1. 4
THE DIGITAL FIRM:
ELECTRONIC COMMERCE &
ELECTRONIC BUSINESS

2. LEARNING OBJECTIVES EXPLAIN HOW INTERNET TRANSFORMS BUSINESS
COMPARE CATEGORIES OF ELECTRONIC COMMERCE
EVALUATE PRINCIPAL ELECTRONIC PAYMENT SYSTEMS *
© 2008 by Prentice Hall

3. LEARNING OBJECTIVES
DEMONSTRATE HOW INTERNET TECHNOLOGY SUPPORTS ELECTRONIC BUSINESS, SUPPLY CHAIN MANAGEMENT
EXAMINE CHALLENGES OF INTERNET TO BUSINESS & SOCIETY *

4. MANAGEMENT CHALLENGES
EMERGING DIGITAL FIRM
ELECTRONIC COMMERCE
ELECTRONIC BUSINESS
CHALLENGES & OPPORTUNITIES *

5. MANAGEMENT CHALLENGES
1. ELECTRONIC COMMERCE & ELECTRONIC BUSINESS REQUIRE NEW MIND SET
2. FINDING SUCCESSFUL INTERNET BUSINESS MODEL *

6. INTERNET TECHNOLOGY & THE DIGITAL FIRM
INFORMATION TECHNOLOGY INFRASTRUCTURE: Information flows seamlessly throughout
DIRECT COMMUNICATION BETWEEN TRADING PARTNERS: DISINTERMEDIATION removes intermediate layers streamlines process *

7. INTERNET TECHNOLOGY & THE DIGITAL FIRM
VENDORS CAN PROVIDE INFORMATION 24 HOURS A DAY
CAN EXTEND DISTRIBUTION CHANNELS
CAN REDUCE TRANSACTION COSTS *

8. INTERNET TECHNOLOGY & THE DIGITAL FIRM
REDUCES INFORMATION ASYMMETRY: Asymmetry exists when one party has more information than other
INCREASES RICHNESS: Depth & detail of information
INCREASES REACH: Number of people contacted *

9. INTERNET BUSINESS MODELS
VIRTUAL STOREFRONT: Sells goods, services on-line
MARKETPLACE CONCENTRATOR: Concentrates information from several providers
ON-LINE EXCHANGE: Bid-ask system, multiple buyers, sellers *

10. INTERNET BUSINESS MODELS
INFORMATION BROKER: Provide info on products, pricing, etc.
TRANSACTION BROKER: Buyers view rates, terms from various sources
AUCTION: Electronic clearinghouse products, prices, change in response to demand *

11. INTERNET BUSINESS MODELS
REVERSE AUCTION: Buyer sets price, submits to multiple sellers
AGGREGATOR: Group pools orders for volume discount
DIGITAL PRODUCT DELIVERY: Sell, download software, other digital products *

12. INTERNET BUSINESS MODELS
CONTENT PROVIDER: Creates revenue through providing client for a fee, and advertising
ON-LINE SERVICE PROVIDER: Provides service, support for hardware, software products
VIRTUAL COMMUNITY: Chat room, online meeting place *

13. INTERNET BUSINESS MODELS
PORTAL: Initial point of entry to Web, specialized content, services
SYNDICATOR: Aggregate information from several sources sold to other companies *

14. ELECTRONIC COMMERCE BUSINESS-TO-CONSUMER (B2C)
BUSINESS-TO-BUSINESS (B2B)
CONSUMER-TO-CONSUMER (C2C): Individuals use Web for private sales or exchange *

15. BUSINESS-TO-CONSUMER
WEB SITES: Provide information on products, services, prices, orders
CUSTOMER-CENTERED RETAILING: Closer, yet more cost-effective relationship with customers
INFORMATION BROKERS: Comparison shops to customer’s requirements, reintermediation *

16. BUSINESS-TO-BUSINESS ELECTRONIC COMMERCE
AUTOMATION OF PURCHASE, SALE TRANSACTIONS FROM BUSINESS TO BUSINESS
PROVIDES ALTERNATIVE SOURCES
ELECTRONIC HUBS: Online marketplaces, point-to-point connections, integrated information *

17. BUSINESS-TO-BUSINESS ELECTRONIC COMMERCE
EXCHANGES: Commercial on-line market, many buyers, sellers
POTENTIAL FOR INTEGRATING PRODUCT INFORMATION
PROVIDES SERVICE, VALUE *

18. ELECTRONIC COMMERCE PAYMENT SYSTEMS

19. INTRANETS AND ELECTRONIC BUSINESS
BENEFITS
FUNCTIONAL APPLICATIONS
SUPPLY CHAIN MANAGEMENT *

20. BENEFITS OF INTRANETS:
CONNECTIVITY
CAN BE TIED TO LEGACY SYSTEM & TRANSACTION PROCESSING
INTERACTIVE APPLICATIONS WITH TEXT, AUDIO, VIDEO
SCALABLE TO LARGER OR SMALLER SYSTEMS AS REQUIRED *

21. BENEFITS OF INTRANETS:
EASY TO USE BROWSER INTERFACE
LOW START-UP COSTS
RICH, RESPONSIVE INFORMATION ENVIRONMENT
REDUCED INFORMATION DISTRIBUTION COSTS *

22. FUNCTIONAL APPLICATIONS:
FINANCE & ACCOUNTING
HUMAN RESOURCES
SALES & MARKETING
MANUFACTURING & PRODUCTION *

23. GENERAL LEDGER REPORTING PROJECT COSTING ANNUAL REPORTS BUDGETING *
FINANCE & ACCOUNTING:
GENERAL LEDGER REPORTING
PROJECT COSTING
ANNUAL REPORTS
BUDGETING *

24. EMPLOYEE SAVINGS PLANS BENEFITS ENROLLMENT ON-LINE TRAINING
HUMAN RESOURCES:
CORPORATE POLICIES
EMPLOYEE SAVINGS PLANS
BENEFITS ENROLLMENT
ON-LINE TRAINING
JOB POSTING *

25. PROMOTIONAL CAMPAIGNS SALES PRESENTATIONS SALES CONTRACTS *
SALES & MARKETING:
COMPETITOR ANALYSIS
PRICE UPDATES
PROMOTIONAL CAMPAIGNS
SALES PRESENTATIONS
SALES CONTRACTS *

26. MANUFACTURING & PRODUCTION:
QUALITY MEASUREMENTS
MAINTENANCE SCHEDULES
DESIGN SPECIFICATIONS
MACHINE OUTPUT
ORDER TRACKING *

27. SUPPLY-CHAIN MANAGEMENT
CUSTOMERS
PLANNING & FORECASTING
ORDER PROCESSING
SUPPLIERS
INTRANET
PRODUCTION
PROCUREMENT
ACCOUNTING
LOGISTICS SERVICES
SHIPPING
INVENTORY
DISTRIBUTORS

28. CHALLENGES & OPPORTUNITIES
UNPROVEN BUSINESS MODELS
BUSINESS PROCESS CHANGE REQUIREMENTS
CHANNEL CONFLICTS
LEGAL ISSUES
SECURITY & PRIVACY *

29. THE DIGITAL FIRM:
ELECTRONIC COMMERCE &
ELECTRONIC BUSINESS