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Chapter 1

Chapter 1. Overview of Electronic Commerce. Learning Objectives. Define electronic commerce (EC) and describe its various categories. Describe and discuss the content and framework of EC. Describe the major types of EC transactions, technologies and interactions.

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Chapter 1

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  1. Chapter 1 Overview of Electronic Commerce

  2. Learning Objectives • Define electronic commerce (EC) and describe its various categories. • Describe and discuss the content and framework of EC. • Describe the major types of EC transactions, technologies and interactions. • Describe some EC business models. • Describe the benefits of EC to organizations, consumers, and society. • Describe the limitations of EC. Prentice Hall

  3. Electronic Commerce: Definitions and Concepts What is electronic commerce (EC)? What is e-business? Prentice Hall

  4. Electronic Commerce: Definitions and Concepts • Pure Versus Partial EC • EC takes several forms depending on the degree of digitization (the transformation from physical to digital) (1) the product (service) sold, (2) the process, (3) the delivery agent (or intermediary • Examples? Prentice Hall

  5. Electronic Commerce: Definitions and Concepts • EC organizations brick-and-mortar organizations virtual (pure-play) organizations click-and-mortar (click-and-brick) organizations • Examples? • Godiva.com • What type of an organization is Godiva? • Navigational features of the site exercise • “Lotus Bowl platter with truffles” Prentice Hall

  6. Electronic Commerce: Definitions and Concepts • Where E-business is conducted electronic market (e-marketplace) interorganizational information systems (IOSs) intraorganizational information systems Prentice Hall

  7. Exhibit 1.2 A Framework for Electronic Commerce Prentice Hall

  8. EC Classification: Transactions • Classification by nature of the transactions or interactions business-to-business (B2B) business-to-consumer (B2C) consumer-to-consumer (C2C) Examples? Prentice Hall

  9. EC Classification: Technology peer-to-peer mobile commerce (m-commerce) what is location-based commerce (l-commerce)? example? Prentice Hall

  10. EC Classification: Type of Interaction collaborative commerce (c-commerce) what is collaborative commerce? example? e-learning Prentice Hall

  11. Electronic Commerce: Major Historical Landmarks • ETF (1970’s) • EDI (1980’s), proprietary, expensive • WWW (1990’s) • .com boom (late 1990’s, early 2000’s) • .com bust (2001-2002) • Google IPO (2004) Prentice Hall

  12. Digital Evolution Drives EC Digital economy: What are three characteristics of digital economy? Digital Convergence Prentice Hall

  13. Business Environment Drives EC • Critical Response Activities: What companies must do to survive in competitive business environment as it changes • Traditional Responses? • Innovative Responses? • Categories of business pressures • market (economic): examples? • Societal: examples? • Technological: examples? Prentice Hall

  14. Business Environment Drives EC • Organizational response strategies: What EC-enabled initiatives can organizations and businesses undertake to deal with those pressures? • BPR • CRM • Business Alliances • Electronic Markets • Time to Market Reduction • Mass Customization Prentice Hall

  15. EC Business Models • The Structure of Business Models: • What are the six elements of a comprehensive business model? Prentice Hall

  16. What are major revenue models? Examples? EC Business Models Prentice Hall

  17. EC Business Models • Value proposition (to whom?) • What are some typical EC Business Models? Prentice Hall

  18. EC Business Models: Orbis Group • Describe Traditional Supply Chain (process) for product catalog acquisition. • Describe Process with ProductBank. • What processes are eliminated? • What players are eliminated? • Who benefits? • Who loses? Prentice Hall

  19. Benefits of EC Benefits to Organizations Prentice Hall

  20. Benefits of EC Benefits to Consumers Prentice Hall

  21. Benefits of EC • Benefits to Society Prentice Hall

  22. Exhibit 1.7Limitations of EC • Most prominent technical limitations/barriers? • Most prominent non-technical limitations/barriers? • How can we overcome them? Prentice Hall

  23. Exhibit 1.8 The Networked Organization Prentice Hall

  24. Summary • Definition of EC and description of its various categories. • The content and framework of EC. • The major types of EC transactions. • The major EC business models. • Benefits of EC to organizations, consumers, and society. • Limitations of EC. Prentice Hall

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