miso l004 e commerce.ppt
Post on 30-Apr-2015
1.968 Views
Preview:
DESCRIPTION
TRANSCRIPT
Prepared by: Jan Wong
ManagementInformation
Systemsin Organizations
ELECTRONICCOMMERCE
The Learning Outcomes
At the end of this session you should be able to:
E-Commerce, it’s scope, benefits, limitations and typesThe importance and activities of online advertising
DESCRIBE
DISCUSSB2B and emerging applications such as B2EDESCRIBE
E-BUSINESS VS E-COMMERCE
E-Business
• Broader definition of e-commerce
• Beyond buying and selling of goods and services
• Includes servicing customers, collaborating with business partners, conducting e-learning, processing electronic transactions, and more
E-Commerce• Describes the process of buying,
selling, transferring, or exchanging products, services, and/or information via computer networks, including the Internet
• Can take several forms depending on the degree of digitization (the transformation from physical to digital).
• The degree of digitization relates to:• the product (service) sold• the process• the delivery agent (or intermediary).
E-COMMERCE ORGANIZATIONS
• Brick-and-mortar (or old-economy)
Pure physical organizations / corporations
• Virtual (or pure-play)
Organizations that are engaged only in E-Commerce
• Click-and-mortar (or click-and-brick)
Conduct some e-commerce activities, yet their primary business is done in the physical world
TRANSACTION MEDIUMS
• Most e-commerce is done over the Internet.
• Also be conducted on private networks, such as value-added networks (VANs, networks that add communication services to existing common carriers), on local area networks (LANs) or wide area networks (WANs)
• In other words: Intranet, Extranet and even the Enterprise Web
TRANSAC-TION
TYPES
E-Commerce can happen between various parties
Business-to-business (B2B): Both the sellers and the buyers are
business organizations.
Collaborative commerce (c-commerce): In c-commerce, business partners
collaborate electronically. Usage of Extranets
Business-to-consumers (B2C): The sellers are organizations,
and the buyers are individuals.
Consumers-to-businesses (C2B): Consumers make known a
particular need for a product or service, and suppliers compete to provide it.
8
TRANSAC-TION
TYPES
Consumer-to-consumer (C2C): Individuals sell products or
services to other individuals.
Intrabusiness (intraorganizational) commerce: An organization uses EC
internally to improve its operations. A special case is known as B2E (business to its employees)
Government-to-citizens (G2C): A government provides
services to its citizens
Mobile commerce (m-commerce): When e-commerce is done in a
wireless environment.
8
COMPONENTS of E-COMMERCE
“The field of e-commerce is broad, and there are many of EC applications”
How can organizations support E-Commerce Applications? E-Commerce Framework
COMPONENTS/
PILLARS of E-COMM
People: Sellers, buyers, intermediaries,
information systems specialists and other employees, and any other participants.
Public policy: Legal and other policy and regulating
issues, such as privacy protection and taxation.
Marketing and advertising: Like any other business, EC usually
requires the support of marketing and advertising.
Support services: Many services are needed to support
EC. They range from payments to order delivery and content creation.
Business partnerships: Joint ventures, e-marketplaces, and
partnerships are some of frequently occurring relationships in e-business
“To execute these applications, companies need the right information, infrastructure, and support services”
5
TYPES OF E-COMMERCE :
AUCTIONS
Auctions are used in B2C, B2B, C2B, e-government, and C2C commerce
Forward auctions Sellers use as a selling
channel to many potential buyers. Items are placed at sites for auction and buyers bid continuously for the items.
2 types of forward auctions
Reverse auctions Have one buyer, usually an
organization, that wants to buy a product or a service. Suppliers are invited to submit bids.
“Electronic Auctions (e-Auctions): A market mechanism by which sellers place offers and buyers make sequential bids”
TYPES OF E-COMMERCE :
B2B
Enables an enterprise to form electronic relationships with its distributors, resellers, suppliers, customers, and other partners
Sell-Side Marketplaces: Sell products or services to other
organizations electronically, from their own private e-marketplace
Similar to B2C E-Storefront / Market
Buy-Side Marketplaces: Buy products or services from
other organizations electronically, usually from their own private e-marketplace
One buy-side model is a reverse auction. Companies wanting to buy items
places a request for quotation (RFQ) on its Web site
“The buyers, sellers, and transactions involve only organizations”
TYPES OF E-COMMERCE :
B2E
Examples: Allow employees to manage their
fringe benefits Take training classes electronically. Electronic corporate stores that
sell a company’s products to its employees, usually at a discount
Some other uses: Sales force automation
Order processing & tracking, contact management, information sharing, inventory monitoring and control, employee performance evaluation
E-Commerce Between strategic business units (SBUs) Buy / sell / trade between BUs E.g. Group of companies
E-Commerce Between and Among Employees Classified Ads E.g. Universities
“Companies are finding many ways to do business electronically with their own employees by disseminating information over the Intranet”
TYPES OF E-COMMERCE :
E-GOVERNMENT
Government-to-Citizens (G2C) Paying of bills Renewal of licenses Information Funding
Government-to-Business (G2B) Company registration Project tenders
Government-to-Government (G2G) Online non-commercial
interaction between Government organizations, departments, and authorities
“Use of Internet technology in general and e-commerce in particular to deliver information and public services to citizens, business partners and suppliers, and those working in the public sector”
TYPES OF E-COMMERCE :
C2C
C2C Auctions
Classified Ads
Personal Services Dating services, online
coaches, clubs, etc
Support Services to C2C Paypal, ToCheckOut, iPay88
“E-commerce in which both the buyer and the seller are individuals (not businesses)”
TYPES OF E-COMMERCE :
E-TAILING(e-storefronts / marketplaces)
Mostly B2C
In the past: Home catalogs TV shopping channels Problems faced:
Expensive upkeep / production Printed catalogs not up-to-date TV shopping is limited to time
Solution: E-Tailing. Why? Delivery of services (buying an
airline ticket or stocks) can be done 100 percent electronically (convenience)
Cost reduction potential
“Exchange of goods or services without a monetary transaction”
TYPES OF E-COMMERCE:
E-TAILING(e-storefronts / marketplaces)
Seen also in B2C Service Industries Electronic banking International and Multiple-
Currency Banking Online Securities Trading Online Job Market Travel Services Real Estate
However, also face major issues: Resolving channel conflict Resolving conflicts within
click-and-mortar organizations Organizing order fulfillment
and logistics Determining viability and risk
of online e-tailers Identifying appropriate revenue
models
“Exchange of goods or services without a monetary transaction”
E-COMMERCE SUPPORT SERVICES
• B2B and B2C applications require payments and order fulfillment. Portals require content, etc
• These services include: e-infrastructure (mostly technology consultants,
system developers and integrators, hosting, security, and networks)
e-process (mainly payments and logistics) e-markets (mostly marketing and advertising) e-communities (different audiences and business
partners) e-services (CRM, PRM, and directory services) e-content (supplied by content providers)
WH
Y D
O W
E N
EED
E-C
OM
MER
CE
SU
PP
OR
T S
ER
VIC
ES
E-COMMERCE SUPPORT SERVICES
• Electronic Payments are an integral part of doing business, whether in the traditional way or online. In most cases traditional payment systems are not
effective for EC, especially for B2B
• Types of E-Payments Electronic checks (e-checks) Electronic credit cards Purchasing cards, Electronic cash (e-cash) Electronic Bill Presentment and Payments E-wallets Virtual credit cards
E-COMMERCE ALSO REQUIRES:
MARKET RESEARCH & ONLINE ADVERTISING / MARKETING
MARKET RESEARCH
• For successful e-commerce (especially B2C) Important to find out who are the actual and potential
customers and what motivates them to buy
• How?1. Asking Customers What They Want
2. Observing Customer Behavior on the Web: Brand- and Vendor-Finding Agents and Price Comparisons Search Agents Collaborative Filtering Agents Other Agents (e.g. Social Media Networks)
MARKET RESEARCH:CONSUMER BEHAVIOR
MODEL
MARKET RESEARCH
• Several models have been developed in an effort to describe the details of the decision-making process that leads up to and culminates in a purchase
• Generic Purchasing-Decision Model1. Need identification
2. Information search
3. Evaluation of alternatives
4. Purchase and delivery
5. After-Purchase Evaluation
ONLINE ADVERTISING / MARKETING
• Advertisement is an attempt to disseminate information in order to influence a buyer–seller transaction
• Traditional advertising media Impersonal, one-way mass communications TV, Newspapers, Magazines, etc
• Internet advertising media Media-rich, dynamic, and interactive
ONLINE ADVERTISING / MARKETING
• Methods: Banners
Electronic billboards and is the most commonly used form of advertising on the Internet
Pop-Up, Pop-Under, and Similar Ads E-Mail Advertising Electronic Catalogs and Brochures Other Forms of Internet Advertising
Pay-Per-Click (Google Adwords) Sponsored search results
ONLINE ADVERTISING / MARKETING
• Online advertising issues & approaches: Unsolicited Advertising
Spamming Permission Marketing
Also known as: Opt-In marketing Viral Marketing Interactive Advertising and Marketing Online Promotions
Coupons, events, attractions Search engine optimization
ONLINE ADVERTISING / MARKETING…
CAN ALSO DRAW OFFLINE EXPOSURE & SALES
THINGS TO TAKE NOTE OFF
• Difference between E-Commerce and E-Business
• Brick-and-Mortar, Virtual & Click-and-Mortar
• 8 Transaction types in E-Commerce
• How organizations can sustain it’s E-Commerce Applications (5 Components / Pillars)
• The types Online Advertising
• Why Market Research?
• What are E-Commerce Support Services
E L E C T R O N I C C O M M E R C E
C o m i n g s o o n … n e x t c l a s sManagementInformation
Systemsin Organizations
ENTERPRISE SYS.:S.C. to ERP to CRMUnderstanding ERP and why organizations are moving
to CRM
IT’S TIME FOR SOME DISCUSSIONS!
• Differentiate the following terms: E-Commerce and E-Business Forward and Reverse Auctions Spamming and Permission Marketing
• What are: E-Bartering, E-Storefronts, E-Malls / Marketplace?
• What is Online Advertising? What are it’s benefits?
• List 5 reasons for E-Commerce failures and 5 suggestions for it’s success
• Discuss the major limitations of E-Commerce. Which of them are likely to disappear? Why?
• Discuss the benefits to both sellers and buyers of B2B
• What are the benefits of E-Government?
top related