Chapter 14

CHAPTER 14 : E - BUSINESS

E-BUSINESS

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

• Touch customers
• Enrich products and services with information
• Reduce costs

How do E-Commerce and E-Business differ?

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


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 .