Presentation on theme: "Ecommerce Digital Markets, Digital Goods"— Presentation transcript:
1 Ecommerce Digital Markets, Digital Goods Business Information SystemsLaudon & Laudon, Ch.9 (P.296)
2 E-Commerce TodayE-commerce: the use of the Internet and Web to transact business; digitally enabled transactionsBegan in 1995 with Netscape.com accepted its first add and grew exponentially; still growing at an annual rate of 25 percentCompanies that survived the dot-com bubble burst and now thriveThe e-commerce revolution is still in its early stages
3 The Growth of E-Commerce Figure 9-1Retail e-commerce revenues have grown exponentially since 1995 and have only recently “slowed” to a very rapid 25 percent annual increase, which is projected to remain the same until 2008.
5 Why E-commerce Is Different Ubiquity (It is available everywhere at all time)Global reach(Potential market size = more than 1 billion)Universal standards (market entry costs, search costs)Richness (complexity and content of a message) Richness versus Reach
6 Why E-commerce Is Different InteractivityInformation density (price transparency, cost transparency, price discrimination)Personalization/Customization(Based on consumer’s purchases and behavior)
7 Key Concepts in E-commerce Information symmetryFlexibility due to lower search cost, transaction costs, menu costs(merchants’ costs of changing prices) and dynamic pricing( The price of product varies depending on the demand characteristics or supply situation)Disintermediation
8 Key Concepts in E-commerce Digital goods: delivered over a digital networkInternet business models (Virtual store front, Information broker, Transaction broker, Online market place, Content place, Social network, Portal, Service provider )Music track, video, software, news paper
9 Internet Business Models Communication and Social Networking (eBay, GoIndustry , banner ads, pop-up) Social Shopping(Kaboodle, ThisNext, StyleHive)Digital content, entertainment, and services (New York Times, Online games,Movies, music,podcasting, vcast)
11 Business-to-Business Electronic Commerce Procurement/E-procurementCatalogs, AuctionsVendor-managed inventory systemsAutomated purchasing: Electronic Data InterchangePayment systemsPrivate industrial networks (Private Exchanges)E.g. Network of all suppliers of Wal-MartNet marketplaces (or Exchanges)Across industriesWithin a specific Industry (e.g. FoodTrader.com)
12 Electronic Data Interchange (EDI) Figure 9-5Companies use EDI to automate transactions for B2B e-commerce and continuous inventory replenishment. Suppliers can automatically send data about shipments to purchasing firms. The purchasing firms can use EDI to provide production and inventory requirements and payment data to suppliers.
13 M-Commerce Services and Applications Mobile bill paymentBanking and financial servicesWireless advertisingLocation-based servicesGames and entertainment
14 M-Commerce Challenges Awkwardness of keyboards and screensData transfer speedsCostLimited memory and power supplies on devicesContent
15 Types of Electronic Payment Systems Digital credit card payment systems (eCharge)Digital wallet (Q*Wallet)Shoppers don’t need to enter their address and card information repeatedly.MicropaymentAccumulated balance digital payment systems(QPass)Stored value payment systems (eCount)Payment is based on the value stored in an online digital account.
16 Types of Electronic Payment Systems Peer-to-peer payment systems (e.g. PayPal)Digital checking payment systems (e.g. eCheck)Electronic billing presentment and payment systems (e.g. your bank’s online bill payment feature; CheckFree – consolidates bills)