EBusiness

E-BusinessE-BusinessChapter 14 & B11Chapter 14 & B11

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Ch. 14 Learning Ch. 14 Learning OutcomesOutcomes

1 Compare e-commerce and e-business

2 Compare the four types of e-business models

3 Describe the benefits and challenges associated with e-business

4 Explain the differences among e-shops, e-malls, and online auctions 2

E-BusinessE-Business

• The Internet is a powerful channel that presents new opportunities for an organization to:oTouch customersoEnrich products and services with

informationoReduce costs

o(cell phone movies)

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• How do e-commerce and e-business differ?o E-commerce – the buying and selling of goods

and services over the Internet o E-business – the conducting of business on

the Internet including, not only buying and selling, but also serving customers and collaborating with business partners

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E-Business E-Business

Industries Using E-Business

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E-Business ModelsE-Business Models• E-business model – an approach to conducting

electronic business on the Internet

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E-Business Benefits and E-Business Benefits and ChallengesChallenges

• E-Business benefits include:oHighly accessible o Increased customer loyaltyo Improved information content o Increased convenienceo Increased global reach oDecreased cost

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• E-business challenges include:o Protecting consumerso Leveraging existing systemso Increasing liabilityo Providing securityoAdhering to taxation rules

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• There are numerous advantages and limitations in e-business revenue models including: o Transaction feeso License feeso Subscription feeso Value-added feeso Advertising fees

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MashupsMashups

• Web mashup - a Web site or Web application that uses content from more than one source to create a completely new serviceo Application programming interface (API) - a set of

routines, protocols, and tools for building software applications

o Mashup editor - WSYIWYGs (What You See Is What You Get) for mashups

• WhereIsMyMilkFrom.com10

Ch. 14 Ch. 14 Opening Case Study Opening Case Study

QuestionsQuestions

1. Identify the type of e-business model eBay is using and explain why it has been so successful

2. Other major Web sites, like Amazon.com and Yahoo!, have entered the e-marketplace with far less success than eBay. How has eBay maintained its dominant position?

3. What are the three different types of online auctions and which one is eBay using?

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Chapter 14 CaseChapter 14 Case

• There are numerous ways to make money on the Interneto Million dollar home pageo One red paperclip

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Chapter 14 Case QuestionsChapter 14 Case Questions

1. How else can you use the Internet to raise money? (Ashley Qualls video)

2. What types of businesses could benefit from trading on the Internet?

3. Can you think of any other disruptive or non-traditional ways that you could use the Internet?

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B11 Learning B11 Learning OutcomesOutcomes

1. Describe the four common tools an organization can use to access Internet information

2. Compare ISPs, OSPs, and ASPs. Be sure to include an overview of common services provided by each

3. Describe how marketing, sales, financial services, and customer service departments can use e-business to increase revenues or reduce costs 14

B11 Learning B11 Learning OutcomesOutcomes

4. Explain why an organization would use metrics to determine a Web site’s success

5. Identify the different types of e-government business models

6. Define m-commerce and explain how an e-government could use it to increase its efficiency and effectiveness

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IntroductionIntroduction• Pure play – an Internet retailer that has no

physical store, such as Expedia.com and Amazon.com

• E-business – conducting business on the Internet, not only buying and selling, but also serving customers and collaborating with business partners

• E-business model – an approach to conducting electronic business through which a company can become a profitable business on the Internet

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Accessing Internet Accessing Internet InformationInformation

• Four tools for accessing Internet information

1. Intranet – internalized portion of the Internet, protected from outside access, for employees

2. Extranet – an intranet that is available to strategic allies

3. Portal – Web site that offers a broad array of resources and services

4. Kiosk – publicly accessible computer system that allows interactive information browsing

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Providing Internet Providing Internet InformationInformation

• Three common forms of service providers

1. Internet service provider (ISP) –provides individuals and other companies access to the Internet

2. Online service provider (OSP) – offers an extensive array of unique Web services

3. Application service provider (ASP) – offers access over the Internet to systems and related services that would otherwise have to be located in organizational computers

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• Common ISP services include:o Web hostingo Hard-disk storage spaceo Availabilityo Support

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Wireless Internet service provider (WISP)

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• ISPs, OSPs, and ASPs use service level agreements (SLA) which define the specific responsibilities of the service provider and set the customer expectations

• http://www.youtube.com/watch?v=3LkQrtCIFA4

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Organizational Strategies Organizational Strategies for for


• Primary business areas taking advantage of e-business include:

o Marketing/saleso Financial serviceso Procuremento Customer service o Intermediaries

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Marketing and SalesMarketing and Sales

• Generating revenue on the Internet: o Online ad (banner ad) - box running across a

Web page that contains advertisementso Pop-up ad - a small Web page containing an

advertisement o Associate programs (affiliate programs) -

businesses generate commissions or royalties o Viral marketing - a technique that induces Web

sites or users to pass on a marketing message o Mass customization - gives customers the

opportunity to tailor products or services

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• Generating revenue on the Internet:o Personalization - occurs when a Web site can

fashion offers that are more likely to appeal to that person

o Blog - Web site in which items are posted on a regular basis and displayed in reverse chronological order

o Real simple syndications (RSS) - a Web feed format used for Web syndication of content

o Podcasting - the distribution of audio or video files, such as radio programs or music videos, over the Internet to play on mobile devices

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• Generating revenue on the Internet:o Search engine optimization (SEO) - a set of

methods aimed at improving the ranking of a Web site in search engine listings

(smartest professor ever)o Spamdexing - uses a variety of deceptive

techniques in an attempt to manipulate search engine rankings, whereas legitimate SEO focuses on building better sites and using honest methods of promotion

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Financial ServicesFinancial Services

• Online consumer payments include:o Financial cybermediaryo Electronic check o Electronic bill presentment and payment (EBPP)o Digital wallet

o Google Checkout

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ProcurementProcurement

• Maintenance, repair, and operations (MRO) materials (also called indirect materials) – materials necessary for running an organization but do not relate to the company’s primary business activitieso E-procurement - the B2B purchase and sale

of supplies and services over the Interneto Electronic catalog - presents customers with

information about goods and services offered for sale, bid, or auction on the Internet

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Customer ServiceCustomer Service

• Customer service is the business process where the most human contact occurs between a buyer and a seller

• e-business strategists are finding that customer service via the Web is one of the most challenging and potentially lucrative areas of e-business

• The primary issue facing customer service departments using e-business is consumer protection

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Consumer ProtectionConsumer Protection

• E-business security o Encryptiono Secure socket layer (SSL)--HTTPSo Secure electronic transaction (SET)

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Measuring E-Business SuccessMeasuring E-Business Success

• Most companies measure the traffic on a Web site as the primary determinant of the Web site’s success

• However, a large amount of Web site traffic does not necessarily equate to large sales

• Many organizations with high Web site traffic have low sales volumes

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Measuring E-Business SuccessMeasuring E-Business Success

• Web site traffic analysis can include:oCookie oClick-throughoBanner ad o Interactivity

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Behavioral Metrics Behavioral Metrics

• Clickstream data tracks the exact pattern of a consumer’s navigation through a Web site

• Clickstream data can reveal:o Number of pageviewso Pattern of Web sites visitedo Length of stay on a Web siteo Date and time visitedo Number of customers with shopping cartso Number of abandoned shopping carts

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New Trends in E-Business: New Trends in E-Business:

E-Government and M-E-Government and M-

CommerceCommerce• Mobile

commerce - the ability to purchase goods and services through a wireless Internet-enabled device.

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Closing Case Two:Closing Case Two:Made-To-Order BusinessesMade-To-Order Businesses

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• Mass customization is a new trend in the retail business

• Lands’ End, Nike, and Stamps.com are a few of the companies using mass customization to enhance the way they do business

Closing Case Two Closing Case Two QuestionsQuestions

1. What role does e-business play in a mass customization business strategy?

2. How can Lands’ End use additional sales and marketing e-business techniques to improve its business?

3. How can Nike use e-business financial services to improve its business?

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Closing Case Two Closing Case Two QuestionsQuestions

4. How can Stamps.com use ASPs and electronic bill payment to improve its business?

5. Choose one of the examples above and analyze its e-business approach. Would you invest $20,000 in the company?

6. Choose one of the examples above and explain how the company is attempting to gain a competitive advantage with mass customization and personalization. How could this company use podcasts, blogs, and SEO to improve its business?

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EBusiness

Documents

internet o ebusiness

conducting of business

challenges ebusiness

o ecommerce

electronic business

profitable business

liability o

consumers o