CHAPTER 13 : E - BUSINESS

•          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 e-commerce and e-business differ?

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

        refers only to online transactions

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

–     refers to online transactions, serving customers and collaborating with business partners

E-BUSINESS MODELS

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

BUSINESS TYPES

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

Pure-play (virtual) business - a business that operates on the Internet only without a physical store.                                                     Examples include Amazon.com and poplook.com.

Click-and-mortar business – a business that operates in a physical store and on the Internet.                                                               Examples include Cala Qisya and Barnes and Noble.

E-BUSINESS BENEFITS AND CHALLENGE

•          E-Business benefits include:

§  Highly accessible

    - businesses can operate 24 hours a day,  days a week, 365 days a year.

§  Increased customer loyalty

    - additonal channels to contact, respond to, and access customers helps contribute to customer loyalty

§  Improved information content

    - in the past, customers had to order catalogs or travel to a physical facility before they could compare price and product attributes.

§  Increased convenience

   - e-business automates and improves many of the activities that make up a buying experience

§  Increased global reach

    - businesses, both small and large, can reach new markets

§  Decreased cost

    - the cost of conducting business on the Internet is substantially smaller than traditional forms of business communication 

•          E-business challenges include:

§ Protecting consumers

   - implement Internet Security, protect from misuse of customer information

§  Leveraging existing systems

§ Increasing liability

§  Providing security

§ Adhering to taxation rules

   - companies that operate online must obey a patchwork of rules about which customers are subject to sales tax on their purchase and which are not

•          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 mashup - a Web site or Web application that uses content from more than one source to create a completely new service. A Web mashupis a Web site or Web application that uses content from more than one source to create a completely new service. The term is typically used in the context of music; putting Jay-Z lyrics over a Radiohead song makes something old become new. The Web version of a mashup allows users to mix map data, photos, video, news feeds, blog entries and so on.

–      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