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Electronic Commerce

2. Managerial Questions. What is e-commerce?What benefits can I expect?How much will it cost?What are the risks?. What are electronic markets?What do I need to become involved as a pure dot-com?What do I need to take my brick-and-mortar business into e-commerce?. 3. The More Things Change?.

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Electronic Commerce

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    1. 1 Electronic Commerce

    2. 2 Managerial Questions What is e-commerce? What benefits can I expect? How much will it cost? What are the risks? What are electronic markets? What do I need to become involved as a pure dot-com? What do I need to take my brick-and-mortar business into e-commerce?

    3. 3 The More Things Change The use of ICT in businesses is not new e.g. the telegraph, the phone Is e-commerce just one more channel? Is e-commerce just a new variation on an old model?

    4. 4 The More They Dont Stay the Same There are some significant changes e-commerce fosters: Speed of communication Changing the place of business (now in your living room or office). Changing time of business (24/7/365)

    5. 5 What is Electronic Commerce? Electronic => via the Internet, an intranet, or a private network Computer to computer Person to computer Computer to person Person to person via computer network Commerce => Virtually any aspect of business exchange The complete selling cycle, or just a single part of the cycle such as payment or service

    6. 6 Most Importantly E-commerce results in the combination of technology and other organizational business practices to make NEW business models.

    7. 7 Three Dimensions of EC

    8. 8 Examples Traditional commerce: Buy a watch at a department store Partial e-commerce Buy a watch online at an e-store Pure e-commerce Buy a e-book online at an e-store using e-cash

    9. 9 Sidebar: Evolving E-commerce 1970s EFT 1980s EDI Late 1980s web connectivity (chat rooms, etc). 1990s Groupware and collaboration 1995 WWW Coming - ? Internet 2? 3-D Internet?

    10. 10 E-Commerce Relationships The more traditional models B2B transactions between organizations B2C sales from business to consumers C2C sales between consumers

    11. 11 E-Commerce Relationships The newer models C2B consumers sourcing possibilities from corporations G2C interactions with citizens, not consumers Intrabusiness transactions within a firm M-commerce mobile (cell phones) transactions

    12. 12 E-Business Markets

    13. 13 The State of E-Commerce

    14. 14 E-Commerce Growth

    15. 15 Technology in E-Commerce Internet public and worldwide Intranet private within a firm Extranet private between organizations

    16. 16 Should you go into E-Commerce? Need to consider the detailed business case for the project Technical feasibility Economic feasibility Organizational feasibility

    17. 17 Issues Security Customer buy-in Employer buy-in Employee buy-in Resources Funding Strategy Competitive expectations Staying current Vendor support Upgrade or change application?

    18. 18 E-Commerce: Benefits Cost efficiencies: lower costs Operational efficiencies: more accurate transactions (mostly) Effectiveness: increasing reach, better communications with customers, suppliers, etc. Facilitates national/international expansion Reach a target/niche audience Avoid brick-and-mortar overhead Access venture capital (not always easy)

    19. 19 E-Commerce: Costs Tangible Hardware, software and development Project management, staffing and training Marketing and transaction costs Upgrades, hosting and access costs Logistics and security Intangible Alienating existing customers Opportunity cost of other investments Frustration and failures (no project is without at least minor ones)

    20. 20 Electronic Business Model Some considerations The process (How to handle) consumer problems (How to handle) retailer problems Information transactions Advertising

    21. 21 The 7 Cs of E-Commerce Cost Convenience Communication Community Coordination Customization Collaboration

    22. 22 Exercise Choose a category of e-commerce (B2B, B2C, G2C, etc.) Choose two web-sites that fit in that category. Evaluate and compare those web-sites with respect to the 7Cs.

    23. 23 Structure of the Marketplace What is EFT? And then what does it make possible? What does EDI do? And then what does it make possible?

    24. 24 Electronic Markets: Places of Exchange A market is a place of exchange, What is being exchanged in an e-market? information products / services payments

    25. 25 The Electronic Market

    26. 26 Business and the E-Market Extended reach Bypassing traditional channels Augmenting traditional markets Improved service

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