E-commerce involves online transactions, while e-business is broader and incorporates more business processes and information exchange. There are four main e-business models: business-to-business, business-to-consumer, consumer-to-business, and consumer-to-consumer. E-business impacts marketing by allowing consumers to research and shop anytime from anywhere, and allows for more personalized advertising. It also benefits supply chain management by moving from mass production to demand-driven and shortening supply chains. While e-business provides advantages like reduced costs, it also faces challenges like security and start-up expenses.

1. Group 3

2. E-Commerce and E-Business
E-Commerce E-Business
 Buying and selling of  Spin-off of E-commerce
goods and services on-line  Involves more of the business
(Transaction)
processes (Exchange of
- Online shopping
Information)
- Online purchasing
-Buying
-Selling
-Trading
Example: Buy a Shirt online -Working with business
and try to return it to the partners
retailer

3. Phases to Becoming an E-Business
Hires outside Starting to
company integrate
(mostly channels but not
informational quite there yet
)
Does not
understand Starts some E- Integrating all
the Internet Commerce channels Everyone
Activities uses web to conduct
business

4. Four E-Business Models
 Business to Business (B2B)
 Business to Consumer (B2C)
 Consumer to Business (C2B)
 Consumer to Consumer (C2C)
- Each model must be approached differently and the business must
make sure that they have the appropriate tools to successful implement
different strategies.

5. Business to Business (B2B)
 Buying, selling, and other business transactions among
businesses
 Commonly referred to as E-marketplace
 Business have to make sure that they work with other
businesses that supports their strategy (product
quality, price, time)
- Car Manufactures (Glasses and Tires)
- Dell Computer (Computer Components)

6. Business to Consumer (B2C)
 Selling of products/services to consumers
 E-shopping
 On-line stores represents the same brand image as physical
stores if they exist.
 Pure Play (Internet only), Click and Mortar (Internet and
Physical Store), and Brick and Mortar (Physical Store
Only)
-

7. Consumer to Business (C2B)
 Consumers selling to a business
 Individual are creating value for the firm
 Growing Trend
-Surveys
-Blogs
-Customer Reviews

8. Consumer to Consumer (C2C)
 Consumers conducting business between each other
 Companies can help to facilitate transaction
-Online Auctions
(Craig’s List, EBay, and
Angie’s List)

9. Marketing

10. Impacts on Marketing
 Individuals can stay at home and buy
 Less time consuming
 Less costly
 More research can be done
 Anytime access to information
 Click-through
 Viral content
 Mobile computing

11. Click-Through
 The process of clicking through an online
advertisement to the advertiser’s destination
 Can track:
 Where the individual clicked from
 Which pages were visited
 Which links were interesting enough to click through

12. Viral Content
 Viral videos get viewed more often than regular banner
ads
 Viewers pass on interesting or humerous content to
others
 Relatively cheap advertising
 word of mouth
 Use of social networks
 Increases the chances of making a video go viral

13. Mobile Computing
 Can advertise anywhere to a target market
 50% more effective than TV
 130% more effective than radio
 Hasn’t boomed yet, but will very soon
 Developed by phone companies and Google
 The next form on personalized advertising

14. Benefits to Marketing
 Bi-directional flow of information
 Decreased time lag for customer service
 Organization is reachable at any time
 Decreased cost of customer service
 Personalized advertisements
 More information on customers

15. Ford’s E-Business
 Virtual store and information center coupled with
physical car dealerships
 Average of $24,000 on an initial purchase
 Average of $68,000 spent in total throughout the life of
the car
 More time is spent on the life of the car than the initial
pruchase
 E-business maintains customer intamacy for life

16. Finance
 E-business decreases transaction costs
 E-business can provide easy acces to international
customers
 Organizations may not know how to deal with
international currencies which may increase transaction
costs a little
 Increased customer service and sales revenues

17. Finance
 24-hour online access requires 24-hour order
processing
 Increases sales
 Online payment methods
 Pay pal, Credit cards, Electronic cash
 Funding for Data acquisition and security

18. Supply Chain Management
 Mass production to demand driven
 Increased supply chain performance
 Shorten the supply chain
 Cut costs
 Can eliminate the bullwhip effect

19. E-Commerce and E-Business
Advantages Disadvantages
 Shortens the supply chain  Increased transportation
 Reduced facility costs costs
 Decreased processing time  Start-up costs
 Lower inventory levels
 More personalized buying
experience
 More potential customers
 Increased financial data and
sales
 Eliminate the bullwhip effect

20. Case Study: BHP and BHP Steel
 Broken Hill Proprietary manufacturing firm
 Industries: minerals, copper, petroleum, and
engineering
 60,000 employees in 60 countries
 BHP Steel $7.6 billion revenues
 Complex structure
 BHP considered leader in E-commerce

21. E-commerce Implementation
and Benefits
 Stage 1: Early Implementation-Electronic Data
Interchange
 Send/receive business documents/orders
 Stage 2: Electronic Trading Gateway
 Centralize all trading
 Stage 3: Internet Site
 Serve Small customers

22. Obstacles
 Stage 1: Management Commitment and Lack of
technical knowledge. 1st EDI in Australia
 Stage 2: Technology issues (no standards) and lack of
customers participation
 Stage 3: immaturity standards internet and readiness
of third parties

23. Factors Affecting Implementation
 Commitment
 Trading partner participation
 Supplier vs. Customer
 Technology/Media Hype
 Business Value
 Training and Education
 Rapid technology change + Complexity/Compatibility
(technology and processes)

24. Management of Information Systems and E-
business
 IT Audit
 Information Flow Analysis
 Manufacturing Software Selection
 IT Project Management
 Data Security Audit

25. Global Implications
 Cater to international customers.
 Follow international customs procedures, currencies,
taxes and regulations
 Customize to local taste
 Knowing the global rules for shipment
 Make payment easy for international customers

26. Future of E-Commerce and E-Business
 Information Marketing
 M-Commerce
 New Jobs and Business Opportunities

27. Ethical Issues
 Similar to ethical issues surrounding other facets of
business life
 Relative anonymity, speed of information create
special issues

28. Ethical Issues
 Intellectual Property Concerns
 Privacy Concerns
 Computer Crimes
 Consumer Protection

29. Ethical Issues
 Adware
 Key Logging
 Bait and Switch
 Email Spoofing
 URL Hijacking

30. Recommendation
 Implement E-Commerce and E-Business
 Advantages outweigh disadvantages

31. Questions?