Week 03 topic 06 e business e commerce

Week 03 - Topic 06

E-BUSINESS & E-COMMERCE
BMIT5103 Course
Information Technology for Managers
Dr. Huy Nguyen

BMIT5103

John von Neumann Institute - Vietnam National
University
Ho Chi Minh
City
Information
Technology
for Managers


BMIT5103

STUDY GUIDE

TOPIC 06
“E-Business & E-Commerce”

• Learning outcomes:
1. Describe e-business strategies & e-commerce operations;
2. List effective business-to-consumer e-commerce applications;
3. Explain business-to-business applications, logistics, procurement,
order fulfilment & payment systems;
4. Describe e-government activities & public sector e-commerce;

5. Examine e-commerce support services;
6. Identify & describe ethics & legal issues of e-business.

Information Technology for Managers

2


BMIT5103

STUDY GUIDE

TOPIC 06
• Topics overview:

“E-Business & E-Commerce”

1. e-Commerce & its benefits to organisations, consumers & society;
2. Technological & nontechnological limitations; current technological limitations are
expected to lessen with time;
3. Major mechanism of e-commerce is the use of electronic markets, which frequently
include online catalogues;
4. Another mechanism of e-commerce is auctions; Internet provides an infrastructure for
executing auctions at lower cost & with many more involved sellers & buyers, including
both individual consumers & corporations;
5. Two major types of auctions exist: forward auctions & reverse auctions;
6. B2C e-tailing can be pure (such as Amazon.com) or part of a click & mortar organisation
(such as Walmart);
7. Direct marketing is done via solo storefronts or in malls; it can be done via electronic
catalogues or by using electronic auctions;

8. The leading online B2C service industries are banking, securities trading, job markets,
travel & real estate;
9. The major issues faced by e-tailers are channel conflict, conflict within click & mortar
organisations, order fulfilment, determining viability & risk & identifying appropriate
revenue models;
Information Technology for Managers

3


BMIT5103

STUDY GUIDE

TOPIC 06
• Topics overview (cont.):

“E-Business & E-Commerce”

10. The major B2B applications are selling from catalogues & by forward auctions (the sellside marketplace), buying in reverse auctions & in group & desktop purchasing (the
buy-side marketplace) & trading in electronic exchanges;
11. E-government commerce can take place between government & citizens, between
businesses & governments, or among government units. It makes government
operations more effective & efficient;
12. New electronic payment systems are needed to complete transactions on the Internet.
Electronic payments can be made by e-checks, e-credit cards, purchasing cards, ecash, stored-value money cards, smart cards, personto-person payments via services
such as Paypal, electronic bill presentment & payment & e-wallets;
13. Order fulfilments are especially difficult & expensive in B2C because of the need to
ship relatively small orders to many customers. Several activities take place, someof
which can be done simultaneously; others must be done in sequence. Activities that

take place in order fulfilments include: (1) making sure the customer will pay; (2)
checking for in-stock availability; (3) arranging shipments; (4) insurance; (5)
replenishment; (6) in-house production; (7) use of contractors; (8) contacts with
customers; & (9) returns (if applicable);
14. Ethical & legal issues are persistent in e-commerce & must constantly be addressed.
Information Technology for Managers

4


BMIT5103

STUDY GUIDE

TOPIC 06
“E-Business & E-Commerce”

No

Focus areas

Assigned readings

1

e-Business challenges & strategies

Chapter 6, pp 160 - 167

2

Business-to-Consumer (B2C) e-commerce

Chapter 6, pp 167 - 171

3

Business-to-Business (B2B) e-commerce &
e-procurement

Chapter 6, pp 171 - 173

4

e-Government

Chapter 6, pp 173 - 176

5

e-Commerce support services: payment &
order fulfilment

Chapter 6, pp 176 - 182

6

e-Business ethics & legal issues

Chapter 6, pp 183 - 184

Information Technology for Managers

5


BMIT5103

AGENDA
• e-Business challenges & strategies

• Business-to-Consumer (B2C) e-commerce
• Business-to-Business (B2B) e-commerce & e-procurement
• e-Government
• e-Commerce support services: payment & order fulfilment
• e-Business ethics & legal issues

Information Technology for Managers

6


BMIT5103

AGENDA
• e-Business challenges & strategies
• Business-to-Consumer (B2C) e-commerce

• Business-to-Business (B2B) e-commerce & e-procurement
• e-Government

• e-Commerce support services: payment & order fulfilment
• e-Business ethics & legal issues

Information Technology for Managers

7


BMIT5103

E-BUSINESS CHALLENGES & STRATEGIES
• Dot.Com era 1995 - 2002;
• e-Business & e-commerce fundamentals;

• e-Business websites requirements & challenges;
• e-Business models.

Information Technology for Managers

8


BMIT5103

E-BUSINESS CHALLENGES & STRATEGIES

DOT.COM ERA 1995 - 2002
• Dot-Com bubble inflates: 1995 - 2000;
• Dot-Com bubble bursts and deflates: 2000 - 2002.

Information Technology for Managers

9


BMIT5103

E-BUSINESS CHALLENGES & STRATEGIES

E-BUSINESS & E-COMMERCE FUNDAMENTALS
•
•
•
•
•

Business processes: Carried out and managed via networks;
Service: Self-service features;
Collaboration and training: Virtual or online environment;
Community: Social networks.
Types of e-Business transactions:
•
•
•
•
•

Business-to-business (B2B);
Business-to-consumers (B2C);
Consumers-to-business (C2B);

Government-to-citizens (G2C) and to others;
Mobile commerce.

Information Technology for Managers

10


BMIT5103

E-BUSINESS CHALLENGES & STRATEGIES

E-BUSINESS WEBSITE REQUIREMENTS &
CHALLENGES
•
•
•
•
•
•
•

Availability;
Accuracy & quick response;
Security & PCI DSS compliance;
Building competitive advantage;
Integration of e-commerce systems with enterprise systems;
Web analytics & intelligence software;
International e-commerce.

Information Technology for Managers

11


BMIT5103

E-BUSINESS CHALLENGES & STRATEGIES

E-BUSINESS MODELS

Information Technology for Managers

12


BMIT5103

E-BUSINESS CHALLENGES & STRATEGIES

E-BUSINESS MODELS
•
•
•
•
•
•
•
•
•

•
•

Comparison shopping engines;
Affiliate marketing;
Electronic marketplaces and exchanges;
Information brokers and matching services
Membership;
Forward auctions;
Reverse auctions;
Name-your-own-price;
Online auctions;
Online direct marketing;
Viral marketing.

Information Technology for Managers

13


BMIT5103

AGENDA
• e-Business challenges & strategies
• Business-to-Consumer (B2C) e-commerce
• Business-to-Business (B2B) e-commerce & e-procurement
• e-Government

• e-Commerce support services: payment & order fulfilment
• e-Business ethics & legal issues

Information Technology for Managers

14


BMIT5103

AGENDA
• e-Business challenges & strategies
• Business-to-Consumer (B2C) e-commerce
• Business-to-Business (B2B) e-commerce & e-procurement
• e-Government
• e-Commerce support services: payment & order fulfilment
• e-Business ethics & legal issues

Information Technology for Managers

15


BMIT5103

BUSINESS-TO-CONSUMER (B2C) E-COMMERCE
• Leading online service industries: banking, trading of securities,
employment, travel & real estate services;
• Issues in e-tailing;
• Online business & marketing planning.

Information Technology for Managers

16


BMIT5103

BUSINESS-TO-CONSUMER (B2C) E-COMMERCE

ONLINE SERVICE INDUSTRIES
• Online banking;
• International & multiple-currency banking;
• Online job market.

Information Technology for Managers

17


BMIT5103

BUSINESS-TO-CONSUMER (B2C) E-COMMERCE

ISSUES IN E-TAILING
•
•
•
•
•

Resolving channel conflict;

Resolving conflicts within click-and-mortar organizations;
Managing order fulfillment and logistics;
Determining viability and risk of online e-tailers;
Identifying appropriate revenue (business) models.

Information Technology for Managers

18


BMIT5103

BUSINESS-TO-CONSUMER (B2C) E-COMMERCE

ONLINE BUSINESS & MARKETING PLANNING
•
•
•
•

Build the marketing plan around the customer;
Monitor progress toward the one-year vision for the business;
Identify all key assumptions in the marketing plan;
Make data-driven, fact-based plans.

Information Technology for Managers

19

BMIT5103

AGENDA
• e-Business challenges & strategies
• Business-to-Consumer (B2C) e-commerce
• Business-to-Business (B2B) e-commerce & e-procurement
• e-Government

• e-Commerce support services: payment & order fulfilment
• e-Business ethics & legal issues

Information Technology for Managers

20


BMIT5103

AGENDA
• e-Business challenges & strategies
• Business-to-Consumer (B2C) e-commerce
• Business-to-Business (B2B) e-commerce & e-procurement
• e-Government
• e-Commerce support services: payment & order fulfilment

• e-Business ethics & legal issues

Information Technology for Managers

21

BMIT5103

BUSINESS-TO-BUSINESS (B2B) E-COMMERCE
& E-PROCUREMENT
• Sell-side market places;
• e-Sourcing;
• e-Procurement.

Information Technology for Managers

22


BMIT5103

BUSINESS-TO-BUSINESS (B2B) E-COMMERCE & E-PROCUREMENT

SELL-SIDE MARKET PLACES
• Forward auctions and online catalogs;
• Sellers can be:
• Manufacturer;
• Distributor;
• Retailer.

Information Technology for Managers

23

BMIT5103

BUSINESS-TO-BUSINESS (B2B) E-COMMERCE & E-PROCUREMENT

E-SOURCING
• e-Sourcing refers to the many procurement methods:
•
•
•
•
•
•

Auctions;
RFQ processing;
Private exchanges;
Trading partner collaboration;
Contract negotiation;
Supplier selection.

• e-Procurement:
• Control costs;
• Simplify processes.

Information Technology for Managers

24

BMIT5103

BUSINESS-TO-BUSINESS (B2B) E-COMMERCE & E-PROCUREMENT

E-SOURCING (cont.)
• Public & private exchanges:
• Vertical exchanges for direct materials or systematic sourcing: Large
quantities;
• Vertical exchanges for indirect materials or spot sourcing: In one
industry;
• Horizontal exchanges or MRO for indirect materials: In any industry;
• Functional exchanges.

Information Technology for Managers

25