W09_MGCR331_Sessions_16_17_sv

W09_MGCR331_Sessions_16_17_sv - MGCR 331 Information...

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MGCR 331 – Information Systems IT Impacts on Organizations Sessions 16 and 17 E-business & E-commerce
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2 Today’s Class Business-to-Consumer (B2C) E- Commerce Business-to-Business (B2B) E-Commerce Only 6.1, 6.2, 6.3
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3 LEARNING OBJECTIVES Examine electronic commerce, including its scope, benefits, limitations, and types Distinguish between pure and partial electronic commerce Differentiate among business-to-consumer, business-to-business, consumer-to-consumer, business-to-employee and government-to- citizen electronic commerce
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Have you heard of. . eToys.com (online toy store) Boo.com (first fashion e-tailer) Webvan.com (online grocery store) Pets.com (online pet store) Borders.com (online bookstore) Wingspan.com (online bank) What do they have in common?
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Failure of early e-business models Why did they fail? Business models were wrong Is the customer willing to pay the postage? For a bag of 50lb dog food Venture capitalists went on a shopping spree
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Failure of early e-business models Tend to overestimate the demand for new technology Analysts predicted the demise of toys “R” us with the launch of eToys.com Brick-and-mortar stores launched counter attack with their own online stores Money was no object Everyone wanted to be the first mover
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Failure of early e-business models But: It is very expensive to run operate an Internet company (warehouse costs, distribution costs, advertising costs, logistics etc) Some consumer would never want to buy items online Failure of Webvan Invested millions in warehouse Very thin margins Safeway utilize their physical store location to distribute groceries to customer who want to order online (for a fee).
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Conclusion Early E-Commerce companies were built on speculation and not on an accurate business plan
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9 Overview Electronic Commerce (E-Commerce, EC): buying, selling, transferring, or exchanging of
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W09_MGCR331_Sessions_16_17_sv - MGCR 331 Information...

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