Introduction to e-business and e-commerce 1

Figure 1.1 Google circa 1998 Source: Wayback machine archive: http://web.archive.org/web/19981111183552/google.stanford.edu 2

E-business innovation Discussion Which company / website impacted on Internet or the web? How do we measure their success? What made them successful? 3

E-business opportunities Reach Over 1 billion users globally Connect to millions of products Richness Detailed product information on 20 billion + pages indexed by Google. Blogs, videos, feeds… Personalized messages for users Affiliation Partnerships are key in the networked economy 4

What is e-commerce and e-business? All electronically mediated information exchange between an organization and its external stakeholders (Chaffey) Digitally enabled commercial transactions between and among organizations and individuals E-business: All electronically mediated information exchanges, both within an organization and with external stakeholders supporting the range of business process (Chaffey) Digital enablement of transactions and processes within a firm, involving information systems under firm’s control. Does not include commercial transactions involving an exchange of value across organizational boundaries (Laudon) 5

Figure 1.2 The distinction between buy-side and sell-side e-commerce 6

Figure 1.3 Three definitions of the relationship between e-commerce and e-business 7

Figure 1.4 The relationship between intranets, extranets and the Internet 8

Why Study E-commerce? E-commerce technology is different, more powerful than previous technologies E-commerce bringing fundamental changes to commerce

Unique Features of E-commerce Technology Ubiquity Global reach Universal standards Information richness Interactivity Information density Personalization/customization Social technology

Origins & Growth of E-commerce Precursors: Electronic Data Interchange (EDI) 1995: Beginning of e-commerce First sales of banner advertisements Since then, e-commerce fastest growing form of commerce in the United States

The Growth of B2C E-commerce SOURCES: eMarketer, Inc., 2009a; U.S. Census Bureau, 2009b;

The Growth of B2B E-commerce SOURCES: U.S. Census Bureau, 2009a; authors’ estimates.

E-commerce: A Brief History 1995–2000: Innovation Key concepts developed Dot-coms; heavy venture capital investment 2001–2006: Consolidation Emphasis on business-driven approach 2006–Present: Reinvention Extension of technologies New models based on user-generated content, social networking, services

Types of E-commerce Selling Side Transaction e-commerce sites Service-oriented relationship-building site Brand-building sites Portal, publisher or media sites

Figure 1.6 Blendtec viral campaign micro-site (www.willitblend.com) 16

Web 2.0 and Beyond Web 2.0 Web 3.0 Features-pp. 24-25 Box 1.1 Examples- Webservices (flickr, GoogleMaps), Participation(Facebook), User- generated content (Wikipedia), Ratings (delicious), Data exchange between sites, Rich Internet Applications(Secondlife) Web 3.0 Features-pp. 24-25 Box 1.1 Research the web to discover what Web 3.0 technology and features have been used by which company Example- Web Applications (Google Docs), Cloudcomputing, Syndication, Streamed video (IPTV, youtube), Virtualworlds Increase, Personal data integration, Semantic web

Figure 1.7 Evolution of web technologies Source: Adapted from Spivack (2007) 18

e-Commerce and SCM What’s Supply Chain Management (SCM) The coordination of all supply activities of an organization from its supplier and partners to its customers

Business-Consumer Model of e-Commerce Classified by market relationship Business-to-Consumer (B2C) Business-to-Business (B2B) Consumer-to-Consumer (C2C) Classified by technology used Peer-to-Peer (P2P), e.g., BitTorrent and Napster Mobile commerce (M-commerce)

Figure 1.8 Summary and examples of transaction alternatives between businesses, consumers and governmental organizations 21

Figure 1.9 Betfair peer-to-peer gambling exchange 22

Cost/efficiency and competitiveness drivers Cost/efficiency drivers Increasing speed with which supplies can be obtained Increasing speed with which goods can be dispatched Reduced sales and purchasing costs Reduced operating costs Competitiveness drivers Customer demand Improving the range and quality of services offered Avoid losing market share to businesses already using e-commerce 23

Business Adoption of E-Commerce/Business Drivers for Adoption-Profit generation and cost reduction Tangible and Intangible benefits from e-business Figure 1.10 Usage of different e-business services in European countries Source: European Commission, 2008 24

Figure 1. 11 North West Supplies Ltd site (www. northwestsupplies. co Figure 1.11 North West Supplies Ltd site (www.northwestsupplies.co.uk) Source: Opportunity Wales 25

E-business Risks and Barriers for Adoption- Strategy level issues and Practical risks Figure 1.12 Barriers to development of online technologies Source: DTI (2002) 26

Stage model of e-commerce- Evaluate Is your company ready? Figure 1.13 A simple stage model for buy-side and sell-side e-commerce Stage model of e-commerce- Evaluate Is your company ready? 27

The McKinsey Seven-S Model “Structure follows strategy” Strategy Style Structure Shared Values Staff Skills Systems “Get the right people on the bus.”