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1,Chapter 1,Overview of Electronic Commerce,2,Learning Objectives,Define electronic commerce (EC) and describe its various categories. Describe and discuss the content and framework of EC. Describe the major types of EC transactions. Describe the digital revolution as a driver of EC. Describe the business environment as a driver of EC.,3,Learning Objectives,Describe some EC business models. Describe the benefits of EC to organizations, consumers, and society. Describe the limitations of EC. Describe the contribution of EC to organizations responding to environmental pressures. Describe online social and business networks.,4,1.1 Electronic Commerce: Definitions and Concepts,1 electronic commerce (EC) The process of buying, selling, or exchanging products, services, or information via computer networks,5,1.1 Electronic Commerce: Definitions and Concepts,EC can be defined from these perspectives: Business process Service Learning Collaboration Community,6,1.1 Electronic Commerce: Definitions and Concepts,2 e-business A broader definition of EC that includes not just the buying and selling of goods and services, but also servicing customers, collaborating with business partners, and conducting electronic transactions within an organization,7,1.1 Electronic Commerce: Definitions and Concepts,3-1 electronic market (e-marketplace) An online marketplace where buyers and sellers meet to exchange goods, services, money, or information,8,1.1 Electronic Commerce: Definitions and Concepts,3-2 interorganizational information systems Communications systems that allow routine transaction processing and information flow between two or more organizations 3-3 intraorganizational information systems Communication systems that enable e-commerce activities to go on within individual organizations,9,1.2 The EC Framework, Classification, and Content,intranet An internal corporate or government network that uses Internet tools, such as Web browsers, and Internet protocols extranet A network that uses the Internet to link multiple intranets,10,1 EC applications are supported by infrastructure and by these five support areas: People Public policy Marketing and advertisement Support services Business partnerships,1.2 The EC Framework, Classification, and Content,11,12,2 Classification of EC by the Nature of the Transactions or Interactions business-to-business (B2B) E-commerce model in which all of the participants are businesses or other organizations,1.2 The EC Framework, Classification, and Content,13,business-to-consumer (B2C) E-commerce model in which businesses sell to individual shoppers e-tailing Online retailing, usually B2C business-to-business-to-consumer (B2B2C) E-commerce model in which a business provides some product or service to a client business that maintains its own customers,1.2 The EC Framework, Classification, and Content,14,consumer-to-business (C2B) E-commerce model in which individuals use the Internet to sell products or services to organizations or individuals who seek sellers to bid on products or services they need mobile commerce (m-commerce) E-commerce transactions and activities conducted in a wireless environment,1.2 The EC Framework, Classification, and Content,15,intrabusiness EC E-commerce category that includes all internal organizational activities that involve the exchange of goods, services, or information among various units and individuals in an organization business-to-employees (B2E) E-commerce model in which an organization delivers services, information, or products to its individual employees,1.2 The EC Framework, Classification, and Content,16,collaborative commerce (c-commerce) E-commerce model in which individuals or groups communicate or collaborate online consumer-to-consumer (C2C) E-commerce model in which consumers sell directly to other consumers peer-to-peer (P2P) Technology that enables networked peer computers to share data and processing with each other directly; can be used in C2C, B2B, and B2C e-commerce,1.2 The EC Framework, Classification, and Content,17,e-learning The online delivery of information for purposes of training or education e-government E-commerce model in which a government entity buys or provides goods, services, or information from or to businesses or individual citizens,1.2 The EC Framework, Classification, and Content,18,exchange A public electronic market with many buyers and sellers exchange-to-exchange (E2E) E-commerce model in which electronic exchanges formally connect to one another for the purpose of exchanging information,1.2 The EC Framework, Classification, and Content,19,3 The Interdisciplinary Nature of EC The major EC disciplines include: computer sience, marketing, consumer behavior, finance, economics, MIS, accounting, business law, robotics, public administration, and engineering,1.2 The EC Framework, Classification, and Content,20,4 The Future of EC Web 2.0 The second-generation of Internet-based services that let people collaborate and share information online in perceived new wayssuch as social networking sites, wikis, communication tools,1.2 The EC Framework, Classification, and Content,21,22,23,digital economy An economy that is based on digital technologies, including digital communication networks, computers, software, and other related information technologies; also called the Internet economy, the new economy, or the Web economy,1.3 Digital Revolution Drives EC,24,25,1.4 Business Environment Drives EC,The Business Environment The business environment impact model Business pressures Organizational response strategies,26,27,1.5 EC Business Models,1 business model A method of doing business by which a company can generate revenue to sustain itself,28,Six elements of a business model include descriptions of: Customers to be served and the companys relationships with these customers including customers value proposition All products and services the business will offer The business process required to make and deliver the products and services,1.5 EC Business Models,29,The resources required and the identification of which ones are available, which will be developed in house, and which will need to be acquired The organizations supply chain, including suppliers and other business partners The revenues expected (revenue model), anticipated costs, sources of financing, and estimated profitability (financial viability),1.5 EC Business Models,30,31,Functions of a Business Model Articulate a customer value proposition Identify a market segment Define the ventures specific value chain structure Estimate the cost structure and profit potential Describe the ventures positioning within the value network linking suppliers and customers Formulate the ventures competitive strategy,1.5 EC Business Models,32,Online direct marketing Electronic tendering systems. Name your own price Find the best price Affiliate marketing Viral marketing Group purchasing Online auctions Product and service customization Electronic marketplaces and exchanges,Information brokers (informediaries) Bartering Deep discounting Membership Value-chain integrators Value-chain service providers Supply chain improvers Social networks, communities, and blogging Direct sale by manufacturers Negotiation,Typical EC Business Models,1.5 EC Business Models,33,1.6 Benefits and Limitations of EC,Benefits to Organizations Consumers Society Limitations Technological Nontechnological,34,1.7 Social and Business Networks,social networks Web sites that connect people with specified interests by providing free services such as photo presentation, e-mail, blogging, etc. Business-oriented networks are social networks whose primary objective is to facilitate business,35,1.8 The Digital Enterprise,digital enterprise A new business model that

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