Chapter 14 and Plug-in B11

1. Chapter 14 and Plug-in B11 E-Business

2. LEARNING OUTCOMES • Compare the four categories of ebusiness models • Describe the six ebusiness tools for connecting and communicating • Identify the four challenges associated with ebusiness 14-2

3. E-Business • One of the biggest benefits of the Internet is its ability to allow organizations to perform business with anyone, anywhere, anytime. • The first “online communications network” was actually the Telegraph! In the 19th century.

4. E-Business • How do e-commerce and e-business differ? • E-commerce – the buying and selling of goods and services over the Internet • E-business – the conducting of business on the Internet including, not only buying and selling, but also serving customers and collaborating with business partners

5. E-Business Industries Using E-Business

6. E-Business Models • E-business model – an approach to conducting electronic business on the Internet

7. E-BUSINESS MODELS • Categories of E-Business 14-7

8. E-Business Models

9. Business-to-Business (B2B) • Electronic marketplace (e-marketplace) interactive business communities providing a central market where multiple buyers and sellers can engage in e-business activities

10. E-Marketplaces in B2B • Companies can use their own web sites for B2B commerce or use electronic hubs • Electronic Hubs OR Exchange • Online marketplaces with many buyers and many sellers • Avoid point-to-point connections • integrated information – one stop shopping for supplier and supplier product information Buyers Sellers Catalogs Automated purchasing Pricing Processing and Fulfillment

11. Business-to-Consumer (B2C) • Common B2C e-business models include: • e-shop – a version of a retail store where customers can shop at any hour of the day without leaving their home or office • e-mall – consists of a number of e-shops; it serves as a gateway through which a visitor can access other e-shops • B2C Business types: • Brick-and-mortar business • operates in a physical store without an Internet presence. • Pure-play business • a business that operates on the Internet only (Amazon) • Click-and-mortar business • a business that operates in a physical store and on the Internet ( Sears & Canadian Tire, Chapters)

12. Business-to-Consumer (B2C) Common B2C Ebusiness Models 14-12

13. Consumer-to-Business (C2B) • Priceline.com is an example of a C2B e-business model where customers set their own price for hotel rooms and airline tickets. • The demand for C2B e-business will increase over the next few years due to customer’s desire for greater convenience and lower prices

14. Consumer-to-Consumer (C2C) • Online auctions • Electronic auction (e-auction) -Sellers and buyers solicit consecutive bids from each other and prices are determined dynamically • Forward auction -Sellers use as a selling channel to many buyers and the highest bid wins ( eBay) • Reverse auction -Buyers use to purchase a product or service, selecting the seller with the lowest bid ( Priceline)

15. E-business Forms and Revenue-Generating Strategies • Common ebusiness forms • Content providers ( Netflix,iTune,CNN) • Informediaries (Edmunds, BizRate) • Online marketplaces( Amazon, Ebay) • Portals( Google, Yahoo, MSN) • Service providers (YouTube, Flickr) • Transaction brokers (Etrade, Fidelity) 14-15

16. EBUSINESS TOOLS FOR CONNECTING AND COMMUNICATING • Email • Instant messaging • Podcasting • Videoconferencing • Web conferencing (Webinar) • Content Management System • CMS Demo 14-16

17. EBUSINESS TOOLS FOR CONNECTING AND COMMUNICATING 14-17

18. THE CHALLENGES OF EBUSINESS 14-18

19. Accessing Internet Information Four tools for accessing Internet information Intranet – internalized portion of the Internet, protected from outside access, for employees only Extranet – an intranet that is available to strategic allies (suppliers, distributors, etc.) Portal – Web site that offers a broad array of resources and services ( Google, Yahoo & MSN) Kiosk – publicly accessible computer system that allows interactive information browsing ( used in museums and showrooms)

20. Intranets/ Extranet • Intranet: Using Internet technology to support internal organizational needs • Email • Document sharing • Remote access to resources (employee’s handbook) • Group collaboration • Extranet– intranet that is available to authorized outsiders. • Example of an Intranet/Extranet System: • http://apollo.hal.keane.com/

21. Providing Internet Information Three common forms of service providers Internet service provider (ISP) –provides individuals and other companies access to the Internet ( Eastlink, Bell Aliant) Online service provider (OSP) – offers an extensive array of unique Web services and content (e.g. American Online[AOL]) Application service provider (ASP) – offers access over the Internet to systems and related services that would otherwise have to be located in organizational computers

22. Providing Internet Information Common ISP services include: Web hosting Hard-disk storage space Support

23. Providing Internet Information Wireless Internet service provider (WISP)

24. Organizational Strategies for E-Business Primary business areas taking advantage of e-business include: Marketing/sales Financial services Customer service

25. MARKETING/SALES Generating revenue on the Internet: Personalization - occurs when a Web site can fashion offers that are more likely to appeal to that person Blog - Web site in which items are posted on a regular basis and displayed in reverse chronological order Real simple syndications (RSS) - a Web feed format used for Web syndication of content mostly for News Podcasting - the distribution of audio or video files, such as radio programs or music videos, over the Internet to play on mobile devices

26. MARKETING/SALES Generating revenue on the Internet: Search engine optimization (SEO) - a set of methods aimed at improving the ranking of a Web site in search engine listings [pay-per-click] Spamdexing - uses a variety of deceptive techniques in an attempt to manipulate search engine rankings, whereas legitimate SEO focuses on building better sites and using honest methods of promotion

27. FINANCIAL SERVICES Online consumer payments include: Financial cybermediary OR P2P [peer-to-peer] payment (e.g. PayPal) Electronic check & Electronic cash Electronic bill presentment and payment (EBPP) Sends bill over the Internet and provides easy-to-use payment Digital wallet (e.g. providing credit card number and its expiry date, used in many online stores such as Amazon)

28. Some Examples of E-commerce Payment Systems Electronic bill payment Pay your bills using your credit card or your bank account All major banks. epost • Digital wallet • Software that Stores your credit card information securely at the e-Commerce site • www.amazon.com • E-cash /E-check • Used instead of cash, check or credit card. • http://www.internetcash.com/ • Peer-to-Peer payments • To pay sellers not set up to process credit cards • www.paypal.com

29. CUSTOMER SERVICE Customer service is the business process where the most human contact occurs between a buyer and a seller e-business strategists are finding that customer service via the Web is one of the most challenging areas of e-business The primary issue facing customer service departments using e-business is consumer protection

30. Consumer Protection

31. Consumer Protection E-business security Encryption Scrambling of info which requires a key to decrypt Secure socket layer (SSL) (1) Creates secure and private connection between a client and server computer (2) encrypts the info ( 3) sends the info over the Internet ( e.g. websites with httpsURL) Secure electronic transaction (SET) Similar to SSL but also enables customer authentications for credit card transaction

32. E-Business Benefits and Challenges E-Business benefits include: Highly accessible (24/7/365) Increased customer loyalty Improved information content Increased convenience Increased global reach Decreased cost

33. E-Business Benefits and Challenges E-business challenges include: Protecting consumers Providing security Respecting taxation rules

34. Demo Google Checkout Search Engine Optimization [SEO] 3:30min SEO video2:00 min