Electronic Business Options

CHAPTER 8: 

CHAPTER 8 Electronic Business Options

Contextualizing eBusiness: 

Contextualizing eBusiness

Slide 3: 

Albert and Sanders Gartner Group Vanhoose W.J. Buffam

Albert and Sanders: 

Albert and Sanders Reported that IBM originated the concept of eBusiness in 1997. IBM ( International Business Machines ) -  is a multinational technology and consulting firm manufactures and sells computer hardware and software, and it offers infrastructure, hosting and consulting services in areas ranging from mainframe computers to nanotechnology.

Gartner Group: 

Gartner Group Refined the difination of IBM to refer to eBusiness as the optimization of a firm’s business activities throuhg digital tecnology . Van Hoose Described eBusiness as reffering to the use of electronic network within an organization .

W.J. Buffam: 

W.J. Buffam Cited that ebusiness simply means using the web to do business.

eBusiness well-appreciated characteristics : 

eBusiness well-appreciated characteristics The use of ubiquitous connectivity, business-to-business and business-to-consumer, provided by the Internet. The critical mass of consumers now having access to the Internet The universal appreciable user interface provided by the web browser paradigm. The availability of robust security technology.

Five Components of eBusiness: 

Five Components of eBusiness eBusiness Business Intelegence (BI) Customer Relationship Management (CRM) Supply Chain Management (SCM) Enterprise Resource Planning (ERP)

Components of eBusiness: 

Components of eBusiness

eBusiness: 

eBusiness This component refers directly to the transaction or the sale. It encompasses certain security and privacy processes that give online customer protection and safety from intrusion.

Business Intelligence (BI) : 

Business Intelligence (BI) It is equivalent to competitive benchmarking in tradition marketing. The art or learning from companies that perform certain task better than another companies – the aim is to copy or improve upon the “best practices”

Customer Relationship Management (CRM): 

Customer Relationship Management (CRM) The term referred to as relational marketing in traditional world, It refers to long-term, Manually beneficial arrangements in which buyer and seller focus on value enhancement through the creation of more satisfying exchanges( Sheith and Sisodia,2001)

Supply Chain Management (SCM): 

Supply Chain Management (SCM) It focus on the delivery of goods It operates on the unified operations of all suppliers necessary for moving goods from the manufacturer to the ultimate customer.

Enterprise Resource Planning (ERP): 

Enterprise Resource Planning (ERP) This relies on technology to streamline a company’s background operations. integrates internal and external management information across an entire organization, embracing finance/accounting, manufacturing, sales and service, customer relationship management.

Back End and Front End Operations: 

Back End and Front End Operations Back End – is responsible for collecting input in various forms from the user and processing it to conform to a specification the back end can use. Front End – is an interface between the user and the back end.

eCommerse vs eBusiness: 

eCommerse vs eBusiness responsible for collecting input in various forms an interface between the user and the back end

Back End Operations: 

Back End Operations

Front End Oprations: 

Front End Oprations

Advantages of eBusiness: 

Advantages of eBusiness

On the part of eBusiness Sellers: 

On the part of eBusiness Sellers Increase sales opportunity Decrease transaction cost Operates 24 hours per day, 7 days a week from one virtual market place Reach narrow market segments that may be widely distributed geographically Access to global market Increase speed and accuracy of information exchange Bring multiple buyers and sellers

On the part of Buyers/customers: 

On the part of Buyers/customers Wider product availability Customized and personalized information and buyer option Shop 24 hours a day, 7 days a week Easy comparison buying and one-stop shopping for business buyers Access to global markets Quick delivery of digital products; quicker delivery of information Participate in auction; reverse auction, knowledge exchanges

Disadvantages of eBusiness: 

Disadvantages of eBusiness

On the part of the Sellers: 

On the part of the Sellers Rapidly changing technology Insufficient telecommunication capacity or bandwidth Difficulty integrating existing system w/ eBusiness Software Problem maintaining existing security and reliability Global market issue: language, plotical environment, currency conversations Shortage of skilled technical employees

On the part the Buyers: 

On the part the Buyers Concern over transaction security and privacy Lack of trust in dealing with unfamiliar sellers Desire to touch and feel product before purchase Resistance to unfamiliar buying process, paperless transaction and electronic money

Types of eBusiness Models: 

Types of eBusiness Models Business-to-consumer (B2C) Business-to-business (B2B) Business-to-Government (B2G) Consumer-to-consumer (C2C) Consumer-to-business (C2B)

Topology of eBusiness models: 

Topology of eBusiness models

Contrast between B2C and B2B: 

Contrast between B2C and B2B

Difference between B2B and B2C exchanges: 

Difference between B2B and B2C exchanges

Business-to-consumer Transactio flow: 

Business-to-consumer Transactio flow

Consumer-to-consumer transaction flow: 

Consumer-to-consumer transaction flow

eBusiness strategies : 

eBusiness strategies

Opportunities for selling digital products online: 

Opportunities for selling digital products online

Schneider(2004): 

Schneider(2004) Is more specific as to the kind of products w/ potential for eBusiness options or marketing online

Options suited for eCommerse/eBusiness: 

Options suited for eCommerse / eBusiness Sale or purchase of books and CDs Online delivery of software Sales or purchase of travel services Online shipment tracking Sale or purchase of investment and insurance product

Business process suitability to type of eComemmerce/eBusiness: 

Business process suitability to type of eComemmerce / eBusiness

Doing Business could be online and offline: 

Doing Business could be online and offline

Business models Dietel, et al. (2001): 

Business models Dietel , et al. (2001) Storefront model Auction model Dynamic pricing model Portal model Other Web-business models

The Storefront Model: 

The Storefront Model Is what many people think of when they hear about the world eComerce / eBusiness . The Storefront model combines transaction processing, security, online payment and information storage to enable merchant to sell their products online.

Shopping Cart: 

Shopping Cart Is a variant of storefront model uses by eCommerce enablers. This models is essentially an order-processing technology that allows customers to accumulate items they wish to buy as they continue to shop.