TYPES OF E-BUSINESS

Unit 2
 TYPES OF E-BUSINESS

 B2B
 B2C
 C2C
 C2B
 B2B2C
 B2G
 G2B
 G2C
 Mobile commerce
 Collaborative commerce
 B2B

 In b2b applications the buyers, sellers and transactions involve

only organisation
 E business models in which business markets sell to other
businesses. E.g. Clearing organisations and ZIMRA or RTGS i.e.
bank to bank
 B2B applications comprise about 85% of EC volume
 It covers a broad spectrum of applications that enable an
enterprise to form electronic relationships with its
distributors ,resellers, suppliers ,customers and other partners .
 B2b organisations can restructure their supply chain and partner
relationships
 The model involve electronic transaction for ordering ,
purchasing as well as other administrative tasks among virtual
organisations over the internet.
 B2B MODELS

 There are several business models for B2B applications

 The major ones are
 Sell-Side market places
 Buyer-Side market places
 Electronic exchanges
 SELL SIDE MARKET PLACES

 In the sell side model , organisations attempt to sell their

products and services to other organisations electronically
from their private market places or from a third party site.
 This model is similar to the B2C model in which the buyer is
expected to come to the seller’s site view catalogs and place
an order .
 However in the B2B , the buyer is an organisation
 SELL SIDE CNT’D

 Key mechanisms in the sell side model are

 Electronic catalogs
 Forward Auctions from own sites & third part e.g. e-bay
 The sellers uses EC to increase sales ,reduce selling and
advertising expenditures ,increase delivery speed ,and reduce
adm9inistrative costs.
 Suitable for customization
 E.g. dell
 BUYER SIDE MARKET
PLACES
 Is a method in which organisations attempt to buy needed
products from other organisations electronically
 A major method of buying goods and services in the buyer side
are reverse auctions
 Here an organisation that wants to buy items places a request for
quotation RFQ on its website or a third party bidding market
place site.
 Once a RFQ are posted , sellers usually preapproved submit bids
electronically .
 Such bids attract a large pool of willing sellers .
 The bids are routed via buyers intranet to the engineering and
finance departments for evaluation
 Clarifications are made via email and the winner is notified
electronically
 ELECTRONIC EXCHANGES

 These are e-marketplaces where there are many buyers and

sellers
 They are free to all and frequently owned and operated by a
third party
 Look at the four types of public exchanges
 B2C

 The sellers are organisations and the buyers are individuals ,

aka e-tailing
 It implies the sale of goods and or services to individual
customers
 One of the greatest xtistc of e tailing is greater customization
 A customer can view products shown on the website of
business organization.
 The customer can choose a product and order the same.
 B2C MECHANISMS

 Electronic store fronts

 Electronic malls (cybermall –collection of many shops under on
internet address –one stop shopping )
 Online service industry (software books advice etc.)
 Online securities trading (stocks bonds and other financial
instruments )
 Online job market (job center .com cvpeople naukrigulf .com etc )
 Facilitating customer services(feedback, complaints ,
intructions ,recommendations )
B2C CONT’D
 C2C

 The C2C model helps consumers to sell their products or

assets like residential property, cars, motorcycles, expertise
etc. or rent a room by publishing their information on the
website.
 Ecommerce in which both the buyer and seller are individuals
 Consumers sell directly to other consumers through various
methods e.g. classified ads, auctions or marketing trades
 The website may or may not charge the consumer for its
services.
 Another consumer may opt to buy the product of the first
customer by viewing the post/advertisement on the website.
 Examples: Zim classifieds, , buy and sell Harare, small scale
farmers on Facebook
 C2C MECHANISMS

 C2c auctions eg E-Bay

 Classified ads
 Personal services (dating services,investment advisors
lawyers etc )

 Support services (intermediaries )

C2C CONT’D
 C2B

 In this model, a consumer approaches website showing multiple

business organizations for a particular service.
 Consumers make known a particular need for a product or service
and suppliers compete to provide the product or service to
customers. E.g. priceline.com
 For example the use of reverse auctions where a consumer is
allowed to place an estimate of amount he/she wants to spend
for a particular service/product
 Consumers can do a comparison of interest rates of personal
loan/ car loan provided by various banks via website.
 Business organizations which fulfill the consumer's requirement
i.e. the specified budget approaches the customer and provides
its services e.g. airline ticket and hotel room booking
C2B CONT’D
 B2B2C

 In this case a business sells to a business but deliver the

product to an individual consumer
 BUSINESS- TO - GOVERNMENT (B2G)

A variation of the B2B model

It creates a market space for sellers that want to
do business with government agencies
Provides information on government contracting
and brings suppliers and government agencies
together
Such websites are accredited by the government
and provide a medium to businesses to submit
application forms to the government.
 GOVERNMENT - TO - BUSINESS (G2B)

 Government uses B2G model website to approach business

organizations. Such websites support auctions, tenders and
application submission functionalities.
 GOVERNMENT - TO - CITIZEN (G2C)

 Government uses G2C model website to approach citizens in

general.
 Such websites support auctions of vehicles, machinery or any
other material.
 Such websites also provide services such as registration for
birth, marriage or death certificates.
 Main objectives of G2C website are to reduce average time for
fulfilling people’s requests for various government services.
G2C CONT’D
 MOBILE COMMERCE

 Is a subset of e-business which includes all ecommerce

transactions carried out using mobile devices with the aid of
telecommunication infrastructure using the internet.
 M-Commerce emerged due to availability of mobile
cellphones ,laptops , and hand held computers and other devices
 It is used in B2B, B2C,and C2C transactions .
 It has greatly infiltrated sectors like Finance, telecommunication
and Information Technology.
 IT is creating new opportunities both for mobile devices and
services
APPLICATION OF MOBILE DEVICES IN M-
COMMERCE.
 Ecocash, Telecash Or One Money involving sending , receiving,
and transacting (Shopping, pay payment e.g. DSTV , ZESA,
Tuition Kombi etc.
 Education through eLearning
 Entertainment e.g. downloading music, videos ,
games ,message services
 Inventory Tracking in organisation e.g. Ecocash connected
homes , cars etc.
 Used to access information about products ,services and their
relative prices
 Making Payment anywhere ,anytime
 DRIVERS FOR M-COMMERCE

 These are factors that are driving consumers and

organisations towards m-commerce :

1. Increased time pressure

 Consumers have less time to shop and interact with others , hence
the need to communicate whenever and wherever possible.

2. Wide spread availability of mobile devices

 Mobile devices such as cellular phones , handheld computers are
becoming wide spread and affordable.
 Due at advancement in technology complicated devices with several
functions are on the market with affordable prices.
 DRIVERS FOR M-COMMERCE CNT’D

3. Growth of Handset Culture

 Owning advanced cellphones is now fashionable and form part of a
conspicuous consumption that shows the owner status in the society.
4. Increased mobile content
 Zimbabwe Mobile service providers e.g. Econet ,Netone ,and Telecel
are moving towards greater content provision for cellular users that
is more information and more services.
5. The concepts of technological Convergence
 Cellphones now perform several functions e.g. GPS , radio, Mobile
banking, Social Networks , time , Productivity Apps, Entertainment
etc.
 DRIVERS FOR M-COMMERCE CNT’D

6. M-Commerce is a solution to digital divide.

 It eliminates the need to own a computer in order to access basic
content and the internet
 As Mobile devices increase in their richness and variety of functions ,
people realize benefits of internet without owning a computer
 BENEFITS OF M-COMMERCE TO
CONSUMERS AND ORGANISATIONS
1. Real time access and portability.
 Consumers can access mobile commerce whey ever they feel and there is continual real time access
2. Accessibility
 Ubiquity , plus services are available immediately and at anytime.
3.Convinience
 As a result of ubiquity and accessibility.
4. Security
 Devices are now offering different security mechanisms from PIN , Pattern , security code to even the
use of biometrics .

5. Mobility – due to portability

6. Providing Reach – global coverage

7. Reduction in transaction Costs –improving organisational efficiency.

8.Streamline business processes and cost reduction in paperwork and number of

employees
 CHALLENGES OF M-COMMERCE

 1. Device Characteristics
 These include screen size, display type and colour and heat
generated by the device.
 Most devices offer limited capabilities e.g. small screen size ,limited
file types, data transfer and use of graphics.
 2.Security
 Most devices are prone to theft and destruction
 Mostly they can easily be lost while they can contain important
sensitive or organisational information which will end up landing in
wrong hands
 Risk from interception and compromise by unauthorized users
 3.Limited battery life which may disrupt services
 4. Threats of localization or use of global positioning
system[GPS].
 From a physical security perspective, consumers do not wish their
location to be known by others to avoid possibility of physical
attacks.
 5. Health Concerns
 They is a general fear that cellphones produce harmful radiation
which have adverse effects on human health especially eyesight
COLLABORATIVE COMMERCE