Chpt6_E-Business & E-Commerce_spring2008

Chpt6_E-Business & E-Commerce_spring2008 -...

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Chapter 6 1 E-Business & E-Commerce
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E-Commerce = E-Business? 2 E-Commerce: “describes the process of buying, selling,  transferring, or exchanging products, services, or  information via computer networks, including the  Internet.” E-Business: E-Commerce + “it also refers to servicing  customers, collaborating with business partners, and  performing electronic transactions within an  organization.” For our purposes assume E-Commerce = E-Business  
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Pure vs. Partial E-Commerce 3 Pure EC or “pure-play” companies are virtual organizations. Product is digital Production process is digital Delivery agent is digital Partial EC include “click-and-mortar” organizations Product may be digital or physical Production process may be digital or physical Delivery may be digital or physical
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Unique Features of E-Commerce 4 1. Ubiquity – ‘marketspace’ is everywhere; no geographic or temporal boundaries 2. Global reach – no cultural boundaries 3. Universal standards – (i.e., TCP/IP) lower the costs of bringing goods to market; Reduce search costs 4. Richness – smaller tradeoff between richness and reach 5. Interactivity – communication both ways 6. Information density – amount and quality of information available to market participants. 7. Personalization/customization – ability to target marketing messages on users’ preferences
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E-Commerce I and II 5 E-commerce I: 1995-2001 characterized by tremendous growth and capital investment Self-regulated environment Vision of ‘perfect information marketspace’ No information asymmetry ‘Friction-free’ commerce Disintermediation- Direct market relationship between manufacturers and customers First movers were the new intermediaries
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E-Commerce I and II 6 E-commerce II: 2001- present characterized initially by Significant reduction in IT capital expenditures related to Y2K issues outsourcing Excess telecommunications capacity Exorbitant valuation of e-commerce companies compared to their potential for profitability
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7 ~ 10% of dot.coms formed since 1995 currently exist ‘Internet-influenced’ commerce is growing Consumers using technology to make better purchases through traditional channels ~ $13 billion in 2001; ~ $378 billion in 2005 ~65% B2C transactions are terminated due to consumer uncertainties Backorders, Delivery time, Return Policies, Security concerns
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This note was uploaded on 05/04/2008 for the course IDS 180 taught by Professor Clague during the Spring '08 term at San Diego State.

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Chpt6_E-Business & E-Commerce_spring2008 -...

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