CHAPTER 14 : E - BUSINESS

E-BUSINESS

>>>  The internet is a powerful channel that presents new opportunities for organization to;

     Ø  Touch customers.

     Ø  Enrich products and services with information.

     Ø  Reduce costs.

>>>  How do E-Commerce and E-Business differ?

     Ø   E-Commerce – the buying and selling of goods and services over the internet.

     Ø  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

>>>  E - Business Model – An approach to conducting electronic business on the Internet: 

BUSINESS-TO-BUSINESS (B2B)

>>>  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)

>>> 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.

>>> Business types;

~  Brick-and-mortar business.

~  Pure-play business.

~  Click-and-mortar business.

CONSUMER-TO-BUSINESS (C2B)

>>  Priceline.com is an example of a C2B e business model.

>>  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)

>>  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.

>>  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.

E-BUSINESS BENEFITS AND CHALLENGES

>>>  E- business benefits include;

~  Highly accessible.

~  Increased customer loyalty.

~  Improved information content.

~  Increased convenience.

~  Increased global reach.

~  Decreased cost.

>>>  E- business challenges include;

=  Protecting consumers.

=  Leveraging existing systems.

=  Increased liability.

=  Providing security.

=  Adhering to taxation rules.

>>>  There are numerous advantages and limitations in e business revenue models including;

~>  Transaction fees.

~>  License fees.

~>  Subscription fees.

~>  Value-added fees.

~>  Advertising fees.

MASHUPS

>>>  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 .