Title: EBusiness and ECommerce
1E-Business and E-Commerce
- MIS 4133
- Software Systems
- Fall 2005
2Outline
- Internet and WWW
- E-commerce and E-business
- E-business patterns/models
- E-business advantages/disadvantages and CSFs
- Online industries
3Internet and WWW
- Internet
- Public worldwide network of networks, connecting
many small private networks - Protocol is TCP/IP
- WWW
- Documents that are linked
Napier, et al., 2001
4Brief History of the Internet
- Originated in the 1960s US DOD developed a
network of military computers called the ARPANET
(advanced research projects agency network)
(Next, researchers at colleges/universities began
using it to share data) - 1971 The first email message was sent from one
computer to another. - 1980s the military portion became a separate
network called the MILNET and the NSF began
overseeing the remaining non-military portions
(NSFnet)
Napier, et al., 2001 Oz, 2002
5Brief History of the Internet
- Thousands of other government, academic, and
business computer networks began connecting to
the NSFnet - Late 1980s the term Internet had become widely
used to describe this huge worldwide network of
networks and TCP/IP becomes the standard network
protocol - 1987 Internet has 10,000 hosts
- 1988 Internet has 60,000 hosts 6,000 of the
hosts are disabled by the first computer virus
(worm) to hit the Internet - 1989 Internet has 100,000 hosts
Napier, et al., 2001 Oz, 2002
6Brief History of the Internet
- 1990 Tim Berners-Lee develops HTML and the WWW.
- 1991 NSF lifts ban on commercial traffic
E-commerce on the Internet begins. - 1992 Internet has 1,000,000 hosts 50 of them
use HTML to form the Web sites Jean Armour Polly
coins the term surfing the Internet. - 1993 Internet has 10 million hosts Internet2
project is announced. - 1998 Internet has 36.8 million hosts 4.2
million of them are web sites. - 1999 Retail sales on the Internet are estimated
at 7.8 billion. - 2003 Internet2 Abilene high-speed network
achieves 8 Gbps speed in a transcontinental test
(completed in Feb 2004)
Laudon Traver, 2004 Napier, et al., 2001 Oz,
2002 Zakon, 2005
7Internet 2
- 1996 created to recapture the original
enthusiasm of the ARPANET (an advanced research
network) - It is an experimental test bed for new networking
technologies has achieved bandwidths of 10 Gbps - Also used by universities to conduct large
collaborative research projects that require
several supercomputers connected at very fast
speeds
Schneider, 2002
8Internet Domain Servers (Internet Hosts)
Laudon Traver, 2004 Oz, 2002 Schneider, 2002
Zakon, 2005
9Types of Domains Oct. 2003
NetFactual.com, 2003
10Growth of the WWW
Schneider, 2002 Zakon, 2005
11(No Transcript)
12Number of People Online
September 2000
Napier, et al., 2001
13Active Internet Users
Jessup Valacich, 2006
14Time on the Internet
Rayport and Jaworski, 2002
15E-commerce vs. E-business
- E-commerce
- Buying and selling products/services
electronically - E-business
- Conducting of business electronically
16E-Business Structural Patterns
Begins as a Channel, But Extends to Total
Transformation of Business
e-Channel
e-Portal (B2C)
Pure E
Click and Brick
e-Market-Makers (B2B)
- Basic efficiency,
- effectiveness enhancements
- as the selling become
- e-enabled
- Selling goods/services
- Payment/settlement
- enhancements
- Traditional business
- transferred to the Net
- Rise of new intermediaries
- New forms of supply chain
- integration
- Consolidation/transformation
- of intermediary industry
- Customer expects E
- everything
- Fundamental redesign of
- business
- New structures to allow market
- making, trading, and virtual
- warehousing
Kalakota, et al., 2001
17E-Channel Pattern
Transaction Enhancement
Consumer
Manufacturer
E-Channel Compression
Consumer
X
Manufacturer
E-Channel Expansion
Consumer
Manufacturer
E-Channel Innovation
Kalakota, et al., 2001
18Click-and-Brick Pattern
- Brick Mortar
- Localized inventory
- In-store shopping
- experience
- Immediacy (try, buy,
- take home)
- Service (returns,
- repairs, exchanges)
- Click
- Infomediation
- Speed
- Direct, one-to-one
- experience
- Personalized content
- Automation
- (assistants, alerts)
Click Brick
Kalakota, et al., 2001
19E-Portal Pattern
- Intermediary/middleman offering an aggregated set
of services for a specific well-defined group - Superportals AOL, Yahoo!, Amazon.com
- Auction portals eBay, Amazon.com, Yahoo!
Auctions - Megatransaction portals Travelocity
Kalakota, et al., 2001
20E-Market Maker Pattern
- Exchanges
- Buyers and suppliers negotiate prices
- Virtual distributors
- Takes control of accounts receivable but not
physical inventory - Lead generation
- Derive revenue from ads, commissions, or fees for
leads to suppliers - Catalog aggregators
- Helps normalize info coming from diverse sources
- Auctions
- Reverse auctions
Kalakota, et al., 2001
21Pure E Digital Products Pattern
Kalakota, et al., 2001
22E-Business Models
- Brick-and-Mortar
- A traditional business with no online presence
- Click-and-Mortar / Click-and-Brick /
Brick-and-Click - A traditional businesses online presence that is
used to enhance its brick-and-mortar operations - Dot Com
- Only an online presence no physical store
Deitel, et al., 2001 Oz, 2002
23E-Business Models
- B2C sells products/services directly to
consumers - Amazon.com, Autobytel.com, Pets.com
- B2B sells products/services to other businesses
or brings multiple buyers and sellers together in
a central marketplace - VerticalNet, HoustonStreet.com, CATEX
- B2G businesses selling to local, state, and
federal agencies - eFederal, iGov.com
- C2C consumers sell directly to other consumers
- eBay, InfoRocket, American Boat Listing
- C2B consumers name own price, which businesses
accept or decline - Priceline.com, ReverseAuction.com
- P2P enables Internet users to share files and
computer resources directly without having to go
through a central Web server - Napster.com
- M-commerce use of wireless digital devices to
enable transactions on the Web
Laudon Traver, 2004 Napier, et al., 2001 Oz,
2002
24B2B
- Intranet
- Allows employees to view and use internal Web
sites that are not accessible to the outside
world - Extranet
- Two or more Intranets connected via the Internet,
where participating companies can view each
others data and complete business transactions
such as purchasing
Napier, et al., 2001 Schneider, 2002
25B2B
- Storefronts
- Provide businesses with purchase, order
fulfillment, and other value-added services - Staples, Office Depot
- Vertical markets
- Provide a trading community for a specific
industry - MediSpeciality.com, HotelResource.com,
NetPossibilities - Aggregators
- Provide a single marketspace for business
purchasing from multiple suppliers - Chemdex, MetalSite, VIPAR
Krishnamurthy, 2003 Napier, et al., 2001 Oz,
2002
26B2B
- Trading hubs
- Provide a marketspace for multiple vertical
markets - VerticalNet
- Post and browse markets
- Provide a marketspace where participants post buy
and sell opportunities - CATEX, CreditTrade, TechEx
Laudon Traver, 2004 Napier, et al., 2001
27B2B
- Auction markets
- Provide a marketspace for buyers and sellers to
enter competitive bids on contracts - e-Steel, HoustonStreet.com, Altra, FreeMarkets
- Fully automated exchanges
- Provide a marketspace for the automatic matching
of standardized buy and sell contracts - PaperExchange.com
Napier, et al., 2001 Schneider, 2002
28E-Business Advantages
- Sellers
- Increased sales opportunities
- Decreased transaction costs
- Operate 24-7
- Reach narrow market segments that may be widely
distributed geographically - Access to global markets
- Increased speed and accuracy of info exchange
- Bring multiple buyers and sellers together
- Buyers
- Wider product availability
- Customized/personalized info and buying options
- Shop 24-7
- Easy comparison shopping and one-stop shopping
- Access to global markets
- Quick delivery of digital products and of info
- Participate in auctions, reverse auctions,
knowledge exchanges
Napier, et al., 2001
29E-Business Disadvantages
- Sellers
- Rapidly changing technology
- Insufficient telecommunications
capacity/bandwidth - Difficulty integrating existing systems with
e-business software - Problems maintaining system security and
reliability - Global market issues language, political
environment, currency conversions - Conflicted legal environment
- Shortage of skilled technical employees
- Buyers
- Concern over transaction security and privacy
- Lack of trust when dealing with unfamiliar
sellers - Desire to touch and feel products before purchase
- Resistance to unfamiliar buying processes,
paperless transactions, and electronic money
Napier, et al., 2001
30E-Commerce CSFs
- Add value to products/service
- Convenience, info value, disintermediation,
reintermediation, price, choice - Focus on a niche and then expand
- Maintain flexibility
- Segment geographically
- Get the technology right
- Manage critical perceptions
- Presence, brand, trust
- Provide exceptional service
- Create effective connectedness
- Understand Internet culture
- Spam
- Requiring registration before browsing site
- Many graphics
- Secondary browser windows
- Lack of FAQ page
Huff, et al., 2000
31Online Industries
- Art Dealers
- Showcase work Art.com, Guild.com
- Automotive
- Research and purchase new and used cars
- Dealers can search online databases for cars
- Communicate between departments responsible for
automobile production and therefore improve the
way cars are manufactured - Form partnerships with competitors
- Autobytel.com, Autoparts.com, Autoweb.com
- Banking
- Access account info, pay bills and write checks
online - Wellsfargo.com, Directbanking.com,
Claritybank.com - Career Services
- Job seekers Monster.com
- Employers HotJobs.com, CareerPath.com
- Career JobsOnline.com, HotJobs.com,
Monster.com, HeadHunter.net - Contracting Guru.com
Deitel, et al., 2001 Laudon Traver, 2004
Schneider, 2002
32Online Industries
- Children
- Sesamestreet.com, Educationplanet.com
- Education
- Elementary, high school, college and adult
students - Gen.com, Ecollege.com, Tutor.com,
Varsitybooks.com - Energy
- Standard way for energy businesses to communicate
- EnronOnline.com (former site), Altranet.com
- Entertainment
- MP3 MP3.com, Napster.com
- Independent artist Farmclub.com
- Interactive Web TV Mtv.com, CNN.com, Webtv.com
- Web Radio Spinner.com, Real.com, Npr.com
- Sports Espn.com, Nfl.com, Nba.com,
Sportingnews.com - Comedy Laugh.com, Comcentral.com
- Games Mplayer.com, Flipside.com
- Hollywood iFilm.com, Inside.com
Deitel, et al., 2001 Schneider, 2002
33Online Industries
- Event Tickets
- TicketWeb.com, Pollstar.com, TicketCity.com,
Tickets.com - Genealogy
- Trace lineage Genealogy.com, Ancestry.com
- Government
- Interact with local and national politicians
- Email, newsgroups, and discussion boards are
effective means of communicating about political
issues - US government offers documentation, news and
reports on the Web - Whitehouse.gov, FBI.com, Gsa.gov
- Grocery Stores
- Peapod.com, Homegrocer.com
- Insurance
- Inform potential customers about the insurance
options - Prudential.com, Getmet.com
Deitel, et al., 2001 Schneider, 2002
34Online Industries
- Legal Services
- Legal representation, law students improving
studies - Cybersettle.com, Lexis.com, Nexis.com
- Loans
- Fill out documents quickly and return loan
approvals within minutes - Eloan.com, Ditech.com
- Medical
- Case studies, medical journal articles, doctors
answering questions - Webmd.com, Sickbay.com
- Publishing
- Digital creation and distribution of electronic
content - Pearson.com, Atrandom.com, Fictionworks.com,
ESPN.com, Usnews.com - Real Estate
- Post listings Consumers can buy, sell, and
mortgage property - Homes.com, Apartments.com, eRealty, zipRealty.com
Deitel, et al., 2001 Laudon Traver, 2004
Schneider, 2002
35Online Industries
- Retailer
- Communicate easily with suppliers, shipping
companies and customers Bill customers and
accept payment EDI - Compusa.com, Victoriasecret.com, WalMart.com
- Trading
- Etrade.com, Ameritrade.com
- Travel
- Helps commercial airline industry to fill more
seats and reduce costs - Travelocity.com, Cheaptickets.com, Orbitz.com
- Transportation and Shipping
- Track shipments Ups.com, Fedex.com
- Keep trucks fully loaded and ensure timely
delivery Trucking.net
Deitel, et al., 2001 Schneider, 2002
36References
- Christensen, C. (2000). The Innovators Dilemna,
Harvard Business School Press, Boston, MA. - Deitel, H.M., Deitel, P.J. and Steinbuhler, K.
(2001). e-Business and e-Commerce for Managers,
Prentice Hall, Upper Saddle River, New Jersey. - Eisenmann, T.R. (2002). Internet Business
Models Text and Cases, McGraw-Hill Companies,
Inc. New York. - Huff, S.L., Wade, M., Parent, M., Schneberger, S.
and Newson, P. (2000). Cases in Electronic
Commerce, Irwin McGraw-Hill Co., Inc. - Jessup, L. and Valacich, J. (2006). Information
Systems Today, 2nd edition, Pearson Education,
Inc., Upper Saddle River, NJ. - Kalakota, R., Robinson, M. and Tapscott, D.
(2001). E-Business Roadmap for Success 2.0,
Addison Wesley Longman, Inc. - Krishnamurthy, S. (2003). E-Commerce Management
Text and Cases, Thomson Learning. - Laudon, K.C. and Traver, C.G. (2004).
E-commerce Business. Technology. Society.,
Addison Wesley.
37References
- Napier, H.A., Judd, P.J., Rivers, O.N. and
Wagner, S.W. (2001). Creating a Winning
E-Business, Course Technology, Thomson Learning,
Inc. - NetFactual.com (2003), accessed 17 February
2005. - Oz, E. (2002). Foundations of e-Commerce,
Pearson Education, Inc., Upper Saddle River, New
Jersey. - Poirier, C. C. and Bauer, M. J. (2000). E-Supply
Chain Using the Internet to Revolutionize Your
Business, Berrett-Koehler Publishers, Inc. - Rayport, J.F. and Jaworski, B.J. (2002).
Introduction to E-Commerce, McGraw-Hill
Companies, Inc. New York. - Schneider, G.P. (2002). Electronic Commerce, 3rd
edition, Course Technology Thomson Learning,
Inc. - Treacy, M. and Wiersema, F. (1995). The
Discipline of Market Leaders Choose Your
Customers, Narrow Your Focus, Dominate Your
Market, Perseus Books, Cambridge, Massachusetts. - Zakon, R.H. (2005). Hobbes Internet Timeline
v8.0, http//www.zakon.org/robert/internet/timeli
ne/, accessed 17 February 2005.