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Matakuliah : M0284/Teknologi & Infrastruktur E-Business

Tahun : 2005
Versi : <<versi/revisi>>

Pertemuan 1
E-Commerce and E-Business

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Learning Objectives

• Differentiate between E-Commerce and E-


Business.
• Understand B-to-C and B-to-B E-Commerce.

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Overview

• What is E-Commerce?
• Types of E-Commerce
• Drivers, Activities, Values and Models of
B-to-C E-Commerce

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What is E-Commerce?

• Business activities running over the Internet and


World Wide Web platform
• Use of TV and toll-free telephones in business are
not usually associated with e-commerce
• Depending on the situation, electronic data
interchange (EDI) may or may not be associated
with e-commerce. EDI is used for business-to-
business transactions
• Examples of e-commerce:
– Buying books on Amazon.com
– Promoting cars on Toyota.com
– Participating in auctions at eBay.com
– Customer support at Fedex.com
– Industrial exchanges such as Covisint.com
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Types of E-Commerce

• Business-to-Consumer E-Commerce
– Serves direct consumers. Important activity is
buying
• Business-to-business E-Commerce
– Serves businesses. Important activity is
purchasing. Purchasing is differentiated from
buying in that instead of individuals
departments are involved, formal processes
are followed, high monetary values may be
involved, and complex negotiations and
contracts may take place
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E-Commerce

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Drivers to B2C E-Commerce

• Social: Affordability and Convenience

• Technological: Stability and Availability

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Social Drivers: B2C E-Commerce

Estimated % of US Households with PCs

80
60
% of US
40
Households Multiple PCs
20
Single PC
0 Single PC
Multiple PCs
1999
2000
2001
Year

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Social Drivers: B2C E-Commerce

Estimated Average Price of a PC

2.5
2
1.5
Dollar in '000
1
Price of PC
0.5

0
1995 1997 1999 2001 2003
Year

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Acceptability profile of various
technologies

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Activities: B2C E-Commerce

• Advertisement and Promotion

• Ordering

• Product Delivery

• After-sales Support

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Values: B2C E-Commerce

• Creating Business Values


– Operational excellence
– Customer intimacy
– Product and service leadership
• Creating Consumer Values
– Cost
– Choice
– Convenience
– Customization

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Business Models:B2C

Business Model of eBay.com :


• Who? Everybody
• What? Any product
• How? Exchange through auction
• Business value? Efficiency + relationship
• Consumer value? Low price + choice

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Models: B2C E-Commerce.

• Pure-play (primarily Internet based)


– Portal sites/ Advertisements Yahoo.com
– Auction-based ebay.com
– Retail Merchants Amazon.com
• Brick and Mortar (Click and brick)
– New Channels Gateway.com
– Reinforce existing channels Promotion
(Toyota.com), transaction (bn.com) support
(Fedex.com)

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