Professional Documents
Culture Documents
4LTR MIS6 Ch08
4LTR MIS6 Ch08
MIS 6
8
E-COMMERCE
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LEARNING OUTCOMES
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LEARNING OUTCOMES (continued)
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E-Commerce
• E-business
• Activities a company performs for selling and
buying products and services using computers and
communication technologies
• E-commerce
• Buying and selling goods and services over the
Internet
• Builds on traditional commerce by adding the
flexibility that networks offer and the availability of
the Internet
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E-Commerce: Business Applications
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E-Commerce: Business Applications
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Value Chain and E-Commerce
• Value chain
• Series of activities designed to meet business needs
by adding value or cost in each phase of the process
• Primary activities
• Inbound logistics
• Operations
• Outbound logistics
• Marketing and sales
• Service
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Exhibit 8.1 Michael Porter’s Value Chain
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Value Chain and E-Commerce
• Internet
• Increases the speed and accuracy of
communication between suppliers, distributors,
and customers
• Low cost means companies of any size can
participate in value chain integration
• E-commerce enhances a value chain
• Offers new ways to reduce costs or improve
operations
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E-Commerce vs. Traditional Commerce
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Table 8.1 E-Commerce Vs. Traditional Commerce
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Advantages of E-Commerce
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Advantages of E-Commerce
• Increases:
• Flexibility and ease of shopping
• Number of customers
• Opportunities for collaboration with business partners
• Return on investment because inventory needs are
reduced
• Offers personalized services and product
customization
• Reduces administrative and transaction costs
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Disadvantages of E-Commerce
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E-Commerce Business Models
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Business Models Used in E-Commerce3
• Merchant
• Transfers the old retail model to the e-commerce world by
using the medium of the Internet
• Brokerage
• Brings sellers and buyers together on the Web and collects
commissions on transactions between these parties
• Advertising
• Extension of traditional advertising media
• Directories such as Yahoo! provide content to users for free
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Business Models Used in E-Commerce3
• Mixed
• Generating revenue from more than one source
• Informediary
• Sites collect information on consumers and
businesses and then sell this information to
other companies for marketing purpose
• Subscription
• E-commerce sites sell digital products or services
to customers
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Major Categories Of E-Commerce
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Major Categories Of E-Commerce
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E-Government
• Applications
• Government-to-citizen (G2C)
• Government-to-business (G2B)
• Government-to-government (G2G)
• Government-to-employee (G2E)
• Services
• Tax filing
• Online voter registration
• Disaster assistance
• E-training for government employee
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Major Categories Of E-Commerce
• Nonbusiness organizations
• Universities
• Nonprofits
• Political and social
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Organizational E-Commerce
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Exhibit 8.3 Major Activities in B2C E-Commerce
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B2B E-Commerce: A Second Look
• Technologies used
• Intranets
• Extranets
• Virtual private networks
• Electronic data interchange (EDI)
• Electronic funds transfer (EFT)
• Reduces delivery time, inventory requirements,
and prices
• Helps business partners share relevant, accurate,
and timely information
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B2B E-Commerce: A Second Look
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Major Models of B2B E-Commerce
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Seller-Side Marketplace
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Buyer-Side Marketplace
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Third-Party Exchange Marketplace
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Trading Partner Agreements
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Mobile Commerce
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Voice-Based E-Commerce
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E-Commerce Supporting Technologies
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Electronic Payment Systems
• Electronic payment
• Money or script that is exchanged only
electronically
• Popular instruments for electronic payment
• Smart cards
• Contains an embedded microprocessor chip
• Stores important financial and personal
information
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Electronic Payment Systems
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Electronic Payment Systems
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Electronic Payment Systems
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Web Marketing
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Search Engine Optimization (SEO)
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KEY TERMS
• Advertising model
• Brokerage model
• Business-to-business (B2B)
• Business-to-consumer (B2C)
• Buyer-side marketplace
• Click-and-brick e-commerce
• Consumer-to-business (C2B)
• Consumer-to-consumer (C2C)
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KEY TERMS
• e-business
• e-cash
• e-check
• e-commerce
• e-government
• e-procurement
• e-wallets
• Electronic payment
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KEY TERMS
• Horizontal market
• Informediary model
• Merchant model
• Micropayments
• Mixed model
• Mobile commerce (m-commerce)
• Organizational (intrabusiness e-commerce)
• Paypal
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KEY TERMS
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KEY TERMS
• Voice-based e-commerce
• Web marketing
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SUMMARY
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Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. MIS6 | CH8 46