1 University of Palestine E-Business ITBS 3202 Ms. Eman Alajrami 2 nd Semester

2 Reference Textbooks [1] “e-Business and e-Commerce Management”, by Dave Chaffey Lecture slides by Eman Alajrami

3 Chapter 1 Introduction to e-business and e-commerce

4 Learning objectives Define the meaning and scope of e-business and e-commerce and their different elements; Summarise the main reasons for adoption of e-commerce and e-business and barriers that may restrict adoption; Use resources to define the extent of adoption of the Internet as a communications medium for consumers and businesses; Outline the business challenges of introducing e-business and e- commerce to an organization.

5 Issues for managers How do we explain the scope and implications of e- business and e-commerce to staff? What are the full-range of benefits of introducing e- business and what are the risks? How great will the impact of the Internet be on our business? What are the current and predicted adoption levels? How do we assess the validity of forecasts?

6 The impact of Internet on business Andy Grove, Chairman of Intel, one of the early adopters of e-commerce, has made a meteorological analogy with the Internet. He says: Is the Internet a typhoon force, a ten times force, or is it a bit of wind? Or is it a force that fundamentally alters our business? (Grove, 1996)

7 The impact on one industry - banking MetricMay 1995Dec Financial institutions with Web banking (WW)16,000 Financial institutions with Web sites (WW)5014,000 Total online banking households (WW)5 million100 million Total online banking households (US)300,00028 million Monthly bank and credit card Web traffic (US)100,00050 million Monthly credit apps submitted via Web (US)01.5 million Table years of web banking. Source: Online banking report, Number 89, December 10, Source: Online Banking Report estimates, +/- 25%, 11/02

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9 The Internet’s impact on you How many of you have purchased something on the Internet in the last 6 months? How many times have you used the Internet as an information source, before buying offline?

10 Popularity of online purchases Source: The Internet Monitor, BMRB, November 2001 (

11 Definitions You are asked to distinguish between e-commerce and e-business at a job interview. Write down your definitions. Use examples to illustrate your points.

12 E-commerce defined ‘All electronically mediated information exchanges between an organization and its external stakeholders’ Examples: Buying books online (transactional) Selecting a car online (informational) Interacting with brand online (relationship building / experiential, e.g. Asking a customer service query, e.g.

13 E-business defined All electronically mediated information exchanges, both within an organization and with external stakeholders supporting the range of business processes Examples: Purchasing from suppliers (e-procurement) A company intranet (defined in Ch 3) Supplying partners with information through an extranet (see Ch 3)

14 The distinction between buy-side and sell-side e-commerce Figure 1.1 The distinction between buy-side and sell-side e-commerce

15 Recap – which is correct? Figure 1.2 Three definitions of the relationship between e-commerce and e-business

16 Drivers for e-commerce Figure 1.6 Attitudes to benefits of online technologies Source: DTI (2002)

17 Barriers to e-commerce Figure 1.7 Barriers to development of online technologies Source: DTI (2002)

18 Activity – Changes required by e-commerce What changes to the overall business would be required by e-commerce for the B2C and B2B Company?

19 Answer – the 7 Ss Figure 1.9 The McKinsey 7S framework