Overview of E-Business

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Overview of E-Business by Mind Map: Overview of E-Business

1. E-Commerce: Into the Third Wave

1.1. Electronic Commerce History

1.1.1. Rapid Growth between 1990s to 2000. ''Dot-com boom'' followed by ''dot-com bust''. Overly gloomy news reports between 2000 to 2003. 2003: sign of new life. 2008 general recession. second wave continued forward. Handheld devices lend the oppurtunity for third wave.

1.2. Categories of E-Commerce

1.2.1. Dot-com, B2C, B2B: e-procurement, C2C, B2G

1.3. Differences 1st and 2nd Wave

1.3.1. Regional Scope: 1st: United States Phenomenon. 2nd: International

1.3.2. Start-Up Capital: 1st: easy to obtain. 2nd: companiesusing internal funds.

1.3.3. International Technologies Used: 1st: slow and inexpensive. 2nd: broadband connections

1.4. Third Wave Begins

1.4.1. Mobile Commerce

1.4.2. Smartphone Technology & Tablet Computers made internet available everywhere

1.4.3. Web 2.0

2. Business Models, Revenue Models And Business Processes

2.1. Business Models-set of processes combined to achieve company goal of yielding profit

2.2. Revenue Model-specific collection of business processes : identify customers, market to those customers, generate sales

2.3. Business Process

2.3.1. Purchasing raw materials

2.3.2. Converting Materials and labor into finished goods

2.3.3. Hiring and Training Employees

2.4. Merchandising

2.4.1. Combination of store design, layout and product display knowledge

3. E-Commerce: Opportunities, Caution and Concerns

3.1. Opportunities for E-commerce

3.1.1. increase sales and decrease cost

3.1.2. Virtual Community: gathering people online

3.1.3. increase purchasing opportunities

3.1.4. increase speed, information exchange accuracy

3.2. Advantages of E-Commerce

3.2.1. lower cost issue and secure

3.2.2. provides faster tranmission

3.2.3. provides fraud, theft loss protection

3.2.4. product and services are available in remotes areas

3.3. Caution and Concerns

3.3.1. Perishable foods, high costs and unique items

3.4. Disadvantanges will disappear when;

3.4.1. E-Commerce Matures

3.4.2. Critical masses of buyers become equipped, willing to buy through Internet

3.4.3. Predictability of Costs and Revenues: inherent problems

3.4.4. Technology Integration Issues

3.4.5. Cultural and legal concerns

4. Economic Forces

4.1. Commerce organizations participate in markets

4.1.1. Potential sellers come into contact with buyers

4.1.2. Medium of exchange available (currency or barter)

4.2. Organization hierarchy (flat or many levels)

4.2.1. Bottom level includes largest number of employees

4.2.2. Pyramid structure

4.3. Transaction costs

4.3.1. Total costs a buyer and seller incur While gathering information and negotiating purchase-and-sale transaction Brokerage fees and sales commissions Cost of information search and acquisition

4.4. Markets and Hierarchies

4.4.1. Coase’s analysis of high transaction costs Hierarchical organizations formed

4.4.2. Oliver Williamson (extended Coase’s analysis) Complex manufacturing, assembly operations Manufacturing innovations increased monitoring activities’ efficiency and effectiveness

4.4.3. Strategic business unit (business unit) One particular combination of product, distribution channel, and customer type

4.4.4. Exception to hierarchy trend Commodities

4.5. Network Economic Structures

4.5.1. Strategic alliances (strategic partnerships) Coordinate strategies, resources, skill sets Form long-term, stable relationships with other companies and individuals

4.5.2. Strategic partners Come together for specific project or activity Undertake variety of ongoing activities

4.5.3. Network organizations Well suited to information-intensive technology industries Electronic commerce makes such networks easier to construct and maintain Manuel Castells predicts economic networks will become the organizing structure for all social interactions Knitters organize into networks of smaller organizations

4.6. Network Effects

4.6.1. E-mail account example Provides access to network of people with e-mail accounts If e-mail account is part of smaller network

4.6.2. Internet e-mail accounts Far more valuable than single-organization e-mail

4.6.3. Need way to identify business processes Evaluate electronic commerce suitability

5. E-Commerce Opportunity

5.1. Business Processes

5.1.1. Break business down Combine to generate profits, meet firm’s goal

5.1.2. Commerce conducted by firms of all sizes

5.1.3. Firm Multiple business units owned by a common set of shareholders or company

5.1.4. Industry Multiple firms selling similar products to similar customers

5.2. Strategic Business Unit Value Chains

5.2.1. Value chain Organizing strategic business unit activities to design, produce, promote, market, deliver, and support the products or services

5.2.2. Strategic business unit primary activities Identify customers, design, purchase materials and supplies, manufacture product or create service, market and sell, deliver, provide after-sale service and support

5.2.3. Central corporate organization support activities Finance and administration Human resource Technology development

5.3. Industry Value Chains

5.3.1. Examine where strategic business unit fits within industry

5.3.2. Porter’s value system Describes larger activities stream into which particular business unit’s value chain is embedded

5.3.3. Delivery of product to customer Use as purchased materials in its value chain

5.3.4. Awareness of businesses value chain activities Allows identification of new opportunities Useful way to think about general business strategy

5.4. SWOT analysis

5.4.1. Stregths Sell Directyly to Consumers Keep costs below competitors conts

5.4.2. Weaknesses No strong relattionship with computer retailers

5.4.3. Opportunities Consumer desire for one-shopping Consumers know what they want to buy Internet could be a powerful marketing tool

5.4.4. Threats Competitors have stronger brand names Competitors have strong relationships with computer retailers

6. International Nature Of E-Commerce

6.1. Internet connects computers worldwide

6.2. Trust Issues

6.2.1. Important to establish trusting relationships with customers Rely on established brand names

6.2.2. Difficult for online businesses Anonymity exists in Web presence Difficult to determine bank size or how well established

6.2.3. Business must overcome distrust in Web “strangers”

6.3. Language Issues

6.3.1. Business must adapt to local cultures “Think globally, act locally” Provide local language versions of Web site Customers more likely to buy from sites translated into own language 50 percent of Internet content in English

6.3.2. Languages may require multiple translations Separate dialects Use translation services and software Human translation: key marketing messages High priority pages to translate

6.4. Cultural Issues

6.4.1. Subtle language and cultural standard errors Subtle language and cultural standard errors Baby food in jars in Africa

6.4.2. Select icons carefully Shopping cart versus shopping baskets, trolleys Hand signal for “OK”: obscene gesture in Brazil

6.4.3. Dramatic cultural overtones India: inappropriate to use cow image in cartoon Muslim countries: offended by human arms or legs uncovered Japan: number four is symbol of death

6.5. Government

6.5.1. Government controls in some cultures Unfettered communication not desired Unfettered communication not considered acceptable Unrestricted Internet access forbidden Impose language requirements Regularly reviews ISPs and their records

6.5.2. Internet censorship Restricts electronic commerce Reduces online participant interest levels

6.6. Infrastructure Issues

6.6.1. Internet Infrastructure Computers and software connected to Internet Communications networks’ message packets travel

6.6.2. Outside United States Government-owned industry High local telephone connection costs

6.6.3. International orders: global problem No process to handle order and paperwork

6.6.4. Freight forwarder Arranges international transactions’ shipping and insurance

6.6.5. Customs broker Arranges tariff payment and compliance

6.6.6. Bonded warehouse Secure location Holds international shipments until customs requirements or payments satisfied