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Electronic Business, Intranets & Extranets

Electronic Business, Intranets & Extranets. Electronic Commerce. The online exchange of goods, services, and money among firms, and between firms and their customers. Types of Electronic Commerce. Revenue Paradigms. Sales - Cost of goods sold Gross margin - Expenses Net income.

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Electronic Business, Intranets & Extranets

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  1. Electronic Business, Intranets & Extranets

  2. Electronic Commerce The online exchange of goods, services, and money among firms, and between firms and their customers
  3. Types of Electronic Commerce
  4. Revenue Paradigms Sales - Cost of goods sold Gross margin - Expenses Net income How do we make a buck? Margin * Volume (SP – cost) * Volume
  5. Business advantages of B2B include: Managing inventory more efficiently Adjusting more quickly to customer demand Getting products to market faster Obtaining lower prices on supplies Sales - Cost of goods sold Gross margin - Expenses Net income
  6. Ebake.com Business advantages of B2C include: Access to a wider selection of products and services Access to products at lower costs Convenience for transactions or for obtaining information Sales - Cost of goods sold Gross margin - Expenses Net income How do we make a buck? Margin * Volume (SP – cost) * Volume
  7. Internet &World Wide Web Capabilities Information Dissemination Transaction Support Integration World Wide Web Collaboration Interactive Communication Mass Customization
  8. 6% Impact of the Web: Disintermediation Disintermediation Removal of the intermediary (middleman) in a sale. Companies can sell directly to customers (retail or wholesale) without assistance using the Internet Manufacturer or Service Provider Intermediary (Middleman) Customer (Consumer or Business)
  9. 6% Are there any downsides to disintermediation for a manufacturer or primary creator of services? If yes , what are the disadvantages? If no, why don’t all “manufacturers disintermediate their distribution channel?
  10. Electronic Commerce Business Strategies Business Strategies come in one of the following three types. All require a sound business model to be successful chapters Amazon
  11. Key Ingredients of a Business Model
  12. Click-Only Strategy
  13. Stages of Business-to-Consumer Transactions (e.g. Electronic Brochure) (e.g. displaying a bank balance) (e.g. buying a book)
  14. Working 24//7 Mobile Commerce Mobile commerce (m-commerce) relies on the use of wireless devices, such as personal digital assistants, cell phones, and smart phones, to place orders and conduct business Issues confronting m-commerce User-friendliness of the wireless device Network speed Security Quality of life
  15. M-Commerce and the Key Drivers for Growth Any electronic transaction or information interaction conducted using a wireless, mobile device, and mobile networks, that leads to transfer of real or perceived value in exchange for information, service, or goods Driver One: Interest in the Internet Driver Two: Deployment of High Speed Networks Driver Three: Growth in Mobile Devices
  16. How M-Commerce differs from general EB
  17. Intranets Intranets An internal, private network using Web technologies to securely transmit information within the organization. This private internal Web limits viewing access to authorized users within the organization Intranet Benefits Improved information access to authorized user Improved timeliness and accuracy of information Global reach allowing employees access from anywhere Cross-platform integration Low cost deployment Positive return on investment
  18. Intranet Applications Training Collaboration Intranet Hub Application Integration Online Entry of Information Real-time Access To Information
  19. Extranets – Business to Business Ecommerce Extranets enable two or more firms to use the Internet to do business together
  20. Electronic Data Interchange (EDI) Electronic Data Interchange The transmission of electronic business forms between business partners (e.g. purchase order) Typically used by large organizations…very expensive The internet has opened this technology to smaller firms How it works EDI transactions are system generated by the sender and then transmitted to the receiver by a VAN VAN (Value Added Network) providers are private network operators that provide guaranteed delivery Standards Document types and formats are universally standardized Two standards exist: ANSI X.12 and UN/EDIFACT
  21. Electronic Data Interchange (EDI) Example
  22. Extranets Extranets secure networks that provide customers, suppliers, and employees with access to internal systems replaced EDI for smaller firms Extranet Benefits timeliness &accuracyof communications, reducing errors& misunderstandings Allows central management of documents allowing single updates Uses standard web protocols Easy to use, requires little training Used to automate transactions, reducing cost and cycle time
  23. Virtual private network (VPN): a secure connection between two points across the Internet Tunneling: the process by which VPNs transfer information by encapsulating traffic in IP packets over the Internet
  24. Extranet Applications Supply Chain Management Real-Time Info Access Procurement Portals Exchanges Collaboration Distribution Portals Enterprise Portals
  25. Extranet Applications: Exchanges and Portals e.g. SciQuest.com e.g. Premier.Dell.com e.g. Ford Supplier Portal)
  26. New Technologies for B2B Electronic Commerce XML - Extensible Markup Language EBRL - Extensible Business Reporting Language
  27. New Technologies for B2B Electronic Commerce RFID - Radio Frequency Identification Used for tagging and tracking physical items RFID system uses a transceiver and antenna to transfer information to a processing device from an RFID tag RFID Benefits RFID is more powerful than bar-code technology because it does not require visual line-of-sight reading RFID tags can be placed anywhere (e.g. clothes, pets, cars, parts, store items, etc.) RFID Issues Deployment is growing rapidly but it is still expensive There is no clear set of data standards Global radio frequencies differ between countries
  28. RFID Library example
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