E-Commerce Introduction

1. E-Business
Prof. Aditi Ghode
SIMSR

2. Understanding the New Internet
Economy
Chapter 1

3. Electronic Commerce
• The process of buying or selling goods or
services across a telecommunications
network.
• Many technologies facilitate E-commerce
– Electronic funds transfer (EFT)
– Electronic data interchange (EDI)
– Internet / world wide web (WWW)

4. Networks

5. Networks
• A network is a group of computers
connected by cable, telephone, or wireless
device.
• Networks can be “local” or “wide” area.
• The internet is a wide area network.

6. The Internet

7. The Internet
• The internet is a collection of
interconnected networks that use
common, universally accepted protocols.
• The internet is a world-wide network.

8. The Internet
• The Internet contains computers that are
either servers or clients.
• Servers provide that basic resources that
users (clients) need.

9. Common Internet Services

10. The World Wide Web
• The WWW or Web is one of the common
Internet services.
• A Web Server is able to serve or supply
Web pages containing text, graphics, and
multimedia

11. E-Commerce v/s E-Business
E-commerce, informally, it the use of the
Internet and the Web to transact business.
E-business, refers primarily to the digital
enablement of transactions and processes
within a firm, involving information
systems under the control of the firm.

12. E-Business Advantages

13. E-Business Disadvantages

14. The Value Chain
• A value chain or network is the collection
of activities involved in the production of a
class of goods or services.
• E-commerce can facilitate these chains or
networks by using IT to exchange
information between network members.

15. Value Chains and E-Commerce
• E-Commerce can “shorten” a Value chain
by linking manufacturers with ultimate
customers.
• Can eliminate intermediaries such as
distributors, and in some cases retailers.

16. The Value Chain

17. A Value Network

18. E-Business Models

19. Business to Consumer B2C
• Direct to Customer commerce
• Shortens the supply chain to consumer
• Results in higher margin to business or
higher value for customer or both.
• Can take a variety of forms
• Examples…

20. Ashfords.com

21. Barnes&Noble

22. Harry and Davis

23. Business to Business (B2B)
• Direct exchanges between businesses.
• Many forms and facilitating technologies.
• Can be used to form stronger links between
members.

24. Elements of B2B exchanges

25. B2B Summary

26. Business to Government (B2G)
• Similar to B2B model
• Facilitates sales to governmental entities

27. eFederal.com

28. Consumer to Consumer (C2C)
• Exchanges between consumers.
• Some sites similar to the “Want-Ads”
• eBay provides a C2C auction function
• InfoRocket provides a link to independent
expert consultants who answer questions for
$.

29. InfoRocket.com

30. Consumer to Business (C2B)
• Reverse auction or Demand collection
Model
• Name price for commodity or service
• Priceline.com is a well known example.

31. Priceline.com

32. Next….
Chapter 2
E-Business Models