CH1: INTERNET: -Challenges & Disadvantages: Security, Privacy and trustAdvantages: Reach & Coverage, Low cost, Convenience, Fast & FlexibleIntranet: Inner network of an organizationExtranet: Outside access to inner network of an organizationInternetAdvantagesDisadvantagesUnlimited usersNo Productivity Fastand Easyto useNo security\ hackersGlobal communicationWaste a lot of the employee’s timeCollect information Collecting wrong informationElectronic/Digital Communications:Pro: InstantCon: Means for cybercriminals, Spam, Malware & Phishing scamsFoundations of E-Commerce:E-mailInstant MsgSearch enginesIntelligent agentsOnline forums & ChatsStreaming mediaUnique features of E-Commerce: 1.Spreading out 2.Global reach 3.Universal standards 4.Information richness 5.Interactivity 6.Information density7.Personalization/customization8.Social technologyE-Commerce: Buying & Selling of products over the internet - B2B (Cisco), B2C (Amazon), C2C (eBay):Subset of e-business focused on transactionsE-Business: Digital enabling of transactions and processes within a firm (Information systems) Does not include commercial transactions involving an exchange of value across organizational boundaries.:Continuous optimization of a firm’s business activities through digital technology.:conducting business over the Internet (email and web) by communicating and perhaps transacting (buying and selling) with customers, suppliers, and business partners.E-Business Infrastructure: App Framework, Hardware, Software, Internet Access, Services, E-Payment, AdsBenefits of E-Business:Reduce Admin/Operating/Inv costImprove Customer service & satisfactionsStreamline procurement proceduresIncrease communication efficiencyIncrease revenues & profit marginsINTRAnetAdvantagesDisadvantageEasy, and Fastsystem of communicationInformation overload lowers productivityIt improves productivity of the managerNo security from the users within the companyMany tools available Cost and time of trainingBetter internal communicationExtra budgetReduction of paper workLimited to use
Potential Limits on growth of B2C E-Commerce:Expensive Technology Sophisticated skill set Persistent Cultural Attraction of physical markets and traditional shopping experiencesPersistent Global Inequality limiting accessto telephones and computersSaturation and ceiling effectsCH2:Business Model: Planned activities designed to result in a profit in a marketplaceBusiness Plan: Describes a firm’s business modelE-Commerce Business Model: uses unique qualities of internet and web8 Elements of Business Model:1.Value Proposition2.Revenue Model3.Market Opportunity4.Competitive Environment5.Competitive Advantage6.Market Strategy7.Organizational Development8.Management Team1. Value Proposition:Why should customers buy from you?