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1、1,4273 Electronic Commerce,2,Agenda,Your instructor Course outline Q can be used in C2C, B2B, and B2C e-commerce mobile commerce (m-commerce) E-commerce transactions and activities conducted in a wireless environment,21,EC Classification,location-based commerce (l-commerce) M-commerce transactions t
2、argeted to individuals in specific locations, at specific times 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 e.g., one department sells inf
3、o to another dept,22,EC Classification,business-to-employees (B2E) E-commerce model in which an organization delivers services, information, or products to its individual employees collaborative commerce (c-commerce) E-commerce model in which individuals or groups communicate or collaborate online e
4、-learning The online delivery of information for purposes of training or education,23,EC Classification,exchange (electronic) 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 purp
5、ose of exchanging information e-government E-commerce model in which a government entity buys or provides goods, services, or information to businesses or individual citizens,24,The Future of EC,Overall, the growth of the field will continue to be strong into the foreseeable future Despite the failu
6、res of individual companies and initiatives, the total volume of EC is growing by 15 to 25% every year,25,Digital Evolution Drives EC,digital economy An economy that is based on digital technologies, including digital communication networks, computers, software, and other related information technol
7、ogies; also called the Internet economy, the new economy, or the Web The digital revolution accelerates EC by providing competitive advantage to organizations and enabling innovations,26,Business Environment Drives EC,Economic, legal, societal, and technological factors have created a highly competi
8、tive business environment in which customers are becoming more powerful,27,Business Environment Drives EC,The environmentresponsesupport model Companies must not only take traditional actions such as lowering costs and closing unprofitable facilities, but also introduce innovative actions such as cu
9、stomizing, creating new products, or providing superb customer service - These are critical response activities - In some cases, EC is the only solution,28,Major Business Pressures and the Role of EC,29,Business Environment Drives EC,Organizational response strategies Strategic systems (e.g., supply
10、 chain mgt systems) Agile systems Continuous improvement efforts and business process restructuring Customer relationship management Business alliances Electronic markets,30,Business Environment Drives EC,Reductions in Cycle Time and Time-to-Market cycle time reduction Shortening the time it takes f
11、or a business to complete a productive activity from its beginning to end Empowerment of Employees EC allows the decentralization of decision making and authority via empowerment and distributed systems, but simultaneously supports a centralized control Supply Chain Improvements EC can help reduce s
12、upply chain delays, reduce inventories, and eliminate other inefficiencies,31,Business Environment Drives EC,Mass Customization: Make-to-Order in Large Quantities mass customization Production of large quantities of customized items Intrabusiness: From Sales Force Automation to Inventory Control kno
13、wledge Management (KM) The process of creating or capturing knowledge, storing and protecting it, updating and maintaining it, and using it,32,EC Business Models,business model A method of doing business by which a company can generate revenue to sustain itself EC facilitates the creation of novel b
14、usiness models,33,EC Business Models,The Structure of Business Models A description of the customers to be served and the companys relationships with these customers A description of all products and services the business will offer (customers value proposition) A description of the business process
15、 required to make and deliver the products and services,34,EC Business Models,The Structure of Business Models A list of the resources required and the identification of which ones are available, which will be developed in-house, and which will need to be acquired A description of the organization s
16、upply chain, including suppliers and other business partners A description of the revenues expected (revenue model), anticipated costs, sources of financing, and estimated profitability (financial viability),35,EC Business Models,Revenue Models Description of how the company or an EC project will ea
17、rn revenue,Major revenue models Sales Transaction fees Subscription fees Advertising fees Affiliate fees (referrals) Other revenue sources,In terms of EC, there are two critical elements of all business models:,36,EC Business Models,Value proposition value proposition The benefits a company can deri
18、ve from using EC e.g., how the product or service may fulfill the needs of customers How do e-marketplaces create value? Search and transaction cost efficiency Complementarities Lock-in Novelty,37,Common Revenue Models,38,EC Business Models,Typical EC Business Models Online direct marketing Electron
19、ic tendering systems tendering (reverse auction) Model in which a buyer requests would-be sellers to submit bids; the lowest bidder wins name-your-own-price model Model in which a buyer sets the price he or she is willing to pay and invites sellers to supply the good or service at that price,39,EC B
20、usiness Models,Typical EC Business Models find the best price S, try our textbook by ISBN affiliate marketing An arrangement whereby a marketing partner (a business, an organization, or even an individual) refers consumers to the selling companys Web site viral marketing Word-of-mouth marketing in w
21、hich customers promote a product or service to friends or other people,40,EC Business Models,Typical EC Business Models group purchasing Quantity purchasing that enables groups of purchasers to obtain a discount price on the products purchased e-co-ops Another name for online group purchasing organi
22、zations,41,EC Business Models,Typical EC Business Models product and service customization customization Creation of a product or service according to the buyers specifications electronic marketplaces and exchanges information brokers,42,Benefits of EC,Benefits to Organizations,43,Benefits of EC,Glo
23、bal Reach Cost Reduction Supply Chain Improvements Extended Hours Customization New Business Models Vendors Specialization Rapid Time-to-Market,Lower Communication Costs Efficient Procurement Improved Customer Relations Up-to-Date Company Material No City Business Permits and Fees Other Benefits,Ben
24、efits to Organizations,44,Benefits of EC,Benefits to Consumers,45,Benefits of EC,Ubiquity More Products and Services Customized Products and Services Cheaper Products and Services,Instant Delivery Information Availability Participation in Auctions Electronic Communities No Sales Tax in some cases,Be
25、nefits to Consumers,46,Benefits of EC,Benefits to Society,47,Benefits of EC,Benefits to Society Telecommuting Higher Standard of Living Hope for the Poor Availability of Public Services,48,Exhibit 1.7 Limitations of EC,49,Managerial Issues,1. Is it real that EC has changed the business world?,50,Man
26、agerial Issues,1. Is it real that EC has changed the business world? Probably, yes. Recall EC activities in which you have been already involved. Can you imagine the word without the Internet?,51,Managerial Issues,2. Why is B2B e-commerce so attractive?,52,Managerial Issues,2. Why is B2B e-commerce
27、so attractive? B2B is easier to implement than traditional off-line models B2C has some problems Easy to move off-line B2B relationships online The value/volume of transactions in B2B is large Easier to achieve critical mass,53,Managerial Issues,3. There are so many EC failureshow can one avoid them
28、?,54,Managerial Issues,3. There are so many EC failureshow can one avoid them? Industry consolidation often occurs after a gold rush Standards and best practices appeared Learn from the mistakes dot-coms made seven years ago,55,Managerial Issues,4. How do we transform our organization into a digital
29、 one?,56,Managerial Issues,4. How do we transform our organization into a digital one? First, make sure it fits your vision does this make sense? Second, make a plan,57,Managerial Issues,5. How should we evaluate the magnitude of business pressures and technological advancement?,58,Managerial Issues,5. How should we evaluate the magnitude of business pressures and tec
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