Introduction to

1. INTRODUCTION e-business and

e-commerce
E-BUSINESS INNOVATION
E-BUSINESS OPPORTUNITIES
Reach
Over 1 billion users globally
Connect to millions of products seamlessly

Richness
Detailed product information on 20 billion + pages indexed by Google. Blogs,
videos, feeds…
Personalized messages for users

Affiliation
Partnerships are key in the networked economy
Affiliate
marketing is the process of earning a commission by promoting other
people's (or company's) products. You find a product you like, promote it to others
and earn a piece of the profit for each sale that you make.
ex: Home Depot, eBay and Amazon have affiliate program.
WHAT IS E-COMMERCE AND
E-BUSINESS?
E-commerce :
All electronically mediated information exchange between an organization and its
external stakeholders.
Digitally enabled commercial transactions between and among organizations and
individuals

E-business:
All electronically mediated information exchanges, both within an organization and
with external stakeholders supporting the range of business process.
Digital enablement of transactions and processes within a firm, involving information
systems under firm’s control. Does not include commercial transactions involving an
exchange of value across organizational boundaries.
Figure 1.2 The distinction between buy-side and sell-side e-commerce
Figure 1.3 Three definitions of the relationship between e-commerce and e-business
Figure 1.4 The relationship between intranets, extranets and the Internet
UNIQUE FEATURES OF
E-COMMERCE TECHNOLOGY
Ubiquity
Global reach
Universal standards
Information richness
Interactivity
Information density
Personalization/customization
Social technology
ORIGINS & GROWTH OF
E-COMMERCE
Precursors: Predecessor
Electronic Data Interchange (EDI)

1995: Beginning of e-commerce

First sales of banner advertisements

Since then, e-commerce fastest growing form of commerce in the

United States
And today largely set in Bangladesh.
THE GROWTH OF B2C
E-COMMERCE

SOURCES: eMarketer, Inc., 2009a; U.S. Census Bureau, 2009b;

 THE GROWTH OF B2B
E-COMMERCE

SOURCES: U.S. Census Bureau, 2009a; authors’ estimates.

E-COMMERCE: A bit learning
1995–2000: Innovation
Key concepts developed
Dot-coms; heavy venture capital investment

2001–2006: Consolidation(coherent whole)

Emphasis on business-driven approach

2006–Present: Reinvention
Extension of technologies
New models based on user-generated content, social networking, services
TYPES OF E-COMMERCE

Transaction e-commerce sites ( PageBuzz.com )

Service-oriented relationship-building site (Car Manufacturer sites)
Brand-building sites Google, Nordstrom
Portal, publisher or media sites (Time Magazine, BBC)
WEB 2.0 AND BEYOND
Web 2.0
Examples- Webservices (flickr, Google Maps), Participation(Facebook),
User-generated content (Wikipedia), Data exchange between sites, Rich Internet
Applications(Secondlife)

Web 3.0
Research the web to discover what Web 3.0 technology and features have been used
by which company
Example- Web Applications (Google Docs), Cloud Computing, Streamed video (IPTV,
youtube), Virtual Worlds, Personal data integration, Semantic web (Intelligent Agents)
Figure 1.7 Evolution of web technologies
Source: Adapted from Spivack (2007)
E-COMMERCE AND SCM
What’s Supply Chain Management (SCM)
The coordination of all supply activities of an organization from its supplier and
partners to its customers.
 Summary and examples of transaction alternatives between businesses,
Figure 1.8
consumers and governmental organizations
COST/EFFICIENCY AND
COMPETITIVENESS DRIVERS
Cost/efficiency drivers
Increasing speed with which supplies can be obtained
Increasing speed with which goods can be dispatched
Reduced sales and purchasing costs
Reduced operating costs

Competitiveness drivers
Customer demand fulfilment
Improving the range and quality of services offered
Avoid losing market share
Figure 1.13 A simple stage model for buy-side and sell-side e-commerce

Stage model of e-commerce

THE MCKINSEY SEVEN-S
MODEL
Strategy

Style Structure
Shared
Values

Skills Staff

Systems