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CHAPTER THREE

CHAPTER THREE. EBUSINESS. Introduction. Ebusiness is the conducting of business on the Internet Ebusiness and Ecommerce are not the same Issues Disruptive technology Evolution of the Internet. Disruptive Technology (1). A new technology that changes the accepted way of doing things

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CHAPTER THREE

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  1. CHAPTER THREE EBUSINESS

  2. Introduction • Ebusiness is the conducting of business on the Internet • Ebusiness and Ecommerce are not the same • Issues • Disruptive technology • Evolution of the Internet

  3. Disruptive Technology (1) • A new technology that changes the accepted way of doing things • Digital cameras disrupted Kodak (Film is but a niche market)

  4. Disruptive Technology (2) • The Web and online travel reservations disrupted travel agents • Online stock trading disrupted the full-service stock broker • Nobody carries change in a casino • Netflix is disrupting media distribution

  5. Sustaining Technology • Using technology to improve a product or service • Faster and larger hard drives • Improvements in your bank’s Web site • Faster wireless • A bigger screen

  6. The Internet (1) • As mentioned in the “history lesson” • The Internet is a global network using TCP/IP as it’s base protocol • The Internet provides a range of services including the World Wide Web • It was originally text based • There was no search engine until Jerry Yang and David Filo created YAHOO (Yet Another Hierarchical Officious Oracle)

  7. The Internet (2) • Probably one of the most disruptive technologies affecting business • It has flattened the world • If it’s repeatable, it can be done anywhere

  8. The Internet (Services) • SMTP – Simple Mail Transfer Protocol • HTTP – Hypertext Transfer Protocol • FTP – File Transfer Protocol • SOAP – Simple Object Access Protocol • And many more

  9. My Summary of the Net • The Internet allows us to buy and sell almost any good or service anywhere in the world at any time

  10. The Internet (Selected Industries) • Travel • Entertainment • Electronics • Financial services • Retail • Automobiles • Education and training

  11. Web 1.0 • Mass customization (specialized version of a product) • Personalization (because we know who you are) • Disintermediation

  12. Web 2.0 • My opinion is that there exists no normative definition • Here is mine • “A perceived second generation of the Internet, marked by collaboration, Web-based communities, wikis, and social networking” • Facebook / Twitter / You Tube / MySpace

  13. Web 3.0 • With a large part of the world’s data out there, how to we find and catalog it? • A universal medium for data, information and knowledge exchange (Tim Berners-Lee) • Data driven • Semantic • SOA and Web Services

  14. The Data Driven Web • Much of the Web’s data is not well structured or indexed • We have some metadata • We have links • We try to search keywords • The data driven Web will add structure to that data

  15. The Semantic Web • A eutopic vision of content • It requires the data driven Web • www.semanticweb.org

  16. Ebusiness and Ecommerce • Ecommerce is a subset of Ebusiness • Ecommerce is the buying and selling of goods and services online • Ebusiness involves conducting business on the Internet largely to reduce transaction costs • It’s pervasive • B2B exchanges • B2C exchanges • C2C exchanges

  17. Stock Exchanges • BATS • CBOE • CME • NASDAQ • NYSE • Dark pools

  18. ARCA EX – A sample BtoB Exchange • ArcaEx was the first totally electronic stock exchange • Trades shares from nearly all exchanges • Archipelago was bought by NYSE Euronext • Volume January 2005 • Nasdaq-100 Index (QQQQ) 517,872,007 shares 23.3% of shares • Intel (INTC) 447,356,014 shares 27.8% • Microsoft (MSFT) 398,670,288 shares 26% • FOREX http://www.forex.com/forex_101.html)

  19. Ebusiness Strategies • Sales and marketing • Communication • Financial services • Procurement of goods and services • Customer service • Intermediaries

  20. EbusinessStratigies (Sales) • It began with direct selling • Pure-play retailing • Dell / Gateway / Amazon • Multichannel retailing • JC Penney moves catalog sales to the Internet • Expanding reach • That little bed and breakfast in Napa

  21. Ebusiness Strategies (Communicaiton) • E-mail goes without saying • Messaging systems • Video and Web conferencing • Adobe / Citrix GoTo Meeting • Blogs • Wikis • Mashups and APIs

  22. Ebusiness Strategies (Marketing) • Popup and other ads • RSS – You don’t ask for the data, you just get it • How does Google make money? • How does Facebook make money?

  23. EbusinessStratigies (Financial) • Online financial services has seen explosive growth • Banking / stocks • Online exchanges • New industries have emerged • PayPal • The U.S is quite behind in micropayments

  24. EbusinessStratigies (Procurement) • It’s now much easier to buy common business items • Office supplies / etc • B to B exchanges • www.alibaba.com

  25. Ebusiness Strategies (Customer Service) • Self-service customer service tools • Get current interest rates online • Get product information online • Repair manuals • Electronic funds transfer

  26. Ebusiness (Intermediaries) • Match buyers (consumers) and sellers (producers) in new ways • Create new markets (Ebay) (Match.com) (AliBaba.com) • Aggregate and disseminate content (wsj.com, CNBC) • Infomediaries (Web MD) • The distinction gets blurry and the roles are not mutually exclusive

  27. Ebusiness (Social Media) • LinkedIn for business contacts • Here is a non-canonical list • http://en.wikipedia.org/wiki/List_of_social_networking_websites#A

  28. Electronic Data Interchange (EDI) • Your book does not really talk about this much • EDI automates nearly all common transactions • Purchase orders / invoices / payments / etc… • Very complex to implement creating a barrier to entry

  29. Ebusiness Metrics (1) • Click-through tracking • Users clicked on a Web site ad for further information • Web site pattern usage • How users navigate from page to page • Per page view times • Completed shopping cart transactions

  30. Tracking Web Site Visitors • Unidentified • We know what you do but not who your are • Tracked with cookie • We know what you do and verify uniqueness but not identity • Identified / Authenticated • We know who you are and everything you do?

  31. EbusinessChallanges • International ecommerce laws don’t exist or are not enforceable • Security and trust • Taxation • Monetization of services

  32. Government Trends in Ebusiness • Event the government has gotten on the Ebusiness bandwagon • IRS electronic tax filings • Common DMV transactions are online along with common forms • We have done a terrible job with medical healthcare

  33. Mcommerce • Mobile commerceis much more than ring tones • Common stock and banking transactions • Pay per use applications • Micropayments

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