Omis 22nd Febraury

1. Group 3

2. E-Commerce and E-Business
E-Commerce E-Business
 Buying and selling of  Spin-off of E-commerce
goods and services on-line  Involves more of the business
(Transaction)
processes (Exchange of
- Online shopping
Information)
- Online purchasing
-Buying
-Selling
-Trading
Example: Buy a Shirt online -Working with business
and try to return it to the partners
retailer

3. Phases to Becoming an E-Business
Hires outside Starting to
company integrate
(mostly channels but not
informational quite there yet
)
Does not
understand Starts some E- Integrating all
the Internet Commerce channels Everyone
Activities uses web to conduct
business

4. Four E-Business Models
 Business to Business (B2B)
 Business to Consumer (B2C)
 Consumer to Business (C2B)
 Consumer to Consumer (C2C)
- Each model must be approached differently and the business must
make sure that they have the appropriate tools to successful implement
different strategies.

5. Business to Business (B2B)
 Buying, selling, and other business transactions among
businesses
 Commonly referred to as E-marketplace
 Business have to make sure that they work with other
businesses that supports their strategy (product
quality, price, time)
- Car Manufactures (Glasses and Tires)
- Dell Computer (Computer Components)

6. Business to Consumer (B2C)
 Selling of products/services to consumers
 E-shopping
 On-line stores represents the same brand image as physical
stores if they exist.
 Pure Play (Internet only), Click and Mortar (Internet and
Physical Store), and Brick and Mortar (Physical Store
Only)
-

7. Consumer to Business (C2B)
 Consumers selling to a business
 Individual are creating value for the firm
 Growing Trend
-Surveys
-Blogs
-Customer Reviews

8. Consumer to Consumer (C2C)
 Consumers conducting business between each other
 Companies can help to facilitate transaction
-Online Auctions
(Craig’s List, EBay, and
Angie’s List)

9. Marketing

10. Impacts on Marketing
 Individuals can stay at home and buy
 Less time consuming
 Less costly
 More research can be done
 Anytime access to information
 Click-through
 Viral content
 Mobile computing

11. Click-Through
 The process of clicking through an online
advertisement to the advertiser’s destination
 Can track:
 Where the individual clicked from
 Which pages were visited
 Which links were interesting enough to click through

12. Viral Content
 Viral videos get viewed more often than regular banner
ads
 Viewers pass on interesting or humerous content to
others
 Relatively cheap advertising
 word of mouth
 Use of social networks
 Increases the chances of making a video go viral

13. Mobile Computing
 Can advertise anywhere to a target market
 50% more effective than TV
 130% more effective than radio
 Hasn’t boomed yet, but will very soon
 Developed by phone companies and Google
 The next form on personalized advertising

14. Benefits to Marketing
 Bi-directional flow of information
 Decreased time lag for customer service
 Organization is reachable at any time
 Decreased cost of customer service
 Personalized advertisements
 More information on customers

15. Ford’s E-Business
 Virtual store and information center coupled with
physical car dealerships
 Average of $24,000 on an initial purchase
 Average of $68,000 spent in total throughout the life of
the car
 More time is spent on the life of the car than the initial
pruchase
 E-business maintains customer intamacy for life

16. Finance
 E-business decreases transaction costs
 E-business can provide easy acces to international
customers
 Organizations may not know how to deal with
international currencies which may increase transaction
costs a little
 Increased customer service and sales revenues

17. Finance
 24-hour online access requires 24-hour order
processing
 Increases sales
 Online payment methods
 Pay pal, Credit cards, Electronic cash
 Funding for Data acquisition and security

18. Supply Chain Management
 Mass production to demand driven
 Increased supply chain performance
 Shorten the supply chain
 Cut costs
 Can eliminate the bullwhip effect

19. E-Commerce and E-Business
Advantages Disadvantages
 Shortens the supply chain  Increased transportation
 Reduced facility costs costs
 Decreased processing time  Start-up costs
 Lower inventory levels
 More personalized buying
experience
 More potential customers
 Increased financial data and
sales
 Eliminate the bullwhip effect

20. Case Study: BHP and BHP Steel
 Broken Hill Proprietary manufacturing firm
 Industries: minerals, copper, petroleum, and
engineering
 60,000 employees in 60 countries
 BHP Steel $7.6 billion revenues
 Complex structure
 BHP considered leader in E-commerce

21. E-commerce Implementation
and Benefits
 Stage 1: Early Implementation-Electronic Data
Interchange
 Send/receive business documents/orders
 Stage 2: Electronic Trading Gateway
 Centralize all trading
 Stage 3: Internet Site
 Serve Small customers

22. Obstacles
 Stage 1: Management Commitment and Lack of
technical knowledge. 1st EDI in Australia
 Stage 2: Technology issues (no standards) and lack of
customers participation
 Stage 3: immaturity standards internet and readiness
of third parties

23. Factors Affecting Implementation
 Commitment
 Trading partner participation
 Supplier vs. Customer
 Technology/Media Hype
 Business Value
 Training and Education
 Rapid technology change + Complexity/Compatibility
(technology and processes)

24. Management of Information Systems and E-
business
 IT Audit
 Information Flow Analysis
 Manufacturing Software Selection
 IT Project Management
 Data Security Audit

25. Global Implications
 Cater to international customers.
 Follow international customs procedures, currencies,
taxes and regulations
 Customize to local taste
 Knowing the global rules for shipment
 Make payment easy for international customers

26. Future of E-Commerce and E-Business
 Information Marketing
 M-Commerce
 New Jobs and Business Opportunities

27. Ethical Issues
 Similar to ethical issues surrounding other facets of
business life
 Relative anonymity, speed of information create
special issues

28. Ethical Issues
 Intellectual Property Concerns
 Privacy Concerns
 Computer Crimes
 Consumer Protection

29. Ethical Issues
 Adware
 Key Logging
 Bait and Switch
 Email Spoofing
 URL Hijacking

30. Recommendation
 Implement E-Commerce and E-Business
 Advantages outweigh disadvantages

31. Questions?