Chapter 6

Turban and Volonino

E-Business and E-Commerce

Information Technology for Management Improving Performance in the Digital Economy 7th edition John Wiley & Sons, Inc.
Slides contributed by Dr. Sandra Reid Chair, Graduate School of Business & Professor, Technology Dallas Baptist University

Copyright 2010 John Wiley & Sons, Inc.

6-1

Chapter Outline
6.1 Overview of E-Business and E-Commerce 6.2 Major EC Mechanisms 6.3 Business-to-Consumer Applications 6.4 Business-to-Business Applications 6.5 Major Models of E-Business: From EGovernment to C2C

Copyright 2010 John Wiley & Sons, Inc.

6-2

Chapter Outline (contd)

6.6 E-Commerce Support Services: Payment and Order Fulfillment 6.7 Ethical and Legal Issues in E-Business 6.8 Managerial Issues

Copyright 2010 John Wiley & Sons, Inc.

6-3

Learning Objectives
1. Describe electronic commerce, its scope, benefits, limitations, and types. 2. Explain how online auctions and bartering work. 3. Understand the major applications of business-toconsumer commerce, including service industries and the major issues faced by e-tailers. 4. Describer business-to-business applications. 5. Explain why intrabusiness and B2E are considered e-commerce.
Copyright 2010 John Wiley & Sons, Inc. 6-4

Learning Objectives contd

6. Describe e-government activities and consumer-toconsumer e-commerce. 7. Identify the e-commerce support services, specifically payments and logistics. 8. Understand the importance and activities of online advertising. 9. Identify and describe ethical and legal issues relating to e-commerce.

Copyright 2010 John Wiley & Sons, Inc.

6-5

Figure IT7eU
Copyright 2010 John Wiley & Sons, Inc. 6-6

 Problem Leader & target for Compaq. Losses exceed $100 million. Solution Rapid expansion with selling via online. Result Leading systems provider in US; second worldwide. Fortunes top 5 Most Admired companies since 1999. By-product sell refurbished Dell computers.
Copyright 2010 John Wiley & Sons, Inc. 6-7

Dells Vast Customer Base

Business-to-Business

Dell becomes British Airways' preferred partner Intel invests $23 million in three Indian firms

Copyright 2010 John Wiley & Sons, Inc.

6-8

Dells Vast Customer Base contd

How Dell Does IT: Order Management

Training services

Online self-learning about Dell products along with IT & management topics

Copyright 2010 John Wiley & Sons, Inc.

6-9

6.1 Overview of E-Business and E-Commerce

E-Business / E-Commerce

Copyright 2010 John Wiley & Sons, Inc.

6-10

Click-&-mortar vs Brick-&-mortar organizations

More shoppers proceed to checkout online

Copyright 2010 John Wiley & Sons, Inc.

6-11

Figure 6.1 E-commerce in our company. (Source: Drawn by E. Turban)

Copyright 2010 John Wiley & Sons, Inc.

6-12

Table 6.1

Copyright 2010 John Wiley & Sons, Inc.

6-13

Online Advertisers, Marketers & Students

Powerstudents.com

Copyright 2010 John Wiley & Sons, Inc.

6-14

Company-sponsored Socially Oriented Sites

Hannah Montana

TheirSpace.com

Copyright 2010 John Wiley & Sons, Inc.

6-15

Application Programming Interface - Examples

Copyright 2010 John Wiley & Sons, Inc.

6-16

Figure 6.2 A framework for E-commerce. (Source: Drawn by E. Turban)

Copyright 2010 John Wiley & Sons, Inc.

6-17

Table 6.2

Copyright 2010 John Wiley & Sons, Inc.

6-18

Table 6.3

Copyright 2010 John Wiley & Sons, Inc.

6-19

6.2 IS Major EC Mechanisms

Copyright 2010 John Wiley & Sons, Inc.

6-20

E-Market Trends

Virtual Greats Profile

Copyright 2010 John Wiley & Sons, Inc.

6-21

Electronic Catalogs

All of Your Suppliers Products in One Online Catalog

Copyright 2010 John Wiley & Sons, Inc.

6-22

E-Auctions

Copyright 2010 John Wiley & Sons, Inc.

6-23

E-Classifieds

stores

eBay case study

business

Copyright 2010 John Wiley & Sons, Inc.

6-24

Bartering & Negotiations

The New Age of Bartering

Copyright 2010 John Wiley & Sons, Inc.

6-25

6.3 Business-to-Consumer Applications

Copyright 2010 John Wiley & Sons, Inc.

6-26

Electronic Storefronts

Copyright 2010 John Wiley & Sons, Inc.

6-27

Electronic Malls

shopping

Copyright 2010 John Wiley & Sons, Inc.

6-28

Amazon King of E-Tailing

Jeff Bezos: The Wizard Of Web Retailing

Last Founder Standing

The Future of Reading

America's Best Leaders: Jeff Bezos, Amazon.com CEO The founder of the massive online retailer is a true Internet pioneer

Copyright 2010 John Wiley & Sons, Inc.

6-29

Online Job Market

Copyright 2010 John Wiley & Sons, Inc.

6-30

Travel Services

Copyright 2010 John Wiley & Sons, Inc.

6-31

Real Estate Online

Copyright 2010 John Wiley & Sons, Inc.

6-32

6.4 B2B Applications

Copyright 2010 John Wiley & Sons, Inc.

6-33

ChemConnect Case Study

ChemConnect

Copyright 2010 John Wiley & Sons, Inc.

6-34

6.5 Major Models of E-Business: From E-Government to C2C

Copyright 2010 John Wiley & Sons, Inc.

6-35

E-Government to C2C
B2E organizations disseminate information to employees over company intranet. E2E employees communicate with each other. I.e.: goods & services bought & sold among fellow employees. SBU/SBU company owned dealerships buy goods & services from main company. Improves internal supply chain operations. E-Collaborative digital technologies that enable collaboration. E-Government delivers information & services to citizens, business partners & suppliers. I.e.: G2C, G2B, G2G.

Copyright 2010 John Wiley & Sons, Inc.

6-36

6.6 E-Commerce Support Services: Payment, & Order Fulfillment

Copyright 2010 John Wiley & Sons, Inc.

6-37

Figure 6.3 E-commerce support services. (Source: Drawn by E. Turban. Based on S.Y. Choi et al., 1997, p. 18.)

Copyright 2010 John Wiley & Sons, Inc.

6-38

Market Research Online

Copyright 2010 John Wiley & Sons, Inc.

6-39

Table 6.4

Copyright 2010 John Wiley & Sons, Inc.

6-40

Figure 6.4

How e-credit cards work. (The numbers 1-9 indicate the sequence of activities.) (Source: Drawn by E. Turban.)
Copyright 2010 John Wiley & Sons, Inc. 6-41

Figure 6.5

The use of a mobile phone as an e-wallet. (Source: Koichi Kamoshida/Getty Images.)

Copyright 2010 John Wiley & Sons, Inc. 6-42

Figure 6.6

Order fulfillment and the logistics system. (Source: Turban et al., Electronic Commerce: A Managerial Perspective 2008, Exhibit 13.2, p. 591).
Copyright 2010 John Wiley & Sons, Inc. 6-43

6.7 Ethical & Legal Issues in E-Business

Copyright 2010 John Wiley & Sons, Inc.

6-44

Table 6.5

Copyright 2010 John Wiley & Sons, Inc.

6-45

6.8 Managerial Issues

Copyright 2010 John Wiley & Sons, Inc.

6-46

Managerial Issues
E-Commerce failures common. Solid business analyses a must. Failed initiatives within an organization. Success stories & lessons learned should be shared. Managing resistance to change. Integration into business overall. Lack of qualified personnel & outsourcing. Managing impact on organization. Alliances can be very helpful & productive. Choosing appropriate strategy.
Copyright 2010 John Wiley & Sons, Inc. 6-47

Copyright 2010 John Wiley & Sons, Inc.

All rights reserved. Reproduction or translation of this work beyond that permitted in section 117 of the 1976 United States Copyright Act without express permission of the copyright owner is unlawful. Request for further information should be addressed to the Permission Department, John Wiley & Sons, Inc. The purchaser may make back-up copies for his/her own use only and not for distribution or resale. The Publisher assumes no responsibility for errors, omissions, or damages caused by the use of these programs or from the use of the Information herein.
Copyright 2010 John Wiley & Sons, Inc. 6-48