Chapter 14: E-Business

Sooooo, here we meet again. Thank you for visiting my blog. So. here little information for you guys. Enjoysss!!!

The Internet is a powerful channel that presents new opportunities for an organization to:

–      Touch customers

–      Enrich products and services with information

–      Reduce costs

•          How do ecommerce and ebusiness differ?

–      Ecommerce – the buying and selling of goods and services over the Internet

–      Ebusiness – the conducting of business on the Internet including, not only buying and selling, but also serving customers and collaborating with business partners

  Industries Using Ebusiness

 Ebusiness model

      •         Ebusiness model – an approach to conducting electronic business on the Internet

 1. Business-to-Business (B2B)

•          Electronic marketplace (emarketplace) – interactive business communities providing a central market where multiple buyers and sellers can engage in ebusiness activities

•          Common B2C ebusiness models include:

•          eshop – a version of a retail store where customers can shop at any hour of the day without leaving their home or office

•          emall – consists of a number of eshops; it serves as a gateway through which a visitor can access other eshops

         Business types:

•         Brick-and-mortar business
•         Pure-play business
•       Click-and-mortar business

  _   Priceline.com is an example of a C2B ebusiness model

 _ The demand for C2B ebusiness will increase over the next few years due to customer’s desire for greater convenience and lower prices

2. Consumer-to-Consumer (C2C)

•          Online auctions

–      Electronic auction (eauction) - Sellers and buyers solicit consecutive bids from each other and prices are determined dynamically
–      Forward auction - Sellers use as a selling channel to many buyers and the highest bid wins
–      Reverse auction - Buyers use to purchase a product or service, selecting the seller with the lowest bid

   C2C communities include:

•        Communities of interest - People interact with each other on specific topics, such as golfing and stamp collecting
•        Communities of relations - People come together to share certain life experiences, such as cancer patients, senior citizens, and car enthusiasts
•        Communities of fantasy - People participate in imaginary environments, such as fantasy football teams and playing one-on-one with Michael Jordan

EBUSINESS BENEFITS AND CHALLENGES

         Ebusiness benefits include:

•         Highly accessible
•         Increased customer loyalty
•          Improved information content
•          Increased convenience
•          Increased global reach
•          Decreased cost

     Ebusiness challenges include:

–      Protecting consumers

–      Leveraging existing systems

–      Increasing liability

–      Providing security

_     Adhering to taxation rules

    There are numerous advantages and limitations in ebusiness revenue models including:

–      Transaction fees

–      Subscription fees

–      Value-added fees

–      Advertising 

MASHUPS

•          Web mashup - a Web site or Web application that uses content from more than one source to create a completely new service

–      Application programming interface (API) - a set of routines, protocols, and tools for building software applications

–      Mashup editor - WSYIWYGs (What You See Is What You Get) for mashups