E -commerce

E-Commerce Definition
 Technology- mediated exchanges
between parties, individuals, or
organizations as well as the
electronically based intra or inter
organizational activities that facilitate
such exchanges.
Jaworski & Rayport
E-Commerce Subdivisions
 B2B (Business-to-Business)
 B2C (Business-to-Consumer)
 C2C (Consumer-to-Consumer)
 B2E (Business-to-Employee)
B2B Definition
 Companies buying from and selling to each
other online
 While B2B exists both online and offline, the
acronym is used to describe the online
variety
 B2B has evolved to encompass supply
chain management as many companies
outsource parts of their supply chain to their
trading partners
B2B Requirements
 Negotiation – Buyer and seller must
negotiate price, delivery, and product
specifications.
 Integration – A company’s system
must be able to communicate with the
system of their customer without
human interaction.
B2B Exchange
 A website where many companies can buy and sell
to each other using a common technology platform.
 Many exchanges also offer additional services such
as payment or logistics to help members complete
a transaction
 Exchanges can be public or private
 Public – owned by industry organization or independent
investors and have their own board of directors
 Private – run by a single company for doing business
exclusively with established suppliers and customers
Collaborative B2B
 A business and its trading partners
give each other real time access to
ERP systems, product design,
inventory, and other systems
 Integrating the supply chain
Benefits of B2B E-commerce
 Manage inventory more efficiently
 Adjust more quickly to customer
demand
 Get products to market faster
 Cut the cost of paperwork
 Obtain lower prices on some supplies
B2B Growth
 B2B market is expected to experience
significant growth
 B2B E-commerce is expected to reach
$207 trillion in 2004, up from $406.2
billion in 2000. (Forrester Research, Inc.)
B2C Definition
 Business that sells its products or
services to consumers over the
Internet for their own use.
 Online Retailers (Amazon.com)
 Online Banking
 Travel Services
 Health Information
 Real Estate
Difference between B2B and
B2C
 The customer (business vs. individual)
 B2B transactions are more complex
 B2C does not require:
 Negotiation for price, delivery, and
product specifications
 Integration with other systems
Challenges of B2C
E-commerce
 Getting browsers to buy things
 Building Customer Loyalty
 Order Fulfillment
 Security
 Privacy
Addressing these Challenges
 Getting Browsers to Buy Things
 Improve navigation
 Simplify the checkout process
 Send e-mails with special offers
 Building Customer Loyalty
 Focus on personalization
 Create an easy-to-use customer service
application
 Focus on making your site easy to use
Addressing Challenges (cont.)
 Fulfillment
 Increase focus and investment on logistical
systems and supply chain technologies
 Security
 SSL Technology
 Digital Signatures
 Privacy
 Make privacy statements readily available to
consumers
 Opt-out policy for collecting personal information
B2C Growth
 B2C E-commerce is expected to grow
from $38.8 billion in 2000 to $184.5
billion in 2004 (Forrester Research, Inc.)
C2C
 A consumer sells products or services
to another consumer via the Internet.
B2E Definition
 An intrabusiness network which allows companies
to provide products and/or services to their
employees.
 Companies generally use B2E networks to
automate employee-related corporate processes.
 B2E portal is a customized home page or desktop
for everyone within an organization
 One URL for everyone in the organization
 A mixture of organization-specific and employee-defined
components
 The potential to be customized and altered to suit the
needs of a particular employee
Examples of B2E applications
 Online insurance policy management
 Corporate announcements
 Online supply requests
 Special employee offers
 Maintain employee resume
 Update employee records
E-Commerce Intranet
 3 distinct Web-based technologies
 Internet
 Intranet
 Extranet
Internet
 Global computer network
 Everyone has access
Intranet
 A private network that is open only to
employees of a single organization.
 Internal communication vehicles and
knowledge bases that serve as a
company-wide information system.
 Intranets can improve information flow
and keep costs down within a
company.
3 Key Elements for Intranets
 Intranets must be relevant and useful.
 Find a balance between what executives want the
employees to know and what the employees are
interested in
 Intranets must be updated frequently.
 Employees should get the news first
 Intranet should be more dynamic than the external site
 Intranets must be backed by strong internal
communication programs.
 Must have support from top-level management
 Training
Extranets
 A mechanism based on Internet and Web
technology for communicating both privately
and selectively with customers and business
partners.
 Extranet extends a company’s network
beyond its boundaries to predetermined
business partners, customers, suppliers,
and others.
 Extranets provide a safe way to allow
transactional business-to-business activities
and can save time and money.
Questions