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CIS410 Information Systems & Technology

E Business and E Commerce

Opening Case
The Flash Crash
Rapid trading in stock market triggered by computerized trading systems IT makes it easier and cheaper to conduct business online regardless of the size of business Still, decisions should be made by humans
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What is this Case About?

Management of Hardware/Software/Networks/People/Policies/Processes for Acquisition/Storage/Retrieval/Processing/Distribution of Data/Information/Knowledge for Effectiveness/Efficiency of an organization

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Overview of E Business and E Commerce

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E Commerce & E Business

E-Commerce
The process of buying, selling, transferring, or exchanging products, services, or information via computer networks, including the Internet

E-Business
In addition to buying and selling of goods and services, e-business also refers to servicing customers, collaborating with business partners, and performing electronic transactions within an organization

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Degree of Digitization
The extent to which the commerce has been transformed from physical to digital
Brick-and-mortar organizations (purely physical) Virtual organizations (purely e-commerce) Click-and-mortar organizations (partial e-commerce)

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Major Types of E Commerce

Business-to-Consumer (B2C)
Sellers are organizations, buyers are individuals

Business-to-Business (B2B)
Both sellers and buyers are business organizations

Consumer-to-Consumer (C2C)
Both sellers and buyers are individuals

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Minecraft
E-commerce for a small business
From one-man show to multi-million-dollar business

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What is this Case About?

Management of Hardware/Software/Networks/People/Policies/Processes for Acquisition/Storage/Retrieval/Processing/Distribution of Data/Information/Knowledge for Effectiveness/Efficiency of an organization

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Other Types of E Commerce

Business-to-Employee (B2E)
An organization uses e-commerce internally to provide information and services to its employees

E-Government
Use of Internet technology in general and e-commerce in particular to deliver information and public services to citizens and to business partners and suppliers Various forms of e-government: G2C, G2B, G2E, G2G

Mobile Commerce (m-commerce)

E-commerce conducted entirely in a wireless environment
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Other E Commerce Considerations

E-Commerce and Search
An important part of e-commerce

Major E-Commerce Mechanisms

Auctions (competitive process in which either a seller solicits consecutive bids from buyers or a buyer solicits bids from sellers) Forward auctions (many buyers) Reverse auctions (many sellers) E-marketplace (central, virtual market space on the web)

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E Commerce Business Models

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Benefits of E Commerce
Benefits to organizations
Makes national and international markets more accessible Lowering costs of processing, distributing, and retrieving information

Benefits to customers
Access a vast number of products and services around the clock (24/7/365)

Benefits to Society
Ability to easily and conveniently deliver information, services and products to people in cities, rural areas and developing countries.
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Limitations of E Commerce
Technological Limitations
Lack of universally accepted security standards Insufficient telecommunications bandwidth Expensive accessibility

Non-technological Limitations
Perception that EC is unsecure Unresolved legal issues Lacks a critical mass of sellers and buyers

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Vending Goes Online

E-business for vending machines
Use of IT to run business better

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What is this Case About?

Management of Hardware/Software/Networks/People/Policies/Processes for Acquisition/Storage/Retrieval/Processing/Distribution of Data/Information/Knowledge for Effectiveness/Efficiency of an organization

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Electronic Storefronts & Malls

Electronic retailing (e-tailing)
Direct sale of products and services through electronic storefronts and malls

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Online Service Industries

Online services are growing very rapidly
Cyberbanking (or electronic banking) Online securities trading Online job market Travel services Online advertising

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Important Concepts of B2C EC

Disintermediation (elimination of middlemen)

Online Advertising methods

Banners Pop-up ad Pop-under ad Permission marketing Viral marketing
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Issues in E Tailing
Channel Conflict
Sales in one channel affects sales in other channels

Order Fulfillment
Delivering orders is the hard part
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Electronic Exchanges
Connect many sellers and buyers
Vertical Exchanges (buyers and sellers in a given industry) Horizontal Exchanges (buyers and sellers across many industries) Functional Exchanges (needed services traded on an as-needed basis)

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Electronic Payment Systems

E-commerce requires electronic payments
Electronic checks (e-checks) Electronic credit cards Purchasing cards Electronic cash
Stored-value money cards Smart cards Person-to-person payments

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Ethical & Legal Issues in E Business

Ethical Issues
Privacy Job loss

Legal Issues Specific to E-Commerce

Fraud on the Internet Competition over domain names Cybersquatting (registering or using domain names for the purpose of profiting from the goodwill or trademark that belongs to someone else) Taxes and other fees Copyright
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Whats Next?
Week 8 Lecture 2:
Remainder of Chapter 7 Presentation 5: eBay Finds a Way into China (p.210) Quiz 5: Chapter 7 Lecture

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E Commerce in Action

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Hong Kongs Jockey Club in a Race

Betting online
An opportunity as well as a challenge

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What is this Case About?

Management of Hardware/Software/Networks/People/Policies/Processes for Acquisition/Storage/Retrieval/Processing/Distribution of Data/Information/Knowledge for Effectiveness/Efficiency of an organization

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Whats Next?
Today:
Presentation 5 Quiz 5

Week 9:
No classes!

Week 10:
Chapter 8 Wireless, Mobile Computing, and Mobile Commerce Presentation 6: A Mobile Application for Home Depot (p.241) Quiz 6: Chapter 8 Lecture
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