Electronic%20commerce%20and%20business

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Electronic commerce and business
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e-Commerce is

• Some interpretations
• focused around individual business
  transactions that use the Internet as medium of
  exchange, including business-to-business as well
  as business-to-consumer (Hartman, 2000)
• process of buying, exchanging
  products/services/information via computer
  networks (Turban, 2002)
• buying and selling using the Internet
  (Chaffey, 2007)
• doing business electronically (Timmers,
  1999)

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e-Business is

• Some interpretations
• transforms business relationships, whether
  those relationships be business-to-consumer,
  business-to business, intra-business, or
  consumer-to-consumer (Hartman, 2000)
• not just buying and selling of goods and
  services, but also servicing customers,
  collaborating with business partners, and
  conducting electronic transactions within an
  organization (Turban, 2002)
• transformation of key business processes
  through the use of Internet (IBM)

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Drivers for e-Business and e-Commerce

• Increased revenue due to larger customer base
• Cost reductions
• Economics of scale
• Search marketing costs
• Disintermediation
• Inventory/reduced cycle time
• Optimizations in business processes

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• Increase of competitive advantage
• First mover advantage
• New products services (digital assets,
  electricity power, search engines, )

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Barriers for e-Business and e-Commerce

• Not sufficient Internet access (quantity
  quality)
• No real benefits explosion of .com bubble
• Technology costs are too high
• Technology is complex (XML, RDF/S, OWL, ebXML,
  all W3C standards and their potential use)
• Fraud, Confidentiality, Privacy and Trust
  issues
• (including laws)

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Why do all these to matter ?

• Parties (businesses, government, individuals)
• Have different buying / selling behavior
• Have different decision processes
• Buy/sell in different volumes (single vs.
  bulk)
• Buy/sell different kinds of products (standard
  vs commodity, different level of commodities)
• Buy/sell different bundles
• Use different channels.
• And also Different ICT is required

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Business model

• Many definitions
• e.g. An architecture for product, service and
  information flow, including a description of the
  potential benefits for the various business
  actors and a description of the sources of
  revenue (Timmers, 1999)
• What different kinds do exist? E-Shop,
  E-procurement, E-malls, E-auctions, (Timmers,
  1999)

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Different kinds of business models

• E-shops
• Normal shop, eg. Dell
• E-procurement
• Acquisition of products/services, eg.
  AirFrance-KLM
• E-mall
• Multiple e-shops, eg. Industry.net, Amazon?
• E-auction
• Customer-to-customer, eg. ebay

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Different kinds of business models

• Value chain service provider
• Chain wide services, eg. banks
• Trust services
• Certification authorities, legal stuff.
• Info brokers
• Information services, eg. Google (ads).
• Virtual (business) communities
• Online communities, eg. facebook, secondlife

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Different kinds of business models

• Collaborative platform
• Share knowledge, eg. research communities,
  Blu-ray
• Third party marketplace
• Mixture of e-mall and e-auction, mainly
  business-2- business, eg. Tradezone
• Value chain integrator
• Integrates value adding steps, eg. Dell

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