1. Defining e-Business
e-Business (electronic business)—The organized effort of individuals to produce and sell, for a profit, the products and services that satisfy society’s needs through the facilities available on the Internet
e-Commerce—Buying/selling activities conducted online—Identifying suppliers, selecting products or services, making purchase commitments, completing financial transactions, and obtaining service
Outsourcing—The process of finding outside vendors and suppliers that provide professional help, parts, or materials at a lower cost.
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2. Combining e-Business Resources
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3. Satisfying Needs Online
The Internet has created new customer needs
E-business can satisfy those needs as well as traditional ones
Global access to information and entertainment
Virtually unlimited selections of products
Opportunities for interaction
Individually custom-tailored content
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4. Creating e-Business Profit
Revenue growth
Revenue stream
Source of revenue flowing into a firm
Sales of merchandise online
Intelligent information systems to suggest purchases to repeat online customers
Increased sales in physical stores because of product information available online
Advertising on web pages
Subscription fees charged for access to online services and content
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5. Creating e-Business Profit (cont’d)
Expense reduction
Offering services that
Reduce transaction costs
Provide information
Provide customer assistance
Reduces the costs of dealing with customers
Reduces the need for as many physical store locations
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