1 / 23

Chapter 2

Chapter 2. E-commerce fundamentals. Learning objectives. Evaluate changes in business relationships between organi z ations and their customers enabled by e-commerce Identify the main business and marketplace models for electronic trading

abie
Download Presentation

Chapter 2

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Chapter 2 E-commerce fundamentals

  2. Learning objectives • Evaluate changes in business relationships between organizations and their customers enabled by e-commerce • Identify the main business and marketplace models for electronic trading • Describe different revenue models and transaction mechanisms available through hosting an e-commerce site. week 2 e-commerce fundamentals

  3. B2B and B2C • Business to Business • Business to Consumer • Selling channel different • Customers different • Push products to customers • New: • Pull: customers initiate • Information • transactions week 2 e-commerce fundamentals

  4. B2B and B2C models • Figure 2.2B2B and B2C interactions between an organization, its suppliers and its customers week 2 e-commerce fundamentals

  5. B2B and B2C characteristics week 2 e-commerce fundamentals

  6. Transaction alternatives businesses  consumers Figure 2.3Summary of transaction alternatives between businesses and consumers week 2 e-commerce fundamentals

  7. Disintermediation Figure 2.4Disintermediation of a consumer distribution channel showing (a) the original situation, (b) disintermediation omitting the wholesaler, and (c) disintermediation omitting both wholesaler and retailer week 2 e-commerce fundamentals

  8. Example – CD’s • Selling of CD’s collapsed • Why? • Less songs to sell? • People do not listen to music? • Who is producer • What is product • Added value of: • Record company • Wholesaler • Retailer • Alternatives week 2 e-commerce fundamentals

  9. Reintermediation • Figure 2.7Reintermediation process: (a) original situation, (b) reintermediation contacts • Buying needs intermediate for: a) information b) transaction itself week 2 e-commerce fundamentals

  10. Example - Kelkoo week 2 e-commerce fundamentals

  11. Countermediation • Creation of a new intermediary • Example: • B&Q www.diy.com • Opodo www.opodo.com • Boots www.wellbeing.comwww.handbag.com • Ford, DaimlerChrysler (www.covisint.com) • Partnering with existing intermediary – Mortgage broker Charcol and Freeserve week 2 e-commerce fundamentals

  12. Portals Q1. Define portal Q2. Is a search engine the same as a portal?Yes, NoQ3. Is a search engine the same as a directory?Yes, No Q4. List search engines / portals you use and explain why week 2 e-commerce fundamentals

  13. Meta services Portal ‘A gateway to information resources and services’ Example: Zeelandnet Search engines Directories News aggregators Comparers Exchanges week 2 e-commerce fundamentals

  14. Types of portal week 2 e-commerce fundamentals

  15. Importance of portals Nielsen//NetRatings – top 10 domains web properties in the UK (June 2000 measurement period, at home panel), September 2002 (http://epm.netratings.com/uk/web/NRpublicreports.toppropertiesmonthly). Data for other countries available at: www.mediametrix.comhttp://www.nielsen-netratings.com/hot_off_the_net_i.jsp) week 2 e-commerce fundamentals

  16. Methods for finding web pages Invisible webNot indexed by searchengines Google 5 Yahoo! week 2 e-commerce fundamentals

  17. Location of trading week 2 e-commerce fundamentals

  18. Trading arrangements week 2 e-commerce fundamentals

  19. Business model Timmers (1999) defines a ‘business model’ as: An architecture for product, service and information flows, including a description of the various business actors and their roles; and a description of the potential benefits for the various business actors; and a description of the sources of revenue. week 2 e-commerce fundamentals

  20. Business models Figure 2.11Alternative perspectives on business models week 2 e-commerce fundamentals

  21. Reverse auction example • Through 2001 there were over 512 online auction bidding events processed for DaimlerChrysler on vendor supported portal Covisint (www.covisint.com) amounting to approximately €10 billion. That is a third of their total procurement volume. In May 2001, DaimlerChrysler staged the largest online bidding event ever, with an order volume of €3.5 billion in just four days. As well as savings in material purchasing prices, DaimlerChrysler also reduced throughput times in purchasing by 80 percent week 2 e-commerce fundamentals

  22. Learning from the dot coms • Explain these financials! week 2 e-commerce fundamentals

  23. Dot com lessons – can you add to these? • Explore new business and revenue models. • Perform continuous scanning of the marketplace and respond rapidly. • Set up partner networks to leverage the expertise and reputation of specialists. • The real world is still important for product promotion and fulfilment. • Examine the payback and return on investment of new approaches carefully. See also chapter 5 examining reasons for failure week 2 e-commerce fundamentals

More Related