Welcome to BCIS 5379: Technology of E-Business.
This is is chapter 1 work textbook by Turban Electronic Commerce a Managerial and Social
Networks Perspective 2012. Learning objectives for this chapter are to define what commerce
describe its various categories to describe and discuss the content e-commerce to describe
the major types of e-commerce transactions to discuss e-commerce 2.0 to describe social
commerce and social software to understand the elements of the digital world to describe
the drivers of e-commerce as they relate business pressure responses to describe some of e-commerce
business models describe the benefits of e-commerce organizations society as a whole to list and
describe some of the major imitations of e-commerce. So what is e-commerce house relate to e-business
me talk to what text you referring to. They all have their own definitions their own relationship
between these two concepts, but in general e-commerce is a subset of e-business e-business
is a broader perspective of e-commerce e-commerce in this text is defined as the process of
selling worksheet products, server is should be here so is the ability to digitize products
or digitized part of the process doing regular service e-business is a larger perspective
of of e-commerce implies it’s not just transactions of buying and selling goods, but also a lot
of back office functions that occur within an organization in terms of managing relationships
with customers managing managing relationships with different parts of the organization.
HR, for example, manufacturing, sales, etc. use of business e-business just to take a
larger scope also deals with external relationships of organizations with other organizations
to manage relationships with suppliers, etc. major concepts that we can can consider when
were talking about e-commerce organizations is the degree of digitization they they use
business processes to create and deploy open so their products for their services in generally
classified as organizations in 213 in ranges, pure versus partial e-commerce to to know
e-commerce at all times in general you got brick-and-mortar organizations as the old
position you used to the needs for store and buyer good for your service physical location
see people you try things I touched on the consolidated field on brick-and-mortar something
concrete about right. On the other end of the spectrum are virtual organizations positions
that only exist on every sliver online is produced, example might be at least to a certain
degree.com what were your purchasing book and e-book from so the T process is online.
The product is delivered to you across the Internet across your network connections you
consume my reading monitor or listening to the audiobook such a virtual organization
or the online at least that aspect of his organization Netflix from another good example
of virtualization leases relates to their streaming service, hybrid to click and more
organizations on those positions that usually have 1 foot in each camp disallow physical
presence, but also virtual presence I Walmarts example you can certainly go to Walmart.com
make purchases consume some things from Walmart online the same time physical location where
you go you can purchase things across the way looking might be able be visualized 50
Q I’m really looking at it. Basically three different dimensions you’re looking at the
delivery method on how is this a good or service delivered to you is it physically delivered
to be delivered digitally on the work process. How is housework process is online yet going
someplace physically or something. I house we were actually processed can again cannot
be done digitally versus physically has to be moved from might be in a good way to think
about that you look at the the invention great idea. It seemed armor my pure e-commerce organization.
Network the processing digitally deliveries done digitally were established at the other
extreme physical the traditional commerce. The product or service test report in person’s
physical process delivery shipment is done physical means delivered via UPS or or however
I processing them physically as well. The book is manufactured through process concepts
that we need to keep in mind are some basic definitions electronic marketplace or the
marketplace is an online marketplace for buyers and sellers need to exchange goods, services,
money information different than traditional marketplace we might meet to exchange search
fleamarket we need a furnace so are you going to a all same type of situation going to go
exchange goods and services different organizations are some things people are buying things is
a place to bring together buyers and sellers to facilitate trade another concept is an
intranet and Internet is think of the Internet come forth what is how it works collection
of different networks for sharing resources for assuring access to documents and interest
is the same thing differences is closed off to the outside world is limited to our organization
to our government, our corporation to what he wants to limit access that resource we
taking manage of consumers understanding of Internet technologies. The use web browsers
protocols. Bruce other Internet tools available to us is closed off from the rest of the world
protect the information keep it in turn an extra is very similar same general concept
differences we opened up to the outside world in a limited fashion so present when my organization
wants to open up part of their system to their suppliers suppliers in the system and determine
when there certain stock levels follow circle so they know when to replenish the so you
take advantage of our familiarity with technologies, but it limits the access to the outside world
just those access to it using my username and password so why are we interested in studying
e-commerce until the growth of e-commerce as part of our economy is growing your fears
becoming more more a significant portion or, was interesting to note is the stuff that
we actually see is consumers release limited to, but I talked a little bit more slots this
we talked about definition of e-commerce and what is its relationship with e-business but
in general dirtier in terms of what it really consists of we really need to have Mineworkers
way of looking at the different components that make up e-commerce book proposes one
has basically I support various people public-policy marketing and support services business partnerships
some people buyers and sellers and intermediaries people and bring together both buyers and
sellers policy is an e-commerce site organization the the taxes that we pay what jurisdictions
we operate in legal and privacy issues, things of that nature marketing and advertisement
market research who are customers the work and make money on her we can do promotions,
web content for sports services logistics are we going to get our physical products
delivered to our customers even just additional product are we want to process payments as
things that we have to to work issues at work lastly business partnerships, joint ventures,
affiliate programs things that nature. How can I come up with the the most efficient
way of getting our products that we deliver to our customers. What always we can think
about e-commerce is that the nature of the relationships of the transactions between
partners, between disciplines and though there are more relationships that exist to are commonly
discussed our business-to-business business to consumer now most the time we tend to think
of this consumers the business to consumer relationship pretty small part of the market
fell 7% more than 7% will e-commerce market is the relationship that we could play our
part so that’s what we see regarding Amazon, Walmart, things like that we are participating
business to consumer relationship. One is much bigger piece that I is the business-to-business
relationship between buyers and sellers times businesses purchased from other businesses
that purchase the supplies purchased the raw materials in an e-commerce environment. Those
purchases typically are many more there are many more posts transactions transactions
are typically much much larger bigger part bigger piece I said is a slowing economy illustrates
the different components that the paragraph illustrates how you might think about the
different components that it takes to make a framework for e-commerce perhaps luster
relationships are the beach be to see the relationships. For example of business to
business to consumer relationship which is representative of traditional supply chain
site business myself to another business out of business has their own set of customer
treatment of Sultan consumer others also consumer to business model again is to be lesser-known
models. The picture certainly examples out there for example, consumer and business model.
My fingers are specially Priceline.com were individual is trying to sell so to speak on
their purchase of the race on room will travel for business e-commerce refers to internal
organizational activities where you might have one, one organization, one department
within an organization that the activities that call this transactions or exchanges business
services within the session with other departments within the organization of business to employees
e-commerce models represent. It is a mall in which organizations deliver services information
products transit to his individual employees so we may so for example so for say, but deliver
information through human resources about various insurance packages bracelet benefits
packages to our employees using e-commerce technologies yet another category is the consumer
to consumer market them all in which consumer so directly to other consumers. EBay is probably
the best example for consumer to consumer market. You create an account post product
that you want to sell to the sin of the world’s first login market space to bid on products
an example consumer to consumer market is also’s mother probably was are well-known
categories leases. Collaborative commerce e-commerce model in
which individuals or groups treated or collaborate collaborate online to develop a good or service
together. The ego is really just the application of e-commerce technologies and governments
to provide services to citizens to the people constituents I see you spoke with her shoes
at the local, state and federal levels. Reagan login you submit taxes to pay fines you can
pay your bill things that you graphical representation of what we were discussing all his various
relationships between businesses and consumers employees in the relationships of of the grace
transactions that they can exist between the will of e-commerce is going around quite some
time before the Internet world was was, commercially available for example EDI was used kind of
interchange was used but large corporations large organizations to be able to easily electronically
exchange billing information is the image but the proprietary nature really kind of
push out the little guys push-up obviously consumers and small businesses as the Internet
became began to gain a foothold and become more research see organizations with presence
online. In this push towards being able to conduct transactions online and really saw
the birth of what modern-day e-commerce is all about the conduct transactions those purchases
the exchange billing information, etc. all online through the the to the Internet. The
interdisciplinary nature of e-commerce is really easy. It’s really something that probably
was not recognized early on in the early days of of the Internet e-commerce model or models
and is probably what led to the.com bust that we saw tree to the 99 2001 in that area but
is now is the recognition makes conducting e-commerce online much much more practical
feeling. I suppose the interdisciplinary fields are drawn on things like accounting business
law, computer science, management information system marketing, finance, human resources
we drawn all these different areas because weathers online words, it’s a physical organization.
We really rely on those same disciplines the business.
The Google revolution in the early days of e-commerce you a lot of different organizations
trying to be to go to organization’s ability to search for things products find goods and
services that Google however did better job they really kind of get their fingers and
a lot of pies because of their ability to search so effectively and as a result encroachment
dominated a lot of a lot of the market I rose when you turn commerce is arched specifically
refers to the general idea of marketing goods and services through social media, whether
it be Facebook or twitter tumbler, etc. so the users been e-commerce failures. That’s
just the reality is that the.com bust that we saw on some those examples eToys web bamboo
are all examples of organizations that really didn’t have a very good business model going
into their their development survey by strategic direction in 2000, 62%.com financial skills
and 50% had little experience with marketing no wonder that we had failures on catastrophic
you will. They simply were not viable businesses. The idea was that if you could being her name
be successful in reality was that if you were not paying attention to the interdisciplinary
nature of of business, whether it’s e-business were not. It’s tough to make a viable business
model out having said that the students and some successes as well. Companies like Amazon,
eBay had done very well Facebook Google: variable processing some click and mortar stores that
have been able to develop their own niches and be able to sell both face-to-face as well
as on example symbols or target online IBM tell things like that source the future e-commerce,
hard to specifically map out with futures want to be but I think most people agree that
the units here state that e-commerce is hearsay things I think is interesting interest in
online shopping is considerably lower amongst the young and have the oldest Generation X
tends to have the highest percentage of of that it to the shop online generation Y is
actually lower kind of interesting. Having said that, with forecasts of approximately
2,000,004 estimates about 2 million people on the 2010 an estimate of about 50% of all
Internet users shopping online. That’s a pretty big marketplace of the future e-commerce is
is on pretty solid ground next few slides really talk about Tom e-commerce in terms
of e-commerce 2.0 and this is kind of a holdover from traditional software conditions or upgrades.
Our first editions 1.0 or play something to the next editions 2.03107 so e-commerce 2.0
implies that we had a major upgrade in the since we had we gone from his basic websites
so services to really try to incorporating more or less social interaction more of a
personal experience makes more interactive and so we see some major ideas’s being social
computing, Web 2.0, social, social computing where it is an approach and making the human
computer interface more natural you will see things that things laid out on the screen
that they’re much more appealing to users much easier to navigate very user-friendly,
Web 2.0 reversed the second generation of Internet-based services was people collaborate,
share information online. Anyways, social networking sites, wikis collaborate on writing
an article the different ways of communicating text social media things that the things that
nature. These social networks are categories Internet applications and connect friends
business for individuals with specific interest by providing free services presentation email
blogging song isn’t writing tools. Obviously some of the examples of twitter, LinkedIn,
etc. I give is a wasted T-shirt to ensure information, share photos, share concepts,
ideas, shopping experiences, etc. an example of this, but I think it’s kind of interesting
necessarily agree with his example but my stepson, for example, is a movie enthusiast
and he basically says that Adam Sandler is work he can make bad movies and why because
during the first showing people going watch my CL pattern may immediately start tweeting.
How have those movies are is a way to get the word out very quickly and some of it goes
to see the movie on and thus the power of social networking power of social commerce
and the effect that it can have social networking service resinous is a service that bills online
communities writing an online space for people to build free homepages and provides basic
communication and support tools conducting different activities and social network, specific
instance or a specific example of the type of social networking. It’s a little bit more
detail than just social networking general Facebook is an example when dinner is an example
that they are little bit more comprehensive than some specific examples of twitter which
is just used for communication really was much more complete profile picture of who
you are as an individual and to be able communicate and share things with other individuals are
part of better are members of the social service social networking is the act of participating
in my social network creation or sponsoring of a social network service and any activities
such as blogging done in my social network enterprise social networks or religious business-oriented
social networks that can be public relations and private LinkedIn. For example, it tends
to be more and more business professional orientation to as far social commerce e-commerce
activities conducted social networks and were using social software. Examples of the cruise
line boxes social networking site to track crisp and gives them a place, and organize
and create groups of might be interested in going so the way to to use e-commerce technologies
or merge e-commerce technologies with social networking technologies or sites in order
to drive sales and profits the place where we can see e-commerce 2.0 technologies is
a social commerce is in virtual worlds so the best example, virtual world of Second
Life virtual world. This is really nothing more than three computer recently environment
allows the screamers first represent ourselves as is an individual’s virtual world and we
can travel from place placeless virtual world we can check up different organizations that
have virtual presences we can look at different goods and services that they offer. We can
talk about these services in this virtual environment and the and make decisions make
purchases in the virtual world. The bleed over into our physical world. The book is
an example is pretty interesting about how students can make in virtual world simply
by being man with the pizza man with these types of technologies personal major tools,
Web 2.0, wikis, RSS feeds, blogs, microblogs, such as twitter is some of the tools are,
Web 2.0 environment. Gone are the days of stacked webpages where you manually go back
and add content as a web developer in a lot of cases today content is generated by the
users. That’s what’s really addictive Web 2.0 technologies is worth billing a lot of
our content by users that are out there using our websites that are contributing to reviews
and writing about our our review of our restaurant you move the book that nature so low that
content is generated by our users so e-commerce or you business is one facet of a digital,
digital, music, and is based on digital technologies including digital communications networks
email twitter almost types of things computers software related information technologies
social called the Internet economy. The new economy with web, digital enterprises and
a business model uses IT fundamental way to accomplish one or more three basic objectives
to reach and engage customers more effectively. You will find customers be able to park them
specifically in IT or or information technology is especially well-suited for that you can
create custom marketing messages to each individual user that’s that’s a great value to companies
like Google Google has been so successful to boost employee productivity and improve
operating efficiency computers very good that they help us to improve efficiency tremendously,
and these converge first communication computing technology in a way that improves business
processes the idea of convergence or combining email and telephone calls in an altered touch
points that we have with consumers in the into Colin ways that we have. We know how
are dealing with her customers and discussing topics and answer questions with our customers
in many cases is in the corporate portal gateway through which employees, business partners
and the public as a whole can interact with the organization this relies on the fact that
we have some sort of digital society. We need a society that is very comfortable using these
technologies. Otherwise residents per not the business environment is changing largely
because there’s been a shift in power marshaling before e-commerce most of the power transactional
relationship existed with the seller. The seller had information. The seller knew about
quality of the product how much it cost to make things that nature the Internet and e-commerce
solution to that our considerably in favor of the consumer. The consumer’s and will do
a lot more research memory the race to be a letter to compare prices and shop around
solicit the date shifts a lot of power away from the manufacturer away from the service
to the consumer. This creates certain business pressures businesses operate within a of business
environment met environment presents both has business pressures and has business profit
opportunities opportunities are really kind of of sin. Jesus problems all opportunities
are dressed by a company by the various business processes with 100 K in place. The core competencies
of that particular organization inconsistent with their mission goals the strategies and
plans of that organization were able to respond in some fashion. Most business pressures.
Most business opportunities that response is largely facilitated by escorted e-commerce
what are some of the major capabilities of e-commerce Boulder the ability to conduct
transactions very efficiently, and the cost of each transaction down significantly global
reach. We can now connect transactions run around the world small companies or individuals
selling to services all around the world anytime, anywhere. Once our websites are running it
runs 24 seven. It doesn’t sleep doesn’t strike easy to find product vendor information in
some a shift in power to to consumer. We also have to do it now is an organization to compete
with our our competitors because they’re providing that information. I suppose a lot of different
capabilities e-commerce help facilitate transactions suggested above graphical representation of
that competitive cyclic model you can see their to the left the business environment
that have creates opportunities creates pressures or problems or organization organizations
really good by our mission, our goals for our strategy in her clams on those are what
between the problems and opportunities whose mission goals, etc. those elitist little various
business processes and develop core competencies to address those issues hopefully were able
actually measure back to the performance levels him been impacts our mission goals, etc. an
illustration of the major capabilities that contribute to the growth of e-commerce again
efficient transactions global reach anytime anywhere convenience, etc. e-business is not
different from any other business. Since that you have to have some sort of business business
model in place be successful. The goal is to make money right. While it says the goal
the best way to to recognize that goal is to make sure you have a solid is all going
into a better business phone than a method doing business by which a company can generate
revenue to sustain itself and are several different business models have been applied
to e-commerce to e-commerce environment structured properties of local business model are the
needs to consist of several things. One is the course how are we going to make the worst
money so we can we can gather revenue right ways we can have us these present see this
for a some websites. The have information to newspapers revenue based on advertising
models word the website access discrete perverse banner ads example this might be Google were
targeted as basement what your what you’re searching for process be of value proposition.
The benefits of topic and write reason e-commerce and the value that customers derive from from
using to enter e-commerce site so set for example, selecting Google for justice a second
if Google was not producing the volume of hints think they produce people value in advertising
side of party having her as my side of the people traffic. The benefit comes from the
volume they get is 21 to place ads on your site about opportunity and then there’s the
functions of business model special forces of business model include things like describing
the major business processes of the company describing the business models for limiting
the ventures competitive strategy most long-term plans articulating a customer value proposition,
etc. these are all things that make up a business plan business model need to be considered
e-commerce department is also the other type of business environment considers graphical
use of the common revenue models the transaction fee model where you Cindy’s first percentage
for transaction credit cards operate on this model will take a small percentage of each
transaction bank makes money off transactions subscription models in magazines, newspapers,
things like that the advertising model Lacey Siegel banner ads on websites and things of
that nature affiliate model were commissions for referring customers from one site to another
sales model search another one. It included here is a hybrid approach where you might
have website that has advertising and subscriptions. Maybe you do advertising for free based version
nonsubscription based version of the website or for a fee for the subscription. There are
no ads there’s other combinations that you can tie together as well a lot of different
typical of different types typically e-commerce business models. Some common ones include
direct online direct marketing and the idea behind the parking is constant. Most disintermediation.
It’s the removal of certain links in the supply chain so the idea is that are selling direct
manufacturer can reduce the cost of a good or service must sell more to to consumers.
Consumers are more willing to buy us cost to your bidding systems are model in which
a buyer which why request would be sellers to submit bids) wins sometimes is referred
to as the first option the idea is that a consumer places a the desire for good or service
out there place exchange in your different sellers that will will bid on it. Essentially
lowering the price each time to try when that particular sale what marketplaces exchanges
place brings together buyers and sellers together. Viral marketing is an example of electronic
word-of-mouth subsidy through email, websites, social networking sites. I like you to present
an example couple years ago of Kobe Bryant parking lot is what you so many of Sophie’s
dual slot and he creeps up just as a car passes underneath the nurse the car until innerspring
left inside exits the frame of reference on insults really, exhilarating to watch this
happen appears to be done very amateurish way reality was professional production was
meant to push Nike shoes and people really interested to see this happen and so people
constantly going to tell you to watch this video is really push Nike shoes on another
example of a typical e-commerce business model is group purchasing something client May the
the physical world of of taking basically smaller groups of taking individuals or small
organizations in combining together to create larger purchasing block so they can buy in
bulk and save money. This is applying this in an online environment. The benefits and
impacts of e-commerce e-commerce is provider competitive match does e-commerce provide
competitive financial organizations.e-commerce technologies. I think the jurors about is
my personal belief e-commerce camp can provide competitive management not sustainable competitive
edge. Why because the technologies are available from virtually anywhere you the keys to apply
and stay on top of them all the time you have to constantly be reinventing innovating and
applying these technologies and new technologies as they come out in order to maintain that
you batch the simply adopting an e-commerce site for example is not enough. If you don’t
maintain the site it will not service as a sustainable competitive match the limitations
and barriers of e-commerce number of limitations to adopt e-commerce, technological, as well
as not logical barriers. Possible barriers of resistance to new technology implementation
difficulties. Some cases just not easy security concerns will restore customer data credit
card information personal information so that sometimes to be an issue. Lack of technology
skills. We may not simply have the skills to be able to implement lack of potential
customers for customers in a particular field don’t have an interest in using computers
for limited interest and costs. It’s not cheap to set up and maintain e-commerce sites but
also ethical issues of the branch of philosophy that deals with what is considered the right
and wrong Thursday the start, e-commerce technologies were monitoring a recent monitoring social
networking sites for employees, so they’re making the privacy of our customers with products
that we sell are we selling something that some consider unethical tobacco products or
alcohol songs was online does not violate certain concerns. So those are some of the
issues that we have to consider as well that becomes a barrier. Why do we want to study
e-commerce will as a student I would hope that you’re interested in it because it’s
just unexciting stuff, but reality is is your degree plan degree should really focusing
on develop your skills to help you get ahead were also the demand for technical, managerial
e-commerce skills is why e-commerce is is important that’s tied to your salaries and
promotion all those types of things of the more you understand e-commerce and the role
that it plays with within an organization more likely you’re going to be able to be
a personal those opportunities as they become available in your your company so this chapter
started out with the definition of e-commerce and a description of some of the various categories
of e-commerce content framework of e-commerce and so major types of e-commerce transactions
e-commerce 2.0 remembrance upgraded what traditional e-commerce and the impression that e-commerce
one point we talked about description of some of of social commerce and social software
we talked about the elements of the digital world. The drivers of e-commerce. Some of
major e-commerce business things like the the subscription base for the advertising
baseballs talk about the benefits of e-commerce organizations. Consumer society and we finished
appears to talk about the limitations of e-commerce it you can’t fix everything is not designed
to is it simply another tool that organizations have to market their goods and services.