2014 Adrian Boucher 1 07 16423 International e-Business Lecture1: 2014 Introduction to e-business MSc International Business.

2014 Adrian Boucher1

07 16423

International e-Business

Lecture1: 2014

Introduction to e-business

MSc International Business


Welcome!

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歓迎 ! 환영 ! Üdvözöljük! وسهال !Xoş gəlmisiniz! Hoan nghênh !أهال

Ласкаво просимо! Bine ai venit! வருக!

… apologies for omissions.


MSc International Business

Introduction, Administration,

Context and Overview

3 Waves of E-Commerce


Books, Online Resources, etc..

• Essential Texts: (choice of ONE from):• Schneider, G (2013): Electronic Commerce, 10th Edition, Course Technology

(Cengage Learning) [978-1-133-52684-3] • Chaffey, D (2011): e-business and e-commerce Management: Strategy,

Implementation and Practice, 5th Edition, Harlow, Pearson Education Ltd.• Jelassi T and A Enders (2008): Strategies for e-business, 2nd Edition, Harlow

Pearson Education, FT Prentice Hall.

• Additional Reading:• Laudon, K and C Traver (2011): e-commerce: business, technology, society,

5th Edition Harlow Essex, Pearson Education• Chen, S (2005): Strategic Management of e-business, 2nd Edition, Chichester,

John Wiley & Sons Ltd• Chaffey, D (2009): e-Commerce, 4th edition, Prentice-Hall• See also Reading List (online at Canvas, University Intranet)• Other ONLINE references and recent Journal Articles will be provided during

the Module and during Lecture sessions• Please keep an eye on Canvas for discussions, cases, additional information.


Course Road Map

1. Introduction, Administration, Context and Overview: 3 Waves of e-commerce

2. E-business Fundamentals: e-business strategies and options 3. E-business models: Developing and sustaining competitive advantage;

value-process framework: supporting infrastructure and technology4. Internal and External e-business: E-marketing and Customer

Relationship Management: selling to Consumers Online (B2C)5. Supply-Chains and Value Chains: Value “nets”; BPR and value-chain;

B2B6. Impacts of e-business on Industries, Businesses, Government7. E-business Development: Management of change; Web 2.0/3.0; “the

cloud”; m-commerce; Virtual Communities 8. E-business Strategy Implementation: ALIGNMENT of business and ICT

Strategies: Web Hosting; Online Payment Systems9. E-Business Legal, Taxation, Security and Public Policy Issues10. Implementation: Current and Future Developments, Wrap-up and

Conclusions.

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Road Map

• What IS e-business, and how has it evolved since the invention of the world-wide web (1993 – Sir Tim Berners-Lee)

• 1st Wave; 2nd Wave; 3rd Wave … happening NOW• Focus on Revenue Models and Analysis of Business

Processes in e-business, rather than Business Models• Effect of economic forces in creating business

environment leading to continuing growth of e-business• Use of Value Chains and SWOT analysis to identify and

exploit e-commerce opportunities• International nature of e-commerce and challenges of

operating on a global scale.

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Module Assessment

• Individual Assignment – Analysis of an e-enabled organization (details given later)

• Assignment: 25% of Module Assessment• 1 x 3-hour Examination (5 essay-type

questions)• Answer 3 questions• Examination: 75% of Module Assessment


Learning Objectives

• To understand and appreciate the similarities and differences between e-business and e-commerce

• To distinguish “pure-play” e-business from “clicks and mortar” e-business

• To understand the classifications of e-business and e-commerce

• To appreciate the importance of government initiatives worldwide to e-business development

• To understand the impact of the world-wide web and internet on adoption of EDI and EFT

• To understand the drivers of, and barriers to e-business adoption

• Useful source: http://www.ecommerce-guide.com/


Learning Objectives (2)

• To gain an understanding of the current size of worldwide online business and its growth rates

• To identify the enormous range of useful online resources to help contextualise study of e-business

• To understand the effects of www and internet growth on industrial structures worldwide

• To understand the concept of business models and to identify how the www / internet have contributed to the development of “new” business models

• To understand how much of traditional business practice still applies in the e-business age

• To identify current and expected future developments: Big Data;“cloud computing”; IPv6; M-commerce; social networking


Why Study e-business?

• E-commerce technology is different from, and more powerful than any of the other technologies that we have seen in the past century.

• The worldwide web (www) and Internet have been called, “disruptive technologies”, causing major changes in the ways in which many businesses are organised and deployed.

• E-commerce has challenged much traditional business thinking, has led to many innovative business and revenue models, although the laws of economics still apply.


Studying e-business

• E-commerce has a number of unique features that help explain why we have so much interest in this area:• Ubiquity: Martini business, “any time, any place, anywhere”• Global reach: trading occurs across all nations, cultures, languages• Universal standards: TCP/IP; browser technology; Internet/www• Richness: Marcoms messages: text; graphics; video; sound; SMS;

blogs, Social Networking Sites (Weibo, FaceBook, Twitter, etc..)• Interactivity: Marketers (and online businesses conduct two-way

communications, unlike offline marketing)• Information density: Massively reduced information costs and

increased quality, speed, availability, customisation, e-CRM• Personalisation/Customisation: personalisation of marketing

messages and products (e.g. Nike, Dell, Ford Cars, etc..)• Increasing use of social networking (YouTube, Facebook, LinkedIn)• Massively increased use of mobile devices: smartphones, iPad, etc..


e-Commerce /e-Business

• e-commerce: formerly used to describe interactions between business organisations and end-users (customers): buying and selling on the Internet - mainly consumer-oriented (e.g. buying books online: www.amazon.com); information exchange between organisations and external stakeholders; usually focussed on B2C (But see also Amazon Web Services: http://www.aws.amazon.com Amazon’s and other companies’ entry to “cloud computing” and Software as a Service (SaaS) – which is B2B [Business-to-Business]

• e-business: wider definition - includes all online transactions processing, supply-chain management and streamlining; value-chain analysis; value-chain re-engineering; Internet based business process re-engineering (BPR) and business model transformation; primarily concerned with B2B activities

• B2B >> B2C (of the order of 20 times to 5000 times greater in $ (and £££) value, depending on source): www.forrester.com; www.dc.com; www.gartner.com; www.kpmg.co.uk; www.accenture.com; www.aberdeen.com; www.ibm.com; www.marketing-online.co.uk


e-commerce v e-biz (cont.)

EC EB

EC = EB

ECEB

Some degree of overlap between e-commerce and e-business

e-commerce and e-business are broadly synonymous

e-commerce is a proper subsetof e-business

Chaffey, D 2011: e-commerce and e-business management 5th edition, FT Prentice-Hall


Laudon & Traver’s View

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Schneider’s View

More comprehensive and inclusive view: Becoming the norm

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Management Issues

• How do we explain the scope and implications of e-business and e-commerce to staff?

• What is the full range of benefits of introducing e-business and what are the risks?

• How great will the impact of the Internet be on our business? What are the current and predicted adoption levels?


e-Business Fundamentals

• E-business impacts DIRECTLY on ALL aspects of Business Strategy (and Marketing Strategy)

• These impacts operate both at the macro-environmental level and the micro (individual organisational) level• Macro Analysis: PESTEL Framework (not the ONLY technique!)• Micro Analysis: SWOT Analysis (not the ONLY technique!)• International Analysis: More Difficult! (Porter,1990) : “Diamond”:

http://www.quickmba.com/strategy/global/diamond/ • We need a whole range of tools and techniques to understand

the “Brave New World” and develop suitable strategies for ensuring that our own organisation(s) can cope effectively with the new order - and develop suitable strategies for:• Survival• Growth• Long-term Business Success


Initial Concepts

• Is our focus on other businesses or consumers?• B2B or B2C? - both• Fundamentally different business models required.• 9-way classification (see next slide)• Degree of complexity is a function of business objectives

• What about other Organisations/Agencies?• Government: G2C, G2B and C2G, B2G (new initiatives under

development in most countries: good examples - Canada; US; Singapore; Hong Kong; EU; Finland (and rest of Scandinavia); Malaysia; Korea; Australia; NZ; UK; Middle East; BRIC)

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Classification System

• E-business: “conduct of business on the internet. Not only buying and selling, but also servicing customers and collaborating with business partners.” http://www.whatis.com


Major Types of e-commerce

MASSIVE growth here: Smartphones, iPad, other mobile devices


E-business by product, agent & process

physical agent

digital product

physical product

digital agent

physical process

digital process

pure e-commerce

traditional commerce

Choi et al (1997):The economics ofelectronic commercePalgrave Macmillan

Pure play e-business rare:McAfee; iTunes, etc..

“Bricks and clicks”: verycommon: amazon; Tesco;Wal-Mart; GE; etc..

http://www.itraction.nl/documenten/cherry-tree-research-combined1.pdf


How does online business work?

• We shall not get too involved in the technology and the jargon, except to understand how the Internet and WWW work[Background Notes and Slides are on Canvas for you to examine]

• We shall investigate “just enough” of the software tools, hardware and networking to understand how e-business has developed and is expected to develop over the next few years

• We shall explore the e-commerce environment and try to identify areas where opportunities exist for successful adoption and exploitation of these new technologies

• We shall explore how traditional business models may still apply in the new e-business world, and –

• We shall also explore areas where existing business models need complete overhaul and re-design to take advantage of the new trading environment


Components of e-commerce

• What is needed to engage in e-business / e-commerce?• Exchange of information (or “digital content”) between two or

more parties, resulting in exchange of goods, services and money

Buyer Seller

payment

other informationrequest for product / company information

product / company information

Information good

Physical good


e-commerce: Into the Third Wave

• Electronic commerce history• Mid-1990s to 2000: rapid growth

• “Dot-com boom” followed by “dot-com bust”• 2000 to 2003: overly gloomy news reports: Massive clear-

out of companies• 2003: signs of new life

• Sales and profit growth return• Electronic commerce growing at a rapid pace• Electronic commerce becomes part of general economy• Now taken for granted• 2008: Global recession: E-commerce less hurt than most

of economy; 2nd Wave continues onward• Handheld devices lead E-business into 3rd Wave: 3G / 4G


E-Commerce & E-Business

• Electronic commerce• Shopping on the Web• Businesses trading with other businesses• Internal company processes• Broader term: electronic business (e-business)

• Electronic commerce includes: • All business activities using Internet technologies

• Internet and World Wide Web (Web)• Wireless transmissions on mobile telephone networks

• Dot-com (pure dot-com)• Businesses operating only online (relatively few: iTunes)

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Categories of E-commerce

• Business-to-consumer (B2C)• Consumer shopping on the Web

• Business-to-business (B2B): e-procurement• Transactions conducted between Web businesses• Supply management (procurement) departments

• Negotiate purchase transactions with suppliers• Activity

• Task performed by a worker in the course of doing his or her job

• May or may not be related to a transaction• Transaction: exchange of value

• Purchase, sale, or conversion of raw materials into finished product

• Involves at least one activity

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Categories of Electronic Commerce (cont’d.)

• Business processes• Group of logical, related, sequential activities and

transactions• Web helping people work more effectively

• Telecommuting (telework)• Using Web for marketing activities

• Social Networking: Facebook; Weibo; LinkedIn, etc.• Consumer-to-consumer (C2C)

• Individuals buying and selling among themselves• Web auction sites (eBay)

• Business-to-government (B2G)• Business transactions with government agencies

• Paying taxes, filing required reports

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E-commerce Categories


Internet Statistics, 2012http://www.internetworldstats.com/stats.htm


Internet Users

By Region and Population


Penetration Rates

http://www.internetworldstats.com/stats.htm

Also see: http://www.google.co.uk/intl/en/landing/internetstats/


Europe: Limitations on e-commerce

• Uncertain macroeconomic conditions: PIIGS and maybe others• Language and cultural barriers – and educational / age barriers• multiple currencies, somewhat eased by adoption of the Euro• differing tax and VAT regimes. • uncertainty over pending legislation on ecommerce taxation• lack of cross-border logistical support• poor IT infrastructure (improved over past 3-4 years)• conservative banking attitudes• restricted choice of software, payment service providers and

Multiple Application Providers …• But all that is changed by the development of cloud computing• See http://www.ecommerce-digest.com/resources.html


Internet Growth Rate

Exponential growth No later information found

This graph no longer published

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Cisco’s Forecast: Next 5 Years

http://www.theatlantic.com/technology/archive/2012/05/the-future-growth-of-the-internet-in-one-chart-and-one-graph/257811/

Key Message: Tripling of Web Traffic over this period


Who is Doing the Business?


Top Global Sites by Visitors


Q: Where do People go Online?A: Social Networking Sites


Growth of e-business: Source

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Q: How do People Access the Web?A: Increasingly by Mobile Devices

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Smartphone Growth Rates

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Still Plenty of Growth Opportunity

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What About the iPad?

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But Don’t Forget the Android

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Smartphones and Tablets: 2-horse Race

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Mobile Usage: Rapid Growth Rates

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Mobile Queries to Google (US)

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Online Advertising Trends

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Mobile Access and Advertising


How Did We Get Here?e-commerce I and e-commerce II

• E-commerce I: A period of explosive growth and extraordinary innovation; key concepts developed and explored Begins in 1995, ends in March 2000 when stock market

valuations for dot.com companies begin to collapse Thousands of dot.com companies formed, backed by over

$125 billion in financial capital – and never made a profit Massive rate of failure (“dot-bombs”) in 2001

• E-commerce II: Characterized by a reassessment of e-commerce companies and their value Began in January 2001; ongoing and successful (for some)


Visions Behind e-commerce I

• For computer scientists: A vindication of the vision of a universal

communications and computing environment Belief that Internet should not be controlled by

government, and remain free for all

• For economists: Vision of a perfect Bertrand market and friction-free

commerce, characterized by low transaction costs, low search costs, price transparency, low menu costs, dynamic pricing, disintermediation, and elimination of unfair competitive advantages


Visions and Forces Driving EC I

• For entrepreneurs, their financial backers and marketing professionals, e-commerce represented an extraordinary opportunity to return far above normal returns on investment based on: Worldwide access to consumers New marketing communications technologies that were

universal, inexpensive and powerful Ability to segment market First mover advantages – by building in switching costs Network effects (the more connections to the network, the

greater the value of the network)


How to Burn Money…

E-commerce Phase 1

E-commerce Phase 2begins


e-commerce II: 2001-2012

• Crash in stock market values for e-commerce companies throughout 2000 marks end of e-commerce I period

• Reasons for crash: Run-up in technology stocks due to enormous information

technology capital expenditure of firms rebuilding their internal business systems to withstand Y2K (FUD)

Telecommunications industry had built excess capacity in high-speed fibre optic networks

1999 Christmas season provided less sales growth than anticipated and demonstrated e-commerce was not easy (e.g. eToys.com)

Valuations of dot.com and technology companies had risen so high supporters were questioning whether earnings could justify the prices of the shares.


e-commerce Today

• E-commerce I a stunning technological success• E-commerce I a mixed success from a business

perspective• Many visions developed during E-commerce I not fulfilled

Economists’ visions of “friction-free” commerce and Bertrand model of extreme market efficiency (perfect competition) not entirely realised

Entrepreneurs and venture capitalists’ visions have not materialised exactly as predicted either

Massive growth of Social Networking sites (SNS) and Social Marketing


Comparison of Phase I and Phase II

Source: Laudon & Traver

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Characteristics of 1st and 2nd Waves


Additional Information: Jan 2014

• “Credit Crunch” - probably started September 2007• ALL countries affected – some more than others• US, UK and Europe most exposed (particularly Spain, Ireland,

Italy, Greece, Portugal)• China, Japan, rest of Asia, India showed rapid slowing of

economic growth; China has recovered somewhat; Japan still not buoyant. Latest figures from China suggest some recovery

• Africa - Zimbabwe (inflation reached 2200m% p.a.), other countries in trouble, but massive growth potential

• South American growth slowing (especially Brazil)• Cause: sub-prime lending; excessive price bubbles (housing and

other consumption financed through rising asset prices)• Current effect: Absence of credit from banks, etc.


Web 2.0

• The “new” Web • first discussed by Tim O’Reilly, 2005, see:

http://www.oreillynet.com/pub/a/oreilly/tim/news/2005/09/30/what-is-web-20.html

• Applications and technologies that allow users to: • create, edit, and distribute content • share preferences, bookmarks, and online personas• participate in virtual lives

• Examples• YouTube, Renren, Flickr, Bebo, Twitter, Photobucket, iTunes• MySpace, Facebook, LinkedIn• Second Life (dying)• Wikipedia (advised NOT to use as a source for essays, etc.)• RSS (Really Simple Syndication); RSSOwl (PC and Mac)


Predictions for the Future

• Technology of e-commerce will continue to permeate through all commercial activity

• E-commerce prices will rise to cover the real cost of doing business on Web and pay investors reasonable rates of return

• E-commerce margins and profits will rise to levels more typical of all retailers

• In B2C and B2B, traditional Fortune 500 companies will play growing and dominant role (already apparent)

• Number of successful pure online companies will decline and most successful e-commerce firms will adopt mixed “clicks and bricks” strategies

• Growth of regulatory activity worldwide (already apparent)• Expected rapid take-up and growth of m-commerce

(Forrester)

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Actual & Estimated Online Sales

(Schneider, 2013)

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2nd Wave of E-Commerce

• Compared to four waves of Industrial Revolution• Electronic commerce first and second wave

characteristics• Regional scope

• First wave: mainly United States phenomenon• Second wave: international and increasingly emergent econs.

• Start-up capital• First wave: easy to obtain• Second wave: companies using internal funds

• Internet technologies used• First wave: slow and inexpensive (especially B2C)• Second wave: broadband connections

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2nd Wave of E-Commerce (cont)

• Electronic mail (e-mail) use• First wave: unstructured communication• Second wave: integral part of marketing, customer contact

strategies• Revenue source

• First wave: online advertising (failed)• Second wave: Internet advertising (more successful)

• Digital product sales• First wave: fraught with difficulties (music industry)• Second wave: fulfilling available technology promise

• Business online strategy • First wave: first-mover advantage• Second wave: businesses not relying on first-mover advantage

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3rd Wave Begins***

• Accentuated by mobile telephone based commerce (mobile commerce or m-commerce)

• Smartphone technology and tablet computers make Internet available everywhere

• Internet technology integration• First wave: bar codes, scanners• Second wave: Radio Frequency Identification (RFID) devices,

smart cards, biometric technologies• Increasing integration will lead to more effective B2B

• Web 3.0: making new Web business possible: Semantic Web (search on Google or other search site)

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Evolution of Web Technologies

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Business Models, Revenue Models &Business Processes

• Business model• Set of processes combined to achieve company

goal of yielding profit

• Electronic commerce first wave• Investors sought Internet-driven business models

• Expectations of rapid sales growth, market dominance

• Successful “dot-com” business models were emulated• Michael Porter argued business models did not exist

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Business Models, Revenue Models, and Business Processes (2)

• Instead of copying model, examine business elements• Streamline, enhance and replace with WWW

technology-driven processes• REVENUE MODEL emphasised nowadays

• Specific collection of business processes• Identify Customers• Market to those Customers• Generate Sales

• Classify revenue-generating activities for communication (with Customers and Suppliers)

• Analyse results (Key Metrics) and continuously improve (CPI)

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Role of Merchandising

• Merchandising• Combination of store design, layout, and product display

knowledge

• Salespeople skills• Identify customer needs

• Find products or services meeting needs

• Merchandising and personal selling• Difficult to practise remotely

• Web site success• Transfer merchandising skills to the Web

• Easier for some products than others

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Product/Process Suitability for Electronic Commerce

• Need to evaluate advantages/disadvantages of electronic commerce

• Suitability is dependent on current stateof available technologies

• These change as new e-commerce tools emerge

• Technology and practice rapidly developing• New analytical tools and practices quickly

adopted (by the good businesses)

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Business Process Suitability

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Product/Process Suitability for E-Commerce

• Commodity item: well-suited to e-commerce selling• Product or service hard to distinguish from same products or

services provided by other sellers• Features: standardized and well known• Price: distinguishing factor

• Consider product’s shipping profile• Collection of attributes affecting how easily product can be

packaged and delivered• Note value-to-weight ratio

• DVD: good example• Expensive jewellery: high value-to-weight ratio (BUT …removes

Veblen Effect. E.g. Tiffany, LVMH, etc)

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Product/Process Suitability for E-Commerce (2)

• Easier-to-sell products have:• Strong brand reputation • Appeal to small but geographically diverse groups

• Traditional commerce• Better for products relying on personal selling

skills

• Combination of electronic and traditional commerce• Business process includes both commodity and

personal inspection items

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E-Commerce: Opportunities, Cautions and Risks

• Businesses need to exercise caution in weighing risks and benefits of online business

• B2C: Credit Card Payments – Card Theft, Cloning, etc., Fake Products, Theft of IPR, Security Issues (see later)

• B2B: Lower Risk – Legal Documents: Contracts, Carriage, Insurance Freight (cif)

• Dealing with International Customers (later)

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Opportunities for E-commerce

• Appeal of electronic commerce• potential to boost profits• increases sales • decreases costs

• Virtual community: gathering of people online• Using Web 2.0 technologies• Conduct Interactive Dialogue with potential and

existing Customers: WOM Marketing; Social Networking Marketing

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Opportunities (2)

• E-commerce buyer opportunities• Increase purchasing opportunities• Identifies new suppliers and business partners• Efficiently obtain competitive bid information

• Easier to negotiate price and delivery terms

• Increases speed, information exchange accuracy• Wider range of choices available 24 hours a day

• Immediate access to prospective purchase information• Multimedia product displays: Video; 3D; Audio• Use of FAQs for Customer Support and Feedback• Online Chat

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Cautions and Concerns

• Poor choices for electronic commerce:• Perishable foods and high-cost, unique items

• Disadvantages will disappear when:• E-commerce matures

• Becomes more available to and accepted by general population

• Critical masses of buyers become equipped, need to be willing to buy through Internet • Online grocery industry example – slow start, now

entering mainstream (Tesco, Ocado, Sainsbury, etc)

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Cautions and Concerns (2)

• Predictability of Costs and Revenues: inherent problems• Calculating return on investment (Difficult)• Recruiting and retaining employees

• Technology Integration Issues• Difficulty integrating standard processes with online systems• Uncertain outcome when integrating systems• Becoming easier with Cloud Developments

• Cultural and Legal Concerns • Consumers resistant to change• Cultural differences: security, privacy and payments• Ambiguous and conflicting laws

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Identifying E-Commerce Opportunities

• Focus on specific business processes• Break business down

• Series of value-adding activities• Combine to generate profits, meet firm’s goal

• Commerce conducted by firms of all sizes• Firm

• Multiple business units owned by a common set of shareholders or company

• Industry• Multiple firms selling similar products to similar customers

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Evaluating Business Unit Opportunities

• SWOT analysis• Strengths, weaknesses, opportunities, and threats

• Consider all issues systematically• First: look into business unit

• Identify strengths and weaknesses (INTERNAL, CONTROLLABLE)• Then: review operating environment (EXOGENOUS)

• Identify opportunities and threats presented

• Take advantage of opportunities• Build on strengths• Avoid threats• Compensate for weaknesses

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SWOT Questions

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SWOT Example: Dell.com


Disciplines Concerned with e-commerce

• Technical Approaches Computer scientists and information system researchers Management scientists

• Behavioural Approaches Information system researchers Economists and statisticians Marketing Theorists and practitioners Management theorists and Senior Managers Finance and Accounting practitioners Sociologists Legal scholars

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Buy-Side and Sell-Side e-commerce

Source: Chaffey (2011)

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Drivers of e-commerce AdoptionThink about these and complete.

Driver Marketing approach

1

2

3

4

5

6

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Barriers to e-commerce Adoption

Barrier Marketing approach

1

2

3

4

5

6

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Tangible and Intangible Benefits

Tangible benefits Intangible benefits

Increased sales from new sales leads giving rise to increased revenue from:– new customers, new markets– existing customers (repeat-selling)– existing customers (cross-selling).

Marketing cost reductions from:– reduced time in customer service– online sales– reduced printing and distribution costs of marketing communications.

Supply-chain cost reductions from:– reduced levels of inventory– increased competition from suppliers– shorter cycle time in ordering.

Administrative cost reductions from more efficient routine business processes such as recruitment, invoice payment and holiday authorization.

Corporate image communication Enhancement of brand More rapid, more responsive marketing

communications including PR

Faster product development lifecycle enabling faster response to market needs

Improved customer service Learning for the future Meeting customer expectations to have a web

site Identifying new partners, supporting existing

partners better Better management of marketing information

and customer information Feedback from customers on products


Reading and Online Activity

• Chaffey, Chapter 1• Schneider, Chapters 1 & 2• Chen, Prefaces + Chapters 1 & 2• Jelassi and Enders, Preface, Chaps 1 - 3• Laudon and Traver, Preface + Chaps 1-3• Beynon-Davies, Preface + Part 1

• http://www.online-commerce.com/• http://www.ecominfocenter.com/• http://e-comm.webopedia.com/• http://www.statistics.gov.uk/downloads/theme_economy/

ecommerce_report_2006.pdf• http://www.ecommerce-digest.com/ecommerce-prospects-europe.html


Summary

• Provided an overview and context within which e-commerce /e-business occurs

• Distinguished common forms of e-business:• B2B: (by far the most important but least discussed in the

press: processes are complex and often difficult to understand)

• B2C: in the public eye (very simple: do not even need to own a computer)

• C2C: sometimes called P2P (peer-to-peer) – transactions between individual citizens

• C2B: Reverse auctions (relatively uncommon)

• Assessed the present state and growth of e-business