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1.1. Electronic Commerce and Electronic Business

1.2. Electronic commerce -Shopping on the Web -Businesses trading with other businesses -Internal company processes -Broader term: electronic business (e-business) Electronic commerce includes: All business activities using Internet technologies -Internet and World Wide Web (Web) -Wireless transmissions on mobile telephone networks Dot-com (pure dot-com) -Businesses operating only online

2. The Second Wave of Electronic Commerce

2.1. First and second wave characteristics -Electronic mail (e-mail) use First wave: unstructured communication Second wave: integral part of marketing, customer contact strategies -Revenue source #First wave: online advertising (failed) Second wave: Internet advertising (more successful)

2.2. First and second wave characteristics -Digital product sales #First wave: fraught with difficulties (music industry) #Second wave: fulfilling available technology promise -Business online strategy #First wave: first-mover advantage #Second wave: businesses not relying on first-mover advantage

3. SWOT Analysis: Evaluating Business Unit Opportunities

3.1. SWOT analysis -Strengths, weaknesses, opportunities, and threats Consider all issues systematically -First: look into business unit Identify strengths and weaknesses -Then: review operating environment >Identify opportunities and threats presented Take advantage of opportunities -Build on strengths -Avoid threats -Compensate for weaknesses

4. Strategic Business Unit Value Chains

4.1. Value chain -Organizing strategic business unit activities to design, promote, market, deliver, and support the products or services -Michael Porter includes supporting activities Human resource management and purchasing Strategic business unit primary activities -Identify customers, design, purchase materials and supplies, manufacture product or create service, market and sell

5. #Accentuated by mobile telephone based commerce (mobile commerce or m-commerce) #Smart phone technology and tablet computers have made Internet available everywhere #Internet technology integration -First wave: bar codes, scanners -Second wave: Radio Frequency Identification (RFID) devices, smart cards, biometric technologies -Increasing integration will lead to more effective B2B

6. Instead of copying model, examine business elements -Streamline, enhance, and replace with Internet technology driven processes Revenue model used today -Specific collection of business processes: >Identify customers >Market to those customers >Generate sales -Classify revenue-generating activities for communication and analysis purposes

7. Categories of Electronic Commerce

7.1. Activity -Task performed by a worker in the course of doing his or her job -May or may not be related to a transaction Transaction: exchange of value -Purchase, sale, or conversion of raw materials into finished product -Involves at least one activity

7.2. Business processes -Group of logical, related, sequential activities and transactions Web helping people work more effectively -Telecommuting (telework)

7.3. Elements of electronic commerce -Relative sizes of elements #Rough approximation -Dollar volume and number of transactions #B2B much greater than B2C -Number of transactions #Supporting business processes greater than B2C and B2B combined

7.4. Consumer-to-consumer (C2C) -Individuals buying and selling among themselves Web auction site -C2C sales included in B2C category #Seller acts as a business (for transaction purposes) Business-to-government (B2G) -Business transactions with government agencies #Paying taxes, filing required reports -B2G transactions included in B2B discussions

8. The Development and Growth of Electronic Commerce

8.1. People engaging in commerce: -Adopt available tools and technologies Internet -Changed way people buy, sell, hire, and organize business activities -More rapidly than any other technology Electronic Funds Transfers (EFTs) -Wire transfers -Electronic transmissions of account exchange information -Uses private communications networks Electronic Data Interchange (EDI) -Business-to-business transmission of computer-readable data in standard format -Standard transmitting formats benefits -Reduces errors -Avoids printing and mailing costs -Eliminates need to reenter data Trading partners -Businesses engaging in EDI with each other -EDI pioneers (General Electric, Sears, Walmart) -Improved purchasing processes and supplier relationships

9. The Third Wave Begins

10. Business Models, Revenue Models, and Business Processes