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E-Business and E-Commerce Management - Chapter 1
E-Business and E-Commerce Management - Chapter 1
Commerce
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Learning Outcomes
After completing this chapter the reader should be
able to:
Define the meaning and scope of e-business and
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Management Issues
The issues for managers raised in this chapter
include:
How do we explain the scope and
capabilities?
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The impact of Internet on business
Andy Grove, Chairman of Intel, one of the
early adopters of e-commerce, has made a
meteorological analogy with the Internet. He
says:
Is the Internet a typhoon force, a ten times
4
The Internet’s impact on you
How many of you have purchased something
on the Internet in the last 6 months?
How many times have you used the Internet
5
Introduction
The Internet
‘The Internet’ refers to the physical network
6
Introduction
World Wide Web (WWW)
The most common technique for publishing
7
E-commerce defined
‘All electronically mediated information exchanges
between an organization and its external stakeholders’
Examples:
◦ Buying books online (transactional)
◦ Selecting a car online (informational)
◦ Interacting with brand online (relationship building /
experiential, e.g. www.tango.com)
◦ Asking a customer service query, e.g. www.easyJet.com
8
E-business defined
All electronically mediated information exchanges, both
within an organization and with external stakeholders
supporting the range of business processes
Examples:
◦ Purchasing from suppliers (e-procurement)
◦ A company intranet (defined in Ch 3)
◦ Supplying partners with information through an extranet
(see Ch 3)
9
Buy-Side and Sell-Side e-commerce
Buy-Side e-commerce
E-commerce transactions between a
Sell-side e-commerce
E-commerce transactions between a supplier
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The distinction between buy-side
and sell-side e-commerce
13
Drivers of consumer Internet
adoption
To determine investment in sell-side e-
commerce, managers need to assess how to
adopt new services such as web, mobile and
interactive TV and specific services such as
blogs, social networks and feeds.
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Drivers of consumer Internet
adoption
Typical benefits of online services are
summarized by the ‘Six Cs’, a simple
mnemonic to show different types of
customer value:
1Content – In the mid-1990s it was often said
that ‘content is king’. Well, relevant rich
content is still king. This means more
detailed, in-depth information to support the
buying process for transactional or
relationship-building sites or branded
experiences to encourage product usage for
FMCG brands.
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Drivers of consumer Internet
adoption
2 Customization – In this casemass
customization of content,whether received as
web site pages such as ‘Amazon
recommends’ or e-mail alerts, and commonly
known as ‘personalization’.
3 Community – The Internet liberates
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Drivers of consumer Internet
adoption
4 Convenience – This is the ability to select,
purchase and in some cases use products
from your desktop at any time: the classic 24
× 7 × 365 availability of a service. Online
usage of products is, of course, restricted to
digital products such as music or other data
services.
5 Choice – The web gives a wider choice of
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Drivers of consumer Internet
adoption
6 Cost reduction – The Internet is widely
perceived as a relatively low-cost place of
purchase. Often customers expect to get a
good deal online as they realize that online
traders have a lower cost-base as they have
lower staff and distribution costs than a
retailer that runs a network of high-street
stores.
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Barriers to e-commerce
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Activity – Changes required by e-
commerce
What changes to the overall business would
be required by e-commerce for the B2C and
B2B Company?
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Answer – the 7 Ss
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End of Chapter 1
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