Creating a Winning E-Business Understanding E-Business Chapter 1

E-Business Basics  E-commerce – –Process of buying or selling goods or services across a electronic network  E-business – –Widest spectrum of business activities using Internet and Web technologies together  Many technologies facilitate e-business –Electronic funds transfer (EFT) –Electronic data interchange (EDI) –Internet / World Wide Web –Social Media Networking, including Twitter, Facebook, LinkedIn and blogging

E-Business and the Global Economy  Widespread linking of individuals and businesses has changed global economy –Time and space are no longer limiting factors – someone from China can buy from a website in US –Business value of information is greater – The information you need to make a purchase is all there in front of you, less emotional –Information is more accessible – Amazon rating system –Traditional intermediaries have been replaced by new types of intermediaries – Banks out, Pay Pal in

E-Business and the Global Economy (continued)  Buyers are growing more powerful –The power now is in the buyer’s hands, a complete turn-around from 10 years ago  Internet and Web access has changed buyers expectations –Information on competing products is accessible within a click or the same click (comparative websites) –Transaction speed and convenience

E-Business and the Global Economy (continued)

 Value chain or value network –Activities involved in the production of goods or services –Internet and Web technologies facilitate value chains and networks Improve communication Improve transaction speed  Internet and Web access allows businesses to rethink their value – How have we seen this in the marketplace?

E-Business and the Global Economy (continued)

 Business models –How a company conducts business in order to generate revenue –Widespread access to the Internet and Web allows companies to adapt old models and create new ones  E-business models are often categorized by type of customer E-Business Models

E-Business Models (continued)

 Business-to-consumer (B2C) –Retail sales (e-retail) including airline tickets, entertainment venue tickets, hotel rooms, stock purchases, diet and fitness programs  Brick-and-mortar companies are moving to brick-and click companies –Sears, Best Buy, Barnes & Noble, the Gap  Pure-play e-retailers and catalog merchants –Amazon.com, eBags, Harry and DavidAmazon.comHarry and David E-Business Models (continued)

B2C Models (continued)

Personal Relevant Anticipated

B2C Models (continued)

E-Business Models (continued)  Business-to-business (B2B) –Businesses selling to other businesses –Online stores, such as Office Depot, Staples –Internet and Web technologies Web hosting Web design Hardware and software Consulting

E-Business Models (continued)  Business-to-business (B2B) –Online trading communities for vertical markets –Exchanges, aggregators, auctions Virtual marketspaces for buyers and sellers Elance, ATLA Exchange, Business.com, HedgeHog

B2B Models (continued)

E-Business Models (continued)  Business-to-government (B2G) –Businesses provide a marketspace for other businesses and government agencies –Bidmain, B2GMarkets

B2G Models (continued)

E-Business Models (continued)  Consumer-to-consumer (C2C) –Consumers sell or exchange products and services directly with other consumers –Auctions, online classified ads, expert information exchanges eBay, American Boat Listing, TraderOnline.com, AllExperts

C2C Models (continued)

E-Business Models (continued)  Consumer-to-business (C2B) –Reverse auctions in which a single consumer names his or her own price for products or services –Consumer’s offer made to multiple businesses, which can accept or decline offer –Priceline.com

C2B Models