1. CHAPTER 14
Ebusiness

2. LEARNING OUTCOMES
14.1 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

3. EBUSINESS
The Internet is a powerful channel that presents new opportunities for an organization to:
Touch customers
Enrich products and services with information
Reduce costs

4. EBUSINESS How do ecommerce and ebusiness differ?
Ecommerce – the buying and selling of goods and services over the Internet
Ebusiness – the conducting of business on the Internet including, not only buying and selling, but also serving customers and collaborating with business partners

5. Industries Using Ebusiness

6. EBUSINESS MODELS
Ebusiness model – an approach to conducting electronic business on the Internet

7. EBUSINESS MODELS

8. Business-to-Business (B2B)
Electronic marketplace (emarketplace) – interactive business communities providing a central market where multiple buyers and sellers can engage in ebusiness activities

9. Business-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 office
emall – consists of a number of eshops; it serves as a gateway through which a visitor can access other eshops
Business types:
Brick-and-mortar business
Pure-play business
Click-and-mortar business

10. Consumer-to-Business (C2B)
Priceline.com is an example of a C2B ebusiness model
The demand for C2B ebusiness will increase over the next few years due to customer’s desire for greater convenience and lower prices

11. Consumer-to-Consumer (C2C)
Online auctions
Electronic auction (eauction) - Sellers and buyers solicit consecutive bids from each other and prices are determined dynamically
Forward auction - Sellers use as a selling channel to many buyers and the highest bid wins
Reverse auction - Buyers use to purchase a product or service, selecting the seller with the lowest bid

12. Consumer-to-Consumer (C2C)
C2C communities include:
Communities of interest - People interact with each other on specific topics, such as golfing and stamp collecting
Communities of relations - People come together to share certain life experiences, such as cancer patients, senior citizens, and car enthusiasts
Communities of fantasy - People participate in imaginary environments, such as fantasy football teams and playing one-on-one with Michael Jordan

13. EBUSINESS BENEFITS AND CHALLENGES
Ebusiness benefits include:
Highly accessible
Increased customer loyalty
Improved information content
Increased convenience
Increased global reach
Decreased cost

14. EBUSINESS BENEFITS AND CHALLENGES
Ebusiness challenges include:
Protecting consumers
Leveraging existing systems
Increasing liability
Providing security
Adhering to taxation rules

15. EBUSINESS BENEFITS AND CHALLENGES
There are numerous advantages and limitations in ebusiness revenue models including:
Transaction fees
License fees
Subscription fees
Value-added fees
Advertising fees

16. MASHUPS
Web mashup - a Web site or Web application that uses content from more than one source to create a completely new service
Application programming interface (API) - a set of routines, protocols, and tools for building software applications
Mashup editor - WSYIWYGs (What You See Is What You Get) for mashups

17. CHAPTER FOURTEEN Opening Case Study Questions
Identify the type of ebusiness model WTC is using for the Ironman and explain why it has been so successful
What advantages would WTC have in opening up an Ironman emarketplace?
What would be an example of WTC using a mashup for the Ironman?

18. CHAPTER FOURTEEN CASE eBiz
There are numerous ways to make money on the Internet
Million dollar home page
One red paperclip

19. CHAPTER 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?