Tuesday, September 15, 2015

Chapter 14 – E business

E BUSINESS

Ø  The internet is a powerful channel that presents new opportunities for organization to;
§  Touch customers
§  Enrich products and services with information
§  Reduce costs

Ø  How do ecommerce and e business differ?
§  Ecommerce – 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


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



Business-to-Business (B2B)

Ø  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)

Ø  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

Ø  Business types;
§  Brick-and-mortar business
§  Pure-play business
§  Click-and-mortar business


Consumer-to-Business (C2B)

Ø  Priceline.com is an example of a C2B e business model
Ø  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)

Ø  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

Ø  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

Ø  E business benefits include;
§  Highly accessible
§  Increased customer loyalty
§  Improved information content
§  Increased convenience
§  Increased global reach
§  Decreased cost


Ø  E business challenges include;
§  Protecting consumers
§  Leveraging existing systems
§  Increased liability
§  Providing security
§  Adhering to taxation rules

Ø  There are numerous advantages and limitations in e business revenue models including;
§  Transaction fees
§  License fees
§  Subscription fees
§  Value-added fees
§  Advertising fees

MASHUPS

Ø  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 


♥ im a bit of WACKY and kind of FRIVOLOUS ♥

No comments:

Post a Comment