Electronic Business, Intranets & Extranets

1. Electronic Business, Intranets & Extranets

2. Electronic Commerce The online exchange of goods, services, and money among firms, and between firms and their customers

3. Types of Electronic Commerce

4. Revenue Paradigms Sales - Cost of goods sold Gross margin - Expenses Net income • How do we make a buck? • Margin * Volume • (SP – cost) * Volume

5. Business advantages of B2B include: • Managing inventory more efficiently • Adjusting more quickly to customer demand • Getting products to market faster • Obtaining lower prices on supplies Sales - Cost of goods sold Gross margin - Expenses Net income

6. Ebake.com Business advantages of B2C include: • Access to a wider selection of products and services • Access to products at lower costs • Convenience for transactions or for obtaining information Sales - Cost of goods sold Gross margin - Expenses Net income • How do we make a buck? • Margin * Volume • (SP – cost) * Volume

7. Internet &World Wide Web Capabilities Information Dissemination Transaction Support Integration World Wide Web Collaboration Interactive Communication Mass Customization

8. 6% Impact of the Web: Disintermediation • Disintermediation • Removal of the intermediary (middleman) in a sale. • Companies can sell directly to customers (retail or wholesale) without assistance using the Internet Manufacturer or Service Provider Intermediary (Middleman) Customer (Consumer or Business)

9. 6% • Are there any downsides to disintermediation for a manufacturer or primary creator of services? • If no, why don’t all “manufacturers disintermediate their distribution channel?

10. Electronic Commerce Business Strategies Business Strategies come in one of the following three types. All require a sound business model to be successful chapters Amazon

11. Key Ingredients of a Business Model

12. Click-Only Strategy Google ad words

13. M-Commerce and the Key Drivers for Growth Any electronic transaction or information interaction conducted using a wireless, mobile device, and mobile networks, that leads to transfer of real or perceived value in exchange for information, service, or goods Driver One: Interest in the Internet Driver Two: Deployment of High Speed Networks Driver Three: Growth in Mobile Devices Google – m-commerce

14. Working 24//7 Mobile Commerce • Mobile commerce (m-commerce) relies on the use of wireless devices, such as personal digital assistants, cell phones, and smart phones, to place orders and conduct business • Issues confronting m-commerce • User-friendliness of the wireless device • Network speed • Security • Quality of life

15. Intranets • Intranets • An internal, private network using Web technologies to securely transmit information within the organization. • This private internal Web limits viewing access to authorized users within the organization • Intranet Benefits • Improved information access to authorized user • Improved timeliness and accuracy of information • Global reach allowing employees access from anywhere • Cross-platform integration • Low cost deployment • Positive return on investment

16. Intranet Applications Training Collaboration Intranet Hub Application Integration Online Entry of Information Real-time Access To Information

17. Electronic Data Interchange (EDI) • Electronic Data Interchange • The transmission of electronic business forms between business partners (e.g. purchase order) • Typically used by large organizations…very expensive • The internet has opened this technology to smaller firms • How it works • EDI transactions are system generated by the sender and then transmitted to the receiver by a VAN • VAN (Value Added Network) providers are private network operators that provide guaranteed delivery • Standards • Document types and formats are universally standardized • Two standards exist: ANSI X.12 and UN/EDIFACT

18. Electronic Data Interchange (EDI) Example

19. Extranets – Business to Business Ecommerce • Extranets enable two or more firms to use the Internet to do business together

20. Extranets • Extranets • secure networks that provide customers, suppliers, and employees with access to internal systems • replaced EDI for smaller firms • Extranet Benefits • timeliness &accuracyof communications, reducing errors& misunderstandings • Allows central management of documents allowing single updates • Uses standard web protocols • Easy to use, requires little training • Used to automate transactions, reducing cost and cycle time

21. Extranet Applications Supply Chain Management Real-Time Info Access Procurement Portals Exchanges Collaboration Distribution Portals Enterprise Portals

22. Extranet Applications: Exchanges and Portals e.g. SciQuest.com e.g. Premier.Dell.com e.g. Ford Supplier Portal)

23. New Technologies for B2B Electronic Commerce • RFID - Radio Frequency Identification • Used for tagging and tracking physical items • RFID system uses a transceiver and antenna to transfer information to a processing device from an RFID tag • RFID Benefits • RFID is more powerful than bar-code technology because it does not require visual line-of-sight reading • RFID tags can be placed anywhere (e.g. clothes, pets, cars, parts, store items, etc.) • RFID Issues • Deployment is growing rapidly but it is still expensive • There is no clear set of data standards • Global radio frequencies differ between countries