Laudon & Laudon: Canadian Edition

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Presentation transcript:

Laudon & Laudon: Canadian Edition Chapter 13 Electronic Commerce

Outline Electronic commerce (e- commerce) – concept, B2C, B2B, C2C types Business models for B2C e-commerce Business models for B2B e-commerce Differences between e-commerce and traditional business models Mobile commerce (m-commerce) Electronic payment E-Commerce

Laudon & Laudon: Canadian Edition E-Commerce Concept E-Commerce: Buying and selling goods and services electronically, via the Internet and other networks and systems: Business-to-Consumer (B2C; Chapters.com) Business-to-Business (B2B; Covisint) – larger, more stable part Consumer-to-Consumer (C2C; eBay) E-Commerce requires a new way of thinking about organizational processes (IT support critical), customers and delivery. Challenges: sustainable e-commerce business models, growth, security and privacy. 2006: U.S., 31.0% of sales b/w firms Canada, 3.2% B2C: 1.8% (U.S.), 0.2% (CA) of retail E-Commerce

Business Models of B2C E-Commerce Laudon & Laudon: Canadian Edition Business Models of B2C E-Commerce Business model: What is the biz, Who is the customer, How money is made Virtual Storefront Sells goods/services online (Amazon - pure click, no physical stores) Consumers with access to Internet around globe Interactive Marketing and Personalization Virtual storefront as addition to store (Chapters – click & mortar) Visit these websites E-Commerce

Business Models of B2C E-Commerce Laudon & Laudon: Canadian Edition Business Models of B2C E-Commerce Portal : Initial point of entry to Web, provides Internet search service for free, sells specialized content and advertising space (Google, Yahoo) Customer: Global Internet user Revenue: Advertising Information Broker: Provides integrated information (Wishabi) Revenue: Referral fee (advertising) E-Commerce

Business Models of B2B E-Commerce Laudon & Laudon: Canadian Edition Business Models of B2B E-Commerce Direct linking of buyer-supplier (private networks, Electronic data Interchange) Online Exchange (different names) Buyer/Seller run Within an industry (GHX) Across industries (Covisint) Revenue: Membership fee, Transaction charge, Services Product catalogue, purchasing/selling, order fulfillment More information E-Commerce

E-commerce and traditional business models Biz content: mostly old stuff, some new info-related services. Dependent on IT (Clickstream tracking, Collaborative filtering, Supply chain systems integration) Customer: Global, Internet/IT capable Attracted by some cost savings (transaction costs) and value offering (dynamic pricing, disintermediation – less of middlemen) Revenue: Dependent on advertising and variable sources (volume of transactions). E-Commerce

Mobile Commerce (M-commerce) Commerce using mobile electronic devices (e.g., cell phone) Biz content: financial services, advertising, entertainment Services: business locator, banking, news, entertainment Challenges: screen size, speed, privacy E-Commerce

E-commerce Payment Systems Laudon & Laudon: Canadian Edition E-commerce Payment Systems Important for closing trading cycle Systems: Credit card – you, your bank, payee, payee’s bank Smart card – you, payee, your bank & Mondex; card reader needed E-cash/digital cash/e-money - you, payee, bank where you have account; small payments supported; payee can accumulate e-cash and exchange for cash at will Person-to-person payments – you, payee, your bank & PayPal site Challenges : Security, Trust Demo: sign up on passport system E-Commerce