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1、About the PresentationsThe presentations cover the objectives found in the opening of each chapterAll chapter objectives are listed in the beginning of each presentationYou may customize the presentations to fit your class needsSome figures from the chapters are included; a complete set of images fr

2、om the book can be found on the Instructor Resources discE-BusinessTenth EditionChapter 1The Second Wave of Global E-BusinessE-Business, Tenth Edition33Learning ObjectivesIn this chapter, you will learn about:What electronic commerce is and how it has evolved into a second wave of growthWhy companie

3、s concentrate on revenue models and the analysis of business processes instead of business models when they undertake electronic commerce initiativesHow economic forces have created a business environment that is fostering the continued growth of electronic commerce44Learning Objectives (contd.)How

4、businesses use value chains and SWOT analysis to identify electronic commerce opportunitiesThe international nature of electronic commerce and the challenges that arise in engaging in electronic commerce on a global scaleE-Business, Tenth Edition55Electronic Commerce: Into the Third WaveElectronic c

5、ommerce historyMid-1990s to 2000: rapid growth“ boom” followed by “ bust”2000 to 2003: overly gloomy news reports2003: signs of new lifeSales and profit growth returnElectronic commerce growing at a rapid paceElectronic commerce es part of general economyE-Business, Tenth Edition66Electronic Commerc

6、e: Into the Third Wave (contd)2008 general recessionElectronic commerce hurt less than most of economySecond wave continued forwardHandheld devices lend the opportunity for third waveE-Business, Tenth Edition77Electronic Commerce and Electronic BusinessElectronic commerceShopping on the WebBusinesse

7、s trading with other businessesInternal company processesBroader term: electronic business (e-business)Electronic commerce includes: All business activities using Internet technologiesInternet and World Wide Web (Web)Wireless transmissions on mobile telephone networks (pure )Businesses operating onl

8、y onlineE-Business, Tenth Edition88Categories of Electronic Commerce (pure )Businesses operating only onlineBusiness-to-consumer (B2C)Consumer shopping on the WebBusiness-to-business (B2B): e-procurementTransactions conducted between Web businessesSupply management (procurement) departmentsNegotiate

9、 purchase transactions with suppliersE-Business, Tenth Edition9ActivityTask performed by a worker in the course of doing his or her jobMay or may not be related to a transactionTransaction: exchange of valuePurchase, sale, or conversion of raw materials into finished productInvolves at least one act

10、ivityCategories of Electronic Commerce (contd.)E-Business, Tenth Edition10Business processesGroup of logical, related, sequential activities and transactionsWeb helping people work more effectively muting (telework)Categories of Electronic Commerce (contd.)E-Business, Tenth Edition11 Cengage Learnin

11、g 2013FIGURE 1-1 Elements of electronic commerceE-Business, Tenth Edition12Elements of electronic commerceRelative sizes of elementsRough approximationDollar volume and number of transactionsB2B much greater than B2CNumber of transactionsSupporting business processes greater than B2C and B2B combine

12、dCategories of Electronic Commerce (contd.)E-Business, Tenth EditionCategories of Electronic Commerce (contd.)Consumer-to-consumer (C2C)Individuals buying and selling among themselvesWeb auction siteC2C sales included in B2C categorySeller acts as a business (for transaction purposes)Business-to-gov

13、ernment (B2G)Business transactions with government agenciesPaying taxes, filing required reportsB2G transactions included in B2B discussions1313E-Business, Tenth Edition14FIGURE 1-2 Electronic commerce categoriesE-Business, Tenth Edition1515The Development and Growth of Electronic CommercePeople eng

14、aging in commerce:Adopt available tools and technologiesInternet Changed way people buy, sell, hire, and organize business activities More rapidly than any other technologyElectronic Funds Transfers (EFTs)Wire transfersElectronic transmissions of account exchange informationUses private communicatio

15、ns networksE-Business, Tenth Edition1616The Development and Growth of Electronic Commerce (contd.)Electronic Data Interchange (EDI)Business-to-business transmission of computer-readable data in standard formatStandard transmitting formats benefitsReduces errorsAvoids printing and mailing costsElimin

16、ates need to reenter dataTrading partnersBusinesses engaging in EDI with each otherEDI pioneers (General Electric, Sears, Walmart)Improved purchasing processes and supplier relationshipsE-Business, Tenth Edition1717The Development and Growth of Electronic Commerce (contd.)Problem faced by EDI pionee

17、rs High implementation costExpensive computer hardware and softwareEstablishing direct network connections to trading partners or subscribing to value-added network (VAN)Value-added network (VAN)Independent firm offering EDI connection and transaction-forwarding servicesEnsure transmitted data secur

18、ityCharge fixed monthly fee plus per transaction chargeGradually moved EDI traffic to the InternetReduced EDI costsE-Business, Tenth Edition1818The Boom, Bust, and Rebirth1997 to 2000 irrational exuberance12,000 Internet-related businesses started$100 billion of investors money5,000+ companies went

19、out of business or acquired2000 to 2003$200 billion invested Fueled online business activity growth rebirthOnline B2C sales growth continued more slowly2008-2009 recessionB2C and B2B increasing growth rates continueDriving force: people with Internet access increasingWeb purchases: projected $11.9 t

20、rillion by 2013E-Business, Tenth Edition19FIGURE 1-3 Actual and estimated online sales in B2C and B2B categoriesE-Business, Tenth Edition2020The Second Wave of Electronic CommerceCompared to four waves of Industrial RevolutionElectronic commerce first and second wave characteristicsRegional scopeFir

21、st wave: United States phenomenonSecond wave: internationalStart-up capitalFirst wave: easy to obtainSecond wave: companies using internal fundsInternet technologies usedFirst wave: slow and inexpensive (especially B2C)Second wave: broadband connectionsE-Business, Tenth Edition2121The Second Wave of

22、 Electronic Commerce (contd.)First and second wave characteristics (contd.)Electronic mail (e-mail) useFirst wave: unstructured communicationSecond wave: integral part of marketing, customer contact strategiesRevenue sourceFirst wave: online advertising (failed)Second wave: Internet advertising (mor

23、e successful)E-Business, Tenth Edition2222The Second Wave of Electronic Commerce (contd.)First and second wave characteristics (contd.)Digital product salesFirst wave: fraught with difficulties (music industry)Second wave: fulfilling available technology promiseBusiness online strategy First wave: f

24、irst-mover advantageSecond wave: businesses not relying on first-mover advantageE-Business, Tenth Edition23FIGURE 1-4 Key characteristics of the first two waves of electronic commerceE-Business, Tenth Edition24The Third Wave BeginsAccentuated by mobile telephone based commerce (mobile commerce or me

25、rce) Smart phone technology and tablet computers have made Internet available everywhereInternet technology integrationFirst wave: bar codes, scannersSecond wave: Radio Frequency Identification (RFID) devices, smart cards, biometric technologiesIncreasing integration will lead to more effective B2BW

26、eb 2.0: making new Web business possibleE-Business, Tenth Edition2525Business Models, Revenue Models, and Business ProcessesBusiness modelSet of processes combined to achieve company goal of yielding profitElectronic commerce first waveInvestors sought Internet-driven business modelsExpectations of

27、rapid sales growth, market dominanceSuccessful “ ” business models were emulatedMichael Porter argued business models did not existE-Business, Tenth Edition2626Business Models, Revenue Models, and Business Processes (contd.)Instead of copying model, examine business elementsStreamline, enhance, and

28、replace with Internet technology driven processesRevenue model used todaySpecific collection of business processesIdentify customersMarket to those customersGenerate salesClassify revenue-generating activities for communication and analysis purposesE-Business, Tenth Edition2727Focus on Specific Busi

29、ness ProcessesCompanies think in terms of business processesPurchasing raw materials or goods for resaleConverting materials and labor into finished goodsManaging transportation and logisticsHiring and training employeesManaging business financesIdentify processes benefiting from merce technologyInt

30、ernet technologies as a means to facilitate business processesImprove existing practices, identify new opportunities, adapt to changeE-Business, Tenth Edition2828Role of MerchandisingMerchandisingCombination of store design, layout, and product display knowledgeSalespeople skillsIdentify customer ne

31、edsFind products or services meeting needsMerchandising and personal sellingDifficult to practice remotelyWeb site successTransfer merchandising skills to the WebEasier for some products than othersE-Business, Tenth EditionProduct/Process Suitability to Electronic CommerceEvaluating advantages/disad

32、vantages of electronic commerceSuitability is dependent on available technologies current stateChange as new merce tools emerge29E-Business, Tenth Edition30FIGURE 1-5 Business process suitability to type of commerceE-Business, Tenth Edition3131Product/Process Suitability to Electronic Commerce (cont

33、d.)Commodity item: well-suited to merce sellingProduct or service hard to distinguish from same products or services provided by other sellersFeatures: standardized and well knownPrice: distinguishing factorConsider products shipping profileCollection of attributes affecting how easily that product

34、can be packaged and deliveredNote value-to-weight ratioDVD: good exampleExpensive jewelry: high value-to-weight ratioE-Business, Tenth Edition3232Product/Process Suitability to Electronic Commerce (contd.)Easier-to-sell products have:Strong brand reputation Appeal to small but geographically diverse

35、 groupsTraditional commerceBetter for products relying on personal selling skillsCombination of electronic and traditional commerceBusiness process includes both commodity and personal inspection itemsE-Business, Tenth Edition3333Electronic Commerce: Opportunities, Cautions and ConcernsBusinesses ne

36、ed to exercise caution in weighing risks and benefits of online businessE-Business, Tenth Edition34Appeal of electronic commerce is its potential to boost profitsincreases sales decreases costsVirtual community: gathering of people onlineUsing Web 2.0 technologiesOpportunities for Electronic Commerc

37、eE-Business, Tenth Edition35 merce buyer opportunitiesIncreases purchasing opportunitiesIdentifies new suppliers and business partnersEfficiently obtains competitive bid informationEasier to negotiate price and delivery termsIncreases speed, information exchange accuracyWider range of choices availa

38、ble 24 hours a dayImmediate access to prospective purchase informationOpportunities for Electronic Commerce (contd.)E-Business, Tenth Edition3636Advantages and Disadvantages of Electronic Commerce (contd.)Benefits extend to general society welfareLower costs to issue and secure:Electronic payments o

39、f tax refundsPublic retirementWelfare supportProvides faster transmissionProvides fraud, theft loss protectionElectronic payments easier to audit and monitorReduces commuter-caused traffic, pollutionDue to mutingProducts and services available in remote areasE-Business, Tenth Edition3737Electronic C

40、ommerce: Cautions and ConcernsPoor choices for electronic commercePerishable foods and high-cost, unique itemsDisadvantages will disappear when: merce matures es more available to and accepted by general populationCritical masses of buyers e equipped, willing to buy through Internet Online grocery i

41、ndustry exampleE-Business, Tenth Edition3838Electronic Commerce: Cautions and Concerns (contd.)Predictability of Costs and Revenues: inherent problemsCalculating return on investmentRecruiting and retaining employeesTechnology Integration IssuesDifficulty melding standard processes with online syste

42、msUncertain e when integrating systemsE-Business, Tenth Edition39Cultural and legal concernsConsumers resistant to changeCultural differences: security, privacy, and paymentsAmbiguous and conflicting laws Electronic Commerce: Cautions and Concerns (contd.)E-Business, Tenth Edition4040Economic Forces

43、 and Electronic CommerceEconomicsStudy how people allocate scarce resourcesThrough commerce and government actionsCommerce organizations participate in marketsPotential sellers come into contact with buyersMedium of exchange available (currency or barter)Organization hierarchy (flat or many levels)B

44、ottom level includes largest number of employeesPyramid structureTransaction costsMotivation for moving economic activity to hierarchically structured firmsE-Business, Tenth Edition4141Transaction CostsTotal costs a buyer and seller incurWhile gathering information and negotiating purchase-and-sale

45、transactionIncludes:Brokerage fees and sales commissionsCost of information search and acquisitionSweater dealer example (Figure 1-6)E-Business, Tenth Edition42FIGURE 1-6 Market form of economic organization Cengage Learning 2013E-Business, Tenth Edition4343Markets and HierarchiesCoases analysis of

46、high transaction costsHierarchical organizations formedReplace market-negotiated transactionsStrong supervision and worker-monitoring elementsSweater example (Figure 1-7)Oliver Williamson (extended Coases analysis)Complex manufacturing, assembly operationsHierarchically organized, vertically integra

47、tedManufacturing innovations increased monitoring activities efficiency and effectivenessE-Business, Tenth Edition44Strategic business unit (business unit)One particular combination of product, distribution channel, and customer typeException to hierarchy trendCommodities Cengage Learning 2013FIGURE

48、 1-7 Hierarchical form of economic organizationE-Business, Tenth Edition4545Using Electronic Commerce to Reduce Transaction CostsElectronic commerceChange vertical integration attractivenessChange transaction costs level and natureExample: employment transaction mutingMay reduce or eliminate transac

49、tion costsE-Business, Tenth Edition4646Network Economic StructuresNeither market nor hierarchyStrategic alliances (strategic partnerships)Coordinate strategies, resources, skill setsForm long-term, stable relationships with other companies and individualsBased on shared purposesStrategic partnersCom

50、e together for specific project or activityForm many pany teamsUndertake variety of ongoing activitiesE-Business, Tenth Edition4747Network Economic Structures (contd.) Network organizationsWell suited to information-intensive technology industriesSweater exampleKnitters organize into networks of sma

51、ller organizationsSpecialize in styles or designsElectronic commerce makes such networks easier to construct and maintainWill be predominant in the near futureManuel Castells predicts economic networks will e the organizing structure for all social interactionsE-Business, Tenth Edition48 Cengage Lea

52、rning 2013FIGURE 1-8 Network form of economic organizationE-Business, Tenth Edition4949Network EffectsActivities yield less value as consumption amount increasesLaw of diminishing returnsExample: hamburger consumptionNetwork effectException to law of diminishing returns More people or organizations

53、participate in networkValue of network to each participant increasesExamples: Landline and mobile phonesE-Business, Tenth Edition5050Network Effects (contd.)E-mail account exampleProvides access to network of people with e-mail accountsIf e-mail account is part of smaller networkE-mail generally les

54、s valuableInternet e-mail accountsFar more valuable than single-organization e-mailDue to network effectNeed way to identify business processesEvaluate electronic commerce suitabilityFor each processE-Business, Tenth Edition5151Identifying Electronic Commerce OpportunitiesFocus on specific business

55、processesBreak business downSeries of value-adding activitiesCombine to generate profits, meet firms goalCommerce conducted by firms of all sizesFirmMultiple business units owned by a common set of shareholders or company IndustryMultiple firms selling similar products to similar customersE-Business

56、, Tenth Edition52Strategic Business Unit Value ChainsValue chainOrganizing strategic business unit activities to design, produce, promote, market, deliver, and support the products or servicesMichael Porter includes supporting activitiesHuman resource management and purchasingStrategic business unit

57、 primary activitiesIdentify customers, design, purchase materials and supplies, manufacture product or create service, market and sell, deliver, provide after-sale service and supportE-Business, Tenth Edition53Strategic Business Unit Value Chains (contd.)Strategic business unit primary activities (c

58、ontd.)Importance depends on:Product or service business unit providesCustomers Central corporate organization support activitiesFinance and administrationHuman resourceTechnology developmentE-Business, Tenth EditionElectronic Commerce, Tenth Edition54Left-to-right flow Does not imply strict time seq

59、uence Cengage Learning 2013FIGURE 1-9 Value chain for a strategic business unitE-Business, Tenth Edition55Industry Value ChainsExamine where strategic business unit fits within industryPorters value systemDescribes larger activities stream into which particular business units value chain is embedded

60、Industry value chain refers to value systemsDelivery of product to customerUse as purchased materials in its value chainAwareness of businesses value chain activitiesAllows identification of new opportunitiesUseful way to think about general business strategyE-Business, Tenth Edition56 Cengage Learn

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