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Course Overview:The objective of this course is to familiarize the students with what is different about managing in a networked economy. It will give them an insight and understanding into the world of e-commerce. Students have already learnt the importance of technology in business. This course would build upon that knowledge and help the students to understand how the business is changing with the use of technology and how new businesses are also being formed in what is being called the new information economy. Students should be able to think of and craft an effective ebusiness strategy at the end of this course.
E-commerce Defined
E-commerce involves digitally enabled commercial transactions between and among organizations and individuals Digitally enabled transactions include all transactions mediated by digital technology Commercial transactions involve the exchange of value across organizational or individual boundaries in return for products or services
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EC Payment Systems
Credit cards Electronic Funds Transfer (EFT) transfers money value from one bank account to another (uses debit card e.g. switch) Stored-value cards and E-cash digital currency used for micro payment e.g. smart cards Electronic Check Systems similar to paper-based cheque system
Advantages of E-Commerce
May increase sales:
Reach new markets. Improve promotion effectiveness (via 1:1 marketing). Lower customer service costs. Lower costs of payment processing. Lower search and other transaction costs. Provide customized price quotes. Increase purchasing opportunities for buyer (efficient market).
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Disadvantages of ECommerce
Not all products are salable on the Internet: Difficult to calculate ROI:
Perishable grocery products. Antiques. Costs and benefits hard to measure. Integrating existing databases and transaction-processing software between firms.
Impact of e-Commerce
Improving market opportunities Creation of new markets Cultural integration and melt-down Electronic cast system 2 classes: havesandhavenots Organizational transformation and redefinition
Global teams Global knowledge management
Types of EC
Business-to-business (B2B) most EC is of this type electronic market transactions between organizations. Business-to-consumer (B2C) retailing transactions with individual shoppers (amazon.com) Consumer-to-consumer (C2C) e.g selling in classified ads Consumer-to-business (C2B) individuals who sell to organizations, individuals who seek sellers. Non-business EC academic institutions, not-for-profit organizations, religious organization, social organizations, government agencies to reduce expenses (eg improve purchasing) or improve operations and customer service Intra-business EC all internal organizational activities usually performed on intranets
A business (also called a firm or an enterprise) is a legally recognized organization designed to provide goods and/or services to consumers.
Assembly Line Industrial Titans Wealth Creation Mass Production Increase in Living Standard Factories Manipulation/Competition Work Specialization Exploitation Efficiency No Customer Focus Hard Sell Decrease Costs Refining Production Productivity Gains
Relationship Era
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In side ( Seller ) HR, Training, Admin, Purchase, Finance, Logistics, Sales & Mkting , Delivery, Corporate
Organization
Demand = 0, Supply feasible (new market) Distributor Demand > Supply ?? (Emerging market) Reseller
Retail Client
Manufacturer
Wholesalers
Supplier
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1. Improving customer service and relationships 2. Improving operating efficiency 3. Reducing costs 4. Creating competitive advantage with technology 5. Applying technology to increase productivity 6. Driving accountability 7. Aligning information technology (IT) with the business strategies 8. Gain visibility into current IT performance
Buyer utility
Is there exceptional buyer utility In your business idea???
No
Think Again
yes
Price
Is your price easily acceptable to the Most of your buyers??
No
Think Again
yes
Cost
Can you attain your cost target To profit at your strategic price??
No
Think Again
yes
Adoption
What are the adoption hurdles in Achieving your business goals?? Are you addressing them up there??
No
Think Again
yes
Fantastic! This is commercially viable idea.
Architecture assists with translating business requirements into workable and holistic architectures/solutions to suit the business requirements.
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