company owned dealerships buy goods &
services from main company. Improves internal supply
chain operations.
• E-Collaborative – digital technologies that enable
collaboration.
• E-Government – delivers information & services to citizens,
business partners & suppliers. I.e.: G2C, G2B, G2G.

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6.6 E-Commerce Support Services:
Payment, & Order Fulfillment

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Figure 6.3 E-commerce support services.
(Source: Drawn by E. Turban.
Based on S.Y. Choi et al., 1997, p. 18.)

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Market Research Online

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 Table 6.4

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 Figure 6.4

How e-credit cards work. (The numbers 1-9 indicate the

sequence of activities.) (Source: Drawn by E. Turban.)

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 Figure 6.5

The use of a mobile phone as an e-wallet.

(Source: Koichi Kamoshida/Getty Images.)
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 Figure 6.6

Order fulfillment and the logistics system.

(Source: Turban et al., Electronic Commerce: A Managerial
Perspective 2008, Exhibit 13.2, p. 591).
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6.7 Ethical & Legal Issues in E-Business

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 Table 6.5

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6.8 Managerial Issues

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 Managerial Issues

• E-Commerce failures – common. Solid business

analyses a must.
• Failed initiatives within an organization.
• Success stories & lessons learned should be shared.
• Managing resistance to change.
• Integration into business overall.
• Lack of qualified personnel & outsourcing.
• Managing impact on organization.
• Alliances can be very helpful & productive.
• Choosing appropriate strategy.
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 Copyright 2010 John Wiley & Sons, Inc.

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