Chapter 14 – E business

E BUSINESS

Ø  The internet is a powerful channel that presents new opportunities for organization to;
§  Touch customers
§  Enrich products and services with information
§  Reduce costs

Ø  How do ecommerce and e business differ?
§  Ecommerce – 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

Industries Using E business 


E BUSINESS MODELS


Ø  E business model – An approach to conducting electronic business on the Internet 



Business-to-Business (B2B)

Ø  Electronic marketplace (E market place) – interactive business communities providing a central market where multiple buyers and sellers can engage in e business activities. 

Business-to-Consumer (B2C)

Ø  Common B2C e business models include;
§  E shop – A version of 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

Ø  Business types;
§  Brick-and-mortar business
§  Pure-play business
§  Click-and-mortar business


Consumer-to-Business (C2B)

Ø  Priceline.com is an example of a C2B e business model
Ø  The demand for C2B e business will increase over the next few years due to customer’s desire for greater convenience and lower prices


Consumer-to-Consumer (C2C)

Ø  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
§  Reverse auction – Buyers use to purchase a product or service, selecting the seller with the lowest bid

Ø  C2C communities include;
§  Communities of interest – People interact with each other on specific topics, such as golfing and stamps collecting
§  Communities of relations – People come together to share certain life experiences, such as cancer patients, senior citizens, and car enthusiasts
§  Communities of fantasy – People participate in imaginary environments, such as fantasy football teams and playing one-to-one with Michael Jordan


EBUSINESS BENEFITS AND CHALLENGES

Ø  E business benefits include;
§  Highly accessible
§  Increased customer loyalty
§  Improved information content
§  Increased convenience
§  Increased global reach
§  Decreased cost


Ø  E business challenges include;
§  Protecting consumers
§  Leveraging existing systems
§  Increased liability
§  Providing security
§  Adhering to taxation rules

Ø  There are numerous advantages and limitations in e business revenue models including;
§  Transaction fees
§  License fees
§  Subscription fees
§  Value-added fees
§  Advertising fees

MASHUPS

Ø  Web mash up – A Web site or Web application that uses content from more than one source to create a completely new services
§  Application programming interface (API) – A set of routines, protocols, and tools for building software applications
§  Mash up editor – WSYIWYGs (What You See Is What You Get) for mash ups 

Comments

Post a Comment

Popular posts from this blog

Chapter 13 - Creating Innovative Organization

Disruptive Technology Digital Darwinism - implies that organizations that cannot adapt to the new demands placed on them for surviving in the information age are doomed to extinction.  Disruptive versus sustaining technology Disruptive technology - new ways of doing things that initially does not meet the needs of existing customers. Sustaining technology - produces an improved product customers are eager to buy, such as faster car or larger hard drive.           - It provides us with better, faster, and cheaper products in established markets. Disruptive and Sustaining Technologies Disruptive technologies typically cut into the low end of the marketplace and eventually evolve to displace high-end competitors and their reigning technologies.  The Internet- Business Disruption Evolution of the internet Internet - a global public network of computer networks that pass information from one to another using common computer protocols.   Protocols - are the standard
Read more

Chapter 9 – Enabling the Organization-Decision Making

Image
Decision Making  Ø    Reasons for Growth of Decision Making Information System -            People need to analyze large amounts of information – Improvements in technology itself, innovations in communication, and globalization have resulted in a dramatic increase in the alternatives and dimensions people need to consider when making a decision or appraising an opportunity -            People must make decisions quickly – Time is of the essence and people simply do not have time to sift through all the information manually -            People must apply sophisticated analysis techniques, such as modeling and forecasting, to  make good decisions – Information systems substantially reduce the time required to perform these sophisticated analysis techniques -            People must protect the corporate asset of organizational information – Information systems offer the security required to ensure organizational information remains safe. Ø    Model – A simplified representat
Read more

Chapter 10 – Extending the Organization – Supply Chain Management

Image
BASICS OF SUPPLY CHAIN SCM   – the management of information flows between and among stages in a supply chain to maximize total supply chain effectiveness and profitability The supply chain has three main links. 1.         Materials flows from suppliers and their upstream suppliers at all levels 2.         Transformation of materials into semi-finished products, or the organization’s own production processes 3.         Distribution of products to customers and their downstream customers at all levels INFORMATION TECHNOLOGY’S ROLE IN THE SUPPLY CHAIN  Information technology’s primary role in SCM is creating the integrations or tight process and information linkages between functions within a firm such as marketing, sales, finance, manufacturing, and distribution – and between firms, which allow the smooth, synchronized flow of both information and product between customers, suppliers and transportation providers across the supply chain VISIBILITY
Read more