1. Instructor: Jim Cheng http://ca.linkedin.com/in/jimyccheng E-mail: Course : E-Commerce Analysis Course No: MK 131

2. CH.1 INTRODUCTION TO ELECTRONIC COMMERCE The second wave of E-commerce (p11) Business models, revenue models, and business processes (p14) Economic forces and electronic commerce (p20) Identifying electronic commerce opportunities(p26) International nature of electronic commerce (p31)

3. The second wave of E-commerce See FIGURE 1-4 The first wave of E-commerce A. eBay, Amazon.com, Yahoo!... B. http://ca.yahoo.com/ http://ca.yahoo.com/ The second wave of E-commerce A. Includes a larger proportion of smaller businesses B. http://www.3dgeomatics.com/ http://www.3dgeomatics.com/

4. Business models, revenue models, and business processes Business model A. A set of processes that combine to yield a profit. B. Rapid sales growth and market dominance. C. Probably did not exist. Revenue model A. A specific collection of business processes used to identify customers, market to those customers, and generating activities for communication and analysis purposes. B. Classifying revenue-generating activities for communication and analysis purposes.

5. Business processes A. Such as buying raw materials, managing logistics, hiring employees, financing… B. Product/process suitability to E-commerce C. (FIGURE 1-5).

6. Advantages of E-commerce A. Increase sales and decrease costs. B. Many different products and services form sellers. C. Anytime / anywhere D. E-payments is easier to audit and monitor. E. Reduction in commuter-caused traffic and pollution. F. ….

7. Disadvantages of E-commerce A. Perishable foods, and high-cost, unique items. Like fruit, jewelry… B. Difficult to do for investments  the costs and benefits have been hard to quantify. C. The difficulty of integrating existing databases and transaction-processing software designed for traditional commerce into the software that enables e- commerce. D. Face cultural and legal obstacles.

8. Economic forces and electronic commerce Economics  the study of how people allocate scarce resources. People allocate resource is through commerce. Transaction costs  the total of all costs for a purchase-sale transaction between sellers and buyers. Network form (FIGURE 1-8) Network effects  the increase in value of network

9. Identifying electronic commerce opportunities Commerce is conducted by firms of all sizes. A. Smaller firms  focus on one product, distribution channel, or type of customer. B. Larger firms  sell many products, channels, and customers. C. Value chain (FIGURE 1-9) D. Industry value chain (FIGURE 1-10) E. SWOT analysis (FIGURE 1-11 & 1-12)

10. International nature of electronic commerce Trust issues on the Web Language issues Culture issues Infrastructure issues