citm102 ch07

citm102 ch07 - CITM CH07 E-COMMERCE DEFINED Broad...

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Unformatted text preview: CITM CH07 E-COMMERCE DEFINED Broad definition: E-Commerce is the use of information systems, technologies, and computer networks by individuals and organizations to carry out transactions in order to create or support the creation of business value Narrow definition: Transactions that involve buying and selling goods and services through the Internet” TYPES OF E-COMMERCE TRANSACTIONS 1. B2C – Business-to-Consumer • Online equivalent of the retail store as well as other services • Ex Site: www.cahpters.indigo.ca , www.telus.ca • Associated Goods: CD, DVD, iTunes song, ring tones 2. B2B – Business-to-Business • Electronic Exchanges between companies • Associated Goods: Office furniture, virus protection software, mailing lists, database of product informatin 3. B2G – Business-to-Government • Online sales to government agencies, as well as electronic payment of taxes • Associated Goods: Technical manuals, regulations, document conversion from hardcopy 4. C2G – Consumer-to-Government • Electronic payment of taxes as well as purchases of various types of licences • Ex: www.netfile.gc.ca , electronically file and pay taxes to the federal government • Associated Goods: Printed and mailed income tax returns, electronically filed income tax returns 5. C2C – Consumer-to-Consumer • Use of on-line auctions like E-Bay or Yahoo! • Associated Goods: Comic books, shareware program, self-published e-book E-Commerce and Products: Physical and Digital The Types of products that consumers buy can be divided into 2 categories: 1. Physical • Includes anything that requires and actual shipment of to the buyer • Requires an off-line supply chain to handle the sales, order processing, and delivery of the goods o a back-office to handle order fulfillment o must handle returns • Process Dotted Lines – indicate electronic communications Solid Lines – refer to physical shipments of products CITM CH07 See Diagram on the next page for the step-by-step process 2. Digital • Requires the use of a completely IT-enabled supply chain • Delivered directly over the internet • Process CITM CH07 THE E-COMMERCE ADVANTAGE Advantage 1: Global Reach of E-Commerce Sellers can: 1) reach any potential buyer in the world 2) create a global electronic presence 3) creates a ubiquitous market (existing or being everywhere at the same time) 4) Moves closer perfect market – an ideal situation that theoretically produces the highest consumption at the lowest price for the most goods 5) Allows almost instant creation of niche businesses 6) Customer Relationship Management – business can compete successfully as well as target customers for one-to-one marketing on the internet by using info on past buying behavior, preferences etc....
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citm102 ch07 - CITM CH07 E-COMMERCE DEFINED Broad...

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