By: Tariq Farid Lecturer Management Sciences Class : MBA 4
Lecture 1: Learning Objectives
y Difference between E-Business and E-Commerce y World of E-Business and Fundamental Models y Industry Participants y How and why internet changes functions of Business
in future y Business Competition
and e-commerce is part of e-business refers only to activities involved in buying and selling online
. Customer Education y Convenient website development for end user y Accurate catalogs information y Good logistics y Management awareness of website management y In strict sense e-business refers to all business activities conducted on the internet by a firm. Transactions (Sales & Purchase) y E-Business: Bigger Picturey Not only selling pdts online y Constitutes Marketing activities y Procurement.Difference b/w E-Commerce and E-business
y By Meaning: Organized Profit Seeking Activity y E-Commerce: Electronic business transactions involving money.
products and services that satisfy society s needs y Than E-Business will Be: y Orgainzed effort of individuals to produce and sell for profit.Defining E-business
y Business: y Organized effort of individuals to produce and sell for profit. products and services that satisfy society s needs through the facilities available on the internet OR y Transformation of key business activities through the use of internet technologies
Digitization Far better speed than telephone networks.Framework for understanding E-Business
y Internet as Military Communication Means y 1994 National Science Foundation regulated internet use. not just voice Three Categories of E-Business Firms
y Telecommunication infrastructure y Internet Software producers y Online sellers and content providers
. y y y y
Only for non-commercial activities Emergence of World Wide Web: Multimedia contents Info sharing through packets.
Apple.com HP.Telecommunication Infrastructure
y Telecommunication hardware and equipment
y y y y
producers. computer hardware manufacturers. Gateway. IBM.cisco.com www.com www.lucent. Sun
.nortelnetworks. and internet service providers www.
. Search Engines Email Clients Shopping online Browser Software Software by: Oracle. IBM.Internet Software Producers
y Secondary Group of E-business Firms y Produces of Software that provides the functional y y y y y
capability to do things on the internet.
Online sellers and content providers
y Ebay. y Owe their existence only on the internet y Other use internet to supplement their business
activities. nike. gear etc
.g. y E.
of Shoe industry in Pakistan y B2B Models:
Differentiation is on basis of customer focus Firms who conduct businesses other businesses over the internet are B2B model Vast majority of businesses are B2B
.g. behaviors & Methods of doing business in order to generate profits by increasing revenues and reducing costs .Fundamental Models of E-Business
y Business Models: It is the group of shared or common
characteristics. y E.
y Two classifications of B2B Emerge 1. & their suppliers
y y y y
.9 billion savings each year from reduced transaction cost and Material Inventory Savings represents quarter of retail selling price of an average new car Considerable competitive adv. Dell manufactures computer that customers enters on the webpages. : Reduced Selling Price.g. it links 30. More Knowledges y No Storage or carrying cost & no unsold older technology 2. Involves relationship b/w Co. Corportate customers. Savings are solely derived from Eliminating Transaction Cost related to manual labor. Focused of facilitating sales transactions b/w businesses y E. Difficult to manage Ford e.0 billion/yr for exchange fee.000 auto parts suppliers 6900 dealers in its network $8.g. Geographically dispersed. High profits Earn $ 3.
y Conduct business with consumer y Focused on individual buyers y Identifying individual needs.g. wat pdt to put online y Customer behavior Less studied y Consumer to consumer model y Sharing of data between consumer y User of p2p softwares y Facilitation of exchange of data y E. individual request a copy and server retrieves and send it to user