CHAPTER-4 THE DIGITAL FIRM: E-COMMERCE AND E- BUSINESS

 REFERS TO CONDUCTING BUSINESS TRANSACTION OVER ELECTRONIC NETWORKS  ELECTRONIC COMMERCE RESULTED IN EVOLUTION OF NEW TERMS FOR DESCRIBING DIFFERENT TYPES OF BUSINESSES  BRICKS-AND-MORTAR  CLICKS-AND-MORTAR  PURE-PLAY ELECTRONIC COMMERCE (E-COMMERCE)

1.BUSINESS-TO-CONSUMER (B2C) 2.BUSINESS-TO-BUSINESS (B2B) 3.CONSUMER-TO-CONSUMER (C2C) 4.BUSINESS-TO-EMPLOYEE (B2E) DIFFERENT BUSINESS MODELS OF E-COMMERCE

1.NEW BUSINESS MODELS 2.SELLING DIRECTLY TO THE CUSTOMER BY ELIMINATING INTERMEDIARIES 3.COLLECTING INFORMATION ON CUSTOMERS THROUGH INTERACTIVE MARKETING 4.PROVIDE CUSTOMER SERVICE AND SUPPORT 5.MOBILE COMMERCE (M-COMMERCE) USE OF INTERNET IN E-COMMERCE

new efficiencies generated by b-to-b e-commerce COMPANIES CAN CONDUCT B-TO-B E-COMMERCE IN TWO WAYS:  USE COMPANY’S WEB SITE  USE ON-LINE MARKETPLACES AN EXCHANGE IS ONE TYPE OF ON-LINE MARKETPLACE WHERE MANY BUYERS CAN PURCHASE FROM MANY SELLERS USING A BID-ASK SYSTEM.

ELECTRONIC COMMERCE PAYMENT SYSTEMS  CREDIT CARDS  DIGITAL WALLET  ELECTRONIC CASH (E-CASH)  SMART CARDS  PERSON-TO-PERSON PAYMENT SYSTEMS

Organizations face the following challenges posed by the use of internet for e-commerce and e-business:  NEW BUSINESS MODEL WHICH MAY NOT BE PROFITABLE  REQUIRE MAJOR CHANGES IN CORE BUSINESS PROCESSES  TECHNOLOGY ISSUES AND PROBLEMS  LEGAL ISSUES  SECURITY AND PRIVACY