CHAPTER THIRTEEN : E-BUSINESS

E BUSINESS

The internet is a powerful channel that presents new opportunities for organization to;

-          Touch customers

-          Enrich products and services with information

-          Reduce costs

E-COMMERCE AND E-BUSINESS

Differences  between E- commerce and E-business

E-commerce – the buying and selling of goods and services over the internet

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

Industries Using E business 

E-BUSINESS MODELS

E-business model – An approach to conducting electronic business on the Internet 

BUSINESS-TO-BUSINESS (B2B)

Electronic marketplace (E market place) – interactive business communities providing a central market where multiple buyers and sellers can engage in e business activities. 

BUSINESS-TO-CONSUMER (B2C)

Common B2C e business models include;

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

E mall – consists of a number of e shops; it serves as a gateway through which a visitor can access other e shops

Business types;

Brick-and-mortar business- operates in physical store without an Internet presence

Pure-play business – a business that operates on the Internet only without a physical store

Click-and-mortar business – a business that operates in both physical stores and on the Internet

CONSUMER-TO-BUSINESS (C2B)

Individual efforts toward the business

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

CONSUMER-TO-CONSUMER (C2C)

Online auctions

Electronic auction (E auction) – 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 stamps 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-to-one with Michael Jordan

EBUSINESS BENEFITS AND CHALLENGES

E business benefits include;

Highly accessible

Increased customer loyalty

Improved information content

Increased convenience

Increased global reach

Decreased cost

E business challenges include;

Protecting consumers

Leveraging existing systems

Increased liability

Providing security

Adhering to taxation rules

There are numerous advantages and limitations in e business revenue models including;

Transaction fees

License fees

Subscription fees

Value-added fees

Advertising fees

MASHUPS

Web mash up – A Web site or Web application that uses content from more than one source to create a completely new services

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

Mash up editor – WSYIWYGs (What You See Is What You Get) for mash ups