Chapter 14 – 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

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

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

Consumer-to-Business (C2B)

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