Group Exercise What are some advantages of e-commerce äRe: sales and costs; other?? What are some disadvantages of e- commerce? äHuman äTechnological äSocial, cultural What business processes involving HR are amenable to e-commerce type solutions?
Three Questions Regarding E-Commerce How will e-commerce change our customer’s priorities? How can we construct a new business design to meet these new customer priorities? What technology investments must we make to survive, let alone thrive? äFrom Kalakola and Robinson “E-business: Roadmap for Success How does this question relate to HR?
International Electronic Commerce Language barriers must be overcome Political structures äCurrency conversion äTariffs and import/export restrictions Legal, tax, and privacy concerns äWho has jurisdiction to levy taxes? äHow is personal information handled?
The Internet and World Wide Web The Internet is a large system of interconnected networks that spans the globe The World Wide Web (WWW) is part of the Internet and allows users to share information with an easy-to-use interface äClient server architecture; graphical user interface; dynamic links Developed by the U.S. Department of Defense in the early 1960s
Some Characteristics Ubiquitous Global reach Universal standards Information richness Interactive Density of information Personalization and customization
Intranets and Extranets Extranet Allows select users outside organization to use its intranet: Customers Business partners Vendors Used in B2B Intranet: Internal network using web technology Overcomes computer platform differences Often installed on existing network infrastructure What are some applications of each? Benefits?
Value Chain Observation How does e-commerce impact the value chain? How does one firm using e-commerce impact others?
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 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 REVERSE AUCTION: Buyer sets price, submits to multiple sellers DIGITAL PRODUCT DELIVERY:Sell, download software, other digital products CONTENT PROVIDER: Creates revenue through providing client for a fee, and advertising ON-LINE SERVICE PROVIDER: Provides service, support for hardware, software products
Business-to-Business Electronic Commerce Automation Of Purchase, Sale Transactions From Business To Business Electronic Data Interchange (EDI): Older System, Being Replaced By Internet, Intranet Provides Alternative Sources
Electronic Commerce Support Systems WEB HOSTING SERVICES: provides large servers for Web sites of fee-paying customer ELECTRONIC PAYMENT SYSTEM: using Web for electronic funds transfers, credit, smart & debit cards
Types of Online Communities Different sponsors or members ä opportunities to interact with a general audience organized into general topics Practice communities ä focused discussion groups, help, information, and knowledge relating to an area of shared practice Interest communities ä focused discussion groups based on a shared interest in some specific subject Affinity communities ä focused discussions and interaction with other people who share the same affinity. Affinity refers to self- and group identification Sponsored communities ä created by government, nonprofit, or for-profit organizations for the purpose of pursuing organizational goals -- often commercial goals
Internet Benefits To Organization Reduces Communication Costs Enhances Communication; Coordination Accelerates Knowledge Distribution Other ???
Internet Challenges SECURITY: Exposure to Thieves & Vandals; Hackers Steal, Use Passwords; Not Yet Safe for Large Business Transactions TECHNOLOGY: Lack of Uniform Standards; Transfer of Graphics, Video can be Costly LEGAL ISSUES: Need More Laws Governing Electronic Commerce; Are e-mail Contracts, Electronic Signatures Legal?