BDT T4

1
OM
IS

Creating Collaborative
WE ARE
Partnerships Through
BUSINESS
E-Business
Business Driver Technology
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Internet Power
How would you differentiate between E-Commerce
and E-Business?
Differentiate between B2B, B2C, C2B, and C2C
e-business models
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Organizational Opportunities
E-Commerce
The buying and selling of good and services
over the Internet
E-Business
The conducting of business on the Internet, not
only buying and selling, but also serving
customers and collaborating with business
partners
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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
? Individuals and organizations have embraced
Internet technologies to enhance
productivity, maximize convenience, and
improve communication globally.
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B2C Customer Service
Internet can provide a new method of meeting
consumers customer service needs
Channel Cost Per Contact
Telephone 33.00 E-Mail 9.99 Live
Chat 7.80 Web Self-Service 1.17
Bottom Line Significant Cost Savings!
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Advantages of B2B and B2C
Business Advantages of B2B
- Managing inventory more efficiently - Adjusting
more quickly to customer demand - Getting
products to market faster - Obtaining lower
prices on supplies
Business Advantages of B2C
- Access to a wider selection of products and
services - Access to products at lower costs -
Convenience for transactions or for obtaining
information
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Generic Web Strategies
(Treece and Stewert)
1) Channel Master

• Works by trying to establish a strong
  relationship with customers in order to sell
  traditional goods and services
• Concentrates on the BEST delivery of their
  products and services to gain a close customer
  relationship
• Reengineers their customer-facing activities to
  integrate their commerce value chain with their
  existing operations
• Example Cisco

2) Customer Magnet

• Works by using the Internet to attract a customer
  group by meeting their broadly shared needs with
  a knowledge-sharing environment and aggregated
  supplier needs
• Provides a broad range of products and services
  in order to attract and keep a customer group
  (destination of choice)
• Profit comes from selling hits or access to
  firms wishing toadvertise on the site or have a
  link from the site
• Example Yahoo

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Generic Web Strategies
(Treece and Stewert)
3) Value Chain Pirate

• Works by capturing another companys margins
  (business) by displacing them from their value
  chains
• Attempts to eliminate both upstream and
  downstream providers in order to more directly
  connect suppliers with customers
• Profit comes from elimination of intermediaries
• Example CDW

4) Digital Distributor

• Works by focusing on the new value proposition
  that some products can be delivered better to the
  customer using the unique capabilities of the web
  and Internet
• Organized around disaggregating traditional
  bundles of information products/services and
  reaggregating new products and services that can
  be efficiently delivered on the web and Internet
• Example Monster Board

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Next B2C Successes...?
Jewelry

• Hunters Blue Nile, eBay, Amazon.com, Diamond.com
• Hunted Zales, Tiffany, neighborhood jewelry
  stores
• At Stake 45 billion US industry
• Outlook While only 2 billion was sold on-line
  e-tailers are coming on strong. Blue Nile boosted
  their revenues 79 last year.

Paper Checks

• Hunters Viewpointe, Enpoint Exchange, NetDeposit
• Hunted Deluxe (paper), AirNet (check transport)
• At Stake 30 billion US industry printing,
  transporting, processing
• Outlook The number of checks written in the US
  is about 40 billion a year is expected to
  decline 25 over the next three years

Telecom

• Hunters Vonage and Net2Phone
• Hunted Verizon, ATT, etc.
• At Stake 30 billion US market and 750 billion
  international market
• Outlook Phone calls with net technology are 33
  cheaper than regular phone service are expected
  to hit 6.7 billion in revenues

Business Week 2004
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Top Purchases
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E-Business Economy
Growing number of businesses are using internet
to..?
What is the importance of the E-Business model?
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E-Business Economy
Business Use the Internet To.
- Streamline business processes - Procure
materials more efficiently - Sell products in new
and existing markets - Automate customer
service - Create new revenue streams
E-Business Model
- an approach to conducting electronic business
by which a company can become a profitable
business on the Internet
- models aim to use and leverage the unique
qualities of the Internet and the web to conduct
business
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Evoution of the E-MarketPlace
Electronic Marketplace
- interactive business communities providing a
Central market space where multiple buyers and
sellers can engage in e-business activities
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Next Generation M-Commerce
Prediction?
- Internet-enabled mobile devices will outnumber
PCs- consumers will rely on their portable
communications device to complete all business
transactions
Solution? Mobile Commerce
- The ability to purchase goods and services
through a wireless Internet-enabled device
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Any Questions?