Electronic Commerce - E-Commerce - Lecture Slides, Slides of Fundamentals of E-Commerce

Download Electronic Commerce - E-Commerce - Lecture Slides and more Slides Fundamentals of E-Commerce in PDF only on Docsity! From E-Commerce to E-Business The Convergence of Business and Technology Docsity.com Key Questions • Did e-commerce start with the Internet and the Web? • What’s the difference between “e-commerce” and “e-business”? • If the Web is so great, why did all those companies fail? • Are web services the next big thing in e- business? Docsity.com The Beginning of E-Commerce B2B B2C B2E System to Individual System to System Electronic Transactions Phone System Automation Phone System Automation Phone System Automation 1980s 1980s 1980,s Docsity.com … and the Supporting Technologies *IVR: Interactive Voice Response System B2B B2C B2E System to Individual System to System EDI IVR IVR IVR* 1980s 1980s Docsity.com The Elements of EDI • A strength of EDI is its transport & infrastructure – But it came with a price Purchased transport • highly reliable • very secure Standard documents • EDI standards • very extensive Expensive EDI • ANSI X12 • ISO 9735 • UN/EDIFACT Private network • VANs (value Added Networks) Vocabulary Transport Computer Industry in 1980s was vertical Some middleware • commonly purchased • map from one standard to another Middleware • Brokers, translators, maps Infrastruc- ture Docsity.com Evolution to E-Business B2B B2C B2E System to Individual System to System Electronic Transactions Customer Relationship Mgmt Phone System Automation Employee Self-service Phone System Automation Marketing Info E-Tailing Phone System Automation Marketing Info Customer Self-service 1980s 1990s 1980s 1990s 1990s Docsity.com … and the Supporting Technologies B2B B2C B2E System to Individual System to System EDI Internet/XML IVR Intranet/Web IVR Internet/Web IVR Internet/Web 1980s 1990s 1980s 1990s Docsity.com The Elements of Internet E- Business • Many choices, but also more challenge and responsibility Core set of base standards Must address security … and redundancy and … HTML for presentation XML for content representation Inexpensive ??? Internet A few XML vocabularies • cXML (Ariba) • xCBL (CommerceOne) • RosettaNet • ebXML https, https, SSL, ftp Firewalls, PKI Vocabulary Transport Many options built or purchased Infrastruc-ture Web servers, app servers, routers ISPs Docsity.com Internet economy poses opportunities and threats … • Transform traditional business models using IT as enabler – Compression of time & space • 30% of BancAmerica’s online customers are outside of traditional geographic area (THINK ABOUT GLOALIZATION) • Adaptec reduces manufacturing cycle from 12 to 8 weeks, slashing $10M in inventory costs • “Always open” – ‘Friction reduction’ creating new sources of economic value • Intermediation premium (e.g. broker’s fee)
• Cost of brick & mortar
• But adding market turbulence – “The Internet will change everything.” Docsity.com Market Turbulence Travel, Brokerage, Books Customer Space (Physical World) Traditional Competitor Merrill Lynch Travel Agencies Local Bookstores Internet Preview Travel Amazon.com New Customer Space Internet-Only Competitor ETrade Internet (New Channel) Sabre, Travelocity Barnes & Noble Schwab The “Actor” Courtesy: Cisco Systems Killer strategies combine e- commerce (traditional and web-based) with M- commerce_ Docsity.com The Ultimate Impact • The Internet dramatically lowers the cost of communication Potential Revolutionary Impact Financial Services Entertainment Health Care Education Government But: Privacy issues Need for additional technology (e.g. broadband, on-line bill paying) Who controls the information Likely Incremental Impact Retailing Manufacturing Travel Why? – physical factors overrule virtual Top of the line web site
$15-25M Warehouse & distribution system
$150M C o u rte s y : B u s in e s s W e e k Docsity.com Why Did the “.com” Companies Fail? • Flawed business model – Companies view the technology as their business, rather than having a business – Lose money on individual transactions • Amazon.com loses almost $3 per order on multi- product orders. They broke even in 2002. – Lack of control over supply of what they sell • Priceline.com – All the good ideas duplicated by established concerns with deep pockets and staying power Docsity.com Likely Winners @.Expediacom: WN ad amazoncom. 2 shutterfly Docsity.com Web Services – the Future? B2B B2C B2E System to Individual System to System EDI IVR Intranet/Web IVR Internet/Web IVR Internet/Web Internet/Web 2000s Internet/XML Web Services Web Services Web Services Docsity.com