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eFirm & eCommerce. Digital Firm. Contents. Introduction The opportunities of technology Electronic Commerce Payment systems Management challenges Summary. The opportunities of technology. Digital Firm. Digital firm uses internet for. Available for customer 24/7

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eFirm & eCommerce

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Efirm ecommerce

eFirm & eCommerce

Digital Firm



  • Introduction

  • The opportunities of technology

  • Electronic Commerce

  • Payment systems

  • Management challenges

  • Summary

The opportunities of technology

The opportunities of technology

Digital Firm

Digital firm uses internet for

Digital firm uses internet for

  • Available for customer 24/7

  • Easiest way to connect with other businesses and customers

  • Replaces the existing distribution channels

  • Creating new business models

  • Reduces costs

  • Eliminating inefficient intermediaries

  • Equilibrium between Reach and Richness

Reducing costs

Reducing costs

  • Reducing costs of information

    • Creating

    • Sending

    • Storing

  • Transaction costs

  • Agency costs

Reach richness

Reach & Richness

  • Before the Internet companies had to make a choice between

    • Richness

      • depth and details of information that

        • business can supply to the customer

        • business collects about customer

    • Reach

      • How many…

        • people a business can connect with

        • products it can offer them



Easy information flow

Easy information flow

  • Nowadays it is possible to gain information direct from product source

    • Without intermediaries

    • Without physical visiting shop

  • Quicker, easier and more convenient

Internet business model

Internet Business model

  • Describes how the enterprise

    • Produces

    • Delivers

    • Sells product/service

  • Showing how the enterprise creates wealth

Internet business models

Internet Business models

  • Virtual storefront

  • Content provider

  • Online marketplace

  • Virtual community

  • Online service provider

  • Portal

Virtual storefront

Virtual storefront

  • Sells physical products directly to consumers or to individual businesses

Content provider

Content provider

  • Creates revenue by providing digital content such as

    • News

    • Photos

    • Video

    • Music

Virtual community

Virtual community

  • Provides online meeting place

    • Users can communicate and exchange useful information



  • Provides initial point of entry to the web along with specialized content and other services

Electronic commerce

Electronic commerce


Categories of electronic commerce

Categories of electronic commerce

  • Many ways in which electronic commerce can be classified

  • Three major categories are:

    • Business-to-Consumer(B2C) electronic commerce

    • Business-to-Business(B2B) e. c.

    • Consumer-to-Consumer(C2C) e. c.



  • B2C

    • involves retailing products and services to individual shoppers.

  • B2B

    • involves sales of goods and services among businesses

  • C2C

    • involves consumers selling directly to consumers

  • B2B and B2C transaction can take place using mobile commerce(m-commerce) technology

Direct sales over the web

Direct sales over the Web

  • Reduce the number of steps in traditional distribution channel

  • Disintermediation

    • The removal of organization or business process layers responsible for certain intermediary steps in a value chain

Interactive marketing personalization

Interactive Marketing & personalization

  • Interactive capabilities

    • can be used to build closer relationship with customers in marketing and support

  • Web personalization

    • Used to deliver content geared to the specific interest of each user

    • Build personal relationship to the webpage

  • Make access to the web more and more easier

  • Learning and examination customers behaviors by the visiting web page is cheaper

Net marketplaces

Net marketplaces


  • Sometimes called e-hubs

  • Many sellers

  • Many buyers

  • Transaction oriented

  • Prices established through auctions, negotiations, etc.

  • Example: internet auctions- eBay, Allegro, aukro


Payment systems

Payment systems


Payment systems1

Payment systems

  • Digital credit card systems

  • Digital wallets

  • Digital cash

  • P2P payments

  • Digital checking

  • Electronic billing presentment and payment

Intranet extranet

Intranet & extranet

  • Forming the underpinnings of electronic business by providing low cost technology that can run on almost any computer platform

  • Intranet

    • inside company

    • Inexpensive

    • Accessible for most computer platforms

    • Scalable

  • Extranet

    • Can be used by more than one computer and customers

    • Private intranets extended to selected users

Intranet applications

Intranet applications

  • Finance and accounting

  • Human resources

  • Sales and Marketing

  • Manufacturing and Production



Challenges for managers

Challenges for managers

  • Enabling Digital firm requires

    • Deep organizational change

    • Redesign business processes

    • Recasting relationships with

      • customers

      • Suppliers

      • Other business partners

    • New roles for employees



  • Not always more profitable and more efficient than traditional business models

  • Security

  • Privacy

  • Chanel conflicts

Thank you for your attention

Thank You for Your Attention

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