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Chapter 13 Electronic Commerce

Chapter 13 Electronic Commerce. Outline. Electronic commerce (e- commerce) – concept, B2C, B2B, C2C types Business models for B2C e-commerce Business models for B2B e-commerce Differences between e-commerce and traditional business models Mobile commerce (m-commerce) Electronic payment.

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Chapter 13 Electronic Commerce

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  1. Chapter 13 Electronic Commerce

  2. Outline • Electronic commerce (e- commerce) – concept, B2C, B2B, C2C types • Business models for B2C e-commerce • Business models for B2B e-commerce • Differences between e-commerce and traditional business models • Mobile commerce (m-commerce) • Electronic payment

  3. E-Commerce Concept • E-Commerce: Buying and selling goods and services electronically, via the Internet and other networks and systems: • Business-to-Consumer (B2C; Chapters.com) • Business-to-Business (B2B; Covisint) – larger, more stable part • Consumer-to-Consumer (C2C; eBay) • E-Commerce requires a new way of thinking about organizational processes (IT support critical), customers and delivery. • Challenges: sustainable e-commerce business models, growth, security and privacy.

  4. Business model: What is the biz, Who is the customer, How money is made Virtual Storefront Sells goods/services online (Amazon - pure click, no physical stores) Consumers with access to Internet around globe Interactive Marketing and Personalization Virtual storefront as addition to store (Chapters – click & mortar) Business Models of B2C E-Commerce

  5. Business Models of B2C E-Commerce • Portal : Initial point of entry to Web, provides Internet search service for free, sells specialized content and advertising space (Google, Yahoo) • Customer: Global Internet user • Revenue: Advertising • Information Broker: Provides integrated information (Wishabi) • Customer: Global Internet user • Revenue: Referral fee (advertising)

  6. Business Models of B2B E-Commerce • Direct linking of buyer-supplier (private networks, Electronic data Interchange) • Online Exchange (different names) • Buyer/Seller run • Within an industry (GHX) • Across industries (Covisint) • Revenue: Membership fee, Transaction charge, Services Product catalogue, purchasing/selling, order fulfillment • More information

  7. E-commerce and traditional business models • Biz content: mostly old stuff, some new info-related services. • Dependent on IT (Clickstream tracking, Collaborative filtering, Supply chain systems integration) • Customer: Global, Internet/IT capable • Attracted by some cost savings (transaction costs) and value offering (dynamic pricing, disintermediation – less of middlemen) • Revenue: Dependent on advertising and variable sources (volume of transactions).

  8. Mobile Commerce (M-commerce) • Commerce using mobile electronic devices (e.g., cell phone) • Biz content: financial services, advertising, entertainment • Services: business locator, banking, news, entertainment • Challenges: screen size, speed, privacy

  9. Important for closing trading cycle Systems: Credit card – you, your bank, payee, payee’s bank Smart card – you, payee, your bank & Mondex; card reader needed E-cash/digital cash/e-money - you, payee, bank where you have account; small payments supported; payee can accumulate e-cash and exchange for cash at will Person-to-person payments – you, payee, your bank & PayPal site Challenges : Security, Trust E-commerce Payment Systems

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