1. Introduction to e-business and e-commerce Professor: Nabil Elmjati
Chapter 1
Introduction to e-business and e-commerce
Professor: Nabil Elmjati 1

2. Learning outcomes
Define the meaning and scope of e-business and e-commerce and their different elements
Summarize the main reasons for adoption of e-commerce and e-business and barriers that may restrict adoption
Outline the ongoing business challenges of managing e-business and e-commerce in an organization. 2

3. Management issues
How do we explain the scope and implications of e-business and e-commerce to staff?
What is the full range of benefits of introducing e-business and what are the risks?
How do we evaluate our current e-business capabilities? 3

4. E-business innovation
Discussion
Which company / website impacted on Internet or the web?
How do we measure their success?
What made them successful? 4

5. Figure 1.1 Google circa 1998 Source: Wayback machine archive: 5

6. The impact of the Internet on business
Andy Grove, Chairman of Intel, one of the early adopters of e-commerce, has made a meteorological analogy with the Internet.
He says:
Is the Internet a typhoon force, a ten times force, or is it a bit of wind? Or is it a force that fundamentally alters our business? (Grove, 1996) 6

7. E-business opportunities
Reach
Over 1 billion users globally
Connect to millions of products
Richness
Detailed product information on 20 billion + pages indexed by Google. Blogs, videos, feeds…
Personalized messages for users
Affiliation
Partnerships are key in the networked economy 7

8. Internet risks – what can go wrong with a transactional site?
This slide left deliberately blank for student Q&A interaction.
Potential answers:
Site downtime affecting whole site or some processes
Security attack, e.g. denial of service, content hijacked
Wrong content presented for site visitor 8

9. Internet risks – what can go wrong with a transactional site?
Web sites that fail because of spike in visitor traffic
Hacker penetrating the security of the system
A company s customer without receiving their permission
Problems with fulfilment
customer-service enquiries from the web site don’t reach the right person
This slide left deliberately blank for student Q&A interaction.
Potential answers:
Site downtime affecting whole site or some processes
Security attack, e.g. denial of service, content hijacked
Wrong content presented for site visitor 9

10. What is e-commerce and e-business?
Write down a definition for each
E-commerce:
E-business: 10

11. What is e-commerce and e-business?
All electronically mediated information exchange between an organization and its external stakeholders (Chaffey)
Digitally enabled commercial transactions between and among organizations and individuals 11

12. What is e-commerce and e-business?
All electronically mediated information exchanges, both within an organization and with external stakeholders supporting the range of business process (Chaffey)
Digital enablement of transactions and processes within a firm, involving information systems under firm’s control. Does not include commercial transactions involving an exchange of value across organizational boundaries (Laudon) 12

13. What is e-commerce and e-business? Activity 1.2
Use Google Syntax for:
'E-business'
'E-commerce'
'Internet ‘
‘Marketing’.
'E-marketing'
'Digital marketing' 13

14. Figure 1.2 The distinction between buy-side and sell-side e-commerce14

15. Figure 1.3 Three definitions of the relationship between e-commerce and e-business15

16. What is e-commerce and e-business?
Activity 1.3, P. 11
Discussion—Question 1
Intranet vs. Extranet 16

17. Intranet vs. Extranet
P. 11, Activity 1.3
Discussion—Question 1 17

18. Figure 1.4 The relationship between intranets, extranets and the Internet18

19. Why Study E-commerce?
E-commerce technology is different, more powerful than previous technologies
E-commerce bringing fundamental changes to commerce
Traditional commerce:
Passive consumer
Sales-force driven
Fixed prices
Information asymmetry

20. Unique Features of E-commerce Technology
Global reach
Universal standards
Information richness
Interactivity
Information density
Personalization/customization
Social technology

21. Origins & Growth of E-commerce
Precursors:
Electronic Data Interchange (EDI)
1995: Beginning of e-commerce
First sales of banner advertisements
Since then, e-commerce fastest growing form of commerce in the United States

22. The Growth of B2C E-commerce
SOURCES: eMarketer, Inc., 2009a; U.S. Census Bureau, 2009b;

23. The Growth of B2B E-commerce
SOURCES: U.S. Census Bureau, 2009a; authors’ estimates.

24. E-commerce: A Brief History
1995–2000: Innovation
Key concepts developed
Dot-coms; heavy venture capital investment
2001–2006: Consolidation
Emphasis on business-driven approach
2006–Present: Reinvention
Extension of technologies
New models based on user-generated content, social networking, services

25. Types of E-commerce Selling Side Transaction e-commerce sites
Service-oriented relationship-building site
Brand-building sites
Portal, publisher or media sites

26. Types of E-commerce Digital Marketing
The management and execution of marketing using e-media in conjunction with digital data about customer
Involves using digital technology
…………
To achieve these objectives
…………..
Through using these marketing tactics
………..

27. Figure 1.5 First Direct Interactive (www.firstdirect.com)27

28. Figure 1.6 Blendtec viral campaign micro-site (www.willitblend.com)28

29. Web 2.0 and Beyond Web 2.0 Web 3.0 Features-pp. 24-25 Box 1.1
Web 2 examples
Web 3.0 Features-pp Box 1.1
Research the web to discover what Web 3.0 technology and features have been used by which company

30. Figure 1.7 Evolution of web technologies Source: Adapted from Spivack (2007)30

31. e-Commerce and SCM What’s Supply Chain Management (SCM) Value Chain
The coordination of all supply activities of an organization from its supplier and partners to its customers (Both the buy Side and Sell side)
Value Chain
The value chain is a related concept that describes the different value-adding activities that connect a company’s supply side.
We can identify an internal value chain within the boundaries of an organization and an external value chain where these activities are performed by partners.
Note that in the era of e-business a company will manage many interrelated value chains, so in chapter 6 we also consider the concept of a value network.

32. Business-Consumer Model of e-Commerce
Classified by market relationship
Business-to-Consumer (B2C)
Business-to-Business (B2B)
Consumer-to-Consumer (C2C)
Classified by technology used
Peer-to-Peer (P2P), e.g., BitTorrent and Napster
Mobile commerce (M-commerce)

33. Figure 1.8 Summary and examples of transaction alternatives between businesses, consumers and governmental organizations 33

34. Mini Case Study How does Betfair gains profit
What’s the challenges they may face

35. Figure 1.9 Betfair peer-to-peer gambling exchange35

36. E-government What is it?
E-government refers to the application of e-commerce technologies to government and public service.
What are the benefits?
Citizens-facilities for dissemination of information and use of online services at local and national levels. For example, at a local level you can find out when refuse is collected and at national level it is possible to fill tax returns.
Suppliers-government departments have a vast network of suppliers. The potential benefits (and pitfalls) of electronic supply chain management and e-procurement described in chapters 6 and 7 are equally valid for government.
Internal communications _ this includes information collection and dissemination and and workflow systems for improving efficiency within government departments.

37. E-Business Opportunities
what goals does a business can achieve through e- business?

38. Business Adoption of E-Commerce/Business
Activity: You are in a team of advisers at a local business link
List
Drivers to adoption of sell-side e-commerce by business and how you can reinforce these by marketing benefits
Barriers to adoption of sell-side e-commerce by business and how you can reinforce these by stressing benefits 38

39. Cost/efficiency and competitiveness drivers
Cost/efficiency drivers
Increasing speed with which supplies can be obtained
Increasing speed with which goods can be dispatched
Reduced sales and purchasing costs
Reduced operating costs
Competitiveness drivers
Customer demand
Improving the range and quality of services offered
Avoid losing market share to businesses already using e-commerce 39

40. E-business Risks and Barriers for Adoption
Strategy level issues
Practical risks

41. Figure 1.12 Barriers to development of online technologies Source: DTI (2002)41

42. Potential Limitations on B2C E-commerce*
Expensive technology
Sophisticated skill set
Persistent cultural attraction of physical markets and traditional shopping experiences
Persistent global inequality limiting access to telephones and computers
Saturation and ceiling effects

43. Evaluating an Organization’s E-business Capability
Is any company ready for e-commerce?

44. Figure 1.13 A simple stage model for buy-side and sell-side e-commerce44

45. Figure Variation in different online activities by gender Source: UK National Statistics (2006) Individuals accessing the Internet – Report from the UK National Statistics Omnibus Survey. Published online at 45

46. Internet risks – what can go wrong with a transactional site?
Web sites that fail because of spike in visitor traffic
Hacker penetrating the security of the system
A company s customer without receiving their permission
Problems with fulfilment
customer-service enquiries from the web site don’t reach the right person
This slide left deliberately blank for student Q&A interaction.
Potential answers:
Site downtime affecting whole site or some processes
Security attack, e.g. denial of service, content hijacked
Wrong content presented for site visitor 46

47. Case Study: E-Bay