Lecture 7 and 8 - MGCR 331 Information Systems E-commerce...

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E-commerce Session 7 and 8 Instructor: Vijay Dakshinamoorthy MGCR 331 Information Systems
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Today’s class Examine electronic commerce, including its scope, benefits, limitations, and types Understand various e-commerce business models B2C e-commerce and Issues (Long tail, Channel conflict; order fulfillment) B2B e-commerce (Types of exchanges – based on product and ownership) E-marketing E-payment 2
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E-commerce (EC): Definitions Focus on the transaction: adding revenue streams using the web or the Internet to build/enhance Buying & selling of products or services over electronic systems such as the Internet The marketing, buying, selling and support of products and services via computer networks including the Internet
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Born or Moved to the Net? MySpace Google Yahoo EBay Dell YouTube FaceBook Expedia Wikipedia Etc… Born on the Net Moved to the Net Chapters / Indigo WalMart Costco Gap Nike AirCanada ToysRUs JohnDeere BigRedMachine Etc…
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E-commerce (EC): Classification 5 Pure vs. Partial EC Based on degree of digitization involved (in the nature of product, and production and delivery process), firms can be classified as: i bricks-and-mortar E.g., A traditional grocery store, or car repair shop i clicks-and-mortar (or hybrid) E.g., Amazon.com; Staples.com, Futureshop i pure-play (or pure-click, pure digital or virtual) E.g., Amazon.com, Buy.com, iTunes, Rhapsody.com, ebay.com
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E-commerce (EC): Classification 6 Based on type of provider and consumer involved i B2C i B2B i C2C i B2E i G2B and G2C A new category of e-commerce - m-Commerce: transactions are conducted using a mobile device e.g. a cell phone, a PDA, a smartphone, etc.,
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7 Business model A business model is the method by which a company generates revenue to sustain itself. Internet commerce reinvents tried-and-true models has and also gives rise to new kinds of business models. Internet popularized the auction model - broadened its applicability to a wide array of goods/services - provides an efficient infrastructure for conducting auctions lower administrative costs many more involved buyers and sellers - Forward and Reverse Auctions
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Internet Business Models - Online Sales Model Click and Mortar (or hybrid); Pure play (or pure click) 5 Brokerage (market-makers) Marketplace Exchange: ChemConnect.com Auction Broker: ebay.com Payment or Transaction Broker: paypal.com Name-your-price (Demand Collection System): Priceline.com Virtual Marketplace: Yahoo Stores - Infomediary: Similar to Brokerage ; Deal with information: Edmunds.com - Advertising (Content Publishers/Portals): Yahoo, NYT.com, ivillage.com, - Affiliate: Pay-per-click; Pay–per-action/sale (e.g., amazon.com) - Subscription : Listen.com; FT.com - Utility : (Metered Usage): Slashdot.com, cell phone plans Adapted from: http://digitalenterprise.org/models/models.html
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9 Based on the level of transactions related features
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Lecture 7 and 8 - MGCR 331 Information Systems E-commerce...

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