CIS 342: e-Commerce Applications Prof Frye frye@kutztown.edu

Planning a successful e-business Identify the customers and/or potential customers Identify the customers’ needs Determine the site’s content Determine the organization of the site’s contents

Application concepts Push vs. Pull Technology E-commerce competitive advantages

Components of e-commerce applications Tools Content Users Tasks

Describing Applications/Systems Application or Package Who What Where & When How Why How Much With Which

E-commerce sectors Business-to-Business (B2B) Business-to-Consumer (B2C) Consumer-to-Business (C2B) Consumer-to-Consumer (C2C) Peer-to-Peer (P2P) Mobile E-Commerce (M-Commerce)

B2B Between 2 or more businesses Yankee group predicts that American B2B commerce will grow 41% annually over the next 5 years. The Gartner Group has estimated that the B2B industry will be a $7.3 trillion worldwide industry by 2004.

Top 4 B2B Industries by Volume Increase Estimated Online Sales Projected Online Sales Increase Industry in 1999 (billions) in 2004 (billions) % Pharmaceutical $1.4 $44.1 3,050 & medical Motor Vehicles 9.3 212.9 2,189 Paper & Office Products 2.9 65.2 2,148 Shipping & Warehouse 2.9 61.6 2,024 Computing & Electronics 50.4 395.3 684

B2B Markets Horizontal market Vertical market

B2B Models Marketplace/Exchange E-Distributor B2B Service Provider Matchmaker Infomediary Auction Sites Application Service Providers

B2B Alliances Industry leaders band together to establish a site Two Goals to save money and time on purchasing to save money and time on sales

Government E-commerce Government-to-citizen transactions Government-to-government transactions Government-to-business transactions

B2C Survey commissioned by “Parade Magazine” found that 85% of Internet users were also Internet shoppers Why do consumers prefer to shop and buy on the Internet?

Potential limitations of B2C growth Home PCs Expensive Technology Complex software interface Sophisticated skill set Cultural attraction of physical markets and traditional shopping experience Global inequality limiting access to telephones and PCs

B2C Models Store front or E-tailer model Portal model Dynamic-pricing model Content Provider model Stock Trading Transaction broker model

B2C Models cont. Service Provider model Community Provider model Gambling Software Sales Perishables Online Bill Presentment and Payment

Why do B2C companies fail? Lack of a solid business model Bad financial planning Inability to compete with larger, better-funded, or better-knows firms

Why do B2C companies succeed? Meet a need Total Service Interaction and Personalization Use of Technology

C2C Consumers sell products or services to other consumers Estimated to be over $5 billion in 2001 Forrester Research forecasts consumer online action market will grow to $19 billion by 2003 Auction model

C2B Consumer takes the initiative in the buying and selling relationship to contact the business Smallest and least-developed sector

P2P Enables Internet users to share files and computer resources directly without having to go through a central server

M-Commerce Use of wireless digital devices to enable web transactions