Creating Collaborative Partnerships in Business Unit 4 Creating Collaborative Partnerships in Business

Unit 4 Amazon.com www.A9.com Chapter Thirteen – Creating Collaborative Partnerships through E-Business Chapter Fourteen – Enhancing Collaborative Partnerships Chapter Fifteen – Outsourcing Collaborative Partnerships Chapter Sixteen – Integrating Collaborative Partnerships

CHAPTER 13 E-Business

Learning Outcomes Describe how IT accelerates and enhances e-business List and describe the importance of e-business models Explain why forming electronic partnerships and alliances is critical to an organization Differentiate between B2B and B2C e-business models Describe the major digital marketplace structures Describe the benefits of m-commerce

Overview The Internet is a powerful channel that presents new opportunities for an organization to: Touch customers Enrich products and services with information Reduce costs E-commerce – the buying and selling of goods and services over the Internet E-business – the conducting of business on the Internet, not only buying and selling, but also serving customers and collaborating with business partners

E-Business Economy Individuals and organizations have embraced Internet technologies to enhance productivity, maximize convenience, and improve communications globally A growing number of businesses are using the Internet to: Streamline business processes Procure materials Sell products Automate customer service Create new revenue streams

E-Business Model E-business models aim to use and leverage the unique qualities of the Internet and the Web to conduct business E-business model - an approach to conducting electronic business by which a company can become a profitable business on the Internet Exchanges occur between two major entities: Businesses Consumers

E-Business Models

B2B and B2C Overview B2B advantages B2B customers are other businesses Managing inventory more efficiently Adjusting more quickly to customer demand Getting products to market faster Obtaining lower prices on supplies B2B customers are other businesses B2C advantages Access to a wider selection of products and services Access to products at lower costs Convenience for transactions or for obtaining information B2C customers are consumers

B2C in addition to online retailers, B2C has grown to include services such as online banking, travel services, online auctions, health information, and real estate sites

Primary challenges of E-Business Security concerns 60% of Internet users consider the Internet unsafe Taxation Internet remains free of traditional forms of taxation Consumer protection Unsolicited goods and communications Illegal or harmful goods, services, and content Insufficient information about goods or their suppliers Invasion of privacy Cyberfraud

Security Concerns Passwords Hackers Basic security measures such as scanning tools, updated password programs will keep them hackers out Insiders Account for 75% of all security breaches Organizations should establish strict security policies and develop internal processes to enforce those policies. Passwords

Electronic Marketplace Electronic marketplace represent a new wave in e-business Electronic marketplace (e-marketplaces) – interactive business communities providing a central market space where multiple buyers and sellers can engage in e-business activities

Mobile Commerce (m-commerce) Internet-enabled mobile devices will outnumber PCs m-commerce – the ability to purchase goods and services through a wireless Internet-enabled device

Opening Case Study Questions Explain whether Amazon.com is a B2B or B2C Identify how Amazon.com is already integrating its business in the e-marketplace Explain how m-commerce will influence the way Amazon.com conducts business

7-Eleven’s Dream Team 7-Eleven Japan has integrated its online site 7dream.com with its physical stores Through the 7dream.com Web site, 7-Eleven Japan enables consumers to choose from an online assortment of 100,000 products which are picked up from one of 8,400 store locations

7-Eleven’s Dream Team What 7dream.com sells is “convenience.” Explain how integrating the Internet into its existing business is the key to its success Identify new electronic relationships 7-Eleven Japan can create to increase customer acquisitions Explain how 7-Eleven Japan can leverage the advantages of an e-marketplace to increase customer retention