F-Teya

Chapter 13 - 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 ecommerce and e business differ?

 Ecommerce – 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 MODELS

E business model – 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

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)

• 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

EBUSINESS BENEFITS AND CHALLENGES

E business benefits:

• Highly accessible
•  Increased customer loyalty
• Improved information content
• Increased convenience
• Increased global reach
• Decreased cost

E business challenges:

• Protecting consumers
• Leveraging existing systems
• Increased liability
• Providing security
• Adhering to taxation rules

5 Numerous advantages and limitations in e business revenue models:

1. Transaction fees
2. License fees
3. Subscription fees
4. Value-added fees
5. Advertising fees

MASHUPS

• A Web site or Web application that uses content from more than one source to create a completely new services

1. Application programming interface (API) – A set of routines, protocols, and tools for building software applications
2. Mash up editor – WSYIWYGs (What You See Is What You Get) for mash ups