1. Introduction To E-Commerce and E-Business
Chapter 6
Introduction To E-Commerce and E-Business

2. E-Commerce and E-Business Concepts
The exchange or buying and selling of goods and services by electronic means
E-business
The use of information and communication technologies to perform business functions
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3. E-Commerce and E-Business Concepts
Value Chain Concepts
Value chain
The series of processes by which a company turns raw materials into finished goods and services
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4. E-Commerce and E-Business Concepts
Figure 6-1
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5. E-Commerce and E-Business Concepts
Value Chain Concepts
Extended value chain
The sequence of value-adding activities that extend beyond the company boundaries
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6. E-Commerce and E-Business Concepts
Figure 6-2
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7. Benefits of Doing Business Electronically
Reducing The Cost of Executing Transactions
Increasing the Speed of Business
Doing Business Any Time Anywhere
Improving Workflow
Reducing Errors and Improving Quality
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8. Benefits of Doing Business Electronically
Collaborating With Suppliers
Joint product design
Synchronized production
Servicing end customers
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9. Electronic Business Models
Pure Play vs. Multi Channel
Pure play
The initial wave of companies to popularize the Web for B2C e-commerce sold only through the Web channel
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10. Electronic Business Models
Pure Play vs. Multi Channel
Click-and-mortar
Clicks and bricks offering the same Web channel that the pure-plays provide (the “click”) but also providing stores (the “mortar”) where customers can return items more easily
Channel Conflict
Direct sales through Web channel may jeopardize relationships with distributors
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11. Electronic Business Models
What Is A Business Model?
Business model
A broad plan for what products or services a company plans to sell and how it plans to earn its revenue
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12. Electronic Business Models
Producer Models
Producer earns revenue by selling the products that it builds, manufactures, grows, or creates the services it provides
Distributor Models
Distributor buys in bulk and resells in smaller quantities
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13. Electronic Business Models
Aggregator Models
Aggregator adds value by providing one-stop shopping
Advertisement Revenue Models
Advertisement runners earn revenue by selling advertising
Click-through advertising
Web portals
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14. Electronic Business Models
Maker Market Models
A market maker earns revenue by bringing together buyers and sellers
Electronic Auctions
B2B exchanges
Infomediary Models
Infomediary earns revenue by collecting and selling information
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15. Electronic Business Models
E-Government
E-government
The model of government in which information technology is used to the extent possible to facilitate interaction between the government and its suppliers, government and the public, government and its employees, and among government agencies and different governmental bodies
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16. E-Commerce Technologies
Electronic Data Interchange (EDI)
Automated exchange of electronic documents between computers at different companies
Standards at general and industry levels
Mapping software translates application input/output for EDI transmission/reception
Web interfaces exist
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17. E-Commerce Technologies
Web Forms
Extended Markup Language (XML)
Adds tags to Web page so that data on page can be processed by computer
Web Services
Software that accepts commands over the Web and optionally returns results over the Web
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18. E-Commerce Implementation Issues
Resolving Channel Conflict
Make distributor transparent
Direct orders and queries to distributors
Doing Business Internationally
Language choice on Web page selection
Currency conversion
Product branding and design issues
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19. E-Commerce Implementation Issues
Security Management
Need to encrypt transactions
Weak security at partners can compromise your own security
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20. Introduction To E-Commerce and E-Business
End of
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Introduction To E-Commerce and E-Business