Turban Ec2012 PP 01 (Compatibility Mode)
Turban Ec2012 PP 01 (Compatibility Mode)
Turban Ec2012 PP 01 (Compatibility Mode)
Learning Objectives
1. 2. 3. 4. 5.
Define electronic commerce (EC) and describe its various categories. Describe and discuss the content and framework of EC. Describe the major types of EC transactions. Discuss e-commerce 2.0. Describe social commerce and social software.
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Learning Objectives
6. Understand the elements of the digital world. 7. Describe the drivers of EC as they relate to business
pressures and organizational responses. 8. Describe some EC business models. 9. Describe the benefits of EC to organizations, consumers, and society. 10. List and describe the major limitations of EC.
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brick-and-mortar (old economy) organizations Old-economy organizations (corporations) that perform their primary business offline, selling physical products by means of physical agents virtual (pure-play) organizations Organizations that conduct their business activities solely online click-and-mortar (click-and-brick) organizations
Organizations that conduct some e-commerce activities, usually as an additional marketing channel
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People Public policy Marketing and advertising Support services Business partnerships
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E-commerce model in which all of the participants are businesses or other organizations business-to-consumer (B2C) E-commerce model in which businesses sell to individual shoppers e-tailing Online retailing, usually B2C
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E-commerce model in which a business provides some product or service to a client business that maintains its own customers consumer-to-business (C2B) E-commerce model in which individuals use the Internet to sell products or services to organizations or individuals who seek sellers to bid on products or services they need
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E-commerce category that includes all internal organizational activities that involve the exchange of goods, services, or information among various units and individuals in an organization business-to-employees (B2E) E-commerce model in which an organization delivers services, information, or products to its individual employees
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E-commerce model in which consumers sell directly to other consumers collaborative commerce (c-commerce) E-commerce model in which individuals or groups communicate or collaborate online e-government E-commerce model in which a government entity buys or provides goods, services, or information from or to businesses or individual citizens
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An approach aimed at making the humancomputer interface more natural Web 2.0 The second generation of Internet-based services that lets people collaborate and share information online in new ways, such as social networking sites, wikis, communication tools, and folksonomies
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A category of Internet applications that help connect friends, business partners, or individuals with specific interests by providing free services such as photo presentation, e-mail, blogging, and so on using a variety of tools
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A service that builds online communities by providing an online space for people to build free homepages and that provides basic communication and support tools for conducting different activities in the social network social networking The creation or sponsoring of a social network service and
any activity, such as blogging, done in a social network (external or internal)
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The e-commerce activities conducted in social networks and/or by using social software (i.e., Web 2.0 tools)
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A user-defined world in which people can interact, play, and do business; the most publicized virtual world is Second Life
How Students Make Money in a Virtual World
THE MAJOR TOOLS OF WEB 2.0 Wikis RSS feeds Blogs Microblogs (e.g.,Twitter)
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An economy that is based on digital technologies, including digital communication networks, computers, software, and other related information technologies; also called the Internet economy, the new economy, or the Web economy
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A new business model that uses IT in a fundamental way to accomplish one or more of three basic objectives: reach and engage customers more effectively, boost employee productivity, and improve operating efficiency; uses converged communication and computing technology in a way that improves business processes
corporate portal
A major gateway through which employees, business partners, and the public can enter a corporate website.
The support of EC
Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall
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A method of doing business by which a company can generate revenue to sustain itself
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BUSINESS MODELS
Revenue Models value proposition
The benefits a company can derive from using EC Functions of a Business Model
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Managerial Issues
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Is EC real? Why is B2B e-commerce so essential and successful? Which EC business model should I choose? How can we exploit social commerce? What are the top challenges of EC today?
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Summary
1. 2. 3. 4. 5.
Definition of EC and description of its various categories The content and framework of EC The major types of EC transactions E-commerce 2.0 Description of social commerce and social software
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Summary
6. The elements of the digital world 7. The drivers of EC 8. The major EC business models 9. Benefits of EC to organizations, consumers, and
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All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.
Learning Objectives
1. 2. 3. 4. 5.
Describe the major electronic commerce (EC) activities and processes and the mechanisms that support them. Define e-marketplaces and list their components. List the major types of e-marketplaces and describe their features. Describe electronic catalogs, search engines, and shopping carts. Describe the major types of auctions and list their characteristics.
Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall 2-1
Learning Objectives
6. Discuss the benefits and limitations of e-auctions. 7. Describe bartering and negotiating online. 8. Describe virtual communities. 9. List the major Web 2.0 tools and their use in EC. 10. Describe social networks as an EC mechanism. 11. Understand virtual worlds and their use in EC. 12. Describe Web 3.0 and define Web 4.0.
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E-Marketplaces
e-marketplace
An online market, usually B2B, in which buyers and sellers exchange goods or services; the three types of emarketplaces are private, public, and consortia COMPONENTS OF AND THE PARTICIPANTS IN EMARKETPLACES
marketspace
A marketplace in which sellers and buyers exchange goods and services for money (or for other goods and services), but do so electronically
Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall 2-7
E-Marketplaces
The major components and players in a marketspace
are:
digital products Goods that can be transformed to digital format and delivered over the Internet
Infrastructure
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E-Marketplaces
front end
The portion of an e-sellers business processes through which customers interact, including the sellers portal, electronic catalogs, a shopping cart, a search engine, and a payment gateway back end The activities that support online order fulfillment, inventory management, purchasing from suppliers, payment processing, packaging, and delivery intermediary A third party that operates between sellers and buyers
Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall 2-9
E-Marketplaces
DISINTERMEDIATION AND
REINTERMEDIATION
disintermediation
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E-Marketplaces
TYPES OF E-MARKETPLACES sell-side e-marketplace A private e-marketplace in which one company sells either standard and/or customized products to qualified companies buy-side e-marketplace A private e-marketplace in which one company makes purchases from invited suppliers
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A single companys website where products or services are sold; usually has an online shopping cart associated with it Many Webstores target a specific industry and find their own unique corner of the market.
Microsites
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An online shopping center where many online stores are located TYPES OF STORES AND MALLS
General stores/malls Specialized stores/malls Regional versus global stores Pure-play versus click-and-mortar stores
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A single point of access, through a Web browser, to critical business information located inside and outside (via Internet) an organization
Types of Portals Commercial (public) portals Corporate portals Publishing portals Personal portals mobile portal A portal accessible via a mobile device. voice portal A portal accessed by telephone or cell phone.
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MARKETPLACES
Brokers infomediaries
Electronic intermediaries that provide and/or control information flow in cyberspace, often aggregating information and selling it to others e-distributor An e-commerce intermediary that connects manufacturers with business buyers (customers) by aggregating the catalogs of many manufacturers in one placethe intermediarys website
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The presentation of product information in an electronic form; the backbone of most e-selling sites
Online Catalogs Versus Paper Catalogs
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ENGINES
Types of EC Searches
Internet/Web Search enterprise search The practice of identifying and enabling specific content across the enterprise to be indexed, searched, and displayed to authorized users
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desktop search Search tools that search the contents of a users or organizations computer files, rather than searching the Internet The emphasis is on finding all the information that is available on the users PC, including Web browser histories, e-mail archives, and wordprocessed documents, as well as in all internal files and databases.
Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall
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A computer program that can access databases of Internet resources, search for specific information or key words, and report the results Software (Intelligent) Agents Questions and Answers Online Voice-Powered Search Visual Shopping Search Engine
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An order-processing technology that allows customers to accumulate items they wish to buy while they continue to shop OTHER MECHANISMS IN MERCHANT SOFTWARE
Other Shopping Engines Product Configuration
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A competitive process in which a seller solicits consecutive bids from buyers (forward auctions) or a buyer solicits bids from sellers (backward auctions); prices are determined dynamically by the bids dynamic pricing Prices that change based on supply and demand relationships at any given time
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forward auction An auction in which a seller entertains bids from buyers; bidders increase price sequentially
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double auction An auction in which multiple buyers and their bidding prices are matched with multiple sellers and their asking prices, considering the quantities on both sides
penny auction
A formal auction in which participants pay a nonrefundable small fee for each bid; bid level changes by small increments
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A software product that enables people to rendezvous, connect, and collaborate through computer-mediated communication blog A personal website that is open to the public to read and to interact with; dedicated to specific topics or issues
vlog (or video blog)
microblogging
A form of blogging that allows users to write messages (usually up to 140 characters) and publish them, either to be viewed by anyone or by a restricted group that can be chosen by the user; these messages can be submitted by a variety of means, including text messaging, instant messaging, e-mail, MP3, or just on the Web
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A free microblogging service that allows its users to send and read other users updates
tweets
Text-based posts up to 140 characters in length posted to Twitter The Essentials of Twitter for Business
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A blog that allows everyone to participate as a peer; anyone may add, delete, or change content
Business Applications of Wikis
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A nonhierarchical key word or term assigned to a piece of information (such as an Internet bookmark, digital image, video clip, or any computer document) folksonomy (collaborative tagging, social tagging) The practice and method of collaboratively creating, classifying, and managing tags to annotate and categorize content
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Combination of two or more websites into a single website that provides the content of both sites (whole or partial) to deliver a novel product to consumers social bookmarking Web service for sharing Internet bookmarks; the sites are a popular way to store, classify, share, and search links through the practice of folksonomy techniques on the Internet and intranets
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A group of people with similar interests who interact with one another using the Internet
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ONLINE SOCIAL NETWORKS A Definition and Basic Information The Size of Social Network Sites A Global Phenomenon Representative Capabilities and Services Provided by Social Network Sites
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A social network whose major interest is business topics and whose members are professional people; such networks are used mostly for creating contacts, providing requirements, and enlisting members support for problem solving and knowledge sharing
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Networking Social Network Analysis Software Xanga Digg mobile social networking Members converse and connect with one another using cell phones or other mobile devices. Mobile Community Activities
Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall
A user-defined world in which people can interact, play, and do business; the most publicized virtual world is Second Life avatars Animated computer characters that exhibit humanlike movements and behaviors
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WORLDS
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A term used to describe the future of the World Wide Web; it consists of the creation of high-quality content and services produced by gifted individuals using Web 2.0 technology as an enabling platform Semantic Web An evolving extension of the Web in which Web content can be expressed not only in natural language, but also in a form that can be understood, interpreted, and used by intelligent computer software agents, permitting them to find, share, and integrate information more easily
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The Web generation after Web 3.0 that is still an unknown entity; however, it is envisioned as being based on islands of intelligence and as being ubiquitous THE TECHNOLOGICAL ENVIRONMENT
McKinsey & Companys Prediction Nicholas Carrs & Companys Prediction
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Managerial Issues
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Should we use auctions for selling? Should we barter? How do we select merchant software? How can we use Facebook and other social networks in our business? How shall we start using Web 2.0 tools? Shall we take part in virtual worlds? How should we deal with Web 2.0 risks?
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Summary
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Activities and mechanisms E-marketplaces and their components The major types of e-marketplaces Electronic catalogs, search engines, and shopping carts Types of auctions and their characteristics The benefits and limitations of auctions
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Summary
7. Bartering and negotiating 8. The structure and role of virtual communities 9. Web 2.0 tools 10. Social networks as an EC mechanism 11. Virtual worlds 12. Web 3.0 and Web 4.0
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All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.
Learning Objectives
1. 2. 3. 4. 5. 6.
Describe electronic retailing (e-tailing) and its characteristics. Classify the primary e-tailing business models. Describe how online travel and tourism services operate and their impact on the industry. Discuss the online employment market, including its participants, benefits, and limitations. Describe online real estate services. Discuss online stock-trading services.
Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall 3-1
Learning Objectives
7. Discuss cyberbanking and online personal finance. 8. Describe on-demand delivery of groceries and
similar perishable products and services related to them. 9. Describe the delivery of digital products and online entertainment. 10. Discuss various online consumer aids, including comparison-shopping aids. 11. Describe disintermediation and other B2C strategic issues.
Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall 3-2
Retailing conducted online, over the Internet e-tailers Retailers who sell over the Internet SIZE AND GROWTH OF THE B2C MARKET WHAT SELLS WELL ON THE INTERNET
Developments in E-Commerce
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SUCCESSFUL E-TAILING
Advantages of E-Tailing
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CHANNEL
Direct marketing by mail-order retailers that go online Direct marketing by manufacturers Pure-play e-tailers Click-and-mortar retailers multichannel business model A business model where a company sells in multiple marketing channels simultaneously (e.g., both physical and online stores) Internet (online) malls
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Broadly, marketing that takes place without intermediaries between manufacturers and buyers; in the context of this book, marketing done online between any seller and buyer
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virtual (pure-play) e-tailers Firms that sell directly to consumers over the Internet without maintaining a physical sales channel click-and-mortar retailers Brick-and-mortar retailers that offer a transactional website from which to conduct business brick-and-mortar retailers Retailers who do business in the non-Internet, physical world in traditional brick-and-mortar stores
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Delivery of e-commerce transactions to individuals in a specific location, at a specific time Shopping in Virtual Worlds
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Job seekers Employers seeking employees Classified ads Job agencies Government agencies and institutions
Online Job Markets on Social Networks Global Online Portals for Job Placement Virtual Job Fairs
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Various banking activities conducted from home or the road using an Internet connection; also known as cyberbanking, virtual banking, online banking, and home banking
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BANKING
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IMPLEMENTATION ISSUES
Imaging Systems
Securing Financial Transactions Fees Online Versus Fees for Offline Services Risks
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Tools that scout the Web on behalf of consumers who specify search criteria Google Commerce Search 2.0 Spy Services Wireless Shopping Comparisons
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referral economy The effect upon sales of consumers receiving a referral or recommendation from other consumers.
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The removal of organizations or business process layers responsible for certain intermediary steps in a given supply chain reintermediation The process whereby intermediaries (either new ones or those that had been disintermediated) take on new intermediary roles
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Situation in which an online marketing channel upsets the traditional channels due to real or perceived damage from competition
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DETERMINING THE RIGHT PRICE BY SELLERS PRODUCT AND SERVICE CUSTOMIZATION AND PERSONALIZATION ONLINE COMPETITION FRAUD AND OTHER ILLEGAL ACTIVITIES
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OF SUCCESS OF E-TAILERS
Speak with one voice
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Managerial Issues
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What are the limitations of e-tailing? Where is etailing going? How should we introduce wireless shopping? Do we have ethics and privacy guidelines? How will intermediaries act in cyberspace? Should we try to capitalize on social networks? How should we manage multichannel marketing to avoid channel and/or price conflicts? What are the major potential limitations of the growth of B2C EC?
Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall 3-31
Summary
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The scope and characteristics of e-tailing Classify e-tailing business models How online travel/tourism services operate The online job market and its benefits The electronic real estate marketplace Online trading of stocks and bonds
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Summary
7. Cyberbanking and personal finance 8. On-demand delivery service 9. Delivery of digital products 10. Aiding consumer purchase decisions 11. Disintermediation and other B2C strategic issues
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All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.