Instructor: Jim Cheng Course : E-Commerce Analysis Course No: MK 131.

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Presentation transcript:

Instructor: Jim Cheng Course : E-Commerce Analysis Course No: MK 131

CH.1 INTRODUCTION TO ELECTRONIC COMMERCE The second wave of E-commerce (p11) Business models, revenue models, and business processes (p14) Economic forces and electronic commerce (p20) Identifying electronic commerce opportunities(p26) International nature of electronic commerce (p31)

The second wave of E-commerce See FIGURE 1-4 The first wave of E-commerce A. eBay, Amazon.com, Yahoo!... B. The second wave of E-commerce A. Includes a larger proportion of smaller businesses B.

Business models, revenue models, and business processes Business model A. A set of processes that combine to yield a profit. B. Rapid sales growth and market dominance. C. Probably did not exist. Revenue model A. A specific collection of business processes used to identify customers, market to those customers, and generating activities for communication and analysis purposes. B. Classifying revenue-generating activities for communication and analysis purposes.

Business processes A. Such as buying raw materials, managing logistics, hiring employees, financing… B. Product/process suitability to E-commerce C. (FIGURE 1-5).

Advantages of E-commerce A. Increase sales and decrease costs. B. Many different products and services form sellers. C. Anytime / anywhere D. E-payments is easier to audit and monitor. E. Reduction in commuter-caused traffic and pollution. F. ….

Disadvantages of E-commerce A. Perishable foods, and high-cost, unique items. Like fruit, jewelry… B. Difficult to do for investments  the costs and benefits have been hard to quantify. C. The difficulty of integrating existing databases and transaction-processing software designed for traditional commerce into the software that enables e- commerce. D. Face cultural and legal obstacles.

Economic forces and electronic commerce Economics  the study of how people allocate scarce resources. People allocate resource is through commerce. Transaction costs  the total of all costs for a purchase-sale transaction between sellers and buyers. Network form (FIGURE 1-8) Network effects  the increase in value of network

Identifying electronic commerce opportunities Commerce is conducted by firms of all sizes. A. Smaller firms  focus on one product, distribution channel, or type of customer. B. Larger firms  sell many products, channels, and customers. C. Value chain (FIGURE 1-9) D. Industry value chain (FIGURE 1-10) E. SWOT analysis (FIGURE 1-11 & 1-12)

International nature of electronic commerce Trust issues on the Web Language issues Culture issues Infrastructure issues