Creating a Winning E-Business Second Edition

1. MIS/ENTR 375 Global E-Commerce Creating a Winning E-BusinessSecond Edition Understanding E-Business Chapter 1

2. Learning Objectives • Discuss e-business basics • Describe the Internet and World Wide Web • Discuss the role of e-business in the global economy • List e-business advantages and disadvantages • Explain e-business value chains and value activities • Identify e-business models

3. E-Business Basics • E-commerce – Process of buying or selling goods or services across a telecommunications network • E-business – Widest spectrum of business activities using Internet and Web technologies • Many technologies facilitate e-business • Electronic funds transfer (EFT) • Electronic data interchange (EDI) • Internet / World Wide Web

4. The Internet andWorld Wide Web • Network • Group of two or more computers • Linked by communication media • Cable • Telephone lines • Wireless connections • Networks servers • Give users access to shared network resources • Printers, files, telecommunication lines

5. The Internet andWorld Wide Web (continued)

6. The Internet andWorld Wide Web (continued) • Internet • A worldwide public network that connects private networks • Originated in the late 1960s as ARPANET • Managed by the National Science Foundation in the 1980s and early 1990s as NSFnet • Connected colleges, universities, and research centers • Commercial activity was prohibited until 1991

7. The Internet andWorld Wide Web (continued) • Internet (continued) • Replaced by commercial high-speed telecommunications backbones in 1995 • Individuals and SMBs connect via an Internet Service Provider (ISP) • Large businesses, colleges, and universities may have direct connection

8. The Internet andWorld Wide Web (continued)

9. The Internet andWorld Wide Web (continued) • Internet Communications • Email • Instant messaging • Newsgroups and web-based forums • Mailing lists • Internet Relay Chat (IRC) • File Transfer Protocol (FTP) • VoIP technology • Peer-to-peer file sharing • World Wide Web pages • Weblogs or blogs • Really Simple Syndication (RSS)

10. The Internet andWorld Wide Web (continued) • World Wide Web (Web) • A subset of the Internet • Built on the concept of hypertext • System of linked pages called Web pages • Related Web pages are called a Web site • Viewed in a Web browser • Stored on Web servers • Millions of people around the world access the Internet and Web daily

11. E-Business and theGlobal Economy • Widespread linking of individuals and businesses has changed global economy • Time and space are no longer limiting factors • Business value of information is greater • Information is more accessible • Traditional intermediaries have been replaced by new types of intermediaries

12. E-Business and theGlobal Economy (continued) • Buyers are growing more powerful • Internet and Web access has changed buyers expectations • Information on competing products • Transaction speed and convenience

13. E-Business and theGlobal Economy (continued)

14. E-Business and theGlobal Economy (continued)

15. E-Business and theGlobal Economy (continued) • Value chain or value network • Activities involved in the production of goods or services • Internet and Web technologies facilitate value chains and networks • Improve communication • Improve transaction speed • Internet and Web access allows businesses to rethink their value chains

16. E-Business and theGlobal Economy (continued)

17. E-Business and theGlobal Economy (continued)

18. E-Business Models • Business models • How a company conducts business in order to generate revenue • Widespread access to the Internet and Web allows companies to adapt old models and create new ones • E-business models are often categorized by type of customer

19. E-Business Models (continued)

20. E-Business Models (continued) • Business-to-consumer (B2C) • Retail sales (e-retail) including airline tickets, entertainment venue tickets, hotel rooms, stock purchases, diet and fitness programs • Brick-and-mortar companies are moving to brick-and click companies • Sears, Best Buy, Barnes & Noble, the Gap • Pure-play e-retailers and catalog merchants • Amazon.com, eBags, Harry and David

21. E-Business Models (continued) • Business-to-business (B2B) • Businesses selling to other businesses • Online stores, such as Office Depot, Staples • Internet and Web technologies • Web hosting • Web design • Hardware and software • Consulting

22. E-Business Models (continued) • Business-to-business (B2B) • Online trading communities for vertical markets • Exchanges, aggregators, auctions • Virtual marketspaces for buyers and sellers • Elance, ATLA Exchange, Business.com, HedgeHog

23. E-Business Models (continued) • Business-to-government (B2G) • Businesses provide a marketspace for other businesses and government agencies • Bidmain, B2GMarkets

24. E-Business Models (continued) • Consumer-to-consumer (C2C) • Consumers sell or exchange products and services directly with other consumers • Auctions, online classified ads, expert information exchanges • eBay, American Boat Listing, TraderOnline.com, AllExperts

25. E-Business Models (continued) • Consumer-to-business (C2B) • Reverse auctions in which a single consumer names his or her own price for products or services • Consumer’s offer made to multiple businesses, which can accept or decline offer • Priceline.com