CHAPTER 13: CREATING COLLABRATIVE PARTNERSHIPS THROUGH E-BUSINESS

E-BUSINESS

l The internet is a powerful channel that presents new oppurtunities for an organization to:

- Touch customers

- Enrich products and services with information

- Reduce costs

l How do e-commerce and e-business differ?

- E-commerce - the buyingans selling of goods and servicees over the internet

- E-business - The conducting of business on the internet including, not only buying and selling but also serving customers and collaborating with business partners.

E-BUSINESS MODELS

- E-business model - an approach conducting electronic business on the internet.

E-business Tools	Definition
Business to business (B2B)	Appliers to business buying from and selling to each other over the internet
Business to consumer (B2C)	Appliers to any business that sells its products or services to any consumers over the internet
Consumer to business (C2B)	Appliers to any consumer that sells a product or service to a business oer the internet
Consumer to consumer (C2C)	Appliers to sites primarlly offering goods and services to assists cinsumers interacting with each other over the internet.

BUSINESS TO BUSINESS (B2B)

- Electronic marketplace (e-marketplace) - interactive business communities providing a central market where multiple Buyers and sellers can engage I e-business activities.

BUSINESS TO CONSUMER (B2C)

l Common B2C e-business models include:

- e-shop - a version of a retail store where customers can shop at any hour of the day without leaving their home or office

- e-mail - consists of a number of e-shops, it serves as a gateway through which a visitor can access other e-shops.

l  Business types:

- Brick and mortar business

- Click and mortar business

- Pure play business

CONSUMER TO BUSINESS (C2B)

- Priceline.com is an example of a C2B e-business model

- The demand for C2B e-business will increase over the next few years due to customer’s desire for greater convenience and lower prices.

CONSUMER TO CONSUMER (C2C)

l  Online auctions

- Electronic auction (e-auction) - sellers and buyers solicit consercutive bids from each other and prices are determined dynamically

- Forward auction- Sellers use as a selling channel to many buyers and the highest bid wins

- Reverse auction- Buyers use to purchase a product or service, selecting the seller with the lowest bid.

l  C2C communities include:

- Communities of interest- people interact with each other on specific topics, such as golfing and stamp collecting

- Communities of relations- people come together to shre certain life experience, such as cancer patients, senior citizens, and car enthusiasts

- Communities of fantasy- People participate in imaginary environments, such as fantasy football teams and playing one-on-one with Michael Jordan.

E-BUSINESS BENEFITS AND CHALLENGES

l E-business benefits include:

- Highly accessible

- Increased  customer loyalty

- Improved information content

- Increased convenience

- Increased global reach

- Decresed cost

l E-business challenges include:

- Protecting consumers

- Leveraging existing systems

- Increasing liability

- Providing security

- Adhering to taxation rules

l There are numerous advantages and limitations in e-business revenue models including:

-Transaction fees

- License fees

- Subscription fees

- Value-added fees

- Advertising fees

E-BUSINESS TOOLS FOR CONNECTING & COMMUNICATING

- E-mail

- Instant Messaging

- Podcasting

- Videoconferencing

- Web conferencing

- Content Management Systems (CMS)

MASHUPS

l  Web Mashups- a website or web application that uses content from more than one source to create a completely new service

- Application programming interface (API) - a set of routines, protocols, and tools for building software applications.

- Mashups editor - WSYIWYGS ( What You See Is What You Get) for mashups