Download E-Business E-Commerce - CyberStrategies, Inc

E-Business
E-Commerce
William R. Mussatto
CyberStrategies, Inc.
[email protected]
8/15/2000
E-Commerce Topics
• E-Commerce Overview
• B2B: Business-to-Business
– Procurement Models
• B2C: Business-to-Consumer
• C2C: Consumer-to-Consumer
E-Commerce Overview
Context: Three Components
• Supporting Infrastructure
• Electronic Business Processes (how
business is conducted)
• Electronic Commerce Transactions (buying
and selling)
E-Commerce Overview
Supporting Infrastructure
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Computers, routers, and other hardware
Satellite, wire, and optical communications
System and applications software
Support services: web site development,
hosting, consulting, electronic payment, and
certification services
• Human capital, such as programmers
E-Commerce Overview
E-Business Processes
• Electronic business (e-business) is any
process that a business organization
conducts over a computer-mediated network
• Many examples:
– production-focused
– customer-focused
– internal or management-focused
E-Commerce Overview
E-Business Process Examples:
Production-focused
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Procurement
Ordering
Automated Stock Replenishment
Payment Processing
Electronic Links with Suppliers
Production Control
– processes directly related to production process
E-Commerce Overview
E-Business Process Examples:
Customer-focused
• Marketing
• Electronic Selling (B2C or B2B)
• Processing of Customer Orders and
Payments
• Customer Management and Support (CRM)
E-Commerce Overview
E-Business Process Examples:
Internal or Management-focused
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Automated Employee Services
Training
Information Sharing
Video Conferencing
Recruiting
Advantages?
E-Commerce Overview
• Electronic commerce is any transaction
completed over a computer-mediated
network that involves the transfer of
ownership or rights to use goods or services
– from Census Bureau
• Mostly: Electronic Buying and Selling of
Goods
– not just on the Internet
E-Commerce Overview
• Not Really New
– EDI: Electronic Data Interchange
• B2B
• Internet Has Globalized E-Commerce
– non-proprietary, common, communications
infrastructure
E-Commerce Overview
• Primarily Web-Based
– HTTP and HTTPS are transport mechanisms
– SMTP used for notification and verification
purposes
– FTP used for download of soft goods
– EDI is also quite substantial and becoming
“web enabled”
E-Commerce Overview
Some Examples from the Census Bureau
• U.S. Census Bureau
– http://www.census.gov/epcd/www/ebusines.htm
• An individual purchases a book on the
Internet.
• A government employee reserves a hotel
room over the Internet.
E-Commerce Overview
Some Examples from the Census Bureau
• A business calls a toll free number and
orders a computer using the seller's
interactive telephone system.
• A business buys office supplies on-line or
through an electronic auction.
• A retailer orders merchandise using an EDI
network or a supplier's extranet.
E-Commerce Overview
Some Examples from the Census Bureau
• A manufacturing plant orders electronic
components from another plant within the
company using the company's intranet.
• An individual withdraws funds from an
automatic teller machine (ATM).
B2B: Business-to-Business
• Organizational Buying and Selling
• Procurement Models
– buyer push
• request for quote / information
– hotelsupplies.com, medibuy.com
• offering a bid price (priceline)
• sellers bid to sell
– buyer pull: browsing catalogs and adding to
shopping cart
B2C: Business-to-Consumer
• Census Bureau Statistics:
– Third Quarter 2000: $5.3B in U.S. online retail
sales
• 0.78% of all retail (4th qtr. 1999 0.64% )
– See also:
http://www.census.gov/mrts/www/mrts.html
B2C: Business-to-Consumer
• Transaction Multiplier Effect
– one B2C transaction causes several B2B
transactions to take place
– not unique to online transactions
• but happens in nearly real-time
Consumer-to-Consumer
• Auctions
– seller push
• buyers bid
• Listings
– seller push
– buyer pull
– tend to be free or as service to get visitors to a
site.
E-Commerce Summary
Digital Economy
• Growth outpacing last year’s most
optimistic projections
– as share of retail portion, e-commerce remains
quite small-- less than 1 percent
• From 1995 to 1998, IT-producers
contributed to 35% of real economic growth
– yet accounted for only 8 percent of U.S. GDP
E-Commerce Summary
Digital Economy
• In 1996 and 1997, falling prices in ITproducing industries brought down overall
inflation by an average 0.7%
– partially responsible for keeping inflation at
interest rates low simultaneously
• IT industries have achieved extraordinary
productivity gains
– 10.4% average annual growth
E-Commerce Summary
Digital Economy
• By 2006, almost half of the U. S. workforce
will be employed by industries that are
either major producers or intensive users of
information technology products and
services.
• New high demand for core IT workers
– engineers, computer scientists
Problems with .com
• Faulty assumptions
– Front end is all important.
– Delivery is easy.
• Attack of the brick and mortars.
– Barns & Nobel
– L.L. Bean
– ToysRus
Class Problem
• Design either a B2B site or a B2B site
– Outline the areas
– Specify what must happen when a customer
goes to actually buy the item.
– Take about 30 minutes and appoint someone to
describe the steps.
Extra
• Detailed walk through simple shopping cart
system.
• Discussion of Industrial Strength ECommerce as IBM sees it.