a presentation on details of e-business.

1. E-Business: Digital
markets and goods
Submitted By-
Nandita Agrawal

2. Growth of e-business
• Business transformation
• Technology foundation
• New business models emerge

3. E-business
Electronic business and the Internet
• 8 unique features of e-business
• Ubiquity- Internet/Web technology available everywhere: work, home, etc., and anytime
• Effect:
• Marketplace removed from temporal, geographic locations to become “marketspace”
• Enhanced customer convenience and reduced shopping costs
• Reduces transaction costs
• Costs of participating in market
• Global reach- The technology reaches across national boundaries, around Earth
• Effect:
• business enabled across cultural and national boundaries seamlessly and without modification.
• Marketspace includes, potentially, billions of consumers and millions of businesses worldwide.
• Universal standards- One set of technology standards: Internet standards
• Effect:
• Disparate computer systems easily communicate with one another
• Lower market entry costs—costs merchants must pay to bring goods to market
• Lower consumers’ search costs—effort required to find suitable products

4. E-business
Electronic business and the Internet
• Richness- Supports video, audio, and text messages
• Effect:
• Possible to deliver rich messages with text, audio, and video simultaneously to large numbers of people.
• Video, audio, and text marketing messages can be integrated into single marketing message and consumer
experience.
• Interactivity - The technology works through interaction with the user
• Effect:
• Consumers engaged in dialog that dynamically adjusts experience to the individual.
• Consumer becomes co-participant in process of delivering goods to market
• Information density- Vast increase in information density—the total amount and quality
of information available to all market participants
• Effect:
• Greater price transparency
• Greater cost transparency
• Enables merchants to engage in price discrimination

5. E-business and the internet
• Key concepts in e-business
• Digital markets reduce
• Information asymmetry
• Search costs
• Transaction costs
• Menu costs
• Digital markets enable
• Price discrimination
• Dynamic pricing
• Disintermediation

6. E-business and the internet
• Key concepts in e-business (cont.)
• Digital goods
• Goods that can be delivered over a digital network
• E.g., Music tracks, video, software, newspapers, books
• Cost of producing first unit almost entire cost of product: marginal cost of
producing 2nd unit is about zero
• Costs of delivery over the Internet very low
• Marketing costs remain the same; pricing highly variable
• Industries with digital goods are undergoing revolutionary changes
(publishers, record labels, etc.)

7. E-business
Electronic business and the Internet
Internet business models
• Virtual storefront
• Sells physical products directly to consumers or to individual
businesses
• Information broker
• Provides product, pricing, and availability information to
individuals and businesses
• Transaction broker
• Saves users money and time by processing online sales
transactions and generating a fee for each transaction

8. E-business and internet
Internet business models (contd..)
• Online marketplace
• Provides a digital environment where buyers and sellers can meet, search
for products, display products, and establish prices for those products
• Content provider
• Providing digital content, such as digital news, music, photos, or video, over the
Web
• Social Network
• Online meeting place
• Social shopping sites
• Can provide ways for corporate clients to target customers through banner ads and
pop-up ads

9. E-business
Types of electronic business
• Business-to-consumer (B2C)
• Business-to-business (B2B)
• Consumer-to-consumer (C2C)
• Mobile business (m-business)

10. E-business revenue models
• E-business revenue models
• Advertising
• Sales
• Subscription
• Free/Freemium
• Transaction fee
• Affiliate

11. • Social e-business:
• Based on digital social graph
• Features of social e-business driving its growth
• Newsfeed
• Timelines
• Social sign-on
• Collaborative shopping
• Network notification
• Social search (recommendations)

12. • Social media:
• Fastest growing media for branding and marketing
• Social network marketing:
• Seeks to leverage individuals influence over others in social
graph
• The target is a social network of people sharing interests and
advice
• Facebook’s “Like button”
• Social networks have huge audiences
• Facebook: 137 million U.S. visitors monthly

13. E-business
Achieving customer intimacy: Interactive
marketing and personalization
• Web sites are bountiful source of details about customer behavior,
preferences, buying patterns used to tailor promotions, products,
services, and pricing
• Clickstream tracking tools: Collect data on customer activities at
Web sites
• Used to create personalized Web pages
• Collaborative filtering: Compares customer data to other customers
to make product recommendations

14. E-business
• Blogs
• Personal web pages that contain series of chronological
entries by author and links to related Web pages
• Has increasing influence in politics, news
• Corporate blogs: New channels for reaching customers,
introducing new products and services
• Blog analysis by marketers
• Customer self-service
• Web sites and e-mail to answer customer questions or to
provide customers with product information
• Reduces need for human customer-support expert

15. E-business
• B2B e-business: New efficiencies and relationships
• Electronic data interchange (EDI)
• Computer-to-computer exchange of standard
transactions such as invoices, purchase orders
• Major industries have EDI standards that define
structure and information fields of electronic documents
for that industry
• More companies increasingly moving away from private
networks to Internet for linking to other firms
• E.g., Procurement: Businesses can now use Internet to locate
most low-cost supplier, search online catalogs of supplier
products, negotiate with suppliers, place orders, etc.

16. E-business and Business-to-Business
Transactions
• Private industrial network (private exchange)
• Large firm using extranet to link to its suppliers, distributors,
and other key business partners
• Owned by buyer
• Permits sharing of:
• Product design and development
• Marketing
• Production scheduling and inventory management
• Unstructured communication (graphics and e-mail)

17. E-business
Electronic business
Electronic Data Interchange (EDI)
Companies use EDI to automate transactions for B2B e-business and continuous
inventory replenishment. Suppliers can automatically send data about shipments to
purchasing firms. The purchasing firms can use EDI to provide production and
inventory requirements and payment data to suppliers.

18. What is the role of m-business in
business and what are the most
common m-business applications?

19. E-business
M-business
• M-business services and applications
• Content and location-based services
• Banking and financial services
• Games and entertainment

20. M-business and M-business
Applications
• Location-based services
• Used by 74 percent of smartphone owners
• Based on GPS map services
• Types
• Geosocial services
• Where friends are
• Geoadvertising
• What shops are nearby
• Geoinformation services
• Price of house you are passing

21. • Most important management challenges
• Developing clear understanding of business objectives
• Knowing how to choose the right technology to achieve
those objectives
• Develop an e-business presence map
• Four areas: Web sites, e-mail, social media, offline media
• Develop a timeline: milestones
• Breaking a project into discrete phases

22. E-business presence map