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Introduction To E-Business and E-Commerce: Mahbubur Rahman Lecturer
Introduction To E-Business and E-Commerce: Mahbubur Rahman Lecturer
LECTURE 1:
INTRODUCTION TO E-BUSINESS AND E-
COMMERCE
Mahbubur Rahman
Lecturer
1
INTENDED LEARNING OUTCOMES
• Introduced new business opportunities for small and large organizations to compete in the global
marketplace.
Disruptive Internet Technologies: New Internet based communications approaches which
change the way in which information about products is exchanged, which impact the basis for
competition in a marketplace.
• How?
• Reach:
The potential no. of customers a business can interact with.
The no. of different categories & products a consumer interface can cover.
• Richness
Characteristics of the information itself.
Detailed information about products, prices and availability.
Also enables more interactivity and customization to engage customer & to provide more up-
to-date information.
• Affiliation
Effectiveness of links with partners, or formation of partnership for new diverse information
services. 3
W H AT I S E - C O M M E R C E ?
• e-Commerce:
• All electronically mediated information exchanges between an organization & its external
stakeholders.
• Roughly, refers to buying and selling using the Internet, however it is much more than
electronically mediated financial transaction between organizations and customers.
• Non-financial transactions like customer requests for further information would also be considered
to be part of e-commerce.
• Therefore, electronically transactions at any stage in supply chain, pre-&-post sales should be
considered as e-commerce.
• Types:
• Buy-side e-commerce:
E-commerce transactions between a purchasing organizations & its suppliers.
Procurement of resources from suppliers.
• Sell-side e-commerce:
E-commerce transactions between a supplier organization & its customers.
Selling products to an organization’s customers. 4
BUY-SIDE VS. SELL-SIDE E-COMMERCE
5
SELL-SIDE E-COMMERCE: TYPES
• e-Business:
All electronically mediated information exchanges, both within an organization and with
external stakeholders supporting the range of business processes.
The transformation of key business processes through the use of Internet Technologies.
“when a business has fully integrated Information & Communication Technologies (ICTs)
into its operations, potentially redesigning its business processes around ICT or
completely reinventing its business model….e-business, is understood to be the integration
of all these activities with the internal processes of a business through ICT”.
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IT INFRASTRUCTURE OF E-BUSINESS
• The Internet
Physical network that links computers across the globe.
Infrastructure of network servers and communication links that are used to hold and
transport information between the client PCs and web servers.
Network of computer networks.
• Wireless Communications
Electronic transactions and communications conducted using mobile devices such
as laptops, PDAs, mobile phones.
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IT INFRASTRUCTURE OF E-BUSINESS (CONT’D)
• Intranet:
A private network within a single company using Internet standards to enable employees to access
and share information using web publishing technology.
• Extranet
Extended organization’s web services to some others.
A service provided through Internet and web technology delivered by extending an intranet beyond a
company to customers, suppliers and collaboration.
A shared access.
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ELECTRONIC COMMUNICATIONS ON BUSINESS
• Popularity of social networks (e.g., Facebook, Twitter), virtual worlds (e.g., Second life), and blogs.
• Rich media such as online video & interactive applications.
• Proliferation and growth of mobile commerce enabled by ubiquitous technologies.
• Location-based tracking of goods and inventory services.
• Terminology:
• Social networks: A site that facilitates peer-to-peer communication within a group or between individuals
through developing UGC or exchanging messages & comments.
• Virtual worlds: An online environment simulates interaction between online characters called Avatars. e.g.,
MMOGs.
• Blog: Personal online diary, journal or news compiled by one person, an internal team or external guest
authors.
• Rich media: Digital ads that includes advanced features like video, audio, animation that encourages viewers to
interact and engage customers with the content.
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• Mobile commerce: Electronic transactions and communication conducted using mobile devices.
DIGITAL MARKETING
• Digital or electronic marketing refers to the management and execution of marketing using
electronic media such as the web, e-mail, interactive TV and wireless media in conjunction with
digital data about customers’ characteristics and behavior.
• Objectives
Support marketing activities by achieving profitable acquisition and retention of customers.
Allow multi-channel (offline and online) buying process and customer lifecycle.
• Strategies
Identify the importance of digital technologies & developing a planned approach to reach and migrate
customers to online services through e-communications and traditional communications.
Retention is achieved through improving customer knowledge (of their profiles, behavior, value & loyalty
drivers).
Deliver integrated, targeted communications and online services that match their individuals needs.
Support a combination of digital and traditional channels of marketing.
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BUSINESS OR CONSUMER MODELS OF E-
COMMERCE TRANSACTIONS
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CLASSIFICATION OF E-BUSINESS MODELS
1. B2C
i. e-tailer: Amazon, Dell.com, etc. 2. B2B
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DRIVERS OF BUSINESS INTERNET ADOPTION
•Cost/efficiency drivers
Increasing speed with which supplies can be obtained
Increasing speed with which goods can be dispatched
Reduced sales and purchasing costs
Reduced operating costs.
•Competitiveness drivers
Customer demand
Improving the range and quality of services offered
Avoid losing market share to businesses already using e-
commerce.
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BENEFITS OF BUSINESS INTERNET ADOPTION
• Increased sales from new sales leads giving rise to • Corporate image communication
increased revenue from: • Enhancement of brand
new customers, new markets • More rapid, more responsive marketing
existing customers (repeat-selling) communications including PR
existing customers (cross-selling). • Faster product development lifecycle enabling faster
• Marketing cost reductions from: response to market needs
reduced time in customer service • Improved customer service
online sales • Learning for the future
reduced printing and distribution costs of marketing • Meeting customer expectations to have a web site
communications. • Identifying new partners, supporting existing partners
• Supply-chain cost reductions from: better
reduced levels of inventory • Better management of marketing information and
increased competition from suppliers customer information
shorter cycle time in ordering. • Feedback from customers on products
• Administrative cost reductions from more efficient
routine business processes such as recruitment, invoice
payment and holiday authorization.
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RISKS AND BARRIERS OF E-BUSINESS
ADOPTION ( R EF. D I T, 2 0 0 2 )
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HOW TO EVALUATE YOUR COMPANY’S E-
BUSINESS CAPABILITIES?
• Stage Model:
• Review how advanced a company is in
its use of ICT to support different
business processes.
• Brochureware:
• Websites or web pages invented by
converting all paper-based printed
promotional/advertising materials into
an Internet format.
• Site Optimization:
• Process of maximizing the number of
visitors to a website by ensuring that
intended visitors conveniently find the
site by a search engine.
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DRIVERS OF CONSUMER INTERNET ADOPTION
•Content:
Detailed and in-depth information to stimulate buying decision.
•Customization:
Provide customize or personalized products/services through e-mail alerts or
recommender systems.
•Community:
Discuss anything through forum like blogs, chat-rooms.
•Convenience:
•Choice:
e.g., Multi-channel marketing, Tesco.com
•Cost reduction:
reduction of transaction cost
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BARRIERS TO CONSUMER INTERNET
ADOPTION
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MCKINSEY 7S FRAMEWORK
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STRATEGIES OF E-BUSINESS AND E-
COMMERCE MANAGEMENT
Element Capability Key Issue
Strategy Contribution of EB & EC in influencing & • Gaining appropriate budget and demonstrating value & ROI from budget.
supporting org’s strategy. • Techniques for aligning EC strategy with organizational and marketing strategy.
Systems Development of specific processes, procedures • Managing/sharing customer & supply chain information.
and Information Systems to support EB. • Integration of the web into marketing campaign planning.
Staff Categorizing of the staffs based on experience • Staff recruitment and retention.
and expertise. • Staff development, training and virtual working.
Style Integration of supervisor’s roles in achieving • Role of EB team in influencing strategy- (dynamic, influential or conservative).
org’s goals, and values, culture and norms of the
organization.
Skills Distinctive capabilities of key staffs plus specific • Staff skills in specific areas of EB.
skill-sets of team members.
Superordinate Guiding concepts of the organization which are • Improving the perception of the importance and effectiveness of the digital marketing
goals also part of shared values and culture. team amongst senior managers and staff it works with (marketing generalists and IT)/