Week 03 topic 06 e business e commerce

Week 03 - Topic 06 E-BUSINESS & E-COMMERCE BMIT5103 Course Information Technology for Managers Dr Huy Nguyen BMIT5103 John von Neumann Institute - Vietnam National University Ho Chi Minh City Information Technology for Managers BMIT5103 STUDY GUIDE TOPIC 06 “E-Business & E-Commerce” • Learning outcomes: Describe e-business strategies & e-commerce operations; List effective business-to-consumer e-commerce applications; Explain business-to-business applications, logistics, procurement, order fulfilment & payment systems; Describe e-government activities & public sector e-commerce; Examine e-commerce support services; Identify & describe ethics & legal issues of e-business Information Technology for Managers BMIT5103 STUDY GUIDE TOPIC 06 • Topics overview: “E-Business & E-Commerce” e-Commerce & its benefits to organisations, consumers & society; Technological & nontechnological limitations; current technological limitations are expected to lessen with time; Major mechanism of e-commerce is the use of electronic markets, which frequently include online catalogues; Another mechanism of e-commerce is auctions; Internet provides an infrastructure for executing auctions at lower cost & with many more involved sellers & buyers, including both individual consumers & corporations; Two major types of auctions exist: forward auctions & reverse auctions; B2C e-tailing can be pure (such as Amazon.com) or part of a click & mortar organisation (such as Walmart); Direct marketing is done via solo storefronts or in malls; it can be done via electronic catalogues or by using electronic auctions; The leading online B2C service industries are banking, securities trading, job markets, travel & real estate; The major issues faced by e-tailers are channel conflict, conflict within click & mortar organisations, order fulfilment, determining viability & risk & identifying appropriate revenue models; Information Technology for Managers BMIT5103 STUDY GUIDE TOPIC 06 • Topics overview (cont.): “E-Business & E-Commerce” 10 The major B2B applications are selling from catalogues & by forward auctions (the sellside marketplace), buying in reverse auctions & in group & desktop purchasing (the buy-side marketplace) & trading in electronic exchanges; 11 E-government commerce can take place between government & citizens, between businesses & governments, or among government units It makes government operations more effective & efficient; 12 New electronic payment systems are needed to complete transactions on the Internet Electronic payments can be made by e-checks, e-credit cards, purchasing cards, ecash, stored-value money cards, smart cards, personto-person payments via services such as Paypal, electronic bill presentment & payment & e-wallets; 13 Order fulfilments are especially difficult & expensive in B2C because of the need to ship relatively small orders to many customers Several activities take place, someof which can be done simultaneously; others must be done in sequence Activities that take place in order fulfilments include: (1) making sure the customer will pay; (2) checking for in-stock availability; (3) arranging shipments; (4) insurance; (5) replenishment; (6) in-house production; (7) use of contractors; (8) contacts with customers; & (9) returns (if applicable); 14 Ethical & legal issues are persistent in e-commerce & must constantly be addressed Information Technology for Managers BMIT5103 STUDY GUIDE TOPIC 06 “E-Business & E-Commerce” No Focus areas Assigned readings e-Business challenges & strategies Chapter 6, pp 160 - 167 Business-to-Consumer (B2C) e-commerce Chapter 6, pp 167 - 171 Business-to-Business (B2B) e-commerce & e-procurement Chapter 6, pp 171 - 173 e-Government Chapter 6, pp 173 - 176 e-Commerce support services: payment & order fulfilment Chapter 6, pp 176 - 182 e-Business ethics & legal issues Chapter 6, pp 183 - 184 Information Technology for Managers BMIT5103 AGENDA • e-Business challenges & strategies • Business-to-Consumer (B2C) e-commerce • Business-to-Business (B2B) e-commerce & e-procurement • e-Government • e-Commerce support services: payment & order fulfilment • e-Business ethics & legal issues Information Technology for Managers BMIT5103 AGENDA • e-Business challenges & strategies • Business-to-Consumer (B2C) e-commerce • Business-to-Business (B2B) e-commerce & e-procurement • e-Government • e-Commerce support services: payment & order fulfilment • e-Business ethics & legal issues Information Technology for Managers BMIT5103 E-BUSINESS CHALLENGES & STRATEGIES • Dot.Com era 1995 - 2002; • e-Business & e-commerce fundamentals; • e-Business websites requirements & challenges; • e-Business models Information Technology for Managers BMIT5103 E-BUSINESS CHALLENGES & STRATEGIES DOT.COM ERA 1995 - 2002 • Dot-Com bubble inflates: 1995 - 2000; • Dot-Com bubble bursts and deflates: 2000 - 2002 Information Technology for Managers BMIT5103 E-BUSINESS CHALLENGES & STRATEGIES E-BUSINESS & E-COMMERCE FUNDAMENTALS • • • • • Business processes: Carried out and managed via networks; Service: Self-service features; Collaboration and training: Virtual or online environment; Community: Social networks Types of e-Business transactions: • • • • • Business-to-business (B2B); Business-to-consumers (B2C); Consumers-to-business (C2B); Government-to-citizens (G2C) and to others; Mobile commerce Information Technology for Managers 10 BMIT5103 AGENDA • e-Business challenges & strategies • Business-to-Consumer (B2C) e-commerce • Business-to-Business (B2B) e-commerce & e-procurement • e-Government • e-Commerce support services: payment & order fulfilment • e-Business ethics & legal issues Information Technology for Managers 30 BMIT5103 AGENDA • e-Business challenges & strategies • Business-to-Consumer (B2C) e-commerce • Business-to-Business (B2B) e-commerce & e-procurement • e-Government • e-Commerce support services: payment & order fulfilment • e-Business ethics & legal issues Information Technology for Managers 31 BMIT5103 E-COMMERCE SUPPORT SERVICES: PAYMENT & ORDER FULFILMENT • Market research for e-commerce; • Web advertising; • Representative advertising strategies online; • Electronic payments; • Security electronic payments; • Order fulfilment process Information Technology for Managers 32 BMIT5103 E-COMMERCE SUPPORT SERVICES: PAYMENT & ORDER FULFILMENT E-COMMERCE Information Technology for Managers 33 BMIT5103 E-COMMERCE SUPPORT SERVICES: PAYMENT & ORDER FULFILMENT REPRESENTATIVE ADVERTISING STRATEGIES ONLINE • Major strategies: • • • • Affiliate marketing & advertising; Viral marketing; Customizing ads; Electronic credit cards • Electronic payments methods: • • • • Electronic funds transfer, electronic checks, purchasing e-cards; E-cash - smart card, e-cash - person-to-person; Electronic bill presentment and payments; Pay at ATMs, micropayments… Information Technology for Managers 34 BMIT5103 E-COMMERCE SUPPORT SERVICES: PAYMENT & ORDER FULFILMENT ELECTRONIC PAYMENTS • Electronic bill payments: • Online banking; • Biller direct; • Bill consolidator • Security in electronic payments: • • • • • Authentication; Integrity; Non-repudiation; Privacy; Safety Information Technology for Managers 35 BMIT5103 E-COMMERCE SUPPORT SERVICES: PAYMENT & ORDER FULFILMENT ORDER FULFILLMENT Information Technology for Managers 36 BMIT5103 AGENDA • e-Business challenges & strategies • Business-to-Consumer (B2C) e-commerce • Business-to-Business (B2B) e-commerce & e-procurement • e-Government • e-Commerce support services: payment & order fulfilment • e-Business ethics & legal issues Information Technology for Managers 37 BMIT5103 AGENDA • e-Business challenges & strategies • Business-to-Consumer (B2C) e-commerce • Business-to-Business (B2B) e-commerce & e-procurement • e-Government • e-Commerce support services: payment & order fulfilment • e-Business ethics & legal issues Information Technology for Managers 38 BMIT5103 E-BUSINESS ETHICS & LEGAL ISSUES • Ethical & implementation issues; • Legal issues specific to e-commerce Information Technology for Managers 39 BMIT5103 E-BUSINESS ETHICS & LEGAL ISSUES ETHICAL & IMPLEMENTATION ISSUES • • • • • Privacy; Web tracking; Loss of jobs; Disintermediation & reintermediation; Legal issues specific to e-commerce Information Technology for Managers 40 BMIT5103 STUDY GUIDE TOPIC 06 “E-Business & E-Commerce” • Content summary: - e-Business challenges & strategies : • • • • Dot.Com era 1995 - 2002; e-Business & e-commerce fundamentals; e-Business websites requirements & challenges; e-Business models - Business-to-Consumer (B2C) e-commerce: • Leading online service industries: banking, trading of securities, employment, travel & real estate services; • Issues in e-tailing; • Online business & marketing planning - Business-to-Business (B2B) e-commerce & e-procurement: • Sell-side market places; • e-Sourcing; • e-Procurement Information Technology for Managers 41 BMIT5103 STUDY GUIDE TOPIC 06 “E-Business & E-Commerce” • Content summary (cont.): - e-Government: • e-Government in the cloud; • e-Government serves citizens with apps to curb drunken driving - e-Commerce support services: payment & order fulfilment: • • • • • • Market research for e-commerce; Web advertising; Representative advertising strategies online; Electronic payments; Security electronic payments; Order fulfilment process - e-Business ethics & legal issues: • Ethical & implementation issues; • Legal issues specific to e-commerce Information Technology for Managers 42 BMIT5103 STUDY GUIDE TOPIC 06 • Study questions: “E-Business & E-Commerce” Describe the requirements & challenges of e-business; Describe the major types of e-business transactions; Define a business model & discuss five e-business models; Describe how digital content & services can lead to significantly lower costs; Explain general features make the delivery of online services successful for sellers & buyers; Explain the major issues related to e-tailing; Determine the viability & risk of online e-tailers; Identify appropriate revenue (business) models; Discuss three online marketing planning recommendations; 10.Briefly differentiate between sell-side marketplace & e-sourcing; 11.Explain the advantage of using cloud computing as the platform for e-government; 12.Describe the major e-commerce support services; 13.Describe the issues in e-commerce order fulfilment; 14.Describe some of the online advertisement strategies; 15.List some ethical issues in e-commerce; 16.Distinguish between business-to-business forward auctions & buyers’ bids for RFQs Information Technology for Managers 43 BMIT5103 THANK YOU FOR YOUR ATTENTION ! NEXT TOPIC: MOBILE COMPUTING & COMMERCE Information Technology for Managers 44 [...]... AGENDA • e- Business challenges & strategies • Business- to-Consumer (B2C) e- commerce • Business- to -Business (B2B) e- commerce & e- procurement • e- Government • e- Commerce support services: payment & order fulfilment • e- Business ethics & legal issues Information Technology for Managers 21 BMIT5 103 BUSINESS- TO -BUSINESS (B2B) E- COMMERCE & E- PROCUREMENT • Sell-side market places; • e- Sourcing; • e- Procurement... e- procurement • e- Government • e- Commerce support services: payment & order fulfilment • e- Business ethics & legal issues Information Technology for Managers 30 BMIT5 103 AGENDA • e- Business challenges & strategies • Business- to-Consumer (B2C) e- commerce • Business- to -Business (B2B) e- commerce & e- procurement • e- Government • e- Commerce support services: payment & order fulfilment • e- Business ethics & legal... Information Technology for Managers 13 BMIT5 103 AGENDA • e- Business challenges & strategies • Business- to-Consumer (B2C) e- commerce • Business- to -Business (B2B) e- commerce & e- procurement • e- Government • e- Commerce support services: payment & order fulfilment • e- Business ethics & legal issues Information Technology for Managers 14 BMIT5 103 AGENDA • e- Business challenges & strategies • Business- to-Consumer... order fulfilment • e- Business ethics & legal issues Information Technology for Managers 26 BMIT5 103 AGENDA • e- Business challenges & strategies • Business- to-Consumer (B2C) e- commerce • Business- to -Business (B2B) e- commerce & e- procurement • e- Government • e- Commerce support services: payment & order fulfilment • e- Business ethics & legal issues Information Technology for Managers 27 BMIT5 103 E- GOVERNMENT... Business- to-Consumer (B2C) e- commerce • Business- to -Business (B2B) e- commerce & e- procurement • e- Government • e- Commerce support services: payment & order fulfilment • e- Business ethics & legal issues Information Technology for Managers 15 BMIT5 103 BUSINESS- TO-CONSUMER (B2C) E- COMMERCE • Leading online service industries: banking, trading of securities, employment, travel & real estate services; • Issues in e- tailing;... the marketing plan; Make data-driven, fact-based plans Information Technology for Managers 19 BMIT5 103 AGENDA • e- Business challenges & strategies • Business- to-Consumer (B2C) e- commerce • Business- to -Business (B2B) e- commerce & e- procurement • e- Government • e- Commerce support services: payment & order fulfilment • e- Business ethics & legal issues Information Technology for Managers 20 BMIT5 103 AGENDA... issues Information Technology for Managers 31 BMIT5 103 E- COMMERCE SUPPORT SERVICES: PAYMENT & ORDER FULFILMENT • Market research for e- commerce; • Web advertising; • Representative advertising strategies online; • Electronic payments; • Security electronic payments; • Order fulfilment process Information Technology for Managers 32 BMIT5 103 E- COMMERCE SUPPORT SERVICES: PAYMENT & ORDER FULFILMENT E- COMMERCE. ..BMIT5 103 E- BUSINESS CHALLENGES & STRATEGIES E- BUSINESS WEBSITE REQUIREMENTS & CHALLENGES • • • • • • • Availability; Accuracy & quick response; Security & PCI DSS compliance; Building competitive advantage; Integration of e- commerce systems with enterprise systems; Web analytics & intelligence software; International e- commerce Information Technology for Managers 11 BMIT5 103 E- BUSINESS CHALLENGES &... E- GOVERNMENT • e- Government in the cloud; • e- Government serves citizens with apps to curb drunken driving Information Technology for Managers 28 BMIT5 103 E- GOVERNMENT BASIC CONCETPS • Benefits of e- government are: • Improves the efficiency and effectiveness of the functions of government, including the delivery of public service; • Enables governments to be more transparent to citizens and businesses by... access to more of the information generated by government; • Offers greater opportunities for citizens to provide feedback to government agencies & to participate in democratic institutions and processes • G2C, G2B & G2G Information Technology for Managers 29 BMIT5 103 AGENDA • e- Business challenges & strategies • Business- to-Consumer (B2C) e- commerce • Business- to -Business (B2B) e- commerce & e- procurement