Chapter 1 Introduction to e-business and e-commerce Learning objectives
|Title||Chapter 1 Introduction to e-business and e-commerce Learning objectives|
Chapter 1 Introduction to e-business and e-commerce
Define the meaning and scope of e-business and e-commerce and their different elements;
Summarise the main reasons for adoption of e-commerce and e-business and barriers that may restrict adoption;
Use resources to define the extent of adoption of the Internet as a communications medium for consumers and businesses;
Outline the business challenges of introducing e-business and e-commerce to an organization.
Issues for managers
How do we explain the scope and implications of e-business and e-commerce to staff?
What are the full-range of benefits of introducing e-business and what are the risks?
How great will the impact of the Internet be on our business? What are the current and predicted adoption levels? How do we assess the validity of forecasts?
The impact of Internet on business
Andy Grove, Chairman of Intel, one of the early adopters of e-commerce, has made a meteorological analogy with the Internet. He says:
Is the Internet a typhoon force, a ten times force, or is it a bit of wind? Or is it a force that fundamentally alters our business? (Grove, 1996)
The impact on one industry - banking
The Internet’s impact on you
How many of you have purchased something on the Internet in the last 6 months?
How many times have you used the Internet as an information source, before buying offline?
Popularity of online purchases
You are asked to distinguish between e-commerce and e-business at a job interview.
Write down your definitions.
Use examples to illustrate your points.
‘All electronically mediated information exchanges between an organization and its external stakeholders’
- Buying books online (transactional)
- Selecting a car online (informational)
- Interacting with brand online (relationship building / experiential, e.g. www.tango.com)
- Asking a customer service query, e.g. www.easyJet.com
All electronically mediated information exchanges, both within an organization and with external stakeholders supporting the range of business processes
- Purchasing from suppliers (e-procurement)
- A company intranet (defined in Ch 3)
- Supplying partners with information through an extranet (see Ch 3)
The distinction between buy-side and sell-side e-commerce
Figure 1.1 The distinction between buy-side and sell-side e-commerce
Recap – which is correct?
Activity – drivers and barriers to adoption
You are in a team of advisers at a local Business Link (a local government agency encouraging adoption of e-commerce)
- Drivers to adoption of sell-side e-commerce by business and how you can reinforce these by marketing benefits
- Barriers to adoption of sell-side e-commerce by business and how you can reinforce these by stressing benefits
Drivers for e-commerce
Barriers to e-commerce
Intro to B2B Company
Employs 600 people worldwide
Products – composites and speciality polymers
- See www.globalcomposites.com
Distribution – 90 companies worldwide via joint ventures and agents
- Derakan (www.dow.com/derakane)
- Scott Bader (www.scottbader.com)
- Owens Corning (www.owenscorning.com)
Intro to B2C Company
Established 1984, 80 staff
Products – Kitchenware
- Through retailers and transactional web sites
- Cooking.com (www.cooking.com)
- Lakeland (www.lakelandlimited.com)
- Tupperware (www.tupperware.com).
Activity - Benefits to B2B and B2C Company
See activity 1.6
Give examples of these benefits of an online presence. Which of these are most important to each:
- Cost reduction
- New capability
- Customer service
- Competitive advantage
Activity – Changes required by e-commerce
What changes to the overall business would be required by e-commerce for the B2C and B2B Company?
Answer – the 7 Ss
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