Itec410 lec2


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ITEC N410 Lecture 2

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Itec410 lec2

  1. 1. 1 ITEC 410Current Technologies Categories of E-Business Models Factors Affecting E-Business Success
  2. 2. Learning Objectives Discuss the Five Categories of e-Business Models: – B2C – B2B – B2G – C2C – C2BCreating a Winning E-Business 2Second Edition, Chapter 1
  3. 3. Learning Objectives (continued)  Discuss the Factors that affect e-Business Success – The Network Effect – Innovative Marketing Ideas – Scalability – Ease of Entry into Electronic Markets – Ability to quickly adapt to Marketplace ChangesCreating a Winning E-Business 3Second Edition, Chapter 1
  4. 4. E-Business Basics  E-commerce – Process of buying or selling goods or services across a telecommunications network  E-business – Widest spectrum of business activities using Internet and Web technologies  Many technologies facilitate e-business – Electronic Funds Transfer (EFT) – Electronic Data Interchange (EDI) – Internet / World Wide WebCreating a Winning E-Business 4Second Edition, Chapter 1
  5. 5. E-Business Models  Business models – How a company conducts business in order to generate revenue – Widespread access to the Internet and Web allows companies to adapt old models and create new ones  E-business models are often categorized by type of customerCreating a Winning E-Business 5Second Edition, Chapter 1
  6. 6. E-Business Models (continued)Creating a Winning E-Business 6Second Edition, Chapter 1
  7. 7. E-Business Models (continued)  Business-to-consumer (B2C) – Retail sales (e-retail) including airline tickets, entertainment venue tickets, hotel rooms, stock purchases, diet and fitness programs  Brick-and-mortar companies are moving to brick-and click companies – Sears, Best Buy, Barnes & Noble, the Gap  Pure-play e-retailers and catalog merchants –, eBags, Harry and DavidCreating a Winning E-Business 7Second Edition, Chapter 1
  8. 8. E-Business Models (continued)Creating a Winning E-Business 8Second Edition, Chapter 1
  9. 9. E-Business Models (continued)Creating a Winning E-Business 9Second Edition, Chapter 1
  10. 10. E-Business Models (continued)Creating a Winning E-Business 10Second Edition, Chapter 1
  11. 11. E-Business Models (continued)  Business-to-business (B2B) – Businesses selling to other businesses – Online stores, such as Office Depot, Staples – Internet and Web technologies • Web hosting • Web design • Hardware and software • ConsultingCreating a Winning E-Business 11Second Edition, Chapter 1
  12. 12. E-Business Models (continued)  Business-to-business (B2B) – Online trading communities for vertical markets – Exchanges, aggregators, auctions • Virtual marketspaces for buyers and sellers • Elance, ATLA Exchange,, HedgeHogCreating a Winning E-Business 12Second Edition, Chapter 1
  13. 13. E-Business Models (continued)Creating a Winning E-Business 13Second Edition, Chapter 1
  14. 14. E-Business Models (continued)Creating a Winning E-Business 14Second Edition, Chapter 1
  15. 15. E-Business Models (continued)Creating a Winning E-Business 15Second Edition, Chapter 1
  16. 16. E-Business Models (continued)  Business-to-government (B2G) – Businesses provide a marketspace for other businesses and government agencies – Bidmain, B2GMarketsCreating a Winning E-Business 16Second Edition, Chapter 1
  17. 17. E-Business Models (continued)Creating a Winning E-Business 17Second Edition, Chapter 1
  18. 18. E-Business Models (continued)  Consumer-to-consumer (C2C) – Consumers sell or exchange products and services directly with other consumers – Auctions, online classified ads, expert information exchanges • eBay, American Boat Listing,, AllExpertsCreating a Winning E-Business 18Second Edition, Chapter 1
  19. 19. E-Business Models (continued)Creating a Winning E-Business 19Second Edition, Chapter 1
  20. 20. E-Business Models (continued)Creating a Winning E-Business 20Second Edition, Chapter 1
  21. 21. E-Business Models (continued)  Consumer-to-business (C2B) – Reverse auctions in which a single consumer names his or her own price for products or services – Consumer’s offer made to multiple businesses, which can accept or decline offer – Priceline.comCreating a Winning E-Business 21Second Edition, Chapter 1
  22. 22. E-Business Models (continued)Creating a Winning E-Business 22Second Edition, Chapter 1
  23. 23. Factors Affecting E-Business Success  The network effect – Total value of a product, service, or technology grows as more and more people use it • Telephone system example – Single telephone has no value; as more people join the telephone system, the value of each telephone increases • uBid online auction site example – As more people participate, the auction site becomes more valuable to buyers and sellersCreating a Winning E-Business 23Second Edition, Chapter 2
  24. 24. Factors AffectingE-Business Success (continued)Creating a Winning E-Business 24Second Edition, Chapter 2
  25. 25. Factors AffectingE-Business Success (continued)Creating a Winning E-Business 25Second Edition, Chapter 2
  26. 26. Factors AffectingE-Business Success (continued)  Innovative marketing ideas – Hotmail and viral marketing example • Hotmail users grew at a rapid rate because of electronic word of mouth coupled with the network effect • Electronic word of mouth or viral marketing spreads from user to user in the same way a human virus spreads from person to personCreating a Winning E-Business 26Second Edition, Chapter 2
  27. 27. Factors AffectingE-Business Success (continued)Creating a Winning E-Business 27Second Edition, Chapter 2
  28. 28. Factors AffectingE-Business Success (continued)  Scalability – Ability of a business to function well in the face of rapid growth • Systems and procedures meet customers needs • AllAdvantage e-business failure example – E-business idea: Paying for users to browse the Web and view advertising – Millions of customers signed on; advertisers did not – No scalability with rapid growth in customersCreating a Winning E-Business 28Second Edition, Chapter 2
  29. 29. Factors AffectingE-Business Success (continued)  Ease of entry into electronic markets – Low-cost technologies make it easy to create new e-businesses – eBay and online auction example • Easy for consumers to interact at auction site • Web auction software is cheap and easy to install /maintain • E-businesses earn commissions without having to manage, warehouse, and distribute productsCreating a Winning E-Business 29Second Edition, Chapter 2
  30. 30. Factors AffectingE-Business Success (continued)Creating a Winning E-Business 30Second Edition, Chapter 2
  31. 31. Factors AffectingE-Business Success (continued)  Ability to quickly adapt to marketplace changes – Rapid knowledge transfer – Need to make decisions quickly – Exploit new ideas and opportunities – Handle new challenges • is an example of ongoing evolution from a basic e-business ideaCreating a Winning E-Business 31Second Edition, Chapter 2
  32. 32. Factors AffectingE-Business Success (continued)Creating a Winning E-Business 32Second Edition, Chapter 2
  33. 33. End of Lecture 02  33