2LEARNING OUTCOMES14.1 Compare ecommerce and ebusiness 14.2 Compare the four types of ebusiness models 14.3 Describe the benefits and challenges associated with ebusiness 14.4 Explain the differences among eshops, emalls, and online auctions
3EBUSINESSThe Internet is a powerful channel that presents new opportunities for an organization to:Touch customersEnrich products and services with informationReduce costs
4EBUSINESS How do ecommerce and ebusiness differ? Ecommerce – the buying and selling of goods and services over the InternetEbusiness – the conducting of business on the Internet including, not only buying and selling, but also serving customers and collaborating with business partners
8Business-to-Business (B2B) Electronic marketplace (emarketplace) – interactive business communities providing a central market where multiple buyers and sellers can engage in ebusiness activities
9Business-to-Consumer (B2C) Common B2C ebusiness models include:eshop – a version of a retail store where customers can shop at any hour of the day without leaving their home or officeemall – consists of a number of eshops; it serves as a gateway through which a visitor can access other eshopsBusiness types:Brick-and-mortar businessPure-play businessClick-and-mortar business
10Consumer-to-Business (C2B) Priceline.com is an example of a C2B ebusiness modelThe demand for C2B ebusiness will increase over the next few years due to customer’s desire for greater convenience and lower prices
11Consumer-to-Consumer (C2C) Online auctionsElectronic auction (eauction) - Sellers and buyers solicit consecutive bids from each other and prices are determined dynamicallyForward auction - Sellers use as a selling channel to many buyers and the highest bid winsReverse auction - Buyers use to purchase a product or service, selecting the seller with the lowest bid
12Consumer-to-Consumer (C2C) C2C communities include:Communities of interest - People interact with each other on specific topics, such as golfing and stamp collectingCommunities of relations - People come together to share certain life experiences, such as cancer patients, senior citizens, and car enthusiastsCommunities of fantasy - People participate in imaginary environments, such as fantasy football teams and playing one-on-one with Michael Jordan
13EBUSINESS BENEFITS AND CHALLENGES Ebusiness benefits include:Highly accessibleIncreased customer loyaltyImproved information contentIncreased convenienceIncreased global reachDecreased cost
14EBUSINESS BENEFITS AND CHALLENGES Ebusiness challenges include:Protecting consumersLeveraging existing systemsIncreasing liabilityProviding securityAdhering to taxation rules
15EBUSINESS BENEFITS AND CHALLENGES There are numerous advantages and limitations in ebusiness revenue models including:Transaction feesLicense feesSubscription feesValue-added feesAdvertising fees
16MASHUPSWeb mashup - a Web site or Web application that uses content from more than one source to create a completely new serviceApplication programming interface (API) - a set of routines, protocols, and tools for building software applicationsMashup editor - WSYIWYGs (What You See Is What You Get) for mashups
17CHAPTER FOURTEEN Opening Case Study Questions Identify the type of ebusiness model WTC is using for the Ironman and explain why it has been so successfulWhat advantages would WTC have in opening up an Ironman emarketplace?What would be an example of WTC using a mashup for the Ironman?
18CHAPTER FOURTEEN CASE eBiz There are numerous ways to make money on the InternetMillion dollar home pageOne red paperclip
19CHAPTER FOURTEEN CASE QUESTIONS How else can you use the Internet to raise money?What types of businesses could benefit from trading on the Internet?Can you think of any other disruptive or non-traditional ways that you could use the Internet?